1. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
Venture Lab Technology Entrepreneurship OAP 2014
Team: LED green lighting: Henrique J. M. C. da Costa
Mentor: Titilope Fadipe
2. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
How much electricity is used for lighting in the United States?
461 billion kWh*
Residential and commercial sectors
275 billion kWh* ↗
Institutional buildings, public street and highway lighting
* EIA´s 2011 data
736 billion kWh*
↘
3. How much of U.S. CO2 are associated with electricity generation?
2,039 million metric tons*
About 39% of total U.S. energy-related CO2 emissions.
* EIA´s 2012 data
LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
4. FACT: The electricity cost rises every year
LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
5. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
YOU CAN DO SOMETHING ABOUT IT
6. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
AND YOU CAN DO IT NOW !
7. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
Replacing old lamps with latest technology
LED lights
8. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
LEDS uses much less power
LED x Fluorescent (CFL) x Incandescent
9. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
LEDS also last much longer = Low maintenance cost
10. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
Fluorescent light bulbs contain mercury and it can contaminate the
surrounding environment if broken
Fluorescent lights produces Ultra Violet Light (UV). LED doesn't
Fluorescent and incandescent lights generates a lot of heat. LED are much cooler
during operation and in most cases can be touched without causing burns.
LED lights are enclosed in plastic, Fluorescent and Incandescent lights are made of
glass, much more dangerous to handle and much more difficult to discard.
Our LED lights have 3 years warranty, while fluorescent are usually 1 year.
LED has low lumen depreciation (maintains consistent brightness over 50,000
hours rated life).
11. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
AND YOU CAN HAVE IT WITH
ZERO* (US$ 0,00)*
INVESTMENT
* Restrictions apply. See if your installation meets minimum conditions and is eligible. We will send a representative that will analyze your case.
12. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
Green Light Energy Co. offers you the possibility to have this new technology at ZERO investment if you are eligible. The
eligibility depends how much you use the lights and total number of lights you need to replace. The payment will be done with
the savings in your electricity bill during 15-24 months depending of size, number and type of lighting you have.
Eligible sites have lights on for long time, ideally 24 hours/day x 7 days/week. Examples are:
Supermarkets
Park Garages
Factories
Elevators
Tunnels
Hospitals
Public light
Warehouses
Offices
13. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
HOW CAN WE DO IT?
Example: A T10 1.2meters CFL (Fluorescent) Lamp uses 40W, the LED equivalent only 12W a 28W
reduction.
If the usage is 14 hours/day like in a Supermarket: 14hours/day x 30 days/month x 28W = 11.76KW.
KWh in São Paulo/Brazil is US$ 0.15 (similar in USA) so savings are about US$ 1.76/month.
The customer will pay us with this US$ 1.76/lamp savings during 22 months. After that it will enjoy 100% of
the saving with lighting electricity cost and no investment at all.
The T10 LED lamp estimated to cost US$ 30.00 (in small quantity) so the payback will be US$ 30.00/1.76 =
17 months. In this case we would use 5 extra months as profit and financial compensation in a total of 22
months. 22 x US$ 1.76 = US$ 38.72 that means US$ 8.72 markup or 29 % gross margin.
If usage is 24 hours/day like in a Park Garage the payback time will be about 15 months.
EVERYBODY WINS !
14. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
PROJECTED REVENUE:
In a small Supermarket as an example, the number of lamps to be replaced are 120.
120 x US$ 1.76 x 22 months = US$ 4,646.00 revenue.
After 22 months, the customer will save US$ 211.20/month (same value it will pay to us) or US$
2,534.40/year. As the customer will save US$ 211.20/month from it´s electricity bill it won´t be really
paying anything extra as if it didn´t do anything.
In a large 24 hours garage with 500 lamps the revenue will be:
24 hours x 30 days x 28w x US$ 0.15 x 15 months = US$ 45,360.00.
After 15 months, the customer will save US$ 3,024.00/month or US$ 36,288.00/year.
If we can sell an average of 60 sites/month with average value of US$ 17,000.00 each:
US$ 1,020,000.00 in sales/month with average payment terms of 18 months.
US$ 12,240,000.00/year
15. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
Market size
In a publication by the Office of Energy Efficiency & Renewable Energy I could extract the following 2010 figures:
T8 4ft CFL lamps in the commercial+Industrial segments:
907,727,000+78,425,000 = 986,152,000 lamps
T12 4ft CFL lamps in the commercial+Industrial segments:
410,460,000+24,006,000 = 434,446,6000 lamps
Total only for those two types (T8/T12): 1,420,618,000 lamps
If 10% stays on more than 12 hours/day = 142,061,800 lamps
If from this 10% we could sell to 30% = 42,618,540 lamps
In average US$ 40.00/lamp x 42,618,540 :
US$
1,704,741,600.00
16. LED GREEN LIGHTING - HIGH EFFICIENCY LIGHT SYSTEMS
What we learned from potential customers:
1. There is a problem about what to do with the lamps that are replaced by LEDS. They don´t want to just scrap it but
at the same time they don´t know how to store it.
2. Not all of them have enough people or even qualified people to make the replacement by themselves, so
seems like we need to have people to do it, but not sure if we will be able to cover this extra cost.
3. Although was not difficult to catch the customer´s attention, there was a lot of low quality LED lighting being offered
in the market that is spoiling the reputation of this type of product, making people skeptical about it´s performance.
4. There is some resistance from the maintenance personnel, specially when we say that the maintenance cost would
be significantly lower. We need to find a way to motivate this people.
5. It´s difficult to measure the actual power reduction and prove that the customer is saving as in most cases it´s not
feasible to measure the lighting consumption separated from other electrical devices.
6. Specially in commercial areas, it is difficult to replace the lamps during normal working hours so there is a extra cost
as it is usually necessary to hire people to do the job in weekends or at late night.
