Cost-effectiveness

Cost of an LED retrofit.
What it costs and what it saves.

“What does it cost?” is the first question in every LED retrofit. The more honest question is: what does it cost not to convert? This guide shows what the investment depends on, how to calculate the saving and how quickly LED has paid for itself in real projects.

Updated on · 4 min read · TRiALED lighting advice

At a glance
  • Annual consumption = number of luminaires × power in kW × operating hours
  • In TRiALED case studies the retrofit paid for itself within 19 to 39 months
  • Sensors reduce the remaining LED consumption further
  • Calculate over the service life, not just the purchase price

How to calculate the energy costs of your lighting

The basic formula is simple:

Basic formula

Annual consumption (kWh) = number of luminaires × power per luminaire (kW) × operating hours per year

Energy costs (€) = annual consumption × electricity price per kWh

Important: with fluorescent and discharge lamps the ballast's consumption is part of the power. A “58 W tube” draws noticeably more power with a conventional ballast.

Worked example: production hall

Existing: 100 luminaires × 150 W × 4,000 h = 60,000 kWh per year

LED: 100 luminaires × 80 W × 4,000 h = 32,000 kWh per year

Saving: 28,000 kWh × €0.25/kWh = €7,000 per year (around 47 %)

LED savings calculatorWhat can your lighting save?Energy costs, CO₂ and payback in just a few minutes.Calculate the saving

What do the costs of a retrofit depend on?

FactorWhy it matters
Number and type of luminairesComplete luminaires, modules and retrofit kits cost different amounts
Mounting height and accessLifting platforms, scaffolding and barriers increase the effort
Working during ongoing operationNight or weekend installation needs more planning
Controls and sensorsCosts extra, but saves permanently
Electrical installationNew cabling or circuits cost more than a one-for-one swap
Lighting design and commissioningEnsures the installation meets the required values
DisposalFluorescent and discharge lamps have to be disposed of properly

As a manufacturer with our own production in Germany we are competitively priced. We prepare a reliable quotation after a site survey – for example as part of our lighting audit.

When has LED paid for itself?

The payback period is the investment divided by the annual saving. The longer the operating hours and the less efficient the old installation, the faster it is. Figures from our projects:

ProjectSavingPayback
Carl Spaeter, Hamburg89 % (LED + light management)19.1 months
Furniture store car park68 %19 months
Modern office building61 %22 months
Manufacturer of storage supplies56 %23 months
Carl Spaeter Südwest, Karlsruhe74 %23.6 months
F. Hackländer, Kaufungen76 %25 months
Electronics manufacturing, Saxony-Anhalt79,4 %28.6 months
Club Raffelberg54 %34 months
Rehberghalle in Roßdorf49,9 %39.2 months

The figures come from the respective project reports and are not a general savings promise. They do show, however, the order of magnitude of retrofits in industry, logistics, offices and sport.

Cheap to buy or cheap to run?

Over the life of a lighting installation, energy costs usually make up the largest share of total cost – not the purchase price. So it is worth looking at:

  • Luminous efficacy (lm/W): how much light per watt comes out of the luminaire?
  • Service life and lumen maintenance: how much light does the luminaire still deliver after 50,000 or 100,000 hours? More in the guide LED service life.
  • Replaceable drivers: if a driver fails, the whole luminaire does not have to be replaced.
  • Warranty: On the Series 18 Blackline for example at least 84 months.

Sensors: saving more with the same luminaire

After the LED retrofit a residual consumption remains. Presence and daylight control reduce it further, because light only shines where and as brightly as it is needed. Our LED savings calculator typically assumes a 50 % saving from sensors on the remaining LED consumption and adapts the value to usage and the number of employees. More in the guide Presence detectors and light control.

Funding and tax aspects

There are changing funding programmes for energy efficiency measures in companies and municipalities at federal and state level. Because conditions change frequently and applications usually have to be submitted before the contract is awarded, check the current situation before the project starts, for example with your energy consultant or tax adviser.

Frequently asked questions

What does converting to LED cost per luminaire?

That depends on whether you replace complete luminaires or modernise existing fittings with LED modules, how high they are mounted and whether sensors are added. A reliable price comes out of a site survey.

How quickly does an LED retrofit pay for itself?

In our case studies the payback periods were between 19 and 39 months. Long operating hours and inefficient old installations shorten the payback.

How do I calculate the energy costs of my lighting?

Number of luminaires × power in kW × operating hours per year gives the consumption in kWh. Multiplied by the electricity price you get the annual energy costs. With old luminaires, include the ballast's consumption.

Is LED worthwhile even with few operating hours?

The payback then takes longer. Often there are other reasons, though: replacement lamps are becoming scarce, maintenance falls and light quality improves. The savings calculator shows you the order of magnitude.

Matching luminaires

From our own production.

From practice

Projects with results.

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