The Induction Lighting Company
Low Energy Lighting Solutions
Questions of Finance
The ILC
KERS Ltd T/A The Induction Lighting Company Vantage House, Rother Valley Way, Sheffield, S20 3RW Company Registered in England 06677503
(T) 0044 1142 511 512 www.theinductionlightingcompany.com
VAT :995675347
Question? How can I reduce my lighting costs? Answer ! Firstly, let’s set the scene and look what the authorities have to say!
Courtesy The Times
Background Fuel costs are ever increasing and will continue to do so and “New Power Stations are not enough to keep the lights on” Alistair Buchanan, Ofgem Chief Executive February 2013 Fuel costs are growing 9.62% faster than the current rate of inflation ( 3.4%).... Royal Bank of Scotland Research December 2011 “Lighting is essential for carrying out daily business activity but it can account for up to 40% of a company’s total electricity bill.” “It is time for a revolution in the way people save energy if they are to mitigate their soaring utility bills and keep the lights on” Ofgem February 2013 “The ILC low energy lighting solutions can decrease lighting energy costs and carbon emissions by over 50%, equivalent to 20% of the energy bill and often can provide investment pay backs over 1 to 2 years and returns on investment of 3 to 4 often over the lifetime of the fluorescent tube system”. We often provide a full payback of the investment within 1-2 years and returns of over 4 during the warranty period...........everything else you save is money straight to your bottom line. The ILC “A 20% cut in energy costs represents the same bottom line benefit as a 5% increase in sales” Carbon Trust.
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KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Question? How do I calculate my lighting costs?
Answer! Easy, and here’s an example taking a simple 400W metal halide lamp!:Metal Halide Lamp wattage, Ballast draw Total Power usage Hours used per annum 24 hours per day x 365 days = No of Kilowatt hours per annum (440x8760)/1000 = Average commercial cost per KWH = Therefore cost per annum for a single lamp =
400W 40W 440W 8760 hours 3854.40 KWH a. £0.095 £366.17 p.a.
BUT the same calculation using an equivalent Induction lamp where a 200W induction lamp can replace a 400W metal halide lamp provides much reduced costs:Induction Lamp wattage, Ballast draw (maximum) Total Power usage Hours used per annum 24 hours per day x 365 days = No of Kilowatt hours per annum (210x8760)/1000 = Average commercial cost per KWH = Therefore cost per annum for a single lamp =
200W 10W 210W 8760 hours 1839.60 KWH £0.095 £174.76 p.a.
The Induction lamp has improved your lighting and reduced your costs by 52.2% amongst other benefits. Similar savings can be achieved with LED and T5 solutions.
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Question? Where can I learn more?
Answer! At The ILC! We have modern solutions to combat energy costs inflation. You can reduce your energy costs by over 50% You can reduce your carbon emissions by over 50% You can reduce your CRC tax by ÂŁ12 per tonne You can reduce your lighting maintenance costs You can improve your lighting and working environment You can pay the whole costs from your energy savings Contact us on 01142 511 512 to arrange a no commitment free of charge survey and we can tell you exactly what you will save and how you can fund it, or
email our consultant team c/o Dr.David@theinductionlightingcompany.com
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Question? You say that there is 50% & more energy cost savings achievable with Low Energy Lighting solutions – how’s that?
Answer! Again that’s easy – Induction, LED, and T5 technologies enable reduced energy costs for the same (or better) light outputs. For example, using an induction solution, a120w induction lamp replaces a 250w traditional metal halide or HID lamp a150w induction lamp replaces a 300w traditional metal halide or HID lamp a 200w induction lamp replaces a 400w traditional metal halide or HID lamp a300w induction lamp replaces a 600w traditional metal halide or HID lamp and with improved lighting. Visual examples are
Work in progress showing daylight 200W induction lamps replacing 400W HID lamps creating improved work environment and H&S compliance
A 100w induction street light replacing a 250W metal halide lamp
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
A logistics centre where 200W induction replaced 400W metal halide with improved lighting and lux levels
Question? The long operating lifetime should help my maintenance costs – what have you found in practice? Answer! Our low energy lighting solutions will indeed reduce your maintenance costs – let me explain. The ILC’s Induction lighting is an electrode less lamp, where the light source is generated by means of electromagnetic fields or induction. There are NO lighting filaments as in traditional lamps The elimination of filaments and electrodes results in a lamp of unmatched life. The unusual shape of an induction lamp maximizes the efficiency of the fields that are generated providing similar light output for 50% less more power usage
Lasting 80,000 / 100,000 hours or 10 years, the induction solution has a lifetime greater than 2 LED Six metal Halide Four HID, or eight typical fluorescent lamp changes.
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
The LED solutions now available on the market – and part of our portfolio - also provide extended operating lifetimes of up to 50,000 hours, where the luminaire lifetimes are dependent on the driver (ballast). Importantly, and additionally, Induction and LED Lighting reduces energy costs along with Reduced failures Minimal maintenance, and the benefit of lower lifetime costs.
Question? I can see energy costs savings, and maintenance savings, but will it reduce my carbon emissions? Answer! Absolutely! Our contemporary lighting solutions are “3 for1” solutions – reducing energy and maintenance costs and a commensurate 50% reduction in carbon emissions – a green strategy paid for from reduction of your operating costs! For those companies under the government’s CRC Energy Efficiency Scheme low energy lighting REDUCES CRC ENERGY TAX and is ECA COMPLIANT In the private sector, the government’s CRC Energy Efficiency Scheme has become a flat charge of £12 per tonne of CO2 emissions and that the revenue-neutral payment recycling element has been scrapped. Using induction and LED lighting not only reduces energy costs by 50% but also cuts carbon emissions by 50%. A saving of £12 per tonne per annum saved to the bottom line!
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Our low energy lighting solutions are compliant with the HMRC’s Enhanced Corporation Tax (ECA) scheme which provides for 100% tax relief in the year of implementation – in many cases equivalent to a 24% cash flow benefit in year 1 of the installation. https://etl.decc.gov.uk/etl/site.html In the public sector, Section 2.108 of the Comprehensive Spending Review (CSR) excludes Local Authorities from the CRC scheme but expects “practical measures immediately to reduce carbon emissions, and in particular consider those from their schools”. Many Councils will start paying CRC tax in 2013. Low energy lighting cuts Carbon Emissions and Reduces Costs and provides compliance with CSR
Question? The “3 for 1” offering and the HUGE costs savings are a compelling argument to consider low energy lighting, but what about payback periods and return on investment? Answer! Low Energy Lighting wins out again – in many cases payback periods are less than 2 years and are supported by our 5 year warranty for induction, and 3 year warranty for our LED. We can save you money – let us prove it Our low energy lighting solutions offer much improved lighting, massive cost savings and huge carbon reductions to provide bottom line benefits – the three are inextricably linked and give the 3 for 1 benefit. New robust Induction, LED, and T5 lamps and fittings (luminaires), provide a portfolio of lighting options which when designed and implemented appropriately deliver operating costs and carbon reductions in excess of 50%, payback of the cost of the product and installation within a 2 year period, and project a 400% return on investment within the warranty period that we offer – at today’s energy prices. The induction long life (>80,000 hours) equating to much reduced life time costs when compared to traditional lighting units (SON and Metal Halide), and contemporary T5, and LED replacement and new fittings.
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Question? OK. But energy prices are ever increasing so are the returns sustainable? Answer! Yes We are confident that our low energy lighting package provides a sustainable solution throughout the operating lifetime of the chosen lighting solution. You will face electricity cutbacks and increased prices as the UK’s power stations are closed and capacity is reduced. We have worked with our customers who have recognised their responsibility to work towards minimising the direct impact of ever increasing grid electricity prices and at the same time achieve reductions in carbon emissions, both now and into the future. In most cases lighting represents 40% of the energy costs and provides low hanging fruit for immediate savings. Many of our clients report their electricity price in the 8p to 9p per kWh range. Some pay as much as 16p per kWh…..and ever increasing. In as little as five years time we may regard 20p per kWh as a very good price. Keeping lighting energy costs in control and the lights on is a real industry need. The need to reduce energy consumption is obvious. Converting to low energy lighting provides a ‘quick win’, with a viable payback periods, and sustainable costs savings – energy and maintenance – over 80,000 operating hours (say, 10 years)
We look past today, to see where you will be tomorrow and provide solutions that can help take you there. As the cost of energy rises, the need to conserve becomes a top priority. We strive to provide you with the most extensive list of possibilities.
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Question? All the above are very compelling financial reasons to consider low energy lighting so can you give a few real life examples of applications? Answer! Yes "You can save your company £,000's & we have clients to prove it"
The ILC has been able to vastly reduce the energy consumption and therefore the costs and carbon footprint in applications in high and low bay warehouses, factories, offices, retail, cold storage, flood lighting, car parks, and provide payback periods of less than 2 years and returns on investment over the 5 year warranty period in excess of 400% times. Induction lighting has the lowest life time costs of all current traditional (SON, halogen, metal Halide) and contemporary (LED) lighting. However, our designs are site specific and are NOT “one light fits all” solutions and take due regard to how best to meet your specific requirements. Our induction lighting portfolio is complimented by a wide and growing range of LED,T5 fluorescent, and LCD (cold cathode) lighting systems to provide you with a total site specific cost saving solution.
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Real Life Example – Food Processing A food production area with a mix of 400W SON and Metal Halide high bays were replaced by an identical number of 200W Induction High bays. A saving of 489.7Kwh per 24hr mid-week and 706.3Kw per 24hr period during weekend days. The power consumption has also gone from a constant load of approximately 33.18Kw per hour to a fluctuating load of 12.78Kw per hour due to motion and Lux detection. The existing 400 Watt SON Lighting was drawing 321,443.76 Kwh per annum, and based on energy costs at a unit rate of £0.0744 + CLC £0.0047, this gave an annual charge of £25,426.20 and carbon emissions of 173.57 Tonnes of CO2 maintenance costs were budgeted at £17.00 per lamp per annum, a cost of £1513. A Real Life Energy Cost of £26,939.00 The new 200 Watt Induction Lighting is drawing 89,148.80Kwh per annum, and based on energy costs at a unit rate of £0.0744 + CLC £0.0047, this gives An annual charge of £7,051.67, and Carbon emissions of 48.14 Tonnes of CO2 With no maintenance costs supported by a 5 year warranty A Real Life Energy Cost of £7,052.00 Pay Back and Return on Investment The energy saving of £19,887 per annum provides a payback period of 1.7 years. However, the project is approved under the Enhanced Capital Allowance (ECA) scheme which reduces the payback period to only 1.3 years. Over the 5 year warranty period total energy costs savings are £99,435, and total carbon emission savings are 627 tonnes, which at CRC tax rates of £12 per tonne represent a saving of £7,525. A total saving, including maintenance costs, of £114,543 equivalent to a RoI over the 5 year period of 3.38. The Induction lamps have an expected lifetime of 80,000 ~ 100,000 hours giving a further 5 years lighting and financial benefits – a further £99,435 and 627 tonnes of carbon.
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Real Life Example – Group Warehouse and Factory Energy Management For a recent and ongoing project with a national group with a mixed portfolio of warehouse and factory premises 400watt Sodium and HID high energy lamps are being replaced with 200Watt Induction lamps. Energy Costs Savings Based on electricity prices current in May 2011 a saving of £895,854.90 per year on energy costs will accrue- an energy saving of £4,479,274.50 over 5 years. For an outright capital investment of £1.6 million ECA tax benefits of 25% in the first year will also accrue under the energy efficiency scheme. Thus providing a payback over 1.33 years and ongoing benefits of £895,854.90 per annum thereafter from reduced fuel costs alone. Carbon and CRC Tax Savings The Carbon emission reduction based on the above equates to 6,115 tonnes per annum and under current CRC tax rates this equates to a real saving of £73,380 per annum Maintenance Savings Historical budgeted costings of the existing traditional lighting lamps in replacement costs. will be mitigated by the Induction lamps and will save a further £85,000 per annum Improved Lighting
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Real Life Example – Street Lighting Replacement of 100W SOX street lighting with 50W Induction Street lights
Meridian Street – 100W HID
- 50W induction
The figures Quantified energy savings per annum CO2 tonnes saved per annum: Projected payback period: Projected payback period with Enhanced Capital Allowance
£2,833 21 tonnes 3.16 years 2.37 years
Additional and ongoing benefits Total energy saving over 5 year warranty period £14,164 Return on Investment over warranty period (with ECA) 2.11 Total carbon saving over warranty period 104 tonnes CRC Tax saving over warranty period (£12 per tonne p.a.) £1,250 Maintenance saving over warranty period (£17 pa per luminaire) £4,850
Contact us on 01142 511 512 to arrange a no commitment free of charge survey and we can tell you exactly what you will save.
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347
Question? The financial aspects of your low energy lighting solution are indeed very compelling and warrant our next steps to solve our energy problems. For completeness sake what are the other benefits and how can we take our interest forward? Answer! Your free of charge survey report will identify these on a site specific basis and include but are not exclusive to:Other Lighting Benefits We have indicated above that energy cost savings alone will justify and prove affordability of a lighting design and a low energy replacement lighting project. However, other resultant benefits do accrue and some are listed below, but are not exclusive to:Increase Light levels Enhance Light Quality (CRI and Lumen Maintenance) Reduce Maintenance Costs with Longer Lasting Product Increase Worker Productivity Improve Quality Control Lamp Type Consolidation Instant On/Off Enhance Company Image Environmental Impact Safety Safeguard against Rising Energy Costs Power factor improvements Tax Incentives-Enhanced Corporation tax allowance (ECA) We Will Reduce Your Lighting Energy Costs Contact us on 01142 511 512 to arrange a no commitment free of charge survey and we can tell you exactly what you will save and how you can fund it, or
email our consultant team c/o Dr.David@theinductionlightingcompany.com
KERS Ltd T/A The ILC Vantage House, Rother Valley Way, Sheffield, S20 3RW
(T) 0044 1142 511 512 www.the-ilc.com
Company Registered in England 06677503
VAT :995675347