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ROI & Savings

Commercial Building LED Lighting Upgrade: ROI Analysis by Building Type

ROI analysis for LED lighting upgrades in offices, warehouses, retail, schools, and healthcare. Payback periods, savings, and rebate estimates.

February 28, 2026Auvolar Engineering Team9 min read

LED Lighting Upgrade ROI by Building Type

Different building types have different lighting profiles, operating hours, and electricity rates — which means dramatically different ROI calculations.

Quick ROI Summary

Building TypeTypical PaybackAnnual Savings10-Year Savings
Warehouse6-12 months$7,000-$15,000$70K-$150K
Office (50K sf)12-18 months$5,000-$12,000$50K-$120K
Retail10-16 months$4,000-$10,000$40K-$100K
School8-14 months$8,000-$20,000$80K-$200K
Healthcare12-20 months$10,000-$30,000$100K-$300K
Parking Structure4-8 months$15,000-$40,000$150K-$400K

Warehouse: Fastest Payback

Warehouses see the fastest ROI because they use high-wattage fixtures (400W HID → 150W LED = 63% savings) and often operate 12-24 hours/day.

Example: 100,000 sf warehouse, 24ft ceilings
  • Current: 150 × 400W HID = 60kW
  • LED: 150 × [150W UFO High Bay](/p/ufo-high-bay-light-hba-series) = 22.5kW
  • Hours: 12/day, $0.12/kWh
  • Annual savings: $19,700
  • Project cost (after rebate): $11,000
  • Payback: 6.7 months

Office: Steady Savings

Offices replace fluorescent troffers — lower per-fixture savings but large quantities add up.

Example: 50,000 sf office
  • Current: 400 × 64W fluorescent troffers = 25.6kW
  • LED: 400 × [40W LED Troffers](/p/panel-light-a-sfpl) = 16kW
  • Hours: 10/day, $0.14/kWh
  • Annual savings: $4,900
  • Project cost (after rebate): $6,000
  • Payback: 14.7 months

Parking Structure: Highest % Savings

With controls (occupancy + daylight), parking garages see 70-80% energy reduction.

Example: 500-space garage, 200 fixtures
  • Current: 200 × 175W HPS = 35kW, 24hr operation
  • LED + controls: 200 × 60W LED, effective avg 30W = 6kW
  • Annual savings: $30,500
  • Project cost (after rebate): $12,000
  • Payback: 4.7 months

Factors That Improve ROI

  • Higher electricity rate → faster payback
  • Longer operating hours → more kWh saved
  • Higher rebates → lower net cost
  • Section 179 tax deduction → 21-37% additional savings
  • Reduced maintenance → no re-lamping labor and materials
  • Ready to Calculate Your Building's ROI?

    [Use our ROI Calculator →](/tools/roi-calculator) or [get a custom quote →](mailto:sales@auvolar.com)
    LED lighting upgrade ROIcommercial LED retrofit ROILED payback periodbuilding LED upgrade cost

    Need Help With Your Lighting Project?

    Auvolar provides free lighting design, photometric layouts, and rebate assistance for commercial projects.