LED Technology for efficient Illumination

LED Technology for efficient Illumination

Team Element

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Project Scope

Imagining Indiana as the “Lighting Innovation Hub”• Increasing the adoption of the LED lights with businesses,

government and consumers.• Launching a consulting company for lighting solutions.• Recruiting from Indiana’s top schools to drive down costs of LED

technology and develop next generation lighting solutions through advancements and breakthroughs.

• Creating center of excellence for light innovation in major engineering programs.

• Attracting major lighting manufacturers such as GE and Sylvania. • Creating jobs in R&D, manufacturing, consulting and installation.

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Energy Usage

• Based on estimates from Alliance to Save Energy– 22% of U.S. electrical demand is from lighting

• Energy Independence and Security Act of 2007– Will phase out the manufacturing of incandescent light bulbs

from 2012 to 2014– Effectively makes the Compact Florescent Light (CFL) the new

standard– Requires all lighting in Federal buildings to use Energy Star

products

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What Is An LED?

• Light Emitting Diode (LED)– Invented by Nick Holonyak, Jr. in 1962– Electroluminescence occurs when a semiconductor

diode is turned on • This allows for electrons to recombine with holes

– Energy is then released in the form of light – Color is determined based on energy gap of the semiconductor

– First LEDs only emitted dim red light– New technology allows for high brightness along the

color spectrum

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LED Benefits

• Efficiency – 80 percent less energy used• Less thermal waste – lower cooling costs• Durable – solid state shock resistant• Longer life – 25,000 to 100,000 hour utility• Environmentally friendly – no mercury to dispose of• Guarantee – 3 years if Energy Star certified• Instant on – no warm up time• Ability to dim

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Fluorescent

Fixtures

LED Lighting

Technology Proven light source of 20+ years Emerging technology that holds great promise to revolutionize lighting over the next decade

Energy Use 75% less energy than incandescent fixtures At least 75% less energy than incandescent fixtures and getting more efficient all the time

Cost Typically more expensive than incandescent fixtures ($)

Typically more expensive than fluorescent fixtures ($$)

Lifetime ≈9 years (Based on 3 hours of use/day) 22+ years (based on 3 hours of use/day)

Warranty 2-year warranty 3-year warranty

Fixture Types Available in many decorative stylesCurrently available in select fixture types including recessed cans, under cabinet lights, & porch lights

Replacement Bulbs Special "pin-based" bulbs available for replacement

LEDs are part of the fixture and typically not replaceable

On/Off Time Typically less than 1 second to turn on and up to 3 minutes to reach 80% brightness Instant on

Heat Output Cooler than incandescent Cooler than fluorescent

Recycling Contain a small amount of mercury and should be recycled

Contain electronic parts and should be recycled (like computers or cell phones)

Fluorescent Versus LED Comparison

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Incandescent Light

Bulbs

CFL(Compact Fluorescent

Light Bulbs)

LED(Light-Emitting Diode

Light Bulbs)

Life Span (in hours) 1,500 10,000 60,000

Watts 60 14 6

Cost $1.345 $2.98 $54.95

KWh of electricty used over 60k hours 3,600 840 360

Electricity Cost (@ $0.23 per KWh) $821.72 $191.73 $82.17

Bulbs needed for 60k hours of usage 40 6 1

Equivalent 60k hour bulb expense $53.80 $17.88 $54.95

Total 60,000 Hour Lighting Spend $875.52 $209.61 $137.12

Energy Cost Comparison

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LED Applications

• Early applications were as indicator lights on laboratory testing equipment– Later LEDs were utilized for radios, phones,

calculators, and other electronic devices• Currently LEDs are used in:

– automobile lights, signs, traffic lights, street lights, parking garages, architectural lighting (home light bulbs and fixtures) and flashlights

• Opportunities exist for future applications

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Macro Impact

• Eliminating incandescent bulbs completely would save $18 billion per year (equivalent to the output of 80 coal plants)

• If every United States household changed their five (5) highest-use light fixtures (or the light bulbs in them) to Energy Star certified lighting, Americans would collectively save more than $6 billion (or $60/household) every year in energy costs

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Five Forces Analysis: LED Lighting Industry in Indiana

External: - Incandescent lighting - CFL Lighting providers - Foreign LED producers - Other US statesInternal: - Indiana’s non-LED business

Related Service Providers: - Incandescent bulbs - CFL lighting providersForeign Players: - Foreign LED Companies - Manufacturers in other US states (Eg. Silicon Valley)

Direct: - CFLIndirect: - Alternative energy lighting - Building/engineering re-design for natural light use

- Light innovation labs- Current LED producers (GE, Sylvania etc)- Lighting installers- Engineering institutions - Maintenance and Services

Customers- Institutions, Corporations- Homeowners- Government agenciesChannels- Government agencies- Green groups

Supplies/Suppliers CustomersCompetitors

Substitutes

Possible Entrants

Current Lighting Industry Clout

Initial cost

Economy

Gov’t Initiatives

Technology adoption

Environmental impact

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Challenges of LED Adoption

• Initial cost - the use of LED lighting has a high initial capital cost when compared to conventional lighting

• Current lighting industry clout – as incandescent bulbs are phased out, CFL will be natural replacement

• High temperature sensitivity• Light output from LEDs is directional leading to a more

complicated fixture design

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Construction Requirements• Federal, State, and Municipal Standards

• Although these standards vary according to the region, LED lighting does not pose a challenge to building codes.

• Retrofitting Existing Structures• Large initial capital investments will need to be made in order to change over

to LED. • New Construction

• Utilizing LED technology will have long-term benefits in the areas of safety & security, cost reduction and energy consumption.

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Why Indiana?• R&D

– Existing universities with strong research capabilities

– Availability of stimulus funds– Ability to partner with existing

institutions like the Richard Lugar Center for Renewable Energy

• Manufacturing– Strong manufacturing infrastructure.– Large manufacturing workforce

availability due to automotive crisis

• Installation– New state requirements of building

codes– Large manufacturing workforce

availablity due to automotive crisis

• Logistics– Crossroads of America

• Indiana’s strategic objectives– Aligns with Indiana’s energy policy– IEDC successful in attracting businesses

and FDI– Budget surplus

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Tax Incentives

• Commercial Lighting Tax Deduction– The Energy Policy Act of 2005 created the Energy

Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap

– Eligible for tax deductions of as much as $1.80 per square foot.

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What Indiana is already doing?

• Indianapolis is eligible to receive $8,032,300 over the next two years as part of the EECBG program funded by the American Recovery and Reinvestment Act

• LED Street Lighting Pilot Projects - $800,000 High-efficiency LED street lighting projects will be installed at various locations where replacement street lighting is needed.

• LED Traffic Signal Retrofits - $2,503,900 Currently, only 370 of the city's 1,100 intersections have LED traffic signals. This activity proposes to retrofit the remaining 730 intersections to LED.

• http://www.sustainindy.org/

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Strategic Action Plan

Phase 1– Creation of a consulting company to provide the following

services.– Collaborate with the state universities to start light innovation

labs and programs for next generation technology.

Phase 2– Recommend IEDC to attract lighting innovation companies to

Indiana.

Phase 3– Create new construction standards through

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Phase 1 – Create Consulting Company

• Setup a consulting company in Indiana to promote the use of LED technology on a global scale.

• Services offered– Energy audit - Assess the current energy demand and costs– Recommend areas for the implementation of LEDs– Provide a cost benefit analysis using LED technology– Provide information on government funding programs for the

installation of LEDs– Own and execute the implementation of project– Promote the benefits of using LED technology via seminars,

workshops, advertisements etc

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Phase 1 – Create Consulting Company

• Target Customers:– Government– Commercial– Industry– Residential

• Key Partnerships:– National energy conservation institutes like Lighting Research

Center, Energy Star and Alliance to Save Energy to leverage existing research and expertise

– Partnership with vendors to offer competitive prices– Partnership with installation services

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Consulting Company – Business Model

Material Sales

Installer Contact

Economic Analysis

Illumination Efficiency Consulting Company

Commercial Division

Industrial Division

Residential Division

Government Division

Fixtures

Wiring

Conduit

Panels

LED bulbs

Office Buildings

Labs

Show Rooms

Schools

Municipal Buildings

Warehouses

Factories

SuppliersBusiness Customers

Home Owners

Transportation

Home Associations

Consulting Firm

Volume Discount

IN Universities

Partnerships

Electricians

LED Private Research Labs

3rd Party Subs

Energy Star (Federal

Government)

Energy Conservation

Groups

Information Exchange

InstallationSales Leads

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Innovative Labs and Programs

• Indiana strengths– Top engineering and business schools– Existing centers like Richard Lugar Center for Renewable

Energy.– Existing light research program at Purdue

• Actions– Setup light innovation labs at the leading universities. – Develop curriculum in alternate energy at the universities.

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Attract Light Innovation Companies

• Indiana strengths– High innovation light labs.– Highly skilled talent pool.– Logistics (Crossroads of America).– Idle manufacturing resources.

• Actions– Recommend IEDC to leverage above strengths and

appropriate incentives to attract light innovation companies to relocate or expand to Indiana.

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Constructions Standards

• Indiana strengths– Commitment to energy conservation.– Previous recommendations.

• Actions– Collaborate with state and federal agencies to

update construction standards.

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Imagining Indiana with LED Technology

Imagining Indiana

Consulting Company

Attract Light Innovation Companies

Innovative Labs and Programs

Construction Standard

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