Commercial LED Retrofit: ROI Calculator & Payback Analysis
Calculate the ROI of switching to LED lighting. Covers energy savings, maintenance reduction, rebate impact, and real payback periods for commercial buildings.
Switching from traditional lighting (fluorescent, metal halide, HPS) to LED is the highest-ROI energy upgrade available for commercial buildings. Here's how to calculate your savings.
Energy Savings by Fixture Type
| Old Fixture | LED Replacement | Energy Reduction |
|---|---|---|
| 400W Metal Halide High Bay | 150W LED High Bay | 63% |
| 250W Metal Halide Wall Pack | 80W LED Wall Pack | 68% |
| 1000W Metal Halide Flood | 300W LED Flood | 70% |
| 4-lamp T8 Fluorescent Troffer | 40W LED Troffer | 50% |
| 32W T8 Fluorescent Tube | 18W LED Tube | 44% |
| 150W HPS Wall Pack | 50W LED Wall Pack | 67% |
| 100W HPS Area Light | 50W LED Area Light | 50% |
The Hidden Savings: Maintenance
LED fixtures last 50,000-100,000 hours vs 10,000-20,000 for HID. This eliminates:
- Re-lamping costs: $50-$200 per fixture (material + labor + lift rental)
- Ballast replacements: $30-$100 per fixture every 3-5 years
- Disposal costs: Fluorescent tubes require hazardous waste disposal
- Downtime: No production interruptions for lighting maintenance
For a 100-fixture facility, maintenance savings alone can be $5,000-$15,000/year.
ROI Formula
Simple payback = (Total LED cost - Rebates) ÷ Annual savings Total annual savings = Energy savings + Maintenance savingsReal Example: 50,000 sq ft Office Building
Current: 200 x 4-lamp T8 troffers (128W each with ballast)
- Current consumption: 200 × 128W = 25.6kW
- Annual energy cost @ $0.15/kWh, 3,000 hours: $11,520
- Annual maintenance: $3,000
LED Upgrade: 200 x Auvolar 40W LED Troffers ($49 each)
- New consumption: 200 × 40W = 8kW
- Annual energy cost: $3,600
- Annual maintenance: $0
| Amount | |
|---|---|
| Fixture cost | 200 × $49 = $9,800 |
| DLC rebates | 200 × $30 = -$6,000 |
| Net investment | $3,800 |
| Annual energy savings | $7,920 |
| Annual maintenance savings | $3,000 |
| Total annual savings | $10,920 |
| Simple payback | 4 months |
| 5-year net savings | $50,800 |
| ROI (5-year) | 1,337% |
Payback Periods by Building Type
| Building Type | Typical Payback (with rebates) |
|---|---|
| Warehouse / Distribution | 2-6 months |
| Office building | 3-8 months |
| Retail store | 4-10 months |
| Parking garage | 3-6 months |
| School / University | 4-12 months |
| Manufacturing plant | 2-6 months |
| Restaurant | 6-12 months |
Financing Options
Can't invest upfront? Consider these options:
How to Get Started
The average commercial LED retrofit pays for itself in 3-8 months. With DLC rebates and Auvolar's wholesale pricing, many projects achieve payback in under 3 months.
Need Help With Your Lighting Project?
Auvolar provides free lighting design, photometric layouts, and rebate assistance for commercial projects.