Part 1 - business case introduction

 

Over the next three pages we illustrate the business case for an example energy efficient lighting installation for a warehouse building. If you have a potential lighting project for a warehouse building then telephone us now on 0117 230 8500 for immediate assistance.

 

A - the background

A 10,000 square metre warehouse uses 150 HPS high-bay light fixtures - each rated at 400 Watts (actual energy consumption is 470 Watts ). The business is paying 12p per kWh for electricity and the lighting is switched on for 16 hours per day.

 

The site manager is looking for a cost effective solution which will also improve the quality of light.

B - the proposed lighting system

 

The lighting system that was proposed to replace the outdated high-pressure sodium lamps uses lighting fixtures housing four T5 fluorescent tubes and a linked daylight/occupancy dimming system.

 

This T5 system would improve the quality of the working illumination, replacing the peach-yellow colour of the HPS lights with a whiter light, and gve higher lux levels. An overview of these systems is shown below:

 

Next: Part 2 - the return on investment (ROI) calculations for energy efficient warehouse lighting >>>>

 

 

 

 

Part 2 - Running costs & investment payback

 

By upgrading to the proposed lighting system the business is able to make significant reductions in electricity bills and carbon footprint. The payback of the investment is also recouped quickly. This is illustrated below.

C - Energy usage of old & new lighting

 

The energy consumption, running costs and carbon dioxide emissions of the existing an proposed lighting systems is summarised below.

 

D - payback calculations for new lighting system

 

The payback times (measured in months) from the new warehouse lighting system is illustrated below. This is calculated using the Enhanced Capital Allowance scheme (allowing a 100% write off against tax in first year) and also without:

 

 

Next: Part 3 - the Carbon Trust 0% loan calculation for new energy efficient warehouse lighting >>>>

 

Back: Part 1 - the energy efficient warehouse lighting business case <<<<

 

 

 

 

Part 3 - Carbon Trust 0% loan calculation

 

Small to Medium sized business can qualify for an interest-free Carbon Trust loan. These are arranged so that the payback time is shorter than the loan duration - meaning a positive monthly cash flow can be generated!

E - Carbon Trust interest-free loan details

 

The details of how an interest-free Carbon Trust loan would be structured is illustrated below - including the positive cash flow that would be generated. If you woud like to know more about the Carbon Trust 0% loans then please contact us.

 

Back: Part 2 - the payback time calculations for energy efficient warehouse lighting <<<<

 

Back: Part 1 - the energy efficient warehouse lighting business case <<<<