LED light boxes save money, increase profits for retailers
According to the U.S. Environmental Protection Agency, the retail industry spends $13 billion every year on energy. The United States Department of Energy says lighting is the biggest energy expense for retailers, accounting for 37 percent of total energy use in U.S. retail buildings. Lighting contributes to electricity consumption both directly, by the use of electricity to power lights, and indirectly, by the increase in air conditioning usage. Considering both direct and indirect costs, lighting accounts for more than half of the electricity used in commercial retail buildings. Numerous retail stores have reduced their energy usage by improving their lighting efficiency.
Energy efficiency is one of the most cost effective ways to increase productivity and quality. Savings on energy costs are defined as bottom-line savings, which means that shaving $5,000 a month from operating costs goes straight to profitability. This $5,000 savings on energy could result in being more profitable than a $100,000 monthly sales increase, which would incur increased costs for materials, labor, production and overhead. And energy savings are permanent, whereas an increase in sales might not be.
Electricity for commercial retail buildings can be charged by utilities based on two measures – consumption and demand. The consumption portion of the bill is based on the amount of electricity, in kilowatts per hour (kWh), that the building consumes during the month. The demand component is the peak demand, in kilowatts (kW), occurring within the month. Demand charges can range from a few dollars per kilowatt-month to more than $20 per kilowatt-month. Because demand charges can be a large part of the electricity bill, a company should reduce peak demand whenever possible.
