Cost Benefit Analyses of Energy Efficient Technologies Available for Use in Roadway Lighting

Presenters: Gary A. Swanson, PEEnergy Management Solutionsand John Paulson, City of Hutchinson

Moderator: Mary Sue Lobenstein

February 20th, 2014

……with funding fromwith funding from

the Minnesota Conservation Applied Research and Development (CARD) Grant Program

Info on this projectInfo on this project

• What did it accomplish?• How it can be useful to utility CIP

managers?• Report available at DER website:

mn.gov/commerce/energy-roadway-leds

Brief presentation by John PaulsonBrief presentation by John Paulson

• City of Hutchinson

SummarySummary

• Introduction to LED Lights• What to look for and look out for in Lighting• 10 Step How to Manual for LED Lights• Economic Evaluation• Excel Tool Available• What’s Next?

Introduction to LED Lights (Induction Too)Introduction to LED Lights (Induction Too)

• 13 Million Road way lights in USA • 487,000 in Minnesota (many time more for

smaller streets and parking lots)• LED Shoe Box• LED Acorn• LED Cobra Head

Sizes And TypesSizes And Types

• Many Types and Sizes TodayHID – High Intensity Discharge Lights Metal Halide (White light) High Pressure Sodium (Yellow Light)

400, 250, 175 Watts most common sizes

Why LED or Induction?Why LED or Induction?

• Last Longer - 50,000 to 100,000 hoursLess maintenance costSafer if lights don’t fail as often

• Saves Energy – 50% to 75% of the energy• Brighter Looking Light• Better options for Controlling

Dimming Part time lighting controlInstant On with interruption of power

Why Consider LEDs TodayWhy Consider LEDs Today

• There are now hundreds of options for Lights

• Costs are coming down dramatically• Quality and consistency have

increased• Efficiencies are increasing• Net Result are improved paybacks

Are LEDs Right for You?Are LEDs Right for You?

• 10 Step How-To Manual• Economic Evaluation• Look at all Options• Test Lights – “Seeing is Believing”

Step 1 – New language Step 1 – New language

• Understand the New Terms• Important to Know the Differences

Coefficient of Utilization (CU)Color Rendering Index (CRI)EfficacyCorrelated Color temperature (CCT)

• See page 3-6 of the report

Step 1 (Cont’d)Step 1 (Cont’d)

• Existing Lighting SourcesMetal Halide (MH)High Pressure Sodium (HPS)

• New Lighting SourcesLED or Light Emitting DiodeInduction

Step 2 – Who to Select?Step 2 – Who to Select?

• There are hundreds of vendors• Many calling with the “Best in the

Market”• Work with reputable companies

They will still be there when you have problemsThey will have similar products and color matchesMore reliable and better warranty

Step 3 – Compare Apples to ApplesStep 3 – Compare Apples to Apples• Complete the Roadway Lighting Form and

send to selected Manufactures• This will help them give you options for

similar productsSome manufactures have 54 options of lights

• New Lighting FixturesInclude mounting costs and options

• Review Retrofit OptionsMore options and lower costs

Base Roadway Form Base Roadway Form

Forms – Diagram AForms – Diagram A

Form – Diagram BForm – Diagram B

Form – Diagram CForm – Diagram C

Average Maintained Illumination GuidelineAverage Maintained Illumination Guideline

Average Maintained Illumination GuidelineAverage Maintained Illumination Guideline

Step 4 – Compare DataStep 4 – Compare Data

• Review Useful Life, Operating Temperature and Lumen Depreciation

Most important life factor is thermal managementL70 will show hours it will take for LED to reach 70 % of lighting levelsLife time is important – will range from 50,000 to 100,000 hours – read fine print. Hours of lamps or drivers – based on X hours per day

Discrepancy of distribution and glare between HID and LED roadway lights. Source: LED Roadway Lighting

““Seeing is BelievingSeeing is Believing””

Step 5 – Review Photometric ReportsStep 5 – Review Photometric Reports

• AGi32 – is standard independent light simulation software that all manufactures should have to simulate their lights

• Avoid comparing to Manufactures software

Important that all are simulated the same to compare anticipated lighting outputs

Step 6 – WarrantyStep 6 – Warranty

• Average warranty is 3-5 years• Important to see how manufacture will

match replacement lights/modules when LEDs are changing every 6 months.

Warranty for lumen output not just failed light?Warranty for color shifting?

Step 7 – ControlsStep 7 – Controls

• Controls are changing dailyDimming DaylightMotion Timed Illumination Individual Lights Wireless controls and programmable Save 25% more energy

Step 8 – EconomicsStep 8 – Economics

• Evaluate economics of lights to see if payback is acceptable. (See Payback Analysis Sheet)

Can range from 3 to 10 yearsBe sure to include discounts from rebates Local utilities (up to 50%), state and federal (up to 25%)

Make sure to use avoided cost of energy and not average cost of energy ($/kWh) No demand components (kW) at night Off Peak energy rates (kWh) Fuel Cost Adjustment Riders

Step 8 (Cont’d)Step 8 (Cont’d)

A spreadsheet calculator as well as the guidelines and diagrams A, B, & C shown earlier are available:mn.gov/commerce/energy-roadway-leds

Existing Light250 Watt MHActual Watts

290Hours4250Cost for Electricity ($/kWh)

0.06$ LED Watts128Cost of Fixture

300.00$ WATTS Saved162kWh Saved

688.5Energy $ Saved41.31$ Maintenance Saved Yearly6.53$ Total Saved per Year

47.84$ Simple Payback (Years)6.27 Cost of Maintenance

Cost of HID Lamp20.00$ Cost to install lamp75.00$ Hours for HID Lamp

20,000Cost per year20.19$ Cost per Year for LED

Hours70,000 Cost of LED

150Installation75Cost per Year for LED

13.66$

Simple Payback AnalysisExisting Light250 Watt MHActual Watts

290Hours4250Cost for Electricity ($/kWh)

0.06$ LED Watts128Cost of Fixture

300.00$ WATTS Saved162kWh Saved

688.5Energy $ Saved41.31$ Maintenance Saved Yearly6.53$ Total Saved per Year

47.84$ Simple Payback (Years)6.27 Cost of Maintenance

Cost of HID Lamp20.00$ Cost to install lamp75.00$ Hours for HID Lamp

20,000Cost per year20.19$ Cost per Year for LED

Hours70,000 Cost of LED

150Installation75Cost per Year for LED

13.66$

Simple Payback Analysis

Step 9 – Test Lights FirstStep 9 – Test Lights First

• Test in pairs to get true impact of lights• Test for 4 weeks• Many Manufactures will let you test their

fixtures for free for 90 days• Make sure to order mounting brackets if

needed and correct voltage

Step 10 – Measure ResultsStep 10 – Measure Results

• Lumens can be measured before and after

• LEDs will have different characteristicsPupil Lumens, (S/P)0.78, Photopic

• Evaluate glare to see if adversely impacting area

Options to ConsiderOptions to Consider

• Leasing vs BuyingMany utilities such as Xcel energy offer an option to lease the fixture, energy only, or lease pole/fixture.Advantages are that you don’t have to take care of the fixtureDisadvantages are that it will cost you more and you will continue to payNeed to work with utilities on costs if using LED since energy costs will be less

For Utility CIP ManagersFor Utility CIP Managers

• Street Lights are many times the highest cost a city has to pay for energy.

One city spent $300,000 in street lighting and only $50,000 for all other energy used. Cutting street lighting costs by 50% can reduce energy budget by 43%.Maintenance costs by 80%

For Utility CIP ManagersFor Utility CIP Managers

• Consistent lighting can provide bring positive attitude to city

• Less outages means less calls, less headaches and more safety for the city

• Can save 50% of the energy without controls and 75% with controls

• New controls can be added later

For Utility CIP ManagersFor Utility CIP Managers

•Select criteria for qualifying products under customer-owned rate codes•Can be used to help meet CIP goals

Any QuestionsAny Questions

Presented by: Gary A. Swanson, PEEmail Address: gswanson@EMSenergy.comPhone Number: (612) 819-7975