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Energy experts recommend switching to LED lighting to reduce costs

Alex South

Companies are missing out on huge potential savings by failing to upgrade their lighting, according to energy experts.

Of the £3.7 billion potential savings for commercial and industrial UK buildings, £1.1 billion could be saved on lighting – which accounts for 20 per cent of overall electricity used, according to the latest building energy efficiency survey carried out by the government’s Department for Business, Energy and Industrial Strategy.

Average annual electricity usage for all parts of a business ranges from around 20,000 kilowatt hours (kWh) — costing just under £3,000 a year — for small businesses to 90,000 kWh  — around £12,500 — for large businesses.

In financial terms, when lighting is calculated separately, it can account for between £600 and £2,500 per year respectively.

Although exact savings can vary due to regional differences in energy tariffs — for example, businesses in Wales face some of the highest rates while those in the Midlands and Scotland enjoy some of the lowest —is it is an easy saving for business owners and facilities managers to calculate.

Ken Carter, Director of Building Energy Control Ltd, previously worked as UK Head of Energy for Tesco from 2005 to 2008 and now advises businesses across the UK on how to streamline their energy consumption and costs.

He said: “Because lights [in offices] are generally on from 8am till 7pm, five days a week, it’s quite easy to work out what your run hours are, and if you change your technology you’ll have half of this energy load.

“Because [the usage] is usually fixed, you make the change and you can see your energy expenditure fall.”

This is one advantage of making energy savings through lighting over other sources — such as heating — which can be more difficult to quantify due to seasonal fluctuations, according to Mr Carter.

Upgrading to LED panels, which are considered the most energy-efficient lighting solution for businesses, can be carried out easily and relatively inexpensively, with the energy and cost savings realised immediately.

Mr Carter added: “They’re a long-term asset, they’re very controllable and they provide a low-risk energy saving.

“You’re taking it off your overheads [so it] goes straight into profit.”

Although businesses can achieve further energy savings by investing in carbon and energy management and making efficiencies to heating, ventilation and air conditioning (HVAC) systems, lighting is widely regarded as an obvious and effective starting point.

Rob Holroyd, digital manager at Lamp Shop Online, said: “With LED lighting panels, you’re reducing power but employees are still getting nice, evenly distributed light, which makes the room looks brighter and generally boosts productivity — while with other forms of energy saving you’re usually trying to deduct a bit here and there to compensate, such as from the heating or air con.

“A lot of people prefer the evenness of the light provided by LED panels, and it’s infinitely more controllable than lots of other forms of lighting. And because it’s electronic, it lends itself to other control methods.”

From his work with the government’s energy savings opportunity scheme, Mr Carter estimates that around a third of businesses had done nothing to streamline their energy use through lighting, while a third had switched some of their lighting to LED.

But increasing numbers are starting to realise the potential energy savings of this relatively small measure, which can be seen directly on the bottom line.

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