Energy-efficient lighting can still provide opportunities for energy savings, DNV study finds

Commercial and industrial (C&I) lighting, once the core of energy efficiency savings portfolios across the U.S. and Canada, is becoming a secondary focus as the adoption of LEDs reaches the late majority stage of market adoption. However, DNV, the independent energy expert and assurance provider, recently completed a study, jointly with utilities and program administrators from across the region, that identifies opportunities that could lead to savings of more than 3,700,000 MWh from lighting.

The study was undertaken in partnership with 11 organizations across the U.S. and Canada. In addition to industry perceptions provided by the sponsors, DNV also gathered data and insights from vendors, manufacturers, and lighting contractors. With this information and other data DNV developed a bottom-up stock turnover model to provide an accurate characterization of the lighting market across North America.  

The study identified six separate “next generation” commercial lighting opportunities that are most likely to produce significant program savings or are gaining traction in the market. It graded these opportunities according to the potential size of the market, potential to deliver meaningful program savings, and ease of delivery. Three opportunities—higher efficacy LEDs, advanced lighting controls, and redesign LED-to-LED retrofit—are considered mass market opportunities and have the ability to fit into established energy management programs or have the ability to scale. The other three opportunities—demand management, germicidal UV, and tunable lighting—are niche market opportunities that apply to specific conditions and customers, and, while have the ability to provide energy savings, are not suited to broad adoption.  

 
Next generation commercial lighting opportunities, graded 

                
While all identified opportunities have potential, only one, replacing existing LEDs with newer, higher efficacy products, was given an “A” grade. The market potential for this opportunity is enormous, as older LEDs inevitably burn out and need to be replaced. There are many replacement options on the market, but there is a 20% increase in energy savings when using the highest efficacy LED products vs. baseline products, with a negligible cost differential. Implementing this option is relatively easy, as utilities can utilize already established energy programs, specifically those targeted to the consumer or retailers.  

Advanced lighting controls, which enable building owners to fine-tune lighting based on occupancy and other factors to reduce energy use, also offer high potential energy savings. However, it was given a B grade, as the applicable market is smaller than the previous opportunity, and the cost is higher. The costs are also higher, with both for the networking electronics and intricate commissioning and installation. Furthermore, the payback is best realized in a larger facility, which limits the market as well. Nevertheless, it does offer an opportunity to find energy savings in specific markets.  

“Lighting has long been a staple of energy efficiency programs, providing a low cost and effort means to reduce energy consumption for homes and businesses. However, the widespread availability and adoption of LEDs has eroded these savings potential,” said Richard S. Barnes, region president, Energy Systems North America. “This study outlines new ways that lighting can be used to provide customers and utilities with deeper energy savings while using established and effective utility energy programs.” 

While these next generation opportunities offer the potential for significant energy savings in an area that is largely considered fully tapped, there still remain pockets of more traditional lighting upgrades in harder-to-reach populations or areas. These are generally smaller businesses that are often located in under-served communities who have not made the switch from CFLs or similar to LEDs for a variety of reasons, including lack of funding. Combined with the next generation opportunities outlined by the study, there still remains an abundance of energy savings to be gleaned from lighting.