subject: Led Lights - Going Green And Improving Business Valuations [print this page] LED lights are a new revolution in lighting technology sweeping across the globe. LED lighting technology is the most energy efficient of all the currently available lighting technologies in the market. Incandescent bulbs, HID bulbs, Compact fluorescent lamps none of these technologies can hold a candle to LED lights.
LED lights use only a tenth of the electricity used by an incandescent bulb and half the electricity used by a CFL. LED bulbs also have the advantage of producing directional light. If you look closely at an LED bulb you will realize that it is sort of hemispherical in shape. This means that almost all the light produced by an LED bulb comes of the front side of the LED bulb as against traditional lamps that throw light in all directions. An LED bulb thus produces the same amount of light as an incandescent using a fraction of the electricity and then sends it out in the right direction. This improves overall illumination levels. Research has suggested that better illumination levels achieved by LED lamps may lead to higher productivity.
The incandescent bulb OR the OX drawn cart
Comparing the price of an LED lamp and that of another bulb based on an archaic technology is like comparing apples and oranges. An ox drawn cart may be cheaper than a BMW but no one uses it as a personality statement or as a means of transport! The incandescent bulb with its 2 centuries old technology belongs to the era of ox drawn carts and is totally out of its depth in todays world that values energy efficiency and smaller carbon footprints.
You think LED lights are expensive? Think Again
It is true that the price of a single LED light is more than an incandescent bulb. When you buy an LED lighting solution for your lighting needs you are get a bulb that uses a fraction of the energy, lasts 30,000 hours or more and does not cause heavy metal pollution. An LED lamp is an investment in the earths future. The interesting part is that unlike many good things in life LED lamps do not cost an arm and leg.
LED lighting devices pay for themselves in about a year and a half. Thereafter you can enjoy their high quality, full spectrum light without worrying about ballooning electricity bills or an expanding carbon footprint. Back of the envelope calculations show that replacing incandescent bulb in an average American home generates annual savings of 1370 dollars!
Why are global Corporations investing in LED lights?
LED lights are a great investment for your home or office. Leading global corporations have already invested in LED lighting technology and not without reason. When a company uses its resources to install LED lights, its financial assets are converted to real assets. The impact of investing in LED lights on the companys balance sheet is therefore neutral.
LED lights and EBITDA
Once LED lights are installed the cash flow of the company increases on the back of lower lighting bills, lower maintenance costs, lower replacement and bulb inventory costs. The EBITDA (Earnings Before Interest, Tax and Depreciation of Assets) margins of the company improve and drive up its valuations. Besides lower operational costs the investment in LED lights also grants a company the advantage of a depreciation tax shield and a positive brand image of a green organization that cares about the earth. The increase in employee productivity is an added advantage. LED lights also garner valuable carbon credits and save companies and individuals hundreds of thousands of dollars every year.
