- Upgrading conventional high pressure sodium, metal halide, and mercury vapor street lights with LED technology offers an array of cost, maintenance, and social benefits yet cities face regulatory, tariff, funding and internal capacity barriers to lighting retrofit projects.
- Numerous implementation guidelines offer step-by-step guidance for cities interested in upgrading to LED street lighting.
- El Paso, Texas expects $2.4 million annual savings from avoided cost and maintenance resulting from their LED street light retrofit.
- The US Department of Energy Better Buildings program offers toolkits for street lighting, parking lighting, and financial analysis of lighting projects.
LED Street Lighting Opportunities and Challenges
- Cost savings: Streetlights can constitute up to 40% of a city’s electricity bill and also reduce energy use by 50% or more with LED retrofits, which can amount to substantial cost savings for a city. Furthermore, LED’s last 2 to 5 times longer than traditional outdoor lighting and require less maintenance, even further reducing operating costs.
- Better asset management: Audits of streetlights prepared ahead of retrofits provide cities a clearer understanding of their streetlight inventory, distribution of utility and municipally owned lights, and may enable cities to eliminate some streetlights entirely.
- Advanced controls: LED streetlights are often compatible with advanced controls including, but not limited to, automated dimming, further increasing energy savings potential.
- Better Light Quality: LED lamps offer higher quality color rendering, more uniform light distribution, and newer fixtures are often full cut off, reducing light pollution.
- Reduced GHG emissions: Reducing energy consumption reduces associated emissions contributing to city’s climate goals.
Despite multiple benefits and tremendous savings, many cities struggle to complete street light retrofit projects due to regulatory, tariff, funding, or internal capacity barriers. Implementation guides, including one developed by SPEER, offer step-by-step guidance and a business case for street light retrofit projects. A case study of El Paso’s successful retrofit project helps support the case for emerging projects. The US Department of Energy offers an array of resources and tools to guide decisions, draft specifications, prepare financial analysis, and analyze outdoor lighting retrofit projects.
LED Street Light Retrofit Implementation Guidelines and Business Case
1. Determine the availability of LED tariffs
Consult with your local electric utility to understand the rates and charges that apply to municipally owned and utility owned street lights and how tariffs distinguish between LED and conventional street light technologies. Unfavorable tariffs can substantially limit cost savings from LED lighting retrofits. Refer to section 1.4 of Regulatory Issues and Approaches to Municipal LED Street Lighting Conversions for LED tariff best practices.
2. Conduct a street light inventory
Work with your utility, city finance departments, and/or energy service companies (ESCOs) to assess number and location of street lights, fixture type and wattage, utility vs. city owned, metered vs. unmetered, and maintenance arrangement. ESCOs often include this inventory service in their standard retrofit contracts.
3. Identify any financial incentives
Contact your utility’s commercial energy efficiency program to determine availability of incentives for municipal outdoor lighting and street light retrofits.
4. Define the scope of work
It may make more sense for your city to start with a limited retrofit pilot to test various technologies ahead of a full scale conversion. Use the street light inventory to identify critical or highest value retrofit opportunities.
5. Financial feasibility study
Complete a high level financial analysis based on known or estimated energy savings, cost savings based on tariffs, and estimated construction costs. If the utilities lighting tariff is a barrier to the project’s financial viability prepare a detailed financial analysis to support tariff modification. Refer to section 2.1 of Regulatory Issues and Approaches to Municipal LED Street Lighting Conversions for guidance on the tariff revision process.
6. Determine funding source
LED retrofit projects, like other energy efficiency projects, can be self-funded, financed through SECO’s LoanSTAR revolving loan program, or installed at no up-front cost through an ESCO performance contract. See the City Project Financing module for more information on financing energy efficiency projects.
7. Develop a specification with input from contractors and manufacturers
Collaborate with contractors, manufacturers, and lighting experts to develop the specification language and test various technologies. This will help to ensure the final bids are well suited for the project needs. LEOTEK’s A Municipal Guide for Converting to LED Street Lighting offers a sample preliminary specification.
8. Issue a Request for Quotation (RFQ)
Work with city purchasing departments to comply with procurement procedures. If considering a third party turnkey contractor or performance contract a Request for Proposals (RFP) process may be more appropriate.
9. Detailed financial analysis
Using quotations and/or proposals conduct a more detailed financial analysis to verify prior financial feasibility assumptions, provide justification to city management, and provide baseline data for future project verification. Use the Street and Parking Facility Lighting Retrofit Financial Analysis Tool to compute annualized energy and energy-cost savings, maintenance savings, greenhouse gas reductions, net present value, and simple payback associated with potential lighting upgrades.
10. Award bid and implement project
Select contract based on a variety of factors including results from pilot tests, up-front cost, warranty and maintenance packages, contractor reputation, and other selection criteria specific to your city’s procurement standards.
11. Develop long term maintenance program:
Due to their much longer useful life LED street lights may not align with your city’s standard maintenance practices. Develop a long term maintenance program that involves spot replacement of components and luminaire cleaning as detailed in LEOTEK’s A Municipal Guide for Converting to LED Street Lighting.
12. Verify and document project savings:
Collect data to verify estimated savings based on detailed financial analysis. Capture savings in terms of energy and cost as well as social impact metrics like GHG emissions reductions.
- Street Lighting Retrofit Implementation Guide and LED Street Lighting Business Case, SPEER, May 2017
- A Municipal Guide for Converting to LED Street Lighting, LEOTEK, February 2016
- Regulatory Issues and Approaches to Municipal LED Street Lighting Conversions, US Department of Energy Better Buildings, February 2017
- Street and Parking Facility Lighting Retrofit Financial Analysis Tool,DOE Municipal Solid-State Street Lighting Consortium, Clinton Climate Initiative (CCI)/C40,Federal Energy Management Program (FEMP), and DOE Better Buildings, Revised March 2017
Case Study: City of El Paso’s LED Streetlight Retrofit
El Paso expects to save over $2.4 million per year in energy and maintenance costs as the result of upgrading its outdoor lighting to LEDs. El Paso’s successful project can serve as an example for local governments who are exploring an LED street lighting retrofit.
Read the City of El Paso’s LED Streetlight Retrofit case study here for more information on the city’s process, challenges, costs, and expected payback of the project.
Outdoor Lighting Toolkit
- An Outdoor Lighting Decision Tree Tool to guide municipalities to their next step
- Outdoor Lighting Challenges and Solution Pathways report with examples of LED street light conversion projects across the US including actual project financial details.
- A case study library that demonstrates how cities have upgraded to LED street lighting, including justifying “smart city” controls and acquiring ownership of street lights.
- Lessons Learned from Outdoor Connected Lighting System Installations webinar recording and transcript
U.S. DOE Better Buildings program also created a Toolkit for organizations who wish to upgrade to high-efficiency lighting solutions for surface and structured parking. Highlights of the toolkit include:
- A financial analysis tool that cities can use to compute estimated costs and savings of potential lighting upgrades
- Sample specifications for high-efficiency parking structure and parking lot lighting
- A case study library including a case study on how Camp Pendleton Marine Corps Base achieved 91% energy savings and $5,700 in annual cost savings by upgrading its parking lot lighting
- Technical guidance reports including a report on using occupancy sensors in LED parking lots and parking garages
Need additional assistance? SPEER provides LED street lighting technical assistance to local governments. Contact SPEER and we can help you begin your LED retrofit project.