LED Lighting for Manufacturing: Costs and Benefits

Author: Helen

Jul. 21, 2025

LED Lighting for Manufacturing: Costs and Benefits

Efficacy ratings vary significantly among different technologies and applications, from less than 15 lumens per watt (lm/W) for standard 60W incandescent lamps, to nearly 150 lm/W for the latest LED area lighting.

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Generally, lights with higher lumen outputs have higher efficacy ratings.  LEDs often have better efficacy than other technologies, but highly efficient fluorescent and HID options can provide better or similar efficacies for some applications. Reducing the lighting system’s power will also save on demand charges.

When commercial or industrial customers significantly reduce their power draw, they should review their utility rates schedules to determine which schedule is most economically attractive. Large customers that face “ratchet” charges may benefit by shifting to a different schedule if demand reductions are significant. Taking ratchet charges into account may significantly improve the cost-effectiveness of more-efficient technologies.

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LED technology is treated differently from non-LED technology in this regard. LED chips degrade slowly over time, producing less light and shifting their color characteristics. The metric used to define the lifetime of LEDs is L70 lumen maintenance.  This refers to the amount of time the LED will operate while maintaining at least 70 percent of initial output.  Some LEDs will take longer to get down to 70 percent.

Non-LED technologies have electrical components or filaments that fail completely at some point; the rated lifetime for those products is defined as the number of hours of operation at which 50 percent of the units in a sample fail. Non-LED technologies also experience depreciation in lumen values over time, with some technologies depreciating more quickly than others.

The following presents a range of rated lifetimes and lamp lumen depreciation (LLD) values at the end of the rated life for selected technologies.

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