How Much Does It Cost to Retrofit LED Lighting in a Small Business? 

Outdated lighting can eat into your bottom line, creating high energy costs and functional issues for your business. However, retrofitting your business with new LED lighting can get costly. Before you invest in new lighting, it’s important to consider the initial expenses and timeline for a return on your investment. 

For most small businesses, upgrading to LED lighting can help you save money and is well worth the investment. LED lighting is more energy-efficient than older lighting systems, and rebates are often available to help cover the installation costs. Learn more about the cost of LED lighting retrofits so you can decide whether it should be your next business move. 

Benefits of LED Retrofitting

LED retrofitting can benefit your company through long-term energy savings, among other things. According to the U.S. Department of Energy, LED lighting bulbs use 75% less energy than incandescent light bulbs. They can also last up to 25 times longer, reducing the cost of replacing bulbs. 

When you switch to LED lights, you can be confident you’re spending less to keep the lights on at your business. The funds you free up from energy costs can be used to further your company’s future in other key areas. LED lighting is also better for the environment and can help you meet company sustainability goals.

How Much Does LED Lighting Cost? 

There is no way to calculate the exact cost of an LED lighting upgrade until you’ve shared your project details with an electrical contractor. However, there are some guidelines you can follow to estimate the cost of this project and understand how it may help you save in the future.

When you complete a commercial retrofit and install LED lighting, there are expenses to consider. In addition to the LED light bulbs and equipment, you’ll also need to cover LED light installation costs. Some companies may request that you also complete a lighting assessment before installation. 

Factors that can impact the total cost of lighting installation for your business include:

• Facility size: If you’re replacing the lighting in a large facility, the upgrade will cost more in terms of materials and installation time than it would for a smaller space. 
• Kind of LEDs: Some types of LED bulbs are more expensive than others. Your cost will depend on the type that’s best for your facility. 
• Ballast bypass: New LED technology can bypass the ballast and use drivers instead for more reliable power. However, wiring past the ballast for your lighting can be more expensive in the short term. 
• LED rebates: There are government rebates that can help reduce the cost of upgrading your lighting by a significant percentage. This may help you better afford LED retrofitting and save money over the long term. 

The most important decision you’ll make is choosing a trustworthy electrical company to complete the LED upgrade — they’ll bring years of experience to the job and ensure you love the final result. 

LED Retrofit Lighting vs. Dedicated LED Fittings

When you retrofit lighting, you put a new kind of bulb or tube into the existing light fixture. By contrast, dedicated LED fittings are new light fixtures designed to work with LEDs. Both of these options have pros and cons, but many small businesses choose LED retrofitting because of its lower upfront cost. 

LED Retrofit Lighting

With LED retrofitting, you use an LED bulb or tube designed to screw into your current fixture. These commercial LED lights are more affordable than replacing the entire fixture system, and you don’t have to change anything about the look or layout of your lighting to improve energy efficiency. 

It’s important to note that some retrofits require electricians to bypass the ballasts in your lighting system. Ballasts can fail, so bypassing them can make your lighting more reliable and reduce future maintenance. However, taking this extra step can increase the cost of your LED installation.

Dedicated LED Fittings

When you invest in all-new LED fixtures and bulbs, you can achieve optimal energy efficiency and lighting performance. New LED systems use drivers instead of ballasts, so they’re less prone to maintenance issues. They may also include advanced features like smart controls and sensors. 

When you choose dedicated LED fittings, you’ll likely have a higher upfront cost for the new lighting system. For some companies, completely redoing their lighting may not be worth the benefits of a higher upfront investment. 

How to Determine the ROI for an LED Retrofit

Here’s a quick way to estimate the return on investment (ROI) you could get by upgrading to LED lighting. 

• Start by calculating the upfront cost of LED lamps and fixtures you’ll need, depending on the size of your project. 
• Add the cost of installation. You can contact companies for an estimate to figure this number correctly.
• Determine what rebates and incentives could reduce this total cost. 

Once you know the initial cost, it’s time to calculate how long it will take for the upfront investment to pay off. Here’s how to determine that number: 

• Write down your company’s annual cost for keeping the lights on. Figure in maintenance and bulb replacements. 
• Estimate the energy requirements of LEDs instead using the 75% figure from the Department of Energy website. 
• Subtract the cost of LEDs from the cost of incandescent lighting to see the financial difference. 

Remember that LEDs are replaced much less often than incandescent bulbs, so maintenance costs will be lower. If you decide to pay for LEDs with lighting financing, you should also calculate what those payments will add to your annual lighting costs. These numbers can help you see a big-picture view of how many years it will take to achieve a valuable ROI. 

Upgrade Your Lighting With Lippolis Electric, Inc.

Looking for an electrical contractor in the New York tristate area? At Lippolis Electric, we’ve been serving New York, New Jersey and Connecticut for over 40 years. We’re a local, family-owned and operated business that takes pride in offering quality workmanship and saving our customers money. 

Whether you’re a homeowner or have a large commercial building, no project is too small or too large for our experienced electrical contractors to take on. Our electricians stay up to date with new technologies and can help you install energy-efficient solutions so you can continue saving on energy costs for the long term. 

Call us at 914-738-3550, or request an appointment to get started. We look forward to hearing from you!