A new tool is available to help municipalities evaluate the costs and benefits of converting to LED street and roadway lighting. The DOE Municipal Solid-State Street Lighting Consortium has released the Retrofit Financial Analysis Tool for immediate download. This Excel-based tool was developed in collaboration with the Clinton Climate Initiative.
Converting the nation’s streetlights to LED technology could not only reduce energy consumption significantly, but also improve the quality of illumination. The Retrofit Financial Analysis Tool will make it easier for cities, utilities and others to analyze the cost benefit of LED street lighting by giving them specific key information on costs and return on investment.
Users plug in data on variables relevant to their particular project to get a detailed analysis that includes annualized energy-cost savings, maintenance savings, greenhouse gas reductions and simple payback. Decision makers can use this information when putting together construction and conservation grant applications, as well as preparing budgets and comparing the incumbent costs to new.
Users who are purchasing and installing their own streetlights or those requesting bids from outside vendors can use the tool to make sure the lighting meets their goals and needs. The tool accepts data based on three common project models:
- Per unit cost for fixtures, hourly rate for installation (owner purchases fixtures and uses internal (or external) labor resources to install units at an hourly rate)
- Per unit cost for fixtures, per unit cost for installation (owner purchases fixtures and uses external labor resources to install fixtures at fixed per unit cost)
- Single Lump Sum cost for labor and material (owner hires external resources to purchase and install fixtures at a fixed lump sum per-unit cost for labor and material)
For each of these scenarios, pre-construction, construction engineering (inspection) and project management costs may be entered in the Project Overhead and Implementation section to capture all project costs.
Imbedded notes within the tool provide at-a-glance guidance and can be quickly identified in cells with red tags in the upper right corners. MSSLC has created an instructional video, an example analysis and tips to help users get the most from its Retrofit Financial Analysis Tool. (Source: Municipal Solid State Lighting Consortium via American Public Power Association)