Dear Reader:

Time has value. And as such, a part of the analysis as to what the quality of an LED lighting system investment would is to determine what the return on that investment would be over time.

Because dollars invested today are not available for other investments once they’ve been deployed (spent) on a lighting system, one of the first phases of analysis is to discount the savings to be generated annually from the new system to what is called Net Present Value – that is, what are those savings worth today, in present terms, once you factor in the reality that the dollars deployed will not be available for investment elsewhere, at say, an 8% return (just to pick a reasonable number out of the air)?

The prudent Facilities Manager does this because it takes into consideration all of the benefits to LED over fluorescent, HID, etc., including the secondary benefits beyond lighting energy sav...