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# How much will I save?

This depends on a few factors:

**1. Operating Hours**

a. Only using lights during normal business hours (8 - 9 hours per day 5 days a week) typically takes 3 years or more to recoup your investment through the energy costs saved but this is dependent on the kWh rate you are being charged.

b. As the hours increase the payback period reduces until those businesses running 24 hours a day 7 days a week can take as little as 12 - 14 months to achieve a full return on the investment - and thereafter get to keep the energy savings which with LED lights is between 50 - 70% of conventional lighting (Fluorescent tubes, Highbay / Lowbay lights, Floodlights and Downlights)

**2. Energy Costs**

a. The price you pay for energy also significantly affects the payback period, the higher the effective kWh rate the shorter the payback period. But a word of caution - don't simply look at the 'headline' rate for electricity as this can be very misleading as to the true cost.

Expert Energy runs a complex calculator to work out the true cost of energy that takes into account the many additional charges (Distribution & Networks charges, Renewable energy scheme charges, etc) and then we apply this which in many cases means the true energy cost can be 2 and 3 times the 'headline' rate.

b. Not accurately calculating the true energy cost can severely distort the 'true' energy savings and payback period leading to wrong assumptions which unfortunately you won't find out about until several months after the installation when you don't see the expected energy savings meant to offset the total supply and installations costs which you still have to pay.

**3. Energy Cost Increases
**

We have seen quotations that include very large projected cost increases for energy over the estimated payback period ranging from 10 - 30% p.a. Whilst we agree there have been some significant price increases over the last few years declining energy use, uptake of solar photovoltaic panels and curbs on expensive so called 'gold plating of the 'poles and wires' has meant these large percentage increases may not happen in the years to come.

We use the Australian Energy Market Commission (AEMC) estimates for all our calculations.

**4. Ballasts**

Many quotes for replacing standard fluorescent tubes with LED linear tubes we have seen use the highest energy loss due to the ballast and especially magnetic ballasts which can make the savings seem greater and therefore the payback period shorter. Expert Energy uses a B1 ballast ratings as per Australian Minimum Energy Performance (MEPS) when calculating first pass energy savings.

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