Research Article

Cost-Benefit Analysis and Emission Reduction of Energy Efficient Lighting at the Universiti Tenaga Nasional

Table 6

LCC analysis for the 20 W LED tube replacing Philips 36 W fluorescent tube.

VariablesValueUnit

LED-wattage20Watts
LED-single unit costRM60.00Ringgit
Existing light-wattage36Watts
Existing light-single unit costRM10.00Ringgit
Number of lamps8751Lamp(s)
Running time per day8Hours
Operational days (per year)260Days
Cost of energy/kWhRM0.39Ringgit

CalculationsExisting systemLED

Electrical costs
 Electrical load of lamp(s)315036175020
 Running time per year 20802080
 Energy consumed per year (kWh) 655274.88364041.6
 Electrical demand saving (kWh)0291233.28
 Total cost of energy (per year) RM257,523.03RM143,068.35
 Saving the electrical fees (per year)RM0.00RM114,454.68
Capital requirements
 Purchase requirements Cost RM87,510.00RM525,060.00
 Installation cost per unitRM2.00RM1.00
 Installation costs RM17,502.00RM8,751.00
 Total capital investment requirements RM105,012.00RM533,811.00
 Net investment requirementRM0.00RM428,799.00
Maintenance requirements
 Life time of lamp (operating hours)1500050000
 Replacements required (per year) 1213.47364.04
 Replacement costs (per year)RM12,134.72RM21,842.50
 Installation cost per new unitRM2.00RM1.00
 Maintenance costs (per year) RM2,426.94RM364.04
 Total maintenance costs (per year)RM14,561.66RM22,206.54
 Saving maintenance (per year)RM0.00−RM7,644.87
ROI results
 Total operating cost (per year)RM272,084.69RM165,274.89
 Total savings first year
 Saving the electrical fees + savings maintenance
RM0.00RM106,809.81
 Payback period in years
 Time to payback capital requirement cost
n/a4.01
 LED return on investment (ROI) over 10 years
RM0.00RM534,287.05