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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