• Joe’s Grocery Store uses about 7,000 kWh in electricity each month.
  • He enjoys a low fixed rate of 9.5 cents per kWh but he wants to reduce his energy costs without paying any money upfront.
  • If he can reduce his annual electricity expense by about $2,000 that would be the equivalent of doing more than $60,000 in increased sales for the year.
  • He is approached by a representative who explains the LED program to him.
  • Joe’s 50 traditional fluorescent lights are replaced with high efficiency LED bulbs reducing his overall electricity consumption by 16%.
  • Even paying a higher rate for the electricity for the next two years, the reduction in electricity consumption creates a small savings in the supply costs, and a large savings in the delivery costs.
  • Also, the LED lighting is warrantied for two years, so he doesn’t have to change his bulbs twice a year like he was doing before – saving him money on maintenance.
  • Over two years the LED program save him almost $5,000 (about 12%) overall while providing the grocery store with better, safer, brighter, more durable and more beautiful lighting.
  • His customers and employees love the way the store is lit and he enjoys even more sales as a result.
  • Over five years, Joe’s Grocery will save almost $15,000.
  • He accomplished all this with no out of pocket costs at all and the representative has the satisfaction of knowing she helped a small business customer save money and improve his business.
Current Electricity Bill: New Electricity Bill After Installing LED Lighting providing 16% reduction in consumption SAVINGS
Monthly Usage (kWh) 7,000 5,880
Rate for Supply $0.095 $0.110
Supply Charges $665.00 $646.80
Rate for Delivery $0.136 $0.136
Delivery Charges $952.00 $799.68
Total Charges $1,617.00 $1,446.48
Annual Charges $19,404.00 $17,357.76 $2,046.24
# of Times/Year Bulbs Changed 2 0
# of Fluorescent and Incandescent Bulbs 50 50
Average cost of traditional bulbs $3.00 No Cost
Maintenance Expense on Current Lighting: $300.00 $0.00 $300.00
Total Cost of Electricity and Maintenance/ Year $19,704.00 $17,357.76 $2,346.24
TWO YEAR CONTRACT TOTALS and SAVINGS: $39,408.00 $34,715.52 $4,692.48
Year 3 Rate is reduced creating another $1,100 a year in total savings 3 Year Estimated Savings $8,097.12
Total Upfront (out of pocket) Cost: ZERO 5 Year Estimated Savings $14,906.40

Examples of Energy Efficiency Analyses:

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