Payback calculation for conversion to LED

Does the conversion to LED lighting pay off?

Everyone talks about how LED lights require much less power than conventional lights and light sources. But does the switch really pay off, and how quickly will it be profitable?

ROI Calculation for LED Lighting

Upon request, we can provide a calculation of the payback period for your project. This calculation depends heavily on the types of light sources and luminaires you currently have in use and the ones they will be replaced with. To perform the calculation, we will need a series of information, and a site visit may also be necessary.

What information is needed?

  • What types of luminaires are being used and how many of them
  • How many hours per day are the luminaires in operation
  • What is the current electricity price you are paying

Are there standard values?

Customers often ask us how long the payback period for energy savings through LED lighting can be. Generally speaking, it can range from two to six years. It strongly depends on the efficiency of the existing light sources and their daily operating hours. The conversion to LED lighting may be highly interesting for a commercial space but less so for a residential household.. 

Who benefits the most from a conversion?

Based on experience, a conversion is particularly beneficial for:

  • Retail lighting (spotlights, neon tubes, indirect lighting)
  • Hotels, indoor and outdoor lighting
  • Condominiums (hallway lighting, outdoor lighting) • Office spaces and medical practices
  • Office spaces and medical practices
  • Schools, nursing homes, and retirement homes


It is important to note that in addition to energy consumption, the replacement of light sources also plays a role in the payback calculation. Halogen bulbs need to be replaced frequently, while energy-saving lamps and tubes do not. However, the cost of these replacements can be significant and should be taken into account in the calculation. It is also worth considering that failed or defective luminaires in environments with a representative character (e.g., a shop, hotel, lobby, hallway, outdoor lighting, etc.) can create a negative impression. Although these negative side effects are not included in the calculation, they should still be taken into account by the customer.

LED Lighting Lifespan

Regarding the lifespan of LED lighting, there is a lot of misinformation and adventurous opinions. It is crucial to pay attention to the hours indicated on the light sources, which can range from 10,000 to 60,000. During this time, the light source should not fail but rather lose a portion of its luminous efficacy (typically 30%). Well-made LED light sources, when properly installed and operated, can last extremely long .