8/7/2019 State LED ROI Table

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State-By-State Return On Investment (ROI) Table For LED Lighting Replacement Of 4-Foot Fluorescent TubesSource Data: Energy Information Administration - Official Energy Statistics from the US Government. Released November 13, 2009

StateCents /

kWh

Annual Cost to

operate 1 T-8

Fluorescent Tube

(50 hours a week)

LED

Cost/Tube

Year One

Savings with

Tax Deduction

Annual

Savings

Lifetime

Savings

(30 Years)

Payback

time in

Years

ROI

Annual Cost to

operate 1 T-8

Fluorescent

Tube 24/7

LED

Cost/Tube

Year One

Savings with

Tax

Deduction

Annual

Savings

Lifetime

Savings

(10 Years)

Payback

time in

Years

ROI

Hawaii 22.88 Highest Cost Over 12 Cents / kWh $26.77 $65 $31.42 $21.42 $652.47 2.6 32.95% $90.15 $65 $82.12 $72.12 $731.18 0.76 110.95%

Massachusetts 18.51 Highest Cost Over 12 Cents / kWh $21.66 $65 $27.33 $17.33 $529.76 3.2 26.65% $72.93 $65 $68.34 $58.34 $593.44 0.94 89.76%

Connecticut 16.64 Highest Cost Over 12 Cents / kWh $19.47 $65 $25.58 $15.58 $477.25 3.5 23.96% $65.56 $65 $62.45 $52.45 $534.49 1.05 80.69%

New York 16.4 Highest Cost Over 12 Cents / kWh $19.19 $65 $25.35 $15.35 $470.51 3.6 23.62% $64.62 $65 $61.69 $51.69 $526.93 1.06 79.53%

California 15.75 Highest Cost Over 12 Cents / kWh $18.43 $65 $24.74 $14.74 $452.26 3.7 22.68% $62.06 $65 $59.64 $49.64 $506.44 1.11 76.38%

New Jersey 14.91 Highest Cost Over 12 Cents / kWh $17.44 $65 $23.96 $13.96 $428.67 3.9 21.47% $58.75 $65 $57.00 $47.00 $479.96 1.17 72.30%

Alaska 14.25 Highest Cost Over 12 Cents / kWh $16.67 $65 $23.34 $13.34 $410.14 4.1 20.52% $56.15 $65 $54.92 $44.92 $459.16 1.22 69.10%

New Hampshire 14.01 Highest Cost Over 12 Cents / kWh $16.39 $65 $23.11 $13.11 $403.40 4.2 20.17% $55.20 $65 $54.16 $44.16 $451.60 1.25 67.94%

District of Columbia 13.67 Highest Cost Over 12 Cents / kWh $15.99 $65 $22.80 $12.80 $393.85 4.3 19.68% $53.86 $65 $53.09 $43.09 $440.88 1.28 66.29%

Vermont 12.91 Highest Cost Over 12 Cents / kWh $15.10 $65 $22.08 $12.08 $372.51 4.6 18.59% $50.87 $65 $50.69 $40.69 $416.92 1.35 62.60%

Rhode Island 12.72 Highest Cost Over 12 Cents / kWh $14.88 $65 $21.91 $11.91 $367.18 4.6 18.32% $50.12 $65 $50.09 $40.09 $410.93 1.37 61.68%

Maine 12.36 Highest Cost Over 12 Cents / kWh $14.46 $65 $21.57 $11.57 $357.07 4.8 17.80% $48.70 $65 $48.96 $38.96 $399.59 1.41 59.94%

Delaware 12.01 Highest Cost Over 12 Cents / kWh $14.05 $65 $21.24 $11.24 $347.24 4.9 17.29% $47.32 $65 $47.86 $37.86 $388.56 1.45 58.24%

Maryland 11.95 Average Cost Between 8 & 12 Cents / kWh $13.98 $65 $21.19 $11.19 $345.56 4.9 17.21% $47.08 $65 $47.67 $37.67 $386.66 1.46 57.95%

Florida 10.62 Average Cost Between 8 & 12 Cents / kWh $12.43 $65 $19.94 $9.94 $308.21 5.5 15.29% $41.84 $65 $43.47 $33.47 $344.74 1.64 51.50%

Nevada 10.62 Average Cost Between 8 & 12 Cents / kWh $12.43 $65 $19.94 $9.94 $308.21 5.5 15.29% $41.84 $65 $43.47 $33.47 $344.74 1.64 51.50%US Average 10.6 Average Cost Between 8 & 12 Cents / kWh $12.40 $65 $19.92 $9.92 $307.65 5.5 15.26% $41.76 $65 $43.41 $33.41 $344.11 1.65 51.40%

Alabama 10.1 Average Cost Between 8 & 12 Cents / kWh $11.82 $65 $19.45 $9.45 $293.61 5.8 14.54% $39.79 $65 $41.84 $31.84 $328.35 1.73 48.98%

Arizona 10.06 Average Cost Between 8 & 12 Cents / kWh $11.77 $65 $19.42 $9.42 $292.48 5.8 14.49% $39.64 $65 $41.71 $31.71 $327.09 1.73 48.78%

US Savings Potential:

Average Cost per Kilowatt hour for Commercial ElectricityTypical Offices that run 50 hours per week Stair Towers and Certain Hallways or areas that run 24/7

To normalize the data, these factors are used:

- Overall, LIGHTING is 30% of total electricity cost according to the Department of Energy.

- Existing T-8 Fluorescents with ballast power factor use up to 45 Watts

- Commercial Properties typically run at 50 hours per week and certain spaces run 24/7 like Fire Stair Towers and/or certain hallways.

- Typical Office: 2,600 operating hours /year @ 45 Watts = 117,000 Watts per year or 117 kWh (The straight electricity savings is 65% with LEDs plus an average additional 15% savings coming from the offset purchase and labor advantage of

not having to replace the fluorescent tubes every three to five years.)

- Total average savings with LEDs = 80%. Note: The savings is higher if the existing tubes are T-12 and slightly lower with T-5s. Typical 24/7 Stair tower: 8,760 operating hours @ 45 Watts = 394,200 Watts per year or 394 kWh.

LED 4' tubes: 15Watt and 1,500 Lumens cost $70 each.

LEDs last 80,000 hours (30 years for typical office and 10 year for typical 24/7 Stair Towers). Please note that this is simple savings without ANY inflation or energy cost increase factors. Therefore,the real lifetime savings will be dramatically

higher. Given that it will change state-by-state, this file is designed to help normalize the data for comparison.

Federal Tax Incentives:

The American Recovery and Reinvestment Act provides a Tax Deduction of $.60 per square foot for reducing lighting costs by more than 50%. The average US office worker uses 225 sq. ft. and at 60 cents per foot that generates $135 of

deductions in year one and a real cash benefit of $40 in a 30% tax bracket. Given that the average office/worker space uses the equivalent of four 4' tubes or eight 2' t ubes, the cash advantage the tax deduction in year one is $10 per tube. The

payback time reflects the cost of the LED bulb less the $10 tax deduction advantage divided by the annual savings after year one.

Highlights:

On November 13, 2009, the Energy Information Administration released the Report with The Official Energy Statistics from the US Government. There are 16 S tates that spend over 12 Cents per Kilowatt Hour on Electricity. These 'Highest Cost'

States are above the US average of 10.6 Cents and thus t he best candidates for electricity savings like high performance LED lighting retrofits. The top 5 st ates pay 50% or more than the US Average, and the top 10 states pay more than double

what the lowest cost states pay for electricity. Hawaii and Massachusetts win the ugly electricity cost race at over 18 Cents each, and Northeast States like Connecticut, New York, New Jersey, and New Hampshire are all over 14 Cents. California

and Alaska round out the high-cost 'winners' that pay more than everyone else! If it is any consolation, the higher cost states are the ones that typically spearhead energy efficiency initiatives due to increased cost on the supply side. Every

commercial property in every state is a potential candidate for energy efficiency initiatives, but the properties in the 'High Cost' states are ideally suited for electricity savings with high performance LED lighting solutions that typically save over

80% on lighting costs. Since lighting accounts for 30% or more of commercial property electricity costs, see the state by state breakdown.

Cost Categories

8/7/2019 State LED ROI Table

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Michigan 10.04 Average Cost Between 8 & 12 Cents / kWh $11.75 $65 $19.40 $9.40 $291.92 5.9 14.46% $39.56 $65 $41.65 $31.65 $326.46 1.74 48.69%

Ohio 9.81Average Cost Between 8 & 12 Cents / kWh $11.48 $65 $19.18 $9.18 $285.46 6.0 14.13% $38.65 $65 $40.92 $30.92 $319.21 1.78 47.57%

Pennsylvania 9.71 Average Cost Between 8 & 12 Cents / kWh $11.36 $65 $19.09 $9.09 $282.66 6.1 13.98% $38.26 $65 $40.61 $30.61 $316.06 1.80 47.09%

Wisconsin 9.7 Average Cost Between 8 & 12 Cents / kWh $11.35 $65 $19.08 $9.08 $282.38 6.1 13.97% $38.22 $65 $40.57 $30.57 $315.74 1.80 47.04%

Texas 9.66 Average Cost Between 8 & 12 Cents / kWh $11.30 $65 $19.04 $9.04 $281.25 6.1 13.91% $38.06 $65 $40.45 $30.45 $314.48 1.81 46.84%

Tennessee 9.28 Average Cost Between 8 & 12 Cents / kWh $10.86 $65 $18.69 $8.69 $270.58 6.3 13.36% $36.56 $65 $39.25 $29.25 $302.51 1.88 45.00%

Mississippi 9.18 Average Cost Between 8 & 12 Cents / kWh $10.74 $65 $18.59 $8.59 $267.77 6.4 13.22% $36.17 $65 $38.94 $28.94 $299.35 1.90 44.52%

Georgia 8.97 Average Cost Between 8 & 12 Cents / kWh $10.49 $65 $18.40 $8.40 $261.88 6.6 12.92% $35.34 $65 $38.27 $28.27 $292.73 1.95 43.50%

New Mexico 8.9 Average Cost Between 8 & 12 Cents / kWh $10.41 $65 $18.33 $8.33 $259.91 6.6 12.82% $35.07 $65 $38.05 $28.05 $290.53 1.96 43.16%

Colorado 8.81 Average Cost Between 8 & 12 Cents / kWh $10.31 $65 $18.25 $8.25 $257.38 6.7 12.69% $34.71 $65 $37.77 $27.77 $287.69 1.98 42.72%

South Carolina 8.78 Average Cost Between 8 & 12 Cents / kWh $10.27 $65 $18.22 $8.22 $256.54 6.7 12.64% $34.59 $65 $37.67 $27.67 $286.75 1.99 42.58%

Iowa 8.72 Average Cost Between 8 & 12 Cents / kWh $10.20 $65 $18.16 $8.16 $254.86 6.7 12.56% $34.36 $65 $37.49 $27.49 $284.85 2.00 42.29%

Minnesota 8.64 Average Cost Between 8 & 12 Cents / kWh $10.11 $65 $18.09 $8.09 $252.61 6.8 12.44% $34.04 $65 $37.23 $27.23 $282.33 2.02 41.90%

Kansas 8.53 Average Cost Between 8 & 12 Cents / kWh $9.98 $65 $17.98 $7.98 $249.52 6.9 12.28% $33.61 $65 $36.89 $26.89 $278.87 2.05 41.36%

Illinois 8.34 Average Cost Between 8 & 12 Cents / kWh $9.76 $65 $17.81 $7.81 $244.19 7.0 12.01% $32.86 $65 $36.29 $26.29 $272.88 2.09 40.44%

Indiana 8.27 Average Cost Between 8 & 12 Cents / kWh $9.68 $65 $17.74 $7.74 $242.22 7.1 11.91% $32.58 $65 $36.07 $26.07 $270.67 2.11 40.10%

Missouri 8.11 Average Cost Between 8 & 12 Cents / kWh $9.49 $65 $17.59 $7.59 $237.73 7.2 11.68% $31.95 $65 $35.56 $25.56 $265.63 2.15 39.33%

Montana 8.11 Average Cost Between 8 & 12 Cents / kWh $9.49 $65 $17.59 $7.59 $237.73 7.2 11.68% $31.95 $65 $35.56 $25.56 $265.63 2.15 39.33%

North Carolina 8.09 Average Cost Between 8 & 12 Cents / kWh $9.47 $65 $17.57 $7.57 $237.17 7.3 11.65% $31.87 $65 $35.50 $25.50 $265.00 2.16 39.23%

Virginia 7.97 Lowest Cost Under 8 Cents / kWh $9.32 $65 $17.46 $7.46 $233.80 7.4 11.48% $31.40 $65 $35.12 $25.12 $261.21 2.19 38.65%

Arkansas 7.96 Lowest Cost Under 8 Cents / kWh $9.31 $65 $17.45 $7.45 $233.52 7.4 11.46% $31.36 $65 $35.09 $25.09 $260.90 2.19 38.60%

Kentucky 7.87 Lowest Cost Under 8 Cents / kWh $9.21 $65 $17.37 $7.37 $230.99 7.5 11.33% $31.01 $65 $34.81 $24.81 $258.06 2.22 38.16%

Nebraska 7.86 Lowest Cost Under 8 Cents / kWh $9.20 $65 $17.36 $7.36 $230.71 7.5 11.32% $30.97 $65 $34.77 $24.77 $257.75 2.22 38.11%

Oklahoma 7.75 Lowest Cost Under 8 Cents / kWh $9.07 $65 $17.25 $7.25 $227.62 7.6 11.16% $30.54 $65 $34.43 $24.43 $254.28 2.25 37.58%

Louisiana 7.47 Lowest Cost Under 8 Cents / kWh $8.74 $65 $16.99 $6.99 $219.76 7.9 10.76% $29.43 $65 $33.55 $23.55 $245.45 2.34 36.22%

Oregon 7.44 Lowest Cost Under 8 Cents / kWh $8.70 $65 $16.96 $6.96 $218.92 7.9 10.71% $29.31 $65 $33.45 $23.45 $244.51 2.35 36.08%

Utah 7.43 Lowest Cost Under 8 Cents / kWh $8.69 $65 $16.95 $6.95 $218.63 7.9 10.70% $29.27 $65 $33.42 $23.42 $244.19 2.35 36.03%

Wyoming 7.32 Lowest Cost Under 8 Cents / kWh $8.56 $65 $16.85 $6.85 $215.55 8.0 10.54% $28.84 $65 $33.07 $23.07 $240.73 2.38 35.50%

South Dakota 7.24 Lowest Cost Under 8 Cents / kWh $8.47 $65 $16.78 $6.78 $213.30 8.1 10.43% $28.53 $65 $32.82 $22.82 $238.20 2.41 35.11%

North Dakota 7.23 Lowest Cost Under 8 Cents / kWh $8.46 $65 $16.77 $6.77 $213.02 8.1 10.41% $28.49 $65 $32.79 $22.79 $237.89 2.41 35.06%

Washington 7.01 Lowest Cost Under 8 Cents / kWh $8.20 $65 $16.56 $6.56 $206.84 8.4 10.09% $27.62 $65 $32.10 $22.10 $230.96 2.49 33.99%

Idaho 6.96 Lowest Cost Under 8 Cents / kWh $8.14 $65 $16.51 $6.51 $205.44 8.4 10.02% $27.42 $65 $31.94 $21.94 $229.38 2.51 33.75%

West Virg inia 6.56 Lowest Cost Under 8 Cents / kWh $7.68 $65 $16.14 $6.14 $194.20 9.0 9.45% $25.85 $65 $30.68 $20.68 $216.77 2.66 31.81%