Intelligent LED Lighting Accelerates ROI
By Michael Feinstein | December 4, 2013
Category:It’s not exactly a well-kept secret that a lighting upgrade is one of the fastest and most effective ways to reduce energy use and achieve sustainability in most industrial facilities. In plants with round-the-clock operations and large numbers of high-wattage, high-intensity discharge (HID) or high-intensity fluorescent (HIF) fixtures, the electric meter spins 24/7—driven substantially by
lighting load.
Lighting retrofit projects that reduce that burden typically have a fast payback. This has illuminated a clear path and a rapid shift in manufacturing plants from HID lighting to LEDs. What is not always as clear are the alternatives. While LEDs alone will achieve savings, an alternative is to install an intelligent LED system, which can enhance the bottom-line savings, as much as 95
percent.
“Intelligent” LEDs Defined

German machine manufacturer Dilo Spinnbau was able to capitalize on its intelligent LED lighting’s daylight-harvesting capability. As a result of the smart lighting retrofit, the manufacturer reduced its energy usage by 91 percent and realized a return on investment of 1.7 years.
Smart LEDs are a network of independently operating fixtures with built-in occupancy and daylight sensing that are wirelessly networked and centrally managed. They offer energy savings opportunities beyond the controllable, maintenance-free, and lower-wattage attributes that LED fixtures offer. Intelligent LED systems maximize LED lighting efficiency by delivering light precisely where and when needed and adjusting the lighting to variables:
- Rapid on/off cycling without warm-up times
- Full-range (0 to 100 percent) dimming
- Integrated occupancy and day-light-harvesting sensors
- Short time-out settings for minimizing lighting use after an area is vacated
- Ability to schedule settings to change lighting by shift, day of week, or operating hours
- Wireless networking for data shar-ing and ease of deployment
- Distributed intelligence for consis-tent, fail-safe operation at all times
- Ability to modify settings as facility needs change
Energy savings are realized because lights can be set to be on at the precise illumination level needed as soon as a cell or area is occupied and dimmed or off when it is not. Daylight-harvesting capabilities adjust fixture output to balance the natural light from windows or skylights. Settings can differ from shift to shift or from cell to cell, making it possible to use only the light that is actually needed. If floor configurations or lighting requirements change, lighting can be adjusted easily.
Furthermore, integrated intelligence in each fixture and data gathering provide facility managers with actionable intelligence, such as where activity is concentrated within a facility or when peak usage occurs. This is reported by fixture, zone, or plant wide. Intelligence takes the guesswork out of the optimization process, transforming lighting into an easily managed asset that can be safely fine-tuned to eliminate unnecessary consumption.
Upgrade Returns
Cost considerations and returns on investments go hand-in-hand with quality and performance issues when determining the viability of a lighting upgrade. So, while LEDs have similar upfront costs, lifetime costs of intelligent LED systems are lower and payback periods are shorter than for uncontrolled LEDs (see Figure 1). The reason is simple: Intelligent LEDs can save more watts. These systems offer maximum energy savings that accelerate payback.
![Figure 1 A comparison of a 100-fixture installation (at $0.10/kilowatt hour [kWh]) of HIFs, LEDs, and intelligent LED lighting systems shows significant differences between LEDs alone and smart LED systems, which stems from the energy savings realized by being able to use the occupancy sensoring, dimming, and daylight harvesting of intelligent systems.](https://www.fmanet.org/wp-content/uploads/2013/12/led-chart.jpg)
Figure 1
A comparison of a 100-fixture installation (at $0.10/kilowatt hour [kWh]) of HIFs, LEDs, and intelligent LED lighting systems shows significant differences between LEDs alone and smart LED systems, which stems from the energy savings realized by being able to use the occupancy sensoring, dimming, and daylight harvesting of intelligent systems.
Many manufacturing facilities have realized substantial energy savings from their intelligent lighting systems. For example:
- Connecticut-based contract manufacturer Creed Monarch reduced its energy usage by 1,036,669 kWh—90 percent—saving $108,436 annually throughout the installation’s lifetime.
- Illinois warehouse-management company Silver Beauty reduced its annual operating budget for lighting energy from $78,335 to just under $4,078 ($0.39 per square foot)—by 95 percent.
- German carding machine manufacturer DiloSpinnbau secured an investment payback period of 1.7 years and reduced its energy usage by 91 percent, while dramatically improving light levels (from 14 to 41 foot-candles). In addition, the manufacturer realized 35 percent savings from daylight harvesting (see lead image).
- Massachusetts-based Atlas Box & Crating replaced T5 fluorescent lighting in its 224,000-square-foot manufacturing and storage facility with a smart LED system and reduced its lighting energy use by 74 percent with a payback period of just more than one year (12.6 months).
Smart: A Best Practice for Energy Savings, Performance
For a large and growing base of manufacturers, intelligent LEDs are increasingly becoming a best-practice lighting technology.
Because LEDs are inherently a controllable semiconductor chip technology, an intelligent control system helps manufacturers maximize their economic and performance benefits. LEDs last longer than 100,000 hours, so it is worth the effort to understand how integrated intelligence can transform LEDs into a significant asset.
Given the growing cost of electricity, locking in a lifetime of dramatically lower energy bills is a worthwhile investment.
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