Lifecycle Costs of the Luminaires
Lifecycle cost comparisons between lighting alternatives were hardly needed when new luminaires were purchased in the days of old technology. The custom was to budget a certain amount of funds, which would be used for purchasing a certain number of luminaires. However, the cost structure of LED luminaires differs significantly from older lighting technology, which calls for new calculation models and budget principles.
LED luminaries differ in:
- Energy consumption
- Maintenance costs
- Product lifespan
- How the lighting is achieved
Lifecycle Cost Calculation
When precise lifecycle cost analyses are required, complex procedures with present value calculations are often necessary.
However, in most cases, more straightforward calculations will suffice. The luminaires are installed, maintained and they keep using electricity. Energy and labour costs can be expected to rise. If we presume that the increase in labour and energy costs compensate the effect of the rates, lifecycle cost calculation becomes less complicated. It becomes understandable and adequate in order to do sound purchase decisions. The rule of thumb is sufficient, if the costs of the alternative luminaires are known:
We must also note that the white light of the LEDs requires less light than the yellow light of the discharge lamps. Furthermore, LED luminaires with white LEDs render all colours, whereas discharge lamps and fluorescent tubes only render some colours well. Depending on the colour, objects can be seen much further away in white LED light compared to e.g. high-pressure sodium light.
However, in most cases, more straightforward calculations will suffice. The luminaires are installed, maintained and they keep using electricity. Energy and labour costs can be expected to rise. If we presume that the increase in labour and energy costs compensate the effect of the rates, lifecycle cost calculation becomes less complicated. It becomes understandable and adequate in order to do sound purchase decisions. The rule of thumb is sufficient, if the costs of the alternative luminaires are known:
- The real power used from the electrical grid
- The luminaires have the same luminous flux in the same location (if the distance between poles differ -> a wider calculation)
- Costs of mass replacements of luminaires; labour and bulbs
- Maintenance costs between mass replacements of luminaires (an estimated 10-20% traditional luminaires break down between mass replacements); labour and bulbs
We must also note that the white light of the LEDs requires less light than the yellow light of the discharge lamps. Furthermore, LED luminaires with white LEDs render all colours, whereas discharge lamps and fluorescent tubes only render some colours well. Depending on the colour, objects can be seen much further away in white LED light compared to e.g. high-pressure sodium light.
Calculation Example
In the example below, the energy price is 0,1€/KWh (energy and transmission) and the luminaires are used 4500 hours per year. The luminaire alternatives are chosen to represent typical technological features to produce similar lighting. However, the energy efficiency and maintenance costs of Valopaa luminaires cannot be generalised to apply to all LED luminaires.
The example assumes that the HQL luminaires will not be replaced or in use by the end of the decade. A more precise table of the calculation can be found on the bottom of the page. It should further be noted that if the LED luminaire is controlled by an intelligent LED light system, energy costs are typically halved, which has not been noted in the calculation.
The example assumes that the HQL luminaires will not be replaced or in use by the end of the decade. A more precise table of the calculation can be found on the bottom of the page. It should further be noted that if the LED luminaire is controlled by an intelligent LED light system, energy costs are typically halved, which has not been noted in the calculation.
Graph: Cumulative costs with mean average of lifecycle costs with various lighting technologies.
The results present clearly that the annual costs of quality LED luminaires are, in fact, considerably lower after the initial purchase in comparison to older technologies. Good LED luminaires are superior in lifecycle cost-efficiency. The results also indicate that old mercury streetlights can be replaced by quality, long-lived LED street lights with the costs of four years. Thereafter the LED luminaires save about €0.50 per each old watt.
NB! This calculation is an example. The real costs vary according to market prices. However, the calculation is precise enough to provide estimates of total costs. The prices and costs are based on average estimates from our customers.
NB! This calculation is an example. The real costs vary according to market prices. However, the calculation is precise enough to provide estimates of total costs. The prices and costs are based on average estimates from our customers.
| | Unit | HQL-125W | SPNa-70W | Metal Halide 50W | Valopaa LED 35W |
| Input Power | KW | 0,16 | 0,08 | 0,58 | 0,035 |
| Purchase price and installation | € | 0 | 140 | 165 | 330 |
| Energy costs / year | € | 72 | 36 | 26 | 16 |
| Mass replacement | €/vuosi | 12 | 10 | 20 | 0 |
| Repair costs | €/vuosi | 10 | 10 | 15 | 3 |
| Costs at purchase | € | 0 | 140 | 165 | 330 |
| Costs after: | | | | | |
| 1 year | € | 94 | 196 | 226 | 349 |
| 2 years | € | 188 | 252 | 287 | 368 |
| 3 years | € | 282 | 308 | 348 | 386 |
| 4 years | € | 376 | 364 | 409 | 405 |
| 5 years | € | 470 | 420 | 471 | 424 |
| 6 years | € | 564 | 476 | 532 | 443 |
| 7 years | € | 658 | 532 | 593 | 461 |
| 8 years | € | 752 | 588 | 654 | 480 |
| 9 years | € | 846 | 644 | 715 | 499 |
| 10 years | € | | 700 | 726 | 518 |
| 20 years | € | | 1260 | 1387 | 705 |
| 30 years | € | | 1820 | 2003 | 890 |