## Energy Savings Calculation

**How to Calculate Energy Savings of Incandescent Lights Vs. LED**

**LED (light-emitting diode) lights can save you significant amounts of money, while helping to save the environment. LED lights offer a zero-maintenance lighting alternative that provides equivalent illumination to incandescent bulbs, with environmentally safe components, at a lower wattage. LED lights also emit considerably less heat than their incandescent counterparts and last longer, which saves replacement costs and inconvenience.**

**Instructions**

**1. Estimate the average number of hours per day you have any particular bulb on.**

**2. Decide how many incandescent bulbs you will be replacing with LED lights. Also, note the wattages of the incandescent bulbs.**

**3. Find out your cost per kilowatt-hour from your electric company. This figure should be on your electric bill, or you can call the electric company. **

**4. Calculate the daily cost of the incandescent bulbs using the following formula:**

**Cost(incandescent) = [(hours per bulb x number of bulbs x wattage per bulb) / 1,000] x Cost per kilowatt-hour**

**As an example, say you replaced eight, 60-watt bulbs, that are turned on eight hours per day, with electricity costs 12 cents per kilowatt-hour:**

**Cost(incandescent) = [(8 hours/bulb x 8 bulbs x 60 watts) / 1,000] x $.12/kw-hr**

**Cost(incandescent) = 3.84 kw-hr x $.12/kw-hr**

**Cost(incandescent) = $.46/day**

**To calculate the expense on a yearly basis, multiply that figure by 365, for a yearly cost of $167.90**

**5. Perform the same calculation as in Step 4, except use the LED light's equivalent wattage. For a 60 watt incandescent bulb, the LED wattage equivalent would be six watts:**

**Cost(LED) = [(hours per bulb x number of bulbs x wattage per bulb) / 1,000] x Cost per kilowatt-hour**

**Cost(LED) = [(8 hours/bulb x 8 bulbs x 6 watts) / 1,000] x $.12/kw-hr**

**Cost(LED) = 0.384 kw-hr x $.12/kw-hr**

**Cost(LED) = $.046/day**

**To calculate the expense on a yearly basis, multiply that figure by 365, such that the yearly cost is $16.79**

**6.**

**Subtract the yearly cost of each bulb to calculate total yearly energy savings:**

**Yearly Savings = Yearly Cost(incandescent) - Yearly Cost(LED)**

**Yearly Savings = $167.90 - $16.79**

**Yearly Savings = $151.11**