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Greater Philadelphia Headquarters: 487 Devon Park Drive, PA 19087 Office: 484.588.5401 Fax: 484.588.0038 1
Energy Saving Proposal
12.3.12
Prepared for: Ron Sega - Director, Office of Energy and Environment - [email protected]
Dave DeAngelo - Facilities Associate Director - [email protected]
Molly Ergenzen - Business Associate Director - [email protected]
Prepared by:
Student Campus Representatives:
Chenxi Li – [email protected]
Emily Holloway - [email protected]
Professional Mentor:
Charlie Szoradi – CEO, Independence LED [email protected]
Support Photo/Research PowerPoint File (Under Separate Cover)
This Proposal was developed through the ACE PRIZE: www.ACEPrize.com
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Greater Philadelphia Headquarters: 487 Devon Park Drive, PA 19087 Office: 484.588.5401 Fax: 484.588.0038 2
Table of Contents:
Topic and Background
Audience
Purpose
Design & Layout
Research Plan
Energy Solutions
Financing for End Users
Follow Up Steps
Reference
Independence LED –
Recent News and Highlights
www.IndependenceLED.com
Greater Philadelphia Headquarters: 487 Devon Park Drive, PA 19087 Office: 484.588.5401 Fax: 484.588.0038 3
1. Topic and Background
1.1 Policy Situation: T12 banned and Go green plan.
As of July 2012, The Department of Energy General Service Lamp Legislation has banned
the T12 florescence tube lighting system due to its defects in energy efficiency. This change
forces many facilities to upgrade their lighting systems and keep up with ever-changing
industry standards (“Connexion”, 2012). This ban had even sparked movement in
Washington, where President Barack Obama’s Go Green initiative promotes the replacement
of older bulbs with energy-efficient ones in order to reduce electricity cost and emission of
carbon dioxide.
1.2 Independence LED Company
Independence LED manufactures high-efficiency, industry leading LED products. Their
signature Eagle LED Tube System aims to reinforce the replacement of any types of
fluorescent products with their Multi-Tube Fixture Options (“Independence LED”). As
campus representatives for Independence LED, our project is designed to replace previous
fluorescent lighting system with their leading Eagle LED tubes, transforming the lighting
market on American college campuses.
1.3 Products
Independence LED’s products have high qualifications, approved by Buy American
Standards of the American Recovery and Rescue Act (ARRA). The company also provides
5-year warranty and quality assurance. (“Independence LED”)
1.4 Past Projects
Independence LED has partnered with various organizations to spread its remarkable
knowledge on efficient lighting systems. For example, the CASH for Clunkers Lighting
Project is a program designed to assist American businesses transition to efficient lighting
after the U.S. Department of Energy’s ban on inefficient fluorescent tubes. The company
successfully completed the Urban Health Plan Project, a movement toward a brighter, more
efficient workspace (“Independence LED”).
2. Audience
2.1 RPAC Facility Manager:
Dave DeAngelo
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Title: Facilities Associate Director
Email: [email protected]
Molly Ergenzen
Title: Business Associate Director
Email: [email protected]
Our proposal is to promote the energy saving program among Ohio State University. The
Recreation & Physical Activity Center (RPAC) is our first targeted building, due to its heavy
student and faculty traffic and large square footage; the current lighting system offers vast
room for improvement, preferably through the use of LED tubes. Before getting started, we
need to get the permission from the RPAC Facility Management Office; therefore, Mr.
DeAngelo and Ms. Ergenzen are our primary audience. Because their job responsibility
includes the management of all indoor and outdoor recreation facilities and cooperation with
the Environmental Services and Maintenance operations for the department, our plan is to
present the current inefficient lighting usage within the RPAC facility while presenting
advantages of the replacement program.
2.2 Ohio State University Sustainability Department:
Ron Sega
Title: Director, Office of Energy and Environment
Email: [email protected]
The success of this program stems from the support and final estimation from Office of
Energy and Environment of Sustainability Department at OSU. We hope to show our
research and highlight our project’s long-term plan to reduce lighting inefficiency. Since this
is an official department directly managed by administrative board, it is rather important to
propose our program by official presentation and paper proposal.
3. Purpose
Going green is a new concept as public and individuals begin to switch to a more energy
efficient, natural lifestyle (Megan, 2012). To achieve the goal of being more energy efficient,
we put our eyes on the lighting system of the Ohio State University campus. Replacing
ordinary bulbs with more efficient LED tubes will save a significant amount of energy. As
one of the largest multifunctional buildings on campus, the RPAC has more than 630,000
gross square feet lit by fluorescent tubes. Our project aims to reduce the lighting power
consumption by replacing the existing bulbs with new LED energy saving bulbs.
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Comparing with the incandescent light bulbs and CFL bulbs, LED light bulbs have two
shining characteristics that make them more suitable: low driven current and low energy
consumption. In other words, LED bulbs consume much less energy than ordinary bulbs and
have 8 times longer lifetime (Sperber, 2012). Considering the concept of Going Green, it is
high time to promote a new lighting system with LED technology on campus, which could
have remarkable economic and environmental benefits.
Because we are targeting a younger generation of energy users, we hope to inspire a new
concept incorporated with Going Green: Energy Fitness. Using the makeover of America’s
largest collegiate recreational facility, Energy Fitness breeds pride is physical and mental
health, and we hope this idea of healthiness starts with our lighting takeover.
4. Design & Layout
LED, light-emitting diode is a semiconductor device that emits light completely different
from the incumbent fluorescent bulb. An LED has several unique characteristics that sets it
apart from its competition:
Low DC driven current
Low supply voltage
Low energy consumption
To make the installment process as simple as possible, there are just two parts in this LED
lighting system:
External driver
LED tube
It is known that the common supply voltage is 120 volts AC; however, an LED needs a low
DC voltage. Thus, a driver for reducing the voltage and changing AC voltage to DC voltage
is needed. Some LED tube manufacturers prefer to use an internal driver assembled in the
Figure 1 External driver Figure 2 LED tube
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Greater Philadelphia Headquarters: 487 Devon Park Drive, PA 19087 Office: 484.588.5401 Fax: 484.588.0038 6
fixture. Although it makes whole system more compact, it would create higher maintenance
fees because the entire fixture needs to be changed if it breaks down. Therefore, this system
prefers to use an external driver. The ballast is an essential part for a fluorescent tube; so
previous fixture already has a space for it. To make the replacement process simple and
reduce labor hours, the external driver is well designed to fit in the same space.
Due to its low driven current, one LED does not produce as much light compared to the
fluorescent tube. The LED array is needed and is made into a LED tube. The socket and the
length of the LED tube are designed to fit the previous fixture, so it is pertinent for the
facility management team members to properly install them. Replacing the tube and
switching the ballast with the external driver will allow for optimal efficiency.
5. Research Plan
The following research plan is designed to explore possible efficient energy solutions for
lighting systems on the Ohio State University’s campus.
5.1 Campus Building Research
Target Building: Recreation and Physical Activity Center
Target Area: Rafters, Hallways, Stairwells, Meeting Rooms, Racquetball Courts,
Lockers, MTV Loft, and All Gyms.
Target bulb type: 4-inch fluorescent tube and high-bay bulb.
Lighting system working hours: weekdays and weekends
This research were carried out by counting targeted bulbs in all area of the RPAC building
and finding out the corresponding working hours of the lighting system in different positions.
The number of fixtures and bulbs per fixtures were recorded. After this research was
completed, all raw data was analyzed using Independence LED’s developed ROI Calculator,
an excel spread sheet with various essential calculations to maximize efficiency and decrease
cost during the design process. When the data of existing bulb is typed in, the ROI calculator
will automatically generate the replacement LED product as well as the saving reports.
Therefore, multiple energy solution options are generated to allow for the best possible
purchase option for the University, accounting for the University’s budget and preference.
6. Energy Solutions
Option A: A comprehensive make-over of the entire RPAC facility’s lighting system
Option B: A change of only highest-powered bulbs. Excludes stairwells and hallways
Option C: A change of only high-bay related lighting fixtures
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6.1 Option A: Comprehensive RPAC LED Replacement
In this option, Independence LED products will replace the entire RPAC lighting system. The
counting results are listed in Table 2. The original entire lighting system contains 4-inch
standard fluorescent tubes (29 watts and 35 watts) and high-bay fixtures (342 watts).
According to the Table 2, after replacement, 29 watts and 35 watts tubes will be reduced to
15 watts and high-bay fixtures wattage will be decreased to 100 watts. Assuming the cost of
electricity to be $0.12 and with 3.0% annual increase, the results presented in the Table 3
indicates that with Independence LED products, $89,310 electricity cost can be saved
annually. The sum of additional operating savings including bulb replacement saving,
maintenance saving and reduced heating loading is calculated to be $16,663. As a result, the
annual total saving is able to reach $105,973. $1,038,601 can be saved over a lifetime.
Furthermore, the total net cost to the costumer including installation cost and bulb cost is
estimated to be $459,332. With 52 months payback period, the return of investment is 23%.
The financing options suggested by Independence LED involve 36 months and 60 months
with 8% interest rate for both options. For the 36-month financing period, the monthly
payment is estimated to be $14,394 and the net cash flow is -$5,563. However, for the 60
months payment, the monthly net cash flow will only be -$482.
In addition to the capital saving, Independence LED products are also able to tremendously
reduce the carbon dioxide emission with 9,624,372 lbs for the whole lifetime, which will
fuels the Energy Fitness campaign.
6.2 Option B: Highest Powered Bulb Replacement Excludes Stairwells and Hallways
In this option, 29 watts bulbs will not be replaced and only 35 watts and 342 watts bulbs will
be changed to Independence LED products. With the same electricity price assumption, THE
annual total savings are $89,840, and the total net cost is $350,936. Within a 47-month
payback period, the return of investment is 3 percent higher than option A at 26%. For a
60-month financing period at 6% interest rate, positive monthly net cash flow is measured to
be $702. This means the LED savings is $702 higher than the purchase payment. All detailed
information is listed in Tables 4 through 6.
6.3 Option C: High-Bay Replacement Only
Only 342 watts high-bay bulbs will be replaced by Independence LED products in this option.
According to the saving report listed below, the total annual saving is $16, 064, and the total
net cost is $41,647. With a 31-month payback period, 39% of return of investment is
measured. For 36 months and 60 months financing period, the monthly net cash flows are
estimated to be $72 and $533 respectively. All detailed information is listed in Tables 7
through 9.
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Table 1: Option A: Comprehensive RPAC Job Information
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Table 2: Option A: Audit of the RPAC's Available Lighting Fixtures
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Table 3: Option A: Saving Report
Table 4: Option B: Job Information
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Table 5: Option B: Audit of the RPAC's Available Lighting Fixtures
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Table 6: Option B: Saving Report
Table 7: Option C: Job Information
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Table 8: Option C: Audit of the RPAC's Available Lighting Fixtures
Table 9: Option C: Saving Report
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6.4 Comparison Among Three Options
The following data is summarized in Table 10, which includes: total annual saving, total net
cost, ROI, and net cash flow. As can be seen from the table, Option A has the highest annual
saving with the lowest net cash flow. Option B generates the highest net cash flow with a
relatively high return of investment. Option C provides a low net cost but high return of
investment and net cash flow. In conclusion, Option B and Option C should be considered.
Table 10: Comparisons Among Three Options
7. Financing for End Users
On the financing front, Independence LED works with multiple lender companies such as De
Lage Landen, Green City Finance, and NextGen Partners. De Lage Landen is able to lend
$50K or larger purchase orders up to $2M. Green City Finance lends up to $100M, and their
target is $250K or larger for purchase orders. Next Gen Partners is able to provide full service
and managed service contracts.
8. Follow Up Steps
If the energy solutions were approved by The Ohio State University, the following steps are
necessary to continue the project’s next stages:
Completion of a credit application to determine the interest rate and approval
Assessment of the opportunity by The Lenders and preparation of proposals for
review by OSU
Selection of the most appealing program and signature of an agreement
Completion of payment on the LED’s to Independence LED and the installer if
relevant by The Lenders
Completion of the first monthly payment (which is less than the current cost of
electricity) and the subsequent monthly payments
Payment $1 at the end of the term to own the LED equipment.
Total Annual
Saving
Total Net Cost ROI Net Cash Flow
Option A $105,973 $459,332 23% (with 52 month) -$482 (60 month @ 8%)
Option B $89,840 $350,936 26% (with 47 month) $702 (60 month @ 6%)
Option C $16,064 $41,647 39% (with 31 month) $533 (60 month @6%)
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Reference
Bellantoni, Christina. "Obama: Go green, grow economy - Washington Times." Washington
Times - Politics, Breaking News, US and World News. N.p., n.d. Web.6 Nov. 2012.
<http://www.washingtontimes.com/news/2009/apr/22/obama-go-green-grow-econo
my/>.
Connexion. (2012). T12 Phase Out: T12 Fluorescent & Incandescent Lamp Phased Out.
Retrieved from http://www.connexiones.com/t12-phase-out
Independence LED. (2011). About Us. Retrieved from http://www.independenceled.com
Independence LED lighting. (2011). New LED tube standard: External drivers. Independence
LED Lighting. Retrieved November 5, 2012, from http://www.independenceled.com
/q3_2012_report_external_drivers_are_%20new_standard
Megan. (2012). Green Baby Items. Retrieved November 16, 2012, Retrieved from
http://gogreen.org/blog/green-baby-items/
Ohio State Recreational Sports. (n.d.). The Ohio State University. Retrieved from
http://recsports.osu.edu/people/
OSU Sustainability Department. (n.d.). Office of Energy and Environment. Retrieved from
http://iee.osu.edu/about/contact.cfm
Recreation & Physical Activity Center (RPAC): Ohio State Recreational Sports. Retrieved
From http://recsports.osu.edu/facilities/recreation-physical-activity-center-rpac
Sperber, A. N., Elmore, A., Crow, M. L., & Cawlfield, J. D. (2012). Performance evaluation
Of energy efficient lighting associated with renewable energy applications.
Renewable Energy: An International Journal, 44423-430.doi:10.1016/j.renene.
2012.01.001
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INDEPENDENCE Recent News and Highlights
Independence LED Lighting, LLC – www.IndependenceLED.com Independence LED is a
leading U.S. Manufacturer of high-efficiency LED tubes and fixtures that replace the less
efficient fluorescent tubes and metal halide high bay fixtures that dominate commercial and
industrial lighting.
U.S. NEWS: Q3 2012, Independence LED celebrated the completion of the Largest LED
tube Retrofit in U.S. history: http://independenceled.com/largest_led_tube_retrofit_in_the_us
International NEWS: On Thursday 11/15/12, Independence LED received the confirmation
that the company had won the 30,000 tube order from a European bid on seven Hospitals.
This is a $2.4 M account that has been six months in the making. Independence LED was
among five LED manufacturing finalists world-wide that was then narrowed to two. The
buyers said that Independence LED won the bid, because the other finalist (one of the largest
lighting companies in the world) has an internal driver LED tube and only a three year
warranty. Independence LED has the more robust external driver technology with the deep
fin aluminum heat sink, over 50,000 hours of life, and a five year warranty.
Highlights: Independence LED moved the manufacturing of its LED tubes from China to
Boyertown, PA in Q2 2010. The company has seen a tremendous lift in demand resulting in
revenues tripling over each of the past two years. Clients range from industrial Distribution
Centers to Fortune 100 Companies and from independent businesses to National Chains.
Over the course of 2011 Lockheed Martin’s engineering team conducted the reviews and
approved the Independence LED tube system over others for the coveted Con Edison Rebates
in the NYC Metro Market. The Independence LED “External Driver” system has set a new
standard, and it also earned the Underwriters Laboratories (UL) and the Compliance
European (CE) Listings on the complete driver and tube retrofit kit system. Their Deep Fin
thermal management and Flex Density™ system provide cost-effective U.S. manufacturing
with scale and reliability. For property owners and managers, the LED tubes cut the cost of
electricity by 50% or more over fluorescent tubes. Installation accounts range from Morgan
Stanley to MetLife and from Distribution Centers like Davis and Warshow to national auto
service chains like Monro Muffler. The recent retrofit of 50 different Monro Muffler locations
across CT and NJ includes over 6 miles of tubes and the Distribution Center may stand as the
largest facility installation of LED Tubes in the U.S. Market to date. The Cushman and
Wakefield management team for MetLife has specified the Independence “Eagle” LED tubes
for its properties, resulting in multiple new orders across the U.S. In 2011, the Company won
the Green Business of the Year Award from the Main Line Chamber of Commerce.
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To review their Technology Differentiation, Spec Sheets, and Retrofit Photo files, plus Videos,
please see this page of their website: www.IndependenceLED.com/BootCamp
Here is the link to a recent Newsletter: http://independenceled.com/q3_2012_newsletter
Innovative Financing: Independence LED offers a groundbreaking Lighting Service
Contract, which enables facility owners and operators to benefit from energy savings without
any initial costs or on-balance sheet liability: See
http://independenceled.com/lighting_service_contract