Today s Webcast starts at 1 PM Eastern. You will not hear audio un;l the Webcast begins.

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1 Today s Webcast starts at 1 PM Eastern. You will not hear audio un;l the Webcast begins.

2 Today's Moderator Greg Zimmerman Execu&ve Editor

3 Today's Presenter Sri Rahm Senior Ligh,ng Applica,ons Specialist, GE Ligh,ng Ins,tute Sri Rahm is Ligh,ng Cer,fied (LC), a Physicist working as Senior Ligh,ng Applica,ons Specialist at GE s Ligh,ng Ins,tute in Cleveland, Ohio. He is a member of the Ligh,ng Maintenance CommiKee of the IES (Illumina,ng Engineering Society) of North America.

4 Disclosure: Today s presenter is currently employed by GE Ligh,ng, which manufactures the technology referenced in this presenta,on.

5 Learning Objec;ves: Discuss the current state of LED technology Analyze LED fixture selec,on criteria Understand the impact of energy savings on light levels and light distribu,on Iden,fy keys to ensure a fixture will perform per manufacturer claims

6 To ask ques;ons: Please use the ques;on and answer panel on the right- hand side of the screen, and send to all panelists.

7 Presenta;on Handouts All par;cipants will receive an e- mail by the end of the day with a link to download a PDF copy of today s presenta;on slides.

8 CEU Informa;on Trade Press Media Group has been accredited as an authorized Provider by the Interna;onal Associa;on for Con;nuing Educa;on and Training (IACET), 1760 Old Meadow Road, Suite 500, McLean VA 22102; (703) To successfully earn 0.1 CEUs, you must a`end the en;re webcast and earn a 70% or higher on the assessment.

9 Choosing and Evaluating LED Options for Your Building Sri Rahm GE Lighting and Electrical Institute Nela Park, Cleveland, Ohio October 2015 Imagination at work.

10 Everyone seems to want LEDs... Everyone Seems to Want LEDs Questions Is LED technology mature enough and stable enough to justify an upgrade now? On what basis do you pick a certain fixture as performing equal to or better than the existing system in the building? What does the energy-saving proposal do to the light levels and light distribution? What do you ask yourself to ensure that the fixture is going to perform as claimed?

11 Why Are They So Expensive? Wafer: The semiconductor process is conducted in ultra-clean environments under high vacuum; Metal- Organic Chemical Vapor Deposition (MOCVD) technique. Die: The wafer is cut into a die (also called a chip). Yields used to be poor, but are improving. Mounting: Individual chips are mounted on a board and gold wire leads are bonded (electrical connections are made). Sorting: Individual chips are lit and sorted by voltage, peak wavelength and intensity these emit blue light.

12 Why Are They So Expensive? (cont d) LED Package: Chips are mounted and covered with a phosphor dome to create white light. Color Binning: LEDs are lit up individually and sorted into bins by color. Seven-Step Binning is common. One Step is the minimum perceptible color difference when viewed side by side. LED Assembly: Sorted LEDs are mounted in a configuration based on the application. Optical Assembly: LEDs are placed within an optical assembly that uses a combination of reflection and refraction to obtain the desired beam pattern.

13 Why Are They So Expensive? (cont d) LED Driver: The appropriate driver is designed based on voltage and current requirement of the particular string of LEDs. Heat Sink: The appropriate heat sink is designed and tested for thermal management. LED Fixture: The entire assembly includes: LED package, driver, heat sink and optical assembly. Bottom line LED fixtures require thoughtful design and clever engineering.

14 Is LED technology mature enough and stable enough to justify an upgrade now?

15 LED Efficiency Projections and Traditional Light Sources RGB/Color Decorative White Niche Outdoor Light Indoor Light Haitz s Law Every decade: Lumens/pkg: 20x (limit ~250LPW) $/lumen: 10x High-Pressure Sodium Linear Fluorescent Compact Fluorescent Halogen Incandescent

16 Continuing LED System Advancements Premium chip designs Advanced phosphor technology Innovative thermal management Intelligent driver design, advanced electronics Advanced optical designs Integration with controls Materials engineering 16

17 On what basis do you pick a certain fixture as performing equal to or better than the existing system in the building?

18 How does the energy-saving proposal affect the light levels and light distribution?

19 What do you ask yourself to ensure that the fixture will perform as claimed? Lumens Watts Life

20 Questions to Ask Your Vendor/Supplier On what basis do you claim a 50,000-hour life? How much actual life testing have you done? Have you done stress testing, thermal cycling, etc.? Do you have data from a certified lab on lumen output and color? (LM-79 report) Is your fixture DLC listed?

21 Who makes your drivers? How long have you been in business as a company? Who has used your fixtures? Do you have data on test sites for this fixture? What is the longest this fixture has been burning at a site? Do you have customer testimonials for this particular fixture?

22 Finally, after being satisfied with: Fixture specs and reliability data The trustworthiness of the company The appropriateness of the suggested upgrade The plans for installing the upgrade the time has come to examine the financials:

23 Payback Model vs. Life-Cycle Costing (also called cost of ownership)

24 The Drawbacks of Payback Payback looks at a 2-/3-/4-year interval, and is not interested in what happens after that. Payback essentially ignores the long life and long-term benefits of LEDs. Payback also focuses on dropping light levels and buying cheaper fixtures. If a customer is only concerned with payback, they can achieve it by simply unscrewing half the bulbs in their fixtures.

25 What Other Metrics Are Better Than Payback? Long-term ROI (not ROI as the reciprocal of payback) Life-cycle costing (annualized cost of ownership) Net present value (NPV) over a 10-year time frame And how about looking at the visual appearance benefits, modernization, better color and better light distribution?

26 Need to Include Maintenance and Labor Savings Many calculations only look at energy savings. Added attraction of LEDs: no maintenance!

27 Need to Include HVAC (air conditioning) Savings Every watt reduction in lighting reduces A/C costs by another one-third watt when the A/C is running (approximately). Even greater savings with refrigerated cases and cold storage.

28 Need to Include Disruption Costs Every time a lamp or ballast fails, there is significant disruption to a facility s operation. Since LEDs have long life and zero maintenance, the reduced disruption is a main reason people are attracted to LEDs. Often the disruption costs are not accounted for only the labor to replace a lamp is considered. Example: Street repair contracts are often awarded to the lowest bidder, ignoring disruption costs, cost to society.

29 Need to Include Commercial Benefits LEDs in an office building may increase occupancy rates and rental income. Before After

30 Need to Include Commercial Benefits Example: A 3% improvement in rental income would equate to a $365,000 increase in the capital asset value of the building. Therefore, a $120,000 investment in an LED upgrade would lead to a $365,000 increase in the value of the building. (Based on an expected 3% improvement in rental income from improved occupancy and higher rent per square foot.)

31 Need to Include Commercial Benefits LEDs in retail may improve sales. LEDs in manufacturing may increase productivity.

32 Need to Include Commercial Benefits Improvement in appearance is important, but difficult to quantify.

33 Life-Cycle Costing Annualized Opera;ng Costs HID vs. LED $250,000 $200,000 $150,000 $100,000 A/C Added Cost Ballast Lamp Fixture Energy $50,000 $- HID vs. LED

34 Life-Cycle Costing Annualized Opera;ng Costs Fluorescent vs. LED $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 A/C Added Cost Ballast Lamp Fixture Energy $5,000 $- Fluorescent vs. LED

35 Energy Savings MVR 400/U What does this lamp cost? One lamp costs more than $900 in electricity over its life. (at 10 cents per kwh)

36 What Does an Average 4-Foot T8 Fluorescent Lamp Cost? A typical T8 costs more than $150 in electricity to operate over a 50,000-hour life. Even if you save 1 watt per lamp, it pays for the cost of the fluorescent lamp ($5). (1 watt x 50,000 hrs. x $0.10 per kwh = $5)

37 Conclusions Based on overall cost to own and operate the system, LED is almost always the most economical lighting system. LEDs will use less energy and need no maintenance environmentally correct solution. Initial cost of LED may be offset as a capital improvement. Asset value, rental value, CAP value, tenant attraction, occupancy rates, etc., are all increased.

38 Conclusions When buying LED fixtures, do not make a decision that you will regret three or four years later due to product failure. If the change is cost-justified today, it is worth doing. No one has regretted upgrading to LEDs unless they have encountered product failures.

39 Conclusions Ask: If the space did not currently have lighting, what lighting system would you choose today? The answer is almost invariably LED! You can only wait so long for LED prices to come down, or you will be waiting forever. Sooner or later you will bite the bullet and replace with LEDs.