Auditel, the UK’s premier cost and purchase management consultancy, generate savings for organisations over an enormous range of businesses expenditures. Last month, they added yet another opportunity to reduce both cost and energy – LED lamps.

The quality and performance of LED replacement lamps has come a long way in the last few years. Their hugely improved light quality and low energy consumption means that businesses can save up to 80% on their energy bills by installing LED lamps in place of their existing halogen or incandescent bulbs.

Energy Saving
In the face of ever-increasing energy costs, companies are searching for ways to save energy. Increasing insulation, upgrading boilers and self-generating power can be expensive and disruptive to the business, often with a slow return on investment. Simply replacing existing lamps with LED is fast, easy and highly effective. For example, a typical halogen spotlight that uses 35W of energy can be replaced by a 6W LED, leading to energy and cost savings of an impressive 80%.

Changes are already being made on large-scale public infrastructures. In London, thousands of low-power LED lights are set to be installed along Tower Bridge. It is hoped that by replacing the current high-powered fluorescent lights, energy consumption will be reduced by 40 per cent. The London Eye was among the first of the capital’s green landmarks to go green when a new LED lighting system was introduced as part of its 2009 refurbishment. The change saves 69 per cent more energy than the previous version.

Return on Investment
LED lamps are more expensive to buy than traditional lamps but they use 80% less power and last more than 10 times as long. This leads to a typical return on investment for a business investing in LED lamps of under 2 years, which is a persuasive proposition. Not only that, LED lamps will continue to save cost and energy for many years after the investment has been returned.

Maintenance Cost Savings
In addition to the savings made on energy usage, companies can save money on their maintenance costs. Lighting can often be installed in high and difficult to reach locations, accessible only by ladder or cherry picker. Replacing traditional light bulbs that last for only a year or so can be costly, disruptive and time consuming.

A typical incandescent or halogen will last for around a year (if on for 12 hours a day), whereas changing to an LED lamp which will last for around 10 years, reduces maintenance costs by a factor of 10.

Carbon Reduction
Carbon reduction is now centre stage, driven by both commercial and political concerns. The Climate Change Act 2008 demands that greenhouse gases are cut by 80% globally by 2050. The UK government has already introduced a number of carbon reduction schemes, such as the Carbon Reduction Commitment scheme, to which businesses must conform. In future, all businesses will need to demonstrate that they are taking steps to reduce carbon, as further punitive legislation is inevitable.

Interest Free Loans
The Carbon Trust offers interest-free loans to qualifying companies that implement carbon reduction schemes. In 2010, installing LED lamps was the fasting growing and now largest sector that the Carbon Trust deals with. Auditel can help your company to establish whether it is eligible for a loan. They can also advise on how the purchase of LED lamps should be represented in the company’s accounting records.

Features and Benefits
LED lamps produce a high quality light, which can be customised to meet the client’s requirements. The customer can specify the colour of light from a warm, yellowy light, good for restaurants and hotels, through to a bright white, good for dentists and doctors surgeries. Beam angles can also be specified and the light can be directed to where the client wants it. LED lamps produce significantly less heat than traditional lamps, contain no toxic mercury and emit no damaging Ultra Violet.

Standards and Certification
Whilst this new technology is very exciting, it is important to ensure than when choosing LED lamps, all the standards and certifications have been achieved and that the products are printed with the CE mark. You can ask to see all the manufacturer’s supporting documentation to give you peace of mind that the LED you are choosing conforms to all necessary regulations and is manufactured to a high standard.

Summary
Of all the energy and carbon saving measures available to a business, replacing the existing lamps with LED lamps is the simplest, least disruptive and most cost effective measure you can take.