Use this simple calculation to determine annual energy cost savings resulting from an upgrade of one lamp or system type throughout a facility. This annual cost savings figure may be compared with the cost of the upgrade to determine simple payback and return on investment (ROI). NOTE: For fluorescent systems, substitute "lamp" with "system" or "fixture" so that ballast watts are included.

Simply fill in the GREEN cells.

Step 1. Compute the total power (kilowatts, kW) saved by upgrading older lamps to energy saving LED replacements

Original Lamp Wattage Replacement Lamp Wattage Watts Saved per Lamp Number of Lamps to Replace Total Watts Saved Total Kilowatts Saved
W
W
W
lamps
W
KW

Step 2. Compute the total energy (kilowatt hours, kWh) saved annually by performing this upgrade

Total Kilowatts Saved Hours of Use per Day Days of Use per Week Weeks of Use per Year Total kWh Saved per Year
KW
hrs/day
X
days/wk
X
wks/yr
=
kWh/yr

Return on Investment (ROI)

=
100

Simple Payback
=
% per Year