Three Sample Scenario & Savings Reports To provide a real-life scenario on how LED retrofits can be cost- effec tive, the followin g reports illust rate the impact of a change over for a business prope rty running its op eration s 24/7. The reports are prepared at three different kWh Costs to reflect the range of expec ted electric ity cost across the US: $0.12/kWh – Lower Level $0.16/kWh – Middle Level $0.20/kWh – Higher Level (Typically New England, California, Hawaii and Alaska) Note: The higher the cost of electricity, the faster the payback on the LED retrofit. Below are explanations of terms used in the reports. Current Lighting Electricity Cost: Defined as how much an owner or operator is spending to light a building of interest. Calculated as the product of how many hours per year the current lights are running, the kilowatt-hour rate the facility pays for electricity, and the wattage of the existing light bulbs. This information is gather ed from either the lighting audit or a lighting schedule. The Lifetime cost is defined as the cost to run the current system for the lifespan of a standard LED bulb. A 3% annual increase in electricity rates is applied to the figure to account for gradual deregulation. Projected Lighting Electricity Cost (LED): Defined as how much a facility could be spending to light a building of interest, if it made the clean energy switch to LED lights. This statistic is based on the current usage, kilowatt-hour (kwh) rate and wattage consumption of potential LED replacements. Most solutions range between 60%-90% in energy reduction. Electricity Cost Savings with LEDs: The difference between current and projected lighting electricity costs. Bulb Replacement Costs: This figure uses the commercial average cost per bulb as well as average bulb lifetime of 15,000 hours. Over the 80,000 hour life of an LED bulb, you would have to replace the average bulb approximately 5 times. Annual replacement cost is dependent on usage. Maintenance Labor Cost: Although commercial properties can spend up to $2 per square foot on labor to replace light bulbs, LED Saving Solutions uses a more modest average of $.05 per square foot in Savings Report estimates. Reduced Air Conditioning Load: Accor ding to a study done by the Lawrence Berkeley National Laboratory, a net HVAC savings of $.03 is seen for every $1 saved on electricity. For large commercial buildings, the savings is ampl ified at $0.16 for every $1. The figure represents the differenc e between the decreased cooling load and the increased heating load.