Commercial Lighting ROI: LED Retrofit vs New Installation
Quick Answer
ROI for commercial lighting is defined as the ratio of net savings to capital expenditure, expressed as payback period. LED retrofit: 1.2-2.5 years. New LED installation: 2.0-3.5 years.
| Factor | LED Retrofit | New LED Installation |
|---|---|---|
| Upfront Cost/Fixture | $45-120 | $150-400 |
| Energy Savings | 50-65% | 55-70% |
| Payback Period | 1.2-2.5 years | 2.0-3.5 years |
| DLC Rebate | Yes | Yes ($15-35/fixture) |
| Controls | Limited | Full (0-10V/DALI) |
ROI Formula
Payback (years) = Total Cost / (Annual Energy Savings + Annual Maintenance Savings). Example: 100 fixtures, 400W HID to 150W LED, $0.12/kWh, 12h/day = $13,140/year savings, payback < 1 year.
Conclusion
ROI defined by payback period. Retrofit fastest (1.2-2.5y). New installation lower TCO over 10+ years. Verify DLC listing before procurement.
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