What Is Annual Energy Savings and How Do I Calculate The Savings?

Posted by Jimmy Hovey on Mon, Jan 23, 2012 @ 17:01 PM

Business Costs Are Rising...But, Look To Annual Energy Savings...

Can It Be Lowered?

Identifying energy savings is a simple mathematical calculation based on wattage of your existing lighting system.  Most people don't take the time to figure out how turning on the lights is related to that energy bill you open every month. 

Typically, we just open up the bill, shrug our shoulders, then pay it.  It's okay, we have all done it.  But with rising costs, it is time to pay closer attention.

Businesses already have enough to worry about and overhead costs continue to rise;calculate-energy-savings

  1. Taxes are rising

  2. Energy costs are rising

  3. Health insurance premiums are rising

  4. Sales are down

Every light fixture has an associated wattage. In order to find your annual savings, you need to figure out the wattage of your existing system to the wattage of a new system. 

The difference in wattage in the end will be the difference in the costs represented in your utility bill.  Less wattage = lower costs, that is the basis of energy savings.  

With today’s technology, it is very possible to reduce energy cost by 50% in fact we have done it a number of times.  We were even able to reduce wattage at Crippen Buick, GMC, Volvo, Mazda in Lansing Michigan on exterior lighting by 75% meaning big savings for the Crippen group:

How Do You Calculate Energy Savings?

Here is an example (more detail here on How To Calculate Wattage of 400 Watt Metal Halide)

Let's say you have 400 Watt Metal Halides in your facility and you have heard they are energy consuming monsters (which they are...). 

If you were to replace the 400 Watt Metal Halide, you would likely replace the light with a T5 or T8 fixture.  Let's look at how you can reduce the wattage.

The reduction in utility expense comes from simple math;

400 Watt Metal Halide is rated for 460 Watts (Old, existing system)-216 Watts (New, proposed system) = 244 fewer watts.  Just by replacing the fixture you would see a reduction of over 50% in the cost of powering the fixture simply because you reduced the wattage.  

Why Is It Important?

Money is always important to a business owner.  How many overhead items on your income statement can you reduce by 50% (besides people)?  You won't find many costs that you can reduce in the sea of rising operating costs. 

Don't think because you don't have the cash that this isn't something you can do.  If you really dig in you will find out that you can quickly pay for the project with short term ROI and better yet, calculate the long term ROI.

Still Not Making Sense?

Learn more about all the benefits of energy efficiency in our E-Book, Business Owners Guide To Energy Efficiency.  Within the book you will learn about ALL of the benefits of energy efficiency. 

Or check out Stage 8 - You Can Do Your Own Commercial Energy Audit.  We can help you calculate the annual savings of your facility remotely. 

Topics: energy efficient ROI, Energy savings, energy efficient lighting