Expert Advice on Green Buildings

Green Tax Credits: How Can I Save Money with LED Lighting?

   
Question:

Skip asks: I have a client who has a number of convenience stores in several southern states. This is a large question I know but what kind of tax advantages and energy savings could he expect from an LED conversion. Also could he have or use any carbon credits. These guys have huge power bills for overhead lighting with their canopies.

Answer:
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Skip, you’re right that is a large question! Without detailed engineering analysis I can’t really give you any specific information in regard to energy savings or potential payback, but I can offer some order of magnitude type ideas of savings as well as some information on where to look to help your client pursue rebates and tax credits.

DSIRE and Energy Efficiency Incentives

The best resource for determining what energy efficiency incentives would be available to your client would be www.dsireusa.org. DSIRE stands for Database of State Incentives for Renewable and Efficiency. DSIRE is a comprehensive source of information on state, local, utility, and federal incentives and policies that promote renewable energy and energy efficiency. Established in 1995 and funded by the U.S. Department of Energy, DSIRE is an ongoing project of the N.C. Solar Center and the Interstate Renewable Energy Council.

Carbon Credits and LEDs

I’m not sure what you’re asking about as far as carbon credits, but I don’t think they’re applicable to this question. Carbon credits are, simply put, units of carbon emissions that can be purchased or sold between participating members (ie countries, corporations, etc) towards the ultimate goal of reducing greenhouse gas emissions through a cap and trade program, which at this time, the US does not enforce.

LEDs and Energy Efficiency

Installing LED lighting will result in reduced energy consumption (the reason behind potential tax credits), and come with a plethora of benefits. They typically last longer than fluorescents, are very durable, operate cool, are mercury free, and end up being quire cost-effective for a number of applications. Estimates from Beta LED state that LED canopy lighting can save up to 75% compared to traditional convenience store canopy lighting and can cost anywhere from $5-$6/Watt.

Ultimately, if your client is serious about energy-saving retrofit possibilities for his convenience stores, I’d recommend contacting an engineering firm that does energy audits and hiring them to do a brief study to identify these savings opportunities and help quantify what kind of energy and economical savings your client could expect to see if he went through with any retrofits. At my company, this would typically involve a day trip to the property and a brief write-up to accompany the calculations and simple payback analysis.

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Expert Advice and Comments
clairemolo's picture

Green Tax Credits: How Can I Save Money with LED Lighting?

Great article about LEDs for convenience stores, Sarah! Thanks :)

I am a recent graduate of Cornell University, where I studied Environmental Science and concentrated in Sustainable Development. My interest in green building and LEED stems from my project-based coursework at Cornell, where I proposed design strategies

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