{
  "slug": "led-retrofit-payback",
  "title": "LED Retrofit Payback Calculator",
  "heading": "LED Lighting Retrofit Payback Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/led-retrofit-payback",
  "summary": "Simple and rebate-adjusted payback period for switching to LED.",
  "description": "LED retrofits are one of the highest-ROI facility upgrades available, typically paying back in one to three years through lower wattage draw, longer fixture life, and reduced HVAC load from less waste heat. This calculator compares your existing fixture wattage and count against LED replacements, computes annual energy and maintenance savings, and factors in any utility rebate to give both a simple payback period and the total cost of the project. It also estimates the emissions reduction from lower electricity draw, which most facilities now report alongside the financial payback for sustainability disclosures. The maintenance savings line often gets overlooked — LEDs typically last 25,000-50,000+ hours versus 10,000-20,000 for fluorescent and metal halide, cutting the relamping labor and material cost that facilities teams pay for year after year.",
  "formula": "Annual energy savings = fixtures × (old W − new W) × hours/yr ÷ 1000 × $/kWh. Payback = (project cost − rebate) ÷ (energy savings + maintenance savings).",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=led-retrofit-payback",
  "inputs": [
    {
      "id": "fixtures",
      "label": "Number of fixtures",
      "kind": "number",
      "hint": null,
      "default": 200,
      "unit": null,
      "min": 1,
      "max": null
    },
    {
      "id": "oldWatts",
      "label": "Existing fixture wattage",
      "kind": "number",
      "hint": null,
      "default": 150,
      "unit": "W",
      "min": 0,
      "max": null
    },
    {
      "id": "newWatts",
      "label": "LED fixture wattage",
      "kind": "number",
      "hint": null,
      "default": 45,
      "unit": "W",
      "min": 0,
      "max": null
    },
    {
      "id": "hoursYr",
      "label": "Operating hours per year",
      "kind": "number",
      "hint": null,
      "default": 4000,
      "unit": null,
      "min": 0,
      "max": null
    },
    {
      "id": "elecRate",
      "label": "Electricity rate",
      "kind": "number",
      "hint": null,
      "default": 0.13,
      "unit": "$/kWh",
      "min": 0,
      "max": null
    },
    {
      "id": "costPerFixture",
      "label": "Installed cost per fixture",
      "kind": "number",
      "hint": null,
      "default": 95,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "rebate",
      "label": "Utility rebate (total)",
      "kind": "number",
      "hint": null,
      "default": 4000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "maintSavingsYr",
      "label": "Annual maintenance savings",
      "kind": "number",
      "hint": null,
      "default": 1800,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "paybackYears",
      "label": "Payback period",
      "format": "decimal",
      "hint": null,
      "primary": true
    },
    {
      "id": "netCost",
      "label": "Net project cost after rebate",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "totalSavingsYr",
      "label": "Total annual savings",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "energySavingsKwh",
      "label": "Annual energy savings",
      "format": "number",
      "hint": null,
      "primary": false
    },
    {
      "id": "emissionsAvoidedTons",
      "label": "Emissions avoided per year",
      "format": "number",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Number of fixtures: 200",
      "Existing fixture wattage: 150 W",
      "LED fixture wattage: 45 W",
      "Operating hours per year: 4000",
      "Electricity rate: 0.13 $/kWh",
      "Installed cost per fixture: 95 $",
      "Utility rebate (total): 4000 $",
      "Annual maintenance savings: 1800 $"
    ],
    "outputs": [
      "Payback period: 1.18",
      "Net project cost after rebate: $15,000",
      "Total annual savings: $12,720",
      "Annual energy savings: 84,000",
      "Emissions avoided per year: 32.42"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter number of fixtures.",
      "Enter existing fixture wattage (W).",
      "Enter led fixture wattage (W).",
      "Enter operating hours per year.",
      "Enter electricity rate ($/kWh).",
      "Enter installed cost per fixture ($).",
      "Enter utility rebate (total) ($).",
      "Enter annual maintenance savings ($).",
      "Read your payback period on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "fixtures": 120,
        "oldWatts": 90,
        "newWatts": 25,
        "hoursYr": 2400,
        "elecRate": 0.078,
        "costPerFixture": 55,
        "rebate": 2400,
        "maintSavingsYr": 1100
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "fixtures": 200,
        "oldWatts": 150,
        "newWatts": 45,
        "hoursYr": 4000,
        "elecRate": 0.13,
        "costPerFixture": 95,
        "rebate": 4000,
        "maintSavingsYr": 1800
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "fixtures": 320,
        "oldWatts": 240,
        "newWatts": 70,
        "hoursYr": 6400,
        "elecRate": 0.20800000000000002,
        "costPerFixture": 150,
        "rebate": 6400,
        "maintSavingsYr": 2900
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Does this account for HVAC savings from reduced heat output?",
      "a": "Not directly — LEDs produce far less waste heat than the fixtures they replace, which can trim cooling load in conditioned spaces by a small but real amount. Add that as extra annual savings if you have a rough estimate; most facilities see it as a 3-8% bonus on top of the lighting energy savings shown here."
    },
    {
      "q": "How do I find utility rebates for my project?",
      "a": "DSIRE (dsireusa.org) maintains a database of utility and state incentive programs searchable by ZIP code. Most investor-owned utilities offer prescriptive per-fixture rebates for LED retrofits that don't require pre-approval below a certain project size, which is the fastest path to capturing the incentive."
    },
    {
      "q": "What payback period is considered a good project?",
      "a": "Most facilities capital committees approve lighting retrofits with paybacks under 3 years without much debate; 1-2 years is common for fluorescent-to-LED conversions with rebates applied. Beyond 4-5 years, competing capital priorities usually win out unless there's a compliance or tenant-satisfaction driver pushing the project."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/building-eui",
    "https://www.revenuelab.fyi/toolbox/scope1-2-emissions",
    "https://www.revenuelab.fyi/toolbox/water-fixture-retrofit-savings"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — LED Retrofit Payback Calculator (https://www.revenuelab.fyi/toolbox/led-retrofit-payback)"
}