Most business owners know their energy bill is too high. Fewer realize how much of that bill is being driven by their lighting system—and how straightforwardly that cost can be reduced.
In Utah, commercial electricity rates have continued to climb. For businesses running outdated lighting technology across large square footage, the gap between what they're paying now and what they could be paying is often significant. Here's how to think about it.
The baseline: what your lighting system is actually consuming
Lighting typically accounts for 20 to 40 percent of a commercial building's total electricity consumption. For facilities running older fluorescent or high-intensity discharge (HID) technology—common in warehouses, parking lots, retail spaces, and industrial buildings—that number trends toward the higher end.
The math is straightforward. Take the wattage of your current fixtures, multiply by the number of hours they run per day, multiply by the number of operating days per year, and divide by 1,000 to get kilowatt-hours. Then multiply by your utility rate.
For a mid-sized warehouse running 100 fluorescent fixtures at 80 watts each for 10 hours a day, 250 days a year, at the average Utah commercial rate, the annual lighting energy cost runs well into the thousands—before you account for maintenance, bulb replacements, or ballast failures.
Where the savings actually come from
LED technology reduces energy consumption in two ways: it uses less power to produce the same light output, and it directs that light more precisely, so less is wasted on ceilings and walls rather than the surfaces that need it.
The typical energy reduction when upgrading from fluorescent to LED in a commercial setting is 40 to 60 percent. For HID systems common in parking lots and high-bay warehouse environments, the reduction can be even greater, often exceeding 60 percent.
That means a business spending $8,000 per year on lighting energy could realistically reduce that cost to $3,000 to $4,000 after an LED retrofit. In most cases, the energy savings alone cover the cost of the upgrade within two to four years.
Utah utility rebates: reducing your upfront investment
Rocky Mountain Power, the primary utility provider for most of the Salt Lake City area and Wasatch Front, offers commercial energy efficiency rebates for qualifying LED upgrades. These rebates are designed specifically to reduce the upfront cost of transitioning away from inefficient lighting technology.
LMS works with commercial clients to identify which products and installations qualify for available rebates, and we help manage the paperwork. In many cases, rebates meaningfully reduce the payback period on an upgrade—sometimes cutting it in half.
Beyond energy: the full cost picture
Energy savings are the headline number, but they're not the only financial benefit of upgrading your lighting. Commercial clients who complete an LED retrofit with LMS also typically see:
- Reduced maintenance costs: LED fixtures last significantly longer than fluorescent or HID systems, meaning fewer bulb replacements, ballast failures, and service calls.
- Lower cooling costs: Older lighting technology generates considerably more heat than LED, which increases the load on your HVAC system, particularly in summer.
- Improved productivity: Research consistently links better light quality to reduced eye strain and higher worker output, particularly in environments where people perform detailed tasks.
- Stronger insurance and compliance positioning: Some insurers offer better rates for facilities with modern, code-compliant electrical and lighting systems.
Getting a real number for your facility
The most useful thing we can do for any business considering an upgrade is give them actual numbers—not estimates based on industry averages, but figures calculated from their specific facility, their current equipment, their operating hours, and their utility rate.
LMS Lighting, Electrical & Signs offers free commercial lighting audits for businesses across Salt Lake City, Murray, and the Wasatch Front. We assess your current system, model the projected savings from an upgrade, and identify any rebates you're eligible for. You walk away with a clear picture of the investment and the return—no obligation required.
Contact LMS Lighting, Electrical & Signs at (801) 281-0401 or visit lmsles.com to schedule your free commercial lighting audit.