What are the Benefits of a Retrofit?

Graybar Retrofit Lighting

With lighting accounting for more than 25 percent of the energy used in most buildings, increased efficiency can make a big difference to your monthly energy bill.

Reduced Energy and Maintenance Costs

According to the Energy Savings Cost Council, energy-efficient lighting upgrades represent the highest return on investment of any single-technology project, with an average ROI of 45 percent. These upgrades pay for themselves in as little as 2.2 years and the payback continues over the lifetime of the system through reduced energy and maintenance costs.

Tax Incentives and Rebates

Numerous tax incentives and utility rebates are available for choosing sustainable lighting for non-residential buildings. Federal, state and local programs may provide incentives for the certified use of qualifying energy-efficient lighting technologies in both new construction and renovation applications.

Another popular lighting upgrade incentive is the Energy Efficient Commercial Buildings Tax Deduction created by the Energy Policy Act of 2005 (EPACT) and in effect through 2013. It cuts the initial cost of investing in energy efficient lighting through an accelerated tax deduction. Building owners can write off the full cost of an indoor lighting upgrade in the first year instead of depreciating it over several years. In addition, section 179D of the act allows for a tax deduction of up to $0.60 per square foot for lighting retrofits that meet certain energy usage reduction criteria that are often very attainable.

Improved Safety

High quality lighting can improve facility safety, reduce quality incidents, improve productivity and increase occupant satisfaction. Newer technologies often have better lighting-quality characteristics, such as improved color, reduced flicker and greater light output.

Improved Performance and Productivity

A Cornell University study found that one in four workers experienced a loss in work time based on vision problems and discomfort caused by poor lighting. The study found improvements in the average office lighting system can result in a 3-5 percent gain in employee productivity.

Environmental Impact / Corporate Social Responsibility

By consuming less electricity, your facility can reduce its electrical load, thus reducing the demand and associated emissions from "off-site" power generation. In addition, lighting upgrades and other sustainability initiatives can help you keep up with investor, community and customer environmental expectations.

Property Valuation

Research done by Energy Star using Quickscope, an energy analysis software tool, found that each $1 invested in energy efficiency could increase asset value by as much as $3.