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L.E.D. MR16 R.O.I. Brief
 

 

 

L.E.D. MR16 R.O.I. BRIEF

COST COMPARISON TOTALS

Converting to LED lighting gives RETURN ON INVESTMENT in 3 ways:

 

ENERGY –Less power consumed. (6 watts vs. 50 watts)

 

MATERIALS –NO bulb replacement costs over at least 5.7 years.

(This equates to 50,000 hours running continuously 24/7)

 

LABOR –Maintenance and/or operational downtime costs saved over life.

 

Please note: We have not included the LABOR SAVINGS TO THIS COST ANALYSIS, however, our clients

have found significant warehousing and labor savings well beyond expectations.

Using a premium quality halogen MR16 with a maximum life span of 1000-3000 hours, you will need

25 bulb changes over 5.7 years. For an accurate cost analysis please calculate your labor

cost hourly rate and add the labor cost of changing 25 bulbs to the material cost of 25 MR16 bulbs

to arrive at your actual materials and labor cost for 5.7 years.

 

MATERIALS

-Traditional Halogen 50 Watt MR16 bulbs last 1000-3000 hours.

          (Source: Wikipedia http://en.wikipedia.org/wiki/MR16)

-50 Watt MR16 Bulbs can range from $5 to as much and more than $15.

-Light QUALITY and bulb LIFESPAN are the two primary differences between higher and lower cost.

 

For this comparison the following assumptions are made regarding USABLE LIFE/COST for 50W

HALOGEN MR16s:

2000 HRS life - $5 MR16 (conservative price / standard bulb)

 

HALOGEN ……24HRS /DAY…………..…$0.06 or 6 cents PER DAY MATERIAL COST TOTAL

…..$21.90 MATERIAL COST / 1 YEAR

 

-A DIVVALI L.E.D. MR16 using 6 Watts of power, is our proposed direct replacement.

-ZERO installation required beyond replacing the bulb with our solution.

-Cost - $30 CAN (MOQ 20 units).

-DIVVALI MR16 - 6 watt LED TOTAL LIFESPAN is 80,000 hours. At 50,000 hrs the LED unit will still be 70%

of its original brightness (30% reduced).

For purposes of this comparison 50,000 hours and 70% of original brightness will be considered the end

of usable life. It should be noted that traditional MR16 Halogen bulbs lose 30% of their original

brightness in the first 1/3 of their life span.

 

L.E.D…………24 HRS/DAY…2083 days……….$0.0164 or 1.64 cents USD PER DAY MATERIAL COST TOTAL

(TOTAL OF 50,000 USABLE HRS life - $30 / L.E.D. MR16)

…..$6.00 USD MATERIAL COST / 1 YEAR

 

ENERGY

(One KWH is 1000 watts used for 1 hour, or 1 watt for 1000 hours)

 

- Quebec’s 2008 publicly available statistics on power rates for major North American cities show:

9.08 cents per KWH average cost for OTTAWA ONTARIO ‘L’-size clients.

(Source: http://www.hydroquebec.com/publications/en/comparison_prices/pdf/comp_2008_en.pdf)

 

HALOGEN MR16– ENERGY COST FOR ONE x 50 WATT LIGHT

50 Watts x 24 hours /DAY= 1200 Watt-hours or 1.2 KWH /DAY

365 DAYS/year x 1.2 KWH = 438 KWH per year.

9.08 cents /KWH x 438 KWH (one year)

.....$39.77/YEAR ENERGY COST / 1 YEAR

 

L.E.D. MR16- ENERGY COST FOR ONE x 6 WATT LIGHT

 

6 Watts x 24 Hours /DAY= 144 Watt-hours or .144 of a KWH / DAY

365 DAYS/year x 0.144 KWH = 52.56 KWH per year.

9.08 cents x 52.56 KWH (one year)

….$4.77/YEAR ENERGY COST / 1 YEAR

 

Labor / Maintenance cost for non-LED bulb replacement

routines NOT INCLUDED and can be significant