T50 A.1 Global Economic ModelsTask 50 Subtask A Report A1
May 2016 - PDF 2.89MB
This reports presents financial data related to lighting installations, before and after retrofit operations. Data are calculated over a large number of years to combine installation costs, maintenance, and energy use. The general principle was to compare the running costs of the “do nothing” approach (keeping the installation as it is and let it die gradually), and the costs associated with a retrofit with highly efficient equipment.
For these reasons, long term costs of installation are quite sensitive to the initial cost, and the combined cost of electricity and energy efficiency. Total Cost of Ownership (TCO) of lighting installations has been calculated for various types of buildings: offices, schools, homes and industrial buildings.
The data supplied attempt to answer to the following questions:
- Which installations are low hanging fruits (with shortest payback time)?
- For which type of building are retrofit operation more profitable?
- How do various parameters influence the payback time (investment costs, efficacy of luminaires and sources, cost of electricity, etc.)?
Then various financial models to initiate successful investments in retrofit operations with generally favourable potentials (like high number of operating hour with good reduction potentials of electric power density) were investigated:
- Direct investment by the user only, showing significant benefits after the payback time.
- Investment by the user based on loans. This extends payback time, but does not require too high of a financial contribution at the beginning.
- Leasing of the entire installation: the building owner does not own the installation. The lighting installation is rented (installation and operation is supplied by a third party). It appears that leasing is nowadays generally the best option is the best way to trigger lighting retrofit to overcome the barriers associated to investment.