Dealership Lighting:Boost Profits With Annual Energy Savings

Posted by Jimmy Hovey on Fri, Mar 30, 2012 @ 15:03 PM

Annual Savings Can Save Dealerships BIG Money...

Annual savings is one of the most obvious benefits to upgrading lighting infrastructure. Reducing wattage is the key, so the more reduced the wattage, the more annual savings will be available to you.

So in this example above, as you can see, reduction of 50,000 kilowatt hours would effectively mean $5,000 savings annually. While that doesn’t sound like much at the outset, adding the annual savings over the life of the system can add up to several thousand dollars of savings. 

For an overall savings on your utility bill, you can anticipate 20%-30% reduction. That is very possible with the technologies that we are going to be discussing. The goal in the end is to reduce kilowatt hours. Reducing wattage reduces kilowatt hours.

Sometimes utility bills are not very clear, or the bill may not show the total kilowatt hour costs,

How Does Peak Demand Factor Into The kWh Price?

You’ll have a kilowatt hour rate, let's say it’s ten cents a kilowatt hour. What I’ve seen on bills is if your business is getting hit with a peak demand charge, there's a separate line item for that.

Peak demand in layman’s terms is every day your business at one point has a spike in peak current, so what the municipalities do is they monitor that and the highest point for the month, that is your peak demand.

Now, peak demand rates obviously can vary depending on municipality, power factor, other things like that, but I’ve seen charges of $10.40 per – and it goes up a kilowatt rate as well, but it’s not uncommon to see $300-$400 of an electrical bill be dedicated to peak demand on top of your standard kilowatt hour rate.

Every Utility Bill Is Different, Be Sure To Understand Yours

We have not seen consistent utility bill calculations, the point is to really analyze your bill and make sure that you’re factoring all your costs.

To piggyback on that, kilowatt hour reduction is key. One benefit of that is the more you lower your kilowatt hours, that monthly snapshot the municipality takes, obviously the lower your peak demand is.

You’re still going to have that peak demand charge, but it’s not uncommon to shave it in half just by reducing kilowatt hours.

Learn More About Annual Savings and the Many Other Benefits of Energy Efficient Lighting

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