Report Highlights Benefits of Energy Efficient Street Lighting

With almost 500,000 street lamps in use in Minnesota, replacing older less-efficient lights with more efficient options, such as light-emitting diode (LED) and induction lamps, represents a real opportunity for reducing costs and energy use. A report from the Minnesota Department of Commerce, Division of Energy Resources (DER) can help you figure out which type of lighting is best for your city.

The report, “Cost-Benefit Analysis of Energy Efficient Technologies Available for Use in Roadway Lighting,” includes:

  • A comprehensive discussion of induction and LED roadway technologies.
  • A 10-step “how-to” manual for the appropriate selection of LED roadway luminaries.
  • An economic analysis of replacing high-intensity discharge (HID) roadway lighting systems with comparable LED technologies.
  • A section on conservation improvement program considerations.
  • The outcomes from a demonstration pilot implemented in conjunction with the City of Chanhassen Public Works Department.

Results from the DER economic analysis show simple paybacks ranging from eight to 12 years and internal rate of returns of 8 percent to 10.5 percent over a 22-year practical lifetime and based on August 2012 pricing. The most sensitive factors affecting these results were the monthly leasing rates for HID luminaires, the costs for purchasing and installing new poles, expected lifetimes of the LED luminaires, and the purchase costs for new LED roadway luminaires.

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