There are several ways commercial building owners or managers might consider upgrading on the electric side, and one of the most common and popular such upgrades is the commercial lighting retrofit. Designed to help you improve both aesthetics and costs in terms of lighting, this retrofit generally involves an upgrade to LED lights from a previous type, plus possibly a few other related areas.
At Orange Electric, we’re happy to offer numerous commercial electrical services, including lighting installation from our quality electricians. We’ve assisted numerous clients with an LED commercial lighting retrofit, and can easily sit down with you to explain the potential benefits of such an upgrade for your business. This two-part blog will evaluate all the relevant factors to consider.
LED Retrofit Basics
Simply put, an LED retrofit is the addition of new LED lights to replace previous lighting systems that were less efficient and less aesthetically pleasing. LED stands for light-emitting diode, a semiconductor light source that uses far less energy and lasts much longer than incandescent light sources.
LEDs are used in numerous industries and applications, including everything from automotive areas to medical devices. In your business, though, they serve as a far more efficient and practical upgrade over most existing lighting systems.
Our next several sections will go over why this is the case.
For many business owners, the primary benefit of an LED lighting retrofit will be cost savings. You’re looking most closely at return on investment (ROI) here – how quickly and easily will you be able to recoup the value of what you paid for the retrofit?
In the case of a commercial LED retrofit, the answer tends to be very quickly. It usually only takes a couple years for a building owner to save enough on lighting costs and decreased maintenance needs that they’ve completely recouped their investment, and these benefits continue to showcase themselves every year after this.
Deductions and Incentives
In addition to simply spending less on your daily lighting costs, a retrofit also provides several potential financial incentives for business owners:
- Energy Policy Act of 2005: Allows business owners to deduct $0.60 per square foot for installing energy-efficient lighting, for which LED lights qualify.
- Bonus depreciation: Business owners will qualify if their lighting assets have a life of 20 years or less.
- Rebates: Utility companies often offer rebates for energy-efficient lighting installations, meaning a single LED retrofit in your commercial building might bring you multiple areas of savings in one fell swoop.
To learn more about all the potential benefits of a commercial lighting retrofit to upgrade to LED lights, or for information on any of our commercial electrician services, speak to the staff at Orange Electric today.