This calculator will determine the annual energy cost savings and life-time energy cost savings when

you upgrade
bulbs to a newer LED type bulb. You can also calculate the savings in the reduction in bulb changes due to the
longer bulb life.
You can use this sheet for each bulb type upgraded. It requires the wattage and bulb life for both the old and new
bulb and the local cost per kilowatt-hour.
Additionally the cost to change a single light bulb and the cost of the initial install of the LED light bulb. You may
want to include all of the costs of changing bulbs such as labor, inventory, warehousing and
purchasing/accounting.
Simply fill in the shaded cells(change the Blue number).

Compute the total power (kilowatts, kW) saved by upgrading older Bulbs to energy saving
LED replacements
Coding
A1
A2
A3
A4
A5
A6

Parameter
Original Bulb Wattage
Replacement Bulb Wattage
Watts Saved per Bulb (A3=A1-A2)
How many Bulbs to Replace
Total Watts SavedA5=A3*A4
Total Kilowatts Saved (A6=A5/1000)

Unit
W
W
W
Bulbs Quantity
W
KW

Numerical Value
500.00
34.00
466.00
232.00
108,112.00
108.11

B Compute the total energy (kilowatt hours, kWh) saved annually by performing this upgrade
Coding
B1
B2
B3
B4
B5

Parameter
Total Kilowatts Saved (B1=A6)
Hours of Use per Day
Days of Use per Week
Week of Use per Year
Total kWh Saved per Year (B5=B1*B2*B3*B4)

Unit
KW
hrs/day
day/week
wks/y
KWH/yr

Numerical Value
108.11
10.00
7.00
52.00
393,527.68

Unit
KWH/yr
$/KWH
$/yr

Numerical Value
393,527.68
$
0.14
$
55,093.88

C Compute the total energy cost savings per year

Coding
Parameter
C1
Total kWh Saved per Year (C1=B5)
C2
Your Energy Cost per KWH
C3
Total Energy Cost Savings per Year (C3=C1*C2)

Author:Jack Chen

D Compute the lifetime energy cost savings

Coding
D1
D2
D3
D4

Parameter
Replacement Bulb Life
Hours per Year Usage (D2=B2*B3*B4)
Total Energy Cost Savings per Year (D3=C3)
Lifetime Energy Cost Savings (D4=D1/D2*D3)

Unit
hours
hr/yr
$/yr
$

Coding
D5
D6
D7
D8
D9

Parameter
Replacement Bulb Unit Price
Initial Cost of LED Light Bulb (D6=D5*A4)
Total Energy Cost Savings per Year (D7=C3)
Simple Payback on Energy Consumption (D8=D6/D7)
Return on Investment (ROI) D9=1/D8 *100%

Unit
$/pcs
$
$/yr
Years
%

Numerical Value
50,000.00
3,640.00
$
55,093.88
$
756,784.00

$
$
$

Numerical Value
72.00
16,704.00
55,093.88
0.30
329.82%

Compute the lifetime labor/inventory/acquisition costs savings from upgrading to longer life
LED replacements
Coding
E1
E2
E3
E4
E5
E6

Parameter
Replacement Bulb Life (E1=D1)
Original Bulb Life
Labor Cost to Change Original Bulb
Cost of Original Bulb
How many Bulbs to Replace (E5=A4)
Cost to Install Replacement LED Bulb
Total Lifetime Bulb Changing Cost Savings
E7=E1/E2*(E3+E4)*E5-E6

Unit
hours
hours
$
$
Bulbs Quantity
$

Numerical Value
50,000.00
2,000.00
$
1.00
$
1.00
232.00
$
1.00

11,599.00

Coding
Parameter
Total Lifetime Replacement Cost Savings F1=E7
F1
F2
Total Lifetime of Replacement Bulb (F2=D1/D2)
Total Amortized Replacement
F3
Cost Savings per Year

Unit
$
Years

Numerical Value
11,599.00
13.74

844.41

Coding

Unit

E7

F Compute the amortized bulb changing cost savings per year

F4
F5
F6
F7

Parameter
Simple Payback on Energy Consumption Plus Replacement
Costs F4=F5/F6
Initial Cost of Lighting Upgrade per Bulbs F5=D5
Total Energy + Replacement Cost
Savings per year F6=C3+F3
Return on Investment (ROI) F7=1/F4 *100%

Numerical Value
0.00

Years
$

72.00

55,938.28

77692.06%

Author:Jack Chen