Canadian Electrical Industry News Week

 

Industrial LightingCalculating the return on investment is an important part of any lighting replacement effort. This walk-through will help you determine the total return on your investment.

Please keep in mind that this calculation is intended as a general one. You may have additional expenses or benefits above and beyond those listed here, and should exercise good judgment when deciding whether or not to add those factors to the equation.

The equation

The equation for calculating payback is actually quite simple: it's determining the variables that provides the real challenge, and so each variable is discussed in detail below. Otherwise:

(A + B + C + D) - (E + F + G) = Total Payback on Investment

A: Reduced energy bills

A modern lighting system should be able to provide a predictable reduction in your current energy bills.A lighting audit will let you know how often lights should be used in each area, and from there you'll need to examine your current costs, then compare those costs to what you'll see each month in savings from your new lamps.

This calculation should reflect the full expected lifetime of two installations of your new lamps, but notreplacements past that point. Taken far enough, you could theoretically achieve infinite savings, but the goal of this equation is to limit things to a practical level.

Don't forget to take other bills (such as lowered use of cooling systems because of the reduction in heat generation) into account.

B: Benefits and subsidies

Many utility companies — and occasionally the government — offer incentives for switching over to new, more efficient lamps.These could include tax breaks, rebates, free lamps, or a number of other rewards.

Either way, you'll need to pay attention to your options and be sure to maximize these as much as you can. The total amount is likely to be much less than the value of A, but it's worth considering.

C: Improved health and efficiency

Proper illumination has a demonstrated effect on employee health and morale.This is a variable that's very difficult to quantify. Talk to a lighting replacement expert about their past observances and accept that this will, at best, be an estimate.

D: Reduced maintenance costs

You'll still be paying for maintenance, but modern lighting arrays cost far less to maintain than outdated ones.Be sure to add the savings you'll see (from maintenance visits that never happen) to the calculation of your ultimate payback.

E: Up-front installation costs

This will be one of the biggest expenses of the replacement plan.It includes parts, labour, and your loss of productivity while workers are busy switching things out. If this number turns out to be higher than A — or even anywhere close to A — then look for ways to decrease the primary costs and make the installation plan more affordable. This shouldn't be an issue if you had a professional estimate done.

Include the second set of lamps in this category, since they're being used in this equation.

F: Interest and fees

If you took out a loan to pay for the installation, then you'll need to pay interest on that amount until it's paid off.Add in the estimated amount of interest for the lifetime of the loan, as you'll need to subtract this from the final total.

G: Waste from previous system

Removing old lighting arrays before they've completely burned out means receiving less than 100% use from them, and that's an outright loss for your company.This cost will be relatively small, but you will be losing at least a small percent (and possibly a much larger one) of the money paid for the current lighting arrays. Factor this into the ultimate payback on your investment.

Final considerations

Finally, one last thing to consider before you run this equation: LED lamps and other new lamps have a drastically longer lifespan than all other types of lamps currently used in your business.

Offering a 100,000 hours lifespan or more, this can translate to over 10 years of service in an industrial setting, or even more if the lamps won't be on at all times.

You may want to run the calculation with just one installation of lamps if you know the new lighting system you require, and if not you can focus on a 10-year payback period instead, with however many alternative lamps will be needed to reach that point.

Both are viable ways of running this calculation for your new industrial lighting system.


 

Adam Hicks is Eriks UK's industrial lighting design expert. This article first appeared as a blog at http://knowhow.eriks.co.uk/calculating-the-payback-of-an-new-industrial-lighting-system

 

Changing Scene

  • Prev
  Siemens Canada has appointed Faisal Kazi as President & CEO of Siemens Canada ...
  This acquisition builds on Danatec’s 30+ year history of delivering regulated ...
  This year, Nova Scotia Power is investing nearly $4 million dollars to ensure the hydro ...
  The Port of Montreal estimates that the shore power project will eliminate 2,800 tonnes ...
  The next chapter in Allanson International’s partnership with the Impact Centre has ...
  The Irma Energy Connection between Irma Wind Farm and Alberta Electric System Operator ...
  Until recently, keeping track of this number has been a matter of simply adding new ...
  Electricity Human Resources Canada (EHRC), in partnership with the Government of ...
  “Electric vehicles are the future, and we want to help make Nova Scotia ready for ...
The SmartFlower is more compact and attractive than traditional solar panels. The face of the ...

Clean Energy 

Canada and Sweden are setting up a new global Technology Collaboration Program (TCP) under the International Energy Agency (IEA) to promote leadership roles for women in clean energy.

The establishment of the Clean Energy Education and Empowerment TCP (C3E TCP) was announced during the recent 8th Clean Energy Ministerial (CEM8) meeting in Beijing. It builds on the successful C3E initiative created by member governments of the CEM in 2010. Shown in photo: Jim Carr, Minister of Energy, Canada (left), and Ibrahim Baylan, Minister for Policy Coordination and Energy, Sweden.

 

Read More: Advancing Women in Clean Energy 

Codes and Regulations Brought to You by the CSA Group

  • Prev
  Unauthorized CSA Group certification marks have been found on wiring by Triumph Cable ...
In this article: Section 52 — Diagnostic imaging installations. The CE code is a ...
In this article: Section 46 — Emergency Power Supply, Unit Equipment, Exit Signs, and ...
  In this article: Section 44 — Theatre Installations. The CE Code is a ...
CSA has published C22.2 No. 60947-7-3, the harmonized standard for low-voltage switchgear and ...
  Electric welders. The CE Code is a comprehensive document. Sometimes it can seem ...
  In this article: Section 40 — Electric cranes and hoists. The CE Code is a ...


Tools for the Trade

  • Prev
  Greenlee has taken their standard storage boxes to the next level with the limited ...
  The SureTest circuit analyzers "look behind walls" to identify wiring problems that can ...
  The Ideal Dispenser is equipped with high-quality adhesive and 3 mil thickness that ...
  The Adjustable cable stripping tool has an intuitive blade design that allows users to ...
  The SIMpull CoilPAK completes the SIMpull Circuit Management System, taking heavy, ...
  The Javelin is a new product that makes drilling holes through stud walls easier. ...
  Focus is one of the most important aspects of thermography, and an out of focus image can ...
  Ideal Precision Levels are designed for both conduit and regular level applications. The ...
  The ET130 is an easy-to-use precision light meter with single-handed operation to monitor ...

Product News

  • Prev
  The Thinline BLTL suspended is ideal for architectural, commercial, and retail lighting ...
  Nemalux GSLEDIP48 (46.19” [1173 mm]) fixtures are durable and robust with a ...
  The eel UltraThin LED Recessed Luminaire fits where no other recessed fixture can… ...
  iCANview Remote Scene Control Software (iCANview-SC) is ideal for supervisory offices and ...
  The L194T8 is a 19-watt linear LED lamp is UV and IR radiation free, minimizing ...
  The Eiko LED HID replacement is a great energy saving LED for various ...
  The StanPro CLR-L is a retrofit plate that comes complete with an IP68 rated LED module ...
  The ESA Series of adjustable and wall-wash lighting, with impressive lumen packages ...
  The Audacy Light Sensors detect ambient light in a designated space and send measurements ...
GRAFIK T is the latest innovation in Lutron’s CL family of products. The simple, ...

Peers & Profiles

  • Prev
Mike Marsh, President and CEO of SaskPower, has been a leading figure in Saskatchewan’s ...
Gordon MacDonald is a cheerful, driven individual who loves to be challenged, a trait that suits ...
  Most of us have a difficult enough time managing one job and a home life. However, some ...
  Since 2012 Barnstormer has advanced the abilities of their brewery with the installation ...
  Electrical Industry Canada was recently given the unique opportunity to see ...
  Vickery Electric has been providing electrical services to the Whitby area since 1923, ...
Safety standards in the electrical industry are constantly evolving, which requires that ...
Newman Electric was founded in 1995 and has established itself as a leading electrical contractor ...
Schneider Electric, a global specialist in energy management and automation, today announced ...
New York City’s Queens-Midtown tunnel is the latest lighting project to be undertaken by ...

Panel Builder

Is your business involved in the design, specification, build, installation and commissioning of control panels and systems? If yes, take the survey to receive a $5 Tim Horton's e-gift card.

Kerrwil Publications Limited, in conjunction with its soon to be launched Panel Builder Insights Newsletter, beginning in October 2017, is surveying the Canadian Panel Building sector. In this regard, we have a few basic questions we hope you can answer. For your time, we are offering a Tim Horton’s e-gift card valued at $5 (e-gifts will be sent to your email within 24-48 hrs of survey completion). The survey should take no more than 5-10 minutes.

 Take the survey here: https://www.surveymonkey.com/r/Panelbuilder

Subscribe to Panel Builder Insights at, http://subscribe.panelbuildersystemsintegrator.ca/

 

Copper $US Dollar price per pound

Kerrwil Publications

538 Elizabeth Street, Midland,Ontario, Canada L4R2A3 +1 705 527 7666
2016 All rights reserved

Use of this Site constitutes acceptance of our Privacy Policy (effective 1.1.2016)
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Kerrwil