LED Lighting Energy Savings
for Business
If your business is still running fluorescent or HID fixtures, you're spending 50 to 75% more on lighting than you need to. The payback on LED is faster than most people expect.
Lighting is one of the biggest energy costs for most commercial spaces. Offices, retail stores, warehouses, restaurants. If the building was built or last renovated more than 10 years ago, the fixtures are almost certainly fluorescent T8s, T12s, or HID (high-intensity discharge) in the warehouse bays. All of those cost significantly more to run than modern LED equivalents.
Ryan Newman, owner of Newman Electric in Vancouver, WA, does commercial LED retrofits for businesses across Clark County. "The energy savings sell themselves. What surprises people is how much less maintenance they need afterward. No more replacing burned-out tubes every few months. No more ballast replacements at $80 a pop. LEDs last 50,000 to 100,000 hours."
The numbers: fluorescent vs LED
The energy savings come from two places: wattage reduction and ballast elimination. A 4-foot fluorescent T8 tube draws 32 watts plus another 5 to 10 watts for the ballast. A replacement LED tube draws 12 to 18 watts with no ballast at all.
Example: 50-fixture office running 10 hours/day, 260 days/year
Fluorescent T8 (2-lamp fixtures)
- Wattage per fixture: ~74W (incl. ballast)
- Total watts: 3,700W
- Annual kWh: 9,620
- Annual cost at $0.10/kWh: $962
LED retrofit (2-lamp equivalent)
- Wattage per fixture: ~28W (no ballast)
- Total watts: 1,400W
- Annual kWh: 3,640
- Annual cost at $0.10/kWh: $364
Annual savings: $598 on lighting energy alone
That's a 62% reduction in lighting costs. Larger facilities with more fixtures and longer operating hours save proportionally more.
Maintenance savings add up faster than you think
Fluorescent tubes last 15,000 to 25,000 hours. In a commercial space running 10 hours a day, that's 4 to 7 years. But ballasts fail more often, typically every 5 to 8 years. Each ballast replacement costs $60 to $120 when you factor in the part and the electrician's time. In a 50-fixture office, you're replacing several ballasts every year.
LED tubes last 50,000 to 100,000 hours. In the same 10-hour-a-day commercial space, that's 13 to 26 years. And there's no ballast to fail because the retrofit bypasses it entirely. For warehouses with high ceilings where changing a fixture requires a lift, the labor savings from not having to replace tubes or ballasts for over a decade are significant.
Three ways to convert to LED
LED tube retrofit (Type B / direct wire)
The electrician bypasses the existing ballast, rewires the sockets to line voltage, and installs LED tubes in the same fixture. The housing stays, the guts change. This is the fastest and most cost-effective option for spaces with a lot of 4-foot fluorescent troffers. Newman Electric does this daily in offices and retail spaces across Vancouver WA.
Full fixture replacement
Remove the old fluorescent fixture entirely and install a new LED fixture (flat panel, high bay, or troffer). Better light quality, cleaner appearance, and longer lifespan than retrofit tubes. Costs more per fixture but makes the most sense when the existing housing is old, yellowed, or damaged.
HID to LED high bay conversion
Metal halide and high-pressure sodium fixtures in warehouses and industrial spaces draw 250 to 1,000 watts each. LED high bay replacements draw 100 to 200 watts for the same light output. The savings per fixture are enormous, and LED high bays turn on instantly instead of the 5 to 10 minute warm-up that HID fixtures need.
"Newman Electric is top notch. We use them for our personal projects and have used them for 10+ remodeling projects for our business and they have always showed up on time and been honest with pricing. Ryan and his crew are professional and friendly! I highly recommend."
Arne Kainu, Google Review
Clark PUD commercial lighting rebates
Clark PUD offers rebates for commercial lighting upgrades that reduce energy consumption. The program covers LED tube retrofits, full fixture replacements, and occupancy sensor installations. Rebate amounts depend on the wattage reduction per fixture and the total number of fixtures.
Newman Electric handles the rebate paperwork as part of the project. Ryan's crew documents the existing fixture inventory, calculates the wattage reduction, submits the application to Clark PUD, and makes sure you get the rebate you're entitled to. The rebate typically knocks $500 to $2,000+ off the total project cost depending on the scope.
Typical payback timeline
The payback period depends on your current fixtures, hours of operation, and the retrofit approach you choose. But for most commercial spaces in the Vancouver WA area:
Offices and retail with fluorescent T8s running 10+ hours/day. High usage means fast payback.
Warehouses with HID fixtures. Higher per-fixture cost but massive energy reduction per unit.
Restaurants and retail with long operating hours. 12 to 16 hours/day of lighting accelerates payback.
After the payback period, every dollar saved on energy goes straight to your bottom line for the remaining 10 to 20 years of LED life.
Frequently Asked Questions
How much can a business save by switching to LED?
Most businesses save 50 to 75% on lighting energy costs. A 50-fixture office can save $1,500 to $3,000 per year on electricity. The exact savings depend on your current fixtures, operating hours, and Clark PUD's commercial rate.
How fast does a commercial LED retrofit pay for itself?
Most commercial retrofits pay back in 1 to 3 years through energy and maintenance savings. Utility rebates from Clark PUD can shorten that further. After payback, the savings are pure profit for the remaining 10+ years of LED lifespan.
Does Clark PUD offer LED rebates?
Yes. Clark PUD offers commercial lighting rebates for LED retrofits that reduce energy consumption. Newman Electric handles the rebate paperwork as part of the project and makes sure you get the full rebate.
Can LED tubes go in existing fluorescent fixtures?
Yes. LED tube retrofits (Type B / direct wire) replace fluorescent tubes in the same fixture. The electrician bypasses the old ballast and wires the sockets directly to line voltage. This is the most cost-effective approach for businesses with large numbers of fluorescent fixtures.
Related Services
Retail Electrical
LED lighting design and installation for retail spaces
Office Electrical
Fluorescent to LED conversions for office buildings
Warehouse Electrical
HID to LED high bay conversions for warehouses
Restaurant Electrical
Lighting and electrical for restaurants and food service
Residential LED Retrofit
LED upgrades for homes and residential spaces
Commercial Electrician
All commercial electrical services in Vancouver WA
Want to know what your business would save with LED?
Newman Electric provides free lighting audits for commercial spaces across Vancouver WA, Clark County, and Cowlitz County. Ryan's crew counts your fixtures, calculates the savings, and handles the Clark PUD rebate paperwork.