LUX RESEARCH Better Lighting Reduces Energy Costs and Carbon

8/7/2019 LUX RESEARCH Better Lighting Reduces Energy Costs and Carbon

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2009 Lux Research Inc.

Copyright strictly enforced

Better lighting reduces energy, costs, and carbon

Lighting is a massive energy consumer but is among the least efficient of all building

systems. Fortunately, technologies exist or are on the horizon that will fix the situation.

Lighting Is Responsible for a Huge Percentage of Growing Energy Use, but Is a Necessary

Evil

Buildings consume nearly 40% of the worlds primary energy and 75% of its electricity. In total, 4.8% ofglobal primary energy 5.3 trillion kWh (1.6 trillion kWh of electricity), and 4.5% of carbon emissions 360million tons/year, is directly used to provide illumination for buildings in the developed world. Consideringthe developed world in isolation, building lighting represents 8% of primary energy consumption but becauseALL lighting is dependent upon electricity it amounts to 34% of electricity consumption. Within residentialstructures, 31% of electricity (18% of total energy consumption) is used for lighting, while 44% of electricity(25% of total energy) is used for lighting in commercial including industrial space and warehouses andgovernment space. In addition, because present lighting systems also give off tremendous amounts of heat,lighting adds 20% to 40% to the building heating loads that, in turn, require removal by air-conditioningsystems, further adding 0.35 trillion kWh/year to lightings energy footprint. Therefore, in total, includingboth the direct and indirect energy used for lighting, lighting is responsible for 7 trillion kWh/year of primaryenergy consumption and 432 million metric tons/year of energy and carbon emissions.

And the stage is set to get far worse as building energy use leaps ahead of industry and becomes the leadingcontributor to increasing global energy consumption. In total, there are over 728 billion ft2 of building floorspace in developed world alone, and that number is anticipated to grow by approximately 11.3 billion ft2 eachyear through 2020. As such, the energy used for lighting is expected to increase by 16% by the end of the

decade if nothing changes.

Lighting Is Critical for a Variety of Applications, Each of Which has Its Own Requirements

Before charging ahead with a description of lighting applications and their impact on energy use, it isimportant to understand the basic tenets of lighting and how the human eye perceives light. By far the threemost important factors for a lighting system are brightness, light quality, and color:

Brightness is measured in lumens The power of light as perceived by the human eye. It differsfrom simple light output power in that it is adjusted by the varying sensitivity that the human eye hasfor different wavelengths of light the photopic sensitivity curve. It is least sensitive to wavelengthsat the edges of the visible portion of the spectrum 700nm deep red and 400nm violet and peaks at555nm green.

Light quality is measured in terms of the ability of a surface illuminated by a lamp to appear

as though it was illuminated by sunlight. Quality is denoted by Color Rendering Index (CRI) on a 1to 100 scale, where 100 represents perfect sunlight. Although perfect sunlight quality light is notrequired, most applications particularly general illumination do require lamps with a minimum CRIof 60, but more usually a CRI in excess of 80 is used.

Color is measured as a coordinate in the chromaticity diagram that represents all the colors

and mixtures of colors that the human eye perceives. Pure monochromatic colors falls at theperiphery of the chromaticity diagram and mixtures of colors such as purple falls in the interior.White light falls as a locus of points the Planckian locus at the center surrounded by warmer


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redder whites with color temperatures of2,500 Kelvin (K) (representing the color of a blackbody at2,500 K), sunlight white with color temperatures of 4,870 K, and colder bluer whites (see Figure 3).

Lighting is used in both building interiors and exteriors for a variety of applications from the most basic andfunctional, such as general illumination and task lighting, to the more whimsical including exteriorarchitectural faade lighting and decorative lighting. Without doubt, adequate lighting is an absolutely criticalto each and every building space to ensure the comfort, productivity, and even health of occupants. In total,buildings generate and consume 59,000 trillion lumen hours of light per year, of which 76% are used inresidential buildings; 18% in commercial, industrial, and warehouse space; and 7% in government and publicbuildings including churches, hospitals, schools, and local, state, and national government structures. Notonly does the amount of light vary by building type, but the quality, quality and color also vary by application(see Figure 4):

General illumination fulfills the basic need to see in an interior space.

General illumination refers to the white light as opposed to colored used to illuminate buildinginteriors. Each square foot of building interior requires an average brightness of 27 lumens. Asidefrom brightness, quality and color are also important. The absolute minimum color quality used has a

CRI of 60 corresponding to older and poorer fluorescent lighting but far most general illuminationsources are in excess of 80 CRI with 90 CRI preferable. In many applications, the ability to dim thelight is also a desired feature one that not all lamp technologies are capable of fulfilling.

For the purposes of this report, general illumination is generally split into two basic sub-categories;low bay lighting and high bay lighting that include pendent lights, recessed lighting, under-cabinetlighting, and track lighting used for room illumination. Low bay lighting is used in areas where thelighting fixture luminaire is less than 20 feet above the ground. High bay is used in interior areaswith high ceilings mostly in industrial locations, large retail and wholesale outlets, and warehousingspace where the bottom of the light fixture is more than 20 feet above the floor. As such, high baylighting requires higher intensity light sources to provide the adequate lumens per unit area below,which in turn impacts the lamp technology chosen.

Task lighting provides light where its needed for an occupant to perform a specific function.

Task lighting refers to lighting focused on a relatively small area and used to increase local brightnessand improve contrast needed for reading and the performance of office and manufacturing work.Task lights typically use high-color quality lamps with a CRI in excess of 90 and are deployed in deskand floor lamp fixtures.

External faade and decorative is used widely but has little.

Decorative and external faade lighting represents both white and colored light used to illuminatethe outside buildings, doorways, and front doors and has no functional purpose outside of increasingthe attractiveness of the building to occupants, customers, and passers-by. Decorative lighting is alsoused in building interiors usually in retail, hotel, restaurants, or other commercial buildings to livenup space or set mood. For the purposes of this report, we also included lighting used to displaymerchandise and food within stores in the decorative category.

Fig. 1: The Amount of Light Generated and Energy Used Is Dominated by Residential BuildingsTotal Lighting Needs (trillion

lumenhours/year)

Direct Lighting

Energy (billion kWh)

Decorative and external faade 2,317 29

General Illumination residential 42,000 1,312


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General Illumination commercial, industrial, government,

and public (low bay) 8,417 142

General Illumination

commercial, industrial, government,and public (low bay) 4,340 73

Task, reading, and desk lamps (all building types) 373 28

Unfortunately, Standard Lighting Systems Are Inefficient and Unintelligent

The overall efficiency of an artificial light sources actually referred to as luminous efficacy because it takesinto account the eyes spectral response curve is the ratio between the total luminous flux lumens emitted by a lamp and the total amount of input electrical power that it consumes. The highest theoreticallighting efficacy is 683 lm/W for a monochromatic green light source emitting at 555nm. For a lightingsource with a CRI greater than 90, that value is 251 lm/W. However, on average, light is generated at 36

lm/W today. Thus, if lighting were 100% efficient, the energy required would be 220 billion kWh for whitelight, which would amount to only 14% of the energy directly consumed today. However, this figure isoverinflated because artificial lighting, and hence lighting energy, is used even in when there is adequatenatural lightingreferred to as daylighting, or when there are too few or no occupancies in the space that is

illuminated. If artificial light were generated and used only when and where it was needed, the energy usedwould drop a further 60%. The implication is that present lighting systems in their entirety are a mere 8%efficient, and even this doesnt take into account the nearly 70% of the energy losses associated withgenerating and distributing electricity.

Legacy Lamps Fall Short in Terms of Efficiency, but Are Proven and Inexpensive

Legacy lamps are those that have been in the marketplace for decades and that, because their associatedinfrastructure is entrenched in existing buildings, constitute the vast majority of lumens produced per annumand include incandescent bulbs, T-12 and T-8 linear fluorescent tubes, halogen lamps, and metal halide (highintensity discharge lamps). Legacy lamps are far from theoretical efficacy limits and have already beeneclipsed in terms of efficacy (and quality, in the case of older fluorescent lamps) by new models or advancedlighting technologies in the labs or in the early phases of commercialization.

Incandescent bulbs are the stereotypical light bulb, but are terribly inefficient.

The incandescent lamp bulb, the classic stereotypical light bulb first developed by Edison in the19th century, passes an electric current through a resistive refractory metal filament tungsten thatheats to a high temperature and emits light. The filament is enclosed in a glass bulb which containseither a vacuum or an inert gas to prevent oxidation of the hot filament. These bulbs are made in avariety of sizes and voltages, from 1.5 volts to about 300 volts, and require no external regulatingequipment, have a low manufacturing cost, and work well on either alternating current (AC) or directcurrent (DC). Because of their low upfront cost and high light output, the cost of produced light isexceptionally low. Because these lamps produce high-quality white light CRI > 90 and are

dimmable they are the predominant light source in the residential market despite incredibly poorefficacy and a short lifetime.

Halogen lamps are a slight improvement over traditional incandescent, but arent as widely

used because of elevated temperature.

A halogen lamp is an incandescent lamp in which a tungsten filament is sealed into a compacttransparent envelope filled with an inert gas and a small amount of a halogen such as iodine orbromine. The combination of the halogen gas and the tungsten filament produces a chemical reactionknown as a halogen cycle that increases the lifetime of the bulb and prevents its darkening, and


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thereby burnout, by re-depositing tungsten from the inside of the bulb back onto the filament. Thefirst developments in this technology came in the mid-1800s, and in 1959 General Electric patented apractical lamp using iodine.

The halogen lamps filament operates at a higher temperature than a standard gas-filled lamp ofsimilar power without loss of operating life, which gives them a higher efficacy (10 lm/W 30 lm/W)than conventional incandescent lamps, but still falls far short of the theoretical maximum. Thehalogen lamp also gives light of a higher color temperature bluer white light compared to a non-halogen incandescent lamp, and lasts longer than the traditional bulb. Because of their smaller size,halogen lamps can advantageously be used with optical systems that are more efficient. Despite someof the advantages of halogen lamps over traditional incandescent bulbs, they are not as widely usedbecause of the high temperatures that they generate, bluer white light, and higher costs.

T-12 and T-8 linear fluorescent bulbs are the work horses of commercial, industrial, and

government building lighting.

A fluorescent lamp passes an electrical current through a low-pressure mercury vapor to form a glowdischarge plasma. The excited atoms produce ultraviolet light that then causes a phosphor coating on

the inside of the bulb to fluoresce, creating visible light. Fluorescent lamps are negative differentialresistance devices, meaning that as more current flows through them, the electrical resistance of thefluorescent lamp decreases and allows even more current to flow. When connected to a constantpower supply, a fluorescent lamp would rapidly self-destruct due to the uncontrolled current flow.To prevent this, fluorescent lamps must use a ballast that provides a positive resistance or reactancethat regulates the current flow through the tube.

The first fluorescent bulbs were commercialized in the 1920s and are widely used today in allbuilding types, with the exception of residential buildings and even this is changing with the adventof compact fluorescent bulbs discussed later, because of their high luminous efficacy relative toincandescent bulbs and their long-lived operation. The T12 lamp is a 12/8- inch diameter tubularlamp first commercialized in 1930s, followed by thinner and more efficient T8 lamps 8/8-inchdiameter (1-inch diameter) tubular lamps that became popular in the 1980s. T12 and T8 lamps are

the most prevalent source of general illumination lighting in commercial, industrial, and governmentbuildings because of their lower total cost of light. They enjoy this cost advantage because the higherefficiency for T12 and for T8 lamps and long hour-life nearly 10 times longer than an incandescent outstrips the higher upfront capital cost.

Metal halide high-intensity discharge (HID) lamps.

A high-intensity discharge (HID) lamp is a type of electrical arc lamp that produces light by means ofan electric arc between tungsten electrodes housed inside a translucent or transparent fused quartzor fused alumina arc tube. The tube is filled with both gas and metal salts that facilitate the arc'sinitial strike. Once the arc is started, it heats and evaporates the metal salts forming a plasma, whichgreatly increases the intensity of light produced by the arc. The incredible brightness achieved bythese lamps tens of thousands of lumens per lamp coupled with long life and low cost havehistorically made it the ideal source for high bay and exterior illumination.

Fig. 2: Conventional Lamps Have Poor Efficiency but Are InexpensiveTechnology

Efficacy

(lm/W)

Lamp cost

($/klm) CRI

Lifetime

(hours) Manufacturers

Incandescent lamps 16 0.3 98 - 100 1,220

General Electric Company,

Philips, Osram Sylvania


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Halogen 20 4 98 3,000



T12 and T8 fluorescent tubes 60 90 4 75 - 90 9,000 General Electric Company,Philips, Osram Sylvania

High intensity discharge

(HID)/metal halide 83 8 60 - 80

5,000

24,000



Although There Have Been Strides in Improving Bulb Efficiency, Substantial Room for Improvement Remains

Although the various flavors of older incandescent and gas discharge lamps still dominate, newer fluorescentlamps with improved efficiencies are gaining traction. Although adoption is accelerating, they still contributea small proportion of the total light output and remain far from theoretical light output maximums:

Compact fluorescent lamps (CFLs).

CFLs were originally introduced to the market in the early 1980s, and despite some early hiccupsthat gave less-than-optimal light quality and lower-than-anticipated lifetime, the technology hastaken off robustly in recent years, aided by lower costs now about $1/kilolumen and regulationsthat are forcing the phase-out of older incandescent bulbs. CFLs operate on the same physicalprincipals as their older brethren, the linear florescent lamp. Like conventional fluorescent tubes,CFLs are similarly high-efficient (at 60 lm/W) and long-lived (15,000 hours as opposed to only2,000 hours for a standard incandescent lamp). Although there are significant differences in details ofthe phosphors, ballasts, and other components used in or in conjunction with CFLs, the majordifference between CFLs and linear fluorescent lamps is that the fluorescent tube is curled into asmall form that allows the CFL to be screwed into the socket designed for conventional incandescentlamps.

T5 fluorescent bulbs.

Improving upon T8 and T12 lamps, the T5 line 5/8-inch diameter tubular of lamps has become anincreasingly popular product family in fluorescent lighting since being introduced into the market in1995. Developed in Europe in the early 1990s, the technology took a while to catch on due to itsbeing more expensive than the T8 lamps. However, with the introduction of high-output (HO) T5bulbs in 1998, the technology began to take off, touting twice the lumen output per length of bulb ofT8 lamp lines. Currently, T5 bulbs are capable of 104 l/w and lifetimes of 16,000 hours. Thetechnologys increased efficiency is due to its peak light output occurring at 95 F (35 C), more than20 higher than T8 bulbs (see Figure 7).

Fig. 3: The Amount of Light Produced by Different Lamps Varies by ApplicationPercent of Light Generated, by Lamp Type

Decorative and

external facade

General

illumination

residential

General

illumination

commercial,

industrial,

government and

public (low bay)

General

illumination

commercial,

industrial,

government and

public (high bay)

Task, reading,

and desk

lighting

Incandescent and

halogen lamps 10% 55% 0% 0% 100%


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Compact

fluorescent (CFL) 0% 45% 0% 0% 0%

T12 and T8fluorescent tubes 30% 0% 60% 37% 0%

T5 fluorescent

tubes 20% 0% 38% 25% 0%

High-intensity

discharge

(HID)/metal halide 35% 0% 0% 38% 0%

Other advanced

lamps, including

LEDs 5% 0% 2% 0% 0%

Fortunately, New Technologies Set the Stage to Dramatically Slash Energy Use

Despite the relatively low rate at which the lighting space historically has adopted new technologies,innovation in the space has accelerated. These advanced technologies entering the market or in the latestages of development have the capacity to radically decrease the energy expended and carbon generated onlighting while maintaining or even enhancing performance.

With Accelerated Price Depreciation Expected, Light Emitting Diodes Lead Next-Generation Lighting

Candidates

Light-emitting diodes (LEDs) are solid-state semiconductor devices that emit light at a wavelength dependentupon the semiconductor material in which they are composed when a low-voltage DC electrical current ispassed. LEDs emitting in the deep red to amber portion of the spectrum were developed as early as the 1970s

and used in display and signaling applications, but itwasnt until the mid 1990s when white LEDs werecommercialized by Nichia soon after it demonstrated the first viable blue emitting compoundsemiconductor chip InGaN and realized that adding a yellow phosphor Ce:YAG to the chip surfaceproduced a cool, white hue. Developments over the past decade have accelerated light output per lamp,increased efficiency, and dropped costs at exponential rates demonstrated by the empirical Haitzs law LEDcosts decrease by 20x while light output increases by 10x every decade that have propelled LEDs out oftraditionally small LCD backlighting, signaling, and display applications into conventional lighting.

LEDs efficacies and lifetimes are hugely compelling and improving rapidly.

Todays best white commercial LED lamps have efficacies as high as 100 lm/W. Cree announced a160 lm/W lamp launching by the end of 2010, while best white light lab tests this past spring haveshown efficacies as high as 208 lm/W tantalizingly close to the 250 lm/W physical limit for whitelight, and twice as great as the best commercial fluorescent lamp. In addition, single-color LEDs are

even more efficient because they dont require a down-converting phosphor like the white LEDs do.While commercial LED screw-in replacement lamps are equivalently as efficient as CFLs, the rate ofprogress will tilt the scales in favor of LEDs over the next few years. At the same time, the lifetime ofthe devices is far greater than that of any other lamp type. Standard 350mA ultra-high brightnessLED lamps last more than 50,000 hours, with some lines lasting more than 100,000 hours, whichrepresents two orders of magnitude improvement over incandescent bulbs and an order ofmagnitude improvement over fluorescent lamps.

Costs are dropping as efficiency increases light output and reduces cooling requirements.


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LEDs Achilles heel is cost. Presently, LEDs costs are high because of the combination of chips plusluminaires replete with reflector cups, control electronics, optics, and heat sinking costs. Hence, theupfront costs of $50-110/kilolumen is far higher than other light sources. With that said, two factors

blunt that stunning cost: 1) the greater efficiency and longer life decrease the effective lifetime cost ofLEDs; and 2) constant efficiency improvements are pushing up light outputs per LED, which alsoreduces ancillary costs by simplifying optics and reducing the number of chips required for a givenlamp light output while reducing heat sinking requirements. In addition, economies of scale arekicking in as LEDs are adopted in ever more markets including large-screen LCD backlighting thatare reducing LED chip costs, driver costs, and assembly costs. In the last year alone, somemanufacturers, such as Lemnis Lighting, have dropped prices from $50/lamp to $25/lamp andexpect to reach the Holy Grail for mass adoption of less than $10/lamp by 2012.

Light quality is improving, while ability to dim make it a winner.

Although the initial and most predominant white-light LEDs produce a cool white with a bluish hue(8,000 K CCT), many if not most consumers in the U.S. and the EU prefer white light with colortemperatures of 2,000-3,000 K (warm white) and 4,800 K (like midday sunlight). Fortunately, theadvent of Eu:Nitride and other red phosphors have enabled those warmer colors with only a slightefficacy hitcompared to cool white LEDs. In addition to the advent of more preferred colors, thecolor quality has improved to CRI> 90 while the ability to dim from nearly zero output to full outputhas distinct control advantages over fluorescent lamps.

LEDs are beginning to penetrate the building lighting space.

Because of the costs and recent arrival of LED technology, the market penetration into generalillumination and high bay lighting is slim, butits slated to grow quickly as costs drop andperformance improves. With that said, LEDs are well positioned to move into task lighting. However,it is really the decorative and exterior faade lighting where the unique color effects, dimming,longevity, and form factor made possible by LEDs makes them the most compelling option.

Earlier-stage Lighting Options Continue to Make Progress

While LEDs are slowly penetrating interior lighting applications, earlier-stage technologies at the lab and

commercial introduction stages offer increasingly interesting advantages. While many of these technologiesare still years away from effectively competing with conventional or LED lighting, breakthroughs at any timecould result in a major disruption on the lighting space.

OLEDS offer high-potential solution to lighting, but still years away.

Organic light-emitting diodes (OLEDs) are similar to conventional LEDs in that they produce lightfrom an electrical current passing through a semiconductor. The difference is that the semiconductorcomprises either small organic (carbon-based) molecules or polymers. OLEDs are deposited and emitlight over a large area, allowing for some unique lighting applications, including glowing ceiling orwalls. In the lab, OLEDs achieve a relatively high efficiency of 70 lm/W, which is improving rapidly ona yearly basis. However, as a general illumination source, OLEDs remain a lab curiosity, and as aresult, costs are largely guesswork at this point, though they certainly lag conventional LEDs, and

device lifetimes arent nearly as high as those of LEDs, specifically because of degradation of blueemitters. With that said, interest in the technology remains strong, led by large and small companiesalike, including General Electric, Universal Display, Plextronics, and Cambridge Display, and Add-Visions. Due to its early stage of development, OLEDs are currently relegated to consumer electronicsapplications where it is used in applications like morphed key pads. In a more long-term scenario,OLEDs are being considered for flat and flexible display applications.

High-efficiency plasma lamps are an alternative to conventional high-brightness lamps.


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Plasma lamps are electrode-less lighting solutions that generate light by exciting plasma inside aclosed transparent bulb using radio frequency (RF) power. The technology was invented in the early20th century by Nikola Tesla. Recent developments by several companies have improved lamp

lifetime that plagued earlier models demonstrated to operate over 40,000 hours due to lack ofelectrode degradation. The lamps also have fast turn-on and are capable of high efficiencies, and theyoffer high-quality light capable of CRIs between 60 and 90. Continued development into constrainingthe RF waves within the lamp and generating RF power at low cost is being undertaken in order tocommercialize this technology. Due to the current high cost, companies like Luxim and Ceravision areinitially targeting application in high value applications like high bay and ceiling lighting as well asdecorative lighting.

Fig. 4: Advanced Lamps Have Greater Efficiencies and Longer Lives without Sacrificing Color QualityEfficacy

2010 (lm/W)

Lamp Cost

2010 ($/klm) CRI

Lifetime

(Hours) Manufacturers

CFL 50

75 2 75-95 8,000

General Electric Company, Philips,

Osram Sylvania

T5 fluorescent

lamps 75 104 4 75-95 10,000


Osram Sylvania

Light emitting

diodes (LED) 60 100 50 - 110 70 - 90 50,000


Osram Sylvania, Cree, Nichia,

Toyoda Gosei, Luminus Devices,

Lemnis Lighting, Bridgelux

OLEDS 70 (lab) NA 80 NA


Universal Display Corporation,

Lumiotec, Kodak, Philips, Lomox

RF & microwave

coupled plasma

lamps 90 (lab) 50 est. 90

25,000

(est.) Luxim, Ceravision

Adding brains to lighting systems further decreases energy use while maintaining or improving comfort

Present lighting systems do not take into consideration ambient lighting conditions, the number (or evenpresence) of people in a space, the location of people within a space, or the lighting requirements for a giventask. At most, lighting systems may be coupled to simple occupancy, motion sensors, or timers, but rarely dothose technologies provide adequate control or the right amount of light when and where it is needed. Inshort, the lack of brains within lighting systems wastes a huge amount of energy. However, there are a

number of companies that have sprung up over the last decade marketing smart lighting technologies thatcouple sensors light level sensors, motion, occupancy, ultrasonic, and thermal sensors to software thatactively dims or turns on/off lamps or changes the transparency of dynamic windows (the level of shading) toprovide light at optimum levels. These technologies include wired technologies like that proffered byEncelium, and wireless control technologies form Lutron, Adura, and Accuity brands. Other specialized firmslike Redwood Systems focus on powering and controlling low-voltage LED lighting within buildings. In allcases, the potential for energy savings is enormous. Although the installation and capital costs range from$4/ft2 to 10/ft2, between 50% and 70% of light reduction are possible while improving the lightingconditions for occupants.


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While Adoption Hurdles Exist, an Upcoming Shift Will Yield Energy, Carbon, and Cost

Savings

Although many building-related technologies, including lighting technologies, have faced daunting adoptionhurdles in the past because of the industrys need for short payback periods necessitate low upfront capitalcosts for any change and the inherent conservatism of construction companies when it comes to newtechnologies, there is a palpable shift underway, particularly for adoption of efficient lighting technologies:

Regulatory changes and government facility adoption give lighting solutions a boost.

The U.S. governments stimulus package saw increased investment in building energy efficiency as

well as new lighting technology. With governments adoption of new energy efficiency and carbonmanagement policies, lighting technologies are likely to see even quicker adoption cycles. Currently,energy efficiency and carbon policies are sprouting in developed countries across Europe and NorthAmerica.

Energy Services Companies are facilitating adoption with comprehensive assessments.

Along with regulatory changes that either force or incentivize building owners to increase the

efficiency of their properties, business models, including building energy management services andEnergy Service Companies (ESCOs), are making the adoption of energy efficiencies easier for thebuilding owner. Due to the sometime overwhelming numbers of technologies and complex nature ofutility rating structures, companies like Chevron and Honeywell currently offer installation of energyconservation measures to building owners offering potential solutions for increased energyefficiency and identify and evaluate different energy-savings opportunities, develop and manageengineering designs, coordinate financing, and train staff for ongoing services. Generally, updatinglighting systems represents the fastest and most cost-effective method of reducing energy bills andincreasing efficiency almost always favorable to updating mechanical systems and far more cost-effective than retrofitting the building envelope and, as such is emerging at the forefront of greenbuilding projects.

New financing models make adoption easier for home owners.

First adopted by the city of Berkley, California in 2008, Property Assessed Clean Energy (PACE)bonds are loans granted to property owners to finance energy efficiency retrofits. The propertyowners then repay the loans over 20 years via an increased property tax tied to the mortgagepayment on the house. PACE bonds are offered to both residential and commercial building ownersand can be issued by municipal financing districts or financing companies. With the institution ofsuch programs to install more efficient lighting solutions, property owners are able to reduce theirutility bills essentially making up for the increased property tax. While PACE bonds and otherfinancing solutions have mainly been used in the adoption of residential solar applications, they mayalso be a power tool in transitioning lighting from a consumable product to a capital good in thecoming years.

Without Implementation of Efficiency Technologies; Lighting Energy, Carbon, and Costs Will Rise in

Lockstep by 16% by 2020

There is already a total of 728 billion ft2

of combined residential, commercial, and government floorspace inthe developed world that uses on average 27 lumens/ft2 of general illumination, implying a grand total of60,000 trillion lumen hours generated per year around the world. As such, the world uses a total of 1.58trillion kWh of electricity for lighting per year. On top of that, air conditioning systems with an average COP of5 require 350 billion kWh of energy to remove the heat from the interior of the space directly generated bylighting, for a grand total of 1.9 trillion kWh/year; all of which is electricity that accounts for $209 billion ofcosts and 300 million metric tons of carbon emissions. However, even that staggering figure is set to rise ifenergy generation, lighting technology, and even HVAC technologies are not implemented (see Figure 8):


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Fig. 5: Direct and Indirect Energy Uses Vary by Building Type, Assuming No Change in LightingTechnologies

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

2010 2020

Energy

(Billion kWh)

Residential - Direct lighting energy Residential - Indirect lighting energy

Commercial & Industrial - Direct lighting energy Commercial & Industrial - Indirect lighting energy

Government & Public - Direct lighting energy Government & Public - Indirect lighting energy


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Fig. 6: Direct Lighting Energy Reductions by Application

Efficient Lighting Slashes Total Lighting Energy Use and Associated Costs and Carbon by

60% in 2020

As we have seen, the implementation of more efficient lamps and controls for the various building lightingapplications directly reduces input electrical energy in addition to the indirect amount of energy used toremove waste heat using air conditioning systems. When looking across all building and applicationcategories and sum direct and indirect lighting energy use, we find that, in aggregate, 1.3 trillion kWh ofenergy will be saved in 2020 from the 1.8 trillion kWh of direct and 0.36 trillion kWh of indirect energyconsumed; 60% lower than what the energy usage would be without the adoption of efficient lightingtechnology. Those energy savings in turn amount to $143 billion in 2020 $119 billion of savings for directlighting energy and account for 297 million metric tons of carbon 248 million metric tons of carbon fromdirect lighting energy savings that will not be released into the atmosphere a significant 3.7% of the total

anthropogenic carbon emitted in 2009. Moreover, lighting efficiency is set on a trajectory that will actuallyreduce 2020 lighting energy use from the 2009 figure by 52%. The total effect will shrink the percentage ofelectricity used by building lighting by nearly 20% and shrink the total electrical demand by 15%.

0.00.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Energy

(trillion kWh)

Total direct lighting energy

Residential general illumination

Commercial, industrial, government & public general illumination

Task lighting

Decorative & external


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Fig. 7: Cost Savings Accrue Rapidly as Lighting Energy Bills Shrink

0

20

40

60

80

100

120

140

2008 2010 2012 2014 2016 2018 2020 2022

Energy cost savings

(Billion $)

Direct cost savings


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Fig. 8: Direct Carbon Emissions from Lighting

0

50

100

150

200

250

300

350

400

2008 2010 2012 2014 2016 2018 2020 2022

Direct carbon savings

(Billion metric tons)

Direct carbon

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LUX RESEARCH Better Lighting Reduces Energy Costs and Carbon