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|Monday, May 19, 2014|
BY CLIFF HOCKLEY | OB CONTRIBUTOR
Every year we waste over 57% of the energy we import or generate in the form of leaks and unused heat. As energy costs continue to rise small increases in the cost per kWh can mean hundreds more on your energy bill. Switching to more efficient and durable lights, like LED lighting, will reduce energy consumption, increase the lifetime of your lighting, and reduce your environmental impact so your property can run smoother, simpler and brighter.
Longevity is the first category to explore when comparing lighting methods. In a test reported in the 2011 Energy Efficiency Annual Report by the New England Gas Company, the Phillips Ambient LED 12.5 watt A19 indoor bulb, a common LED light, was tested against the CFL GE Energy Smart 13 watt bulb. The bulbs were comparable in efficiency, but the LED lasted 17,000 hours longer than the CFL. You would need three CLF bulbs to match the longevity of the 25,000 hour lifetime of the LED. When factoring in replacement cost, which can mean hiring a professional at $30-$60 an hour, the CFL become is much more costly. Amazingly, LEDs range from 25,000 hrs. – 90,000 hours in lifetime.
Let’s take a large department store, which uses 300 250 watt halide high-bay fixtures. In one hour this store will use 75,000 watts on these lights. If these were replaced with 400 24 watt LED high bays, the store would use 10,000 watts in that hour. If they are on 14 hours a day, with a cost of $0.10/watt the store would be saving $32,000 on energy every year. LEDs are 80% efficient, which means they convert more energy into light. In addition a value boost is possible. In a 200,000-square foot office building that pays $2 per square foot in energy costs, a 10% reduction in energy consumption could be an additional $40,000 of NOI. At a cap rate of 8% this could mean an asset value boost of $500,000. Also, because less heat is generated, HVAC systems don’t have to compensate for the heat from lights and have more power to combat the 90 degree summers.
Lighting is Better and Brighter
Despite the environmental argument lighting quality is still critical. Quality is determined by the color temperature, measured in kelvins, and the color rendering index (CRI), which indicates how accurately the light renders colors. These are important because color temperature changes based on the application, i.e. retail lighting, kitchen lighting, etc. CRI determines if colors will appear correctly to humans. LED lights have an advantage because they are adjustable and can be manufactured for specific color temperature. Each lighting application needs different intensity and temperature to create an atmosphere or to improve safety and visibility.
Tax and Government Incentives:
There are a number of programs offering incentives for making important lighting upgrades. Lightingtaxdeductions.com and Energy Trust of Oregon’s Lighting Incentives Sheet show how to supplement costs either upfront or through tax deductions. The Energy Policy Act of 2005 provided energy efficient commercial buildings a tax reduction for lighting systems that exceeded minimum standards (Energy Policy Act Tax Deduction Information). Each of these programs are very specific, depending on the type of building, the lighting applications, and the costs they will cover, but they are incredibly helpful is getting your project off the ground despite high costs.
Many light bulbs contain harmful chemicals like mercury and lead. Sophisticated recycling techniques are needed to make sure these metals don’t enter our water ways. LED bulbs contain no mercury and aren’t considered a hazardous product, making them easier to recycle.
According to the U.S. Energy Information Administration 70% of the nation’s electricity is generated through coal or natural gas. Energy efficient lighting will reduce our need for these environmentally harmful energy sources. In Oregon our power is generated through hydro-electric and natural gas, with some of slack picked up by Coal and Biomass.
For commercial owners, LED lighting upgrades improve your property in many ways. LEDs are comprehensively more energy and cost effective than comparable lighting, saving on cost, energy consumption, and maintenance, while also reducing stress on other operations. The cost of labor would be reduced while the savings can increase the value of your asset. Lighting that’s up to the highest efficiency standards will be a great selling point for potential tenants, who are looking to save on energy costs. Time is running out to take advantage of the programs and rebates that will make your LED transition easier. However, whether your retrofit happens today or in a year LED lights are still the best all-around lighting value and just may be the brightest idea for improving your property.
Cliff Hockley, is prresident of Bluestone & Hockley Real Estate Services,
Thursday, November 13, 2014
BY RYAN CARSON | OP-ED CONTRIBUTOR
How do we skill up our future technology workforce in a smart way to take advantage of these high-paying jobs? The answer shouldn’t focus only on helping people get a bachelor’s degree.
Thursday, December 11, 2014
By MEGHAN NOLT
VIDEO: Revamping a Classic — an iconic eatery stays relevant in a changing marketplace.
Thursday, December 04, 2014
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
Nothing says startup culture like a ping pong table in the office, lounge or lobby.
Thursday, December 11, 2014
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
We ask business and nonprofit leaders how they survive the season.
Monday, November 10, 2014
BY KIM MOORE | OB RESEARCH EDITOR
A market for low-carbon transportation fuels has a chance to flourish in Oregon if regulators adopt the second phase of the state’s Clean Fuels Program.
Tuesday, December 02, 2014
BY LINDA BAKER
A conversation with attorney Erich Merrill about the latest way to raise money from large groups of people.
Saturday, December 13, 2014
The president of LaPorte & Associates lets us in on his day-to-day life.
|A Complex Portrait: Immigration, Jobs and the Economy|
|Woman of Steel|
|Kill the Meeting|
Is your business ready to join us in the call for action? This opening panel includes Oregon businesses who will discuss why they signed the Oregon Climate Declaration, the investments they are making to reduce carbon emissions, and how their actions are affecting their companies.
Get ready for two days of special events produced with the EPA, Portland Timbers and ISOS before and after the GoGreen Conference on October 16.
How sports tourism is driving economic growth and making cities across Oregon a better place to live.
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Through its support of the arts, the Cultural Trust is strengthening the business community.
Amy will practice in the firm's Business, Real Estate, and Tax practice groups.
While the Bend City Council ultimately upheld the approval which enables OSU-Cascades to move forward with the 10 acre site, it did also thoughtfully consider the nature of its code requirements, resident concerns and OSU-Cascade’s efforts and suggestions and crafted conditions of approval to address potential impacts of the site in the area.
Is my drug-free workplace policy up in smoke?