Living And Working In Sustainable Environments – Return Of Investment

The number of misinformation and the excuses used by propagates of the consume society to obscure or redefine the meaning of Return Of Investment or ROI is mind-boggling and so is the way purchasing departments have been conditioned to no longer believe that any lighting equipment can last beyond 3 years.
There is only one scientific way for ROI which will be discussed in this article ROI of Sustainable Environments, which clearly shows the payback can be significantly better than any conventional planned obsolescence model.
Major lighting operations usually have a maintenance budget to pay for the people and materials required to uphold the light levels that the organization has set or can afford. In a hotel or hospitality environment the MR-16 type light bulbs of conventional build last about 9 months and usually a crew of three to five people constantly run around from room to room and hallway to hallway to replace bulbs. However, once the crew is on board the maintenance people only look at the cost of the bulbs themselves rather than the peoples’ time to accommodate the process, which is a significantly higher cost.
Therefore, from a maintenance crew’s perspective the budget will only allow the lights to be replaced within the hardware replacement budget which does not allow the replacement of the fixture.
Organizational management usually has set aside funds to replace some or all of the lighting villas near hoskote fixtures every 3 to 5 years, to make sure the buildings do not become a fire hazard. It is generally assumed that the cost for the maintenance does not play into the fixture and fittings budget. It has become an accepted fact that fixtures do fail within that period and purchasers and planners have been conditioned for that to be the norm and not to be overcome.
With the application of today’s technology the perceived inevitable need to replace fixtures and or ballasts every 3 to 5 years, and the bulbs a few times more, no longer holds true. There is technology that can and will outlast 10 years while maintaining light output. However that technology is also at a higher initial cost but at a much reduced running cost in terms of energy use and maintenance.
First Fundamental for Calculating ROI
The fundamentals of calculating ROI start with the assumption of how long the organization intends to hold or operate the asset that requires reliable lighting.
If the answer is one to three years, then the cheapest form of lighting may be the best way to optimize profits. Using the cheapest is clearly not the best way for the environment due to; excessive generation of waste, poisoning the environment with mercury and excessive energy use further requiring excessive air conditioning, if the lighting is for indoor spaces.
2nd Fundamental – The ROI time-span
You have to accept the realistic lifetimes of the lighting products proposed. Look at the warranties the manufacturers offer and that they are providing a believable warranty in your region of operation so that the warranty can be drawn upon should there be issues.
Presentations by the incumbent brands, that light loss of any technology is inevitable, are incorrect and deliberately mis-leading to allow conventional technology to have a justification selling as is to be used. However, if there is any justification not to use Energy Saving long life, no light loss technology, it is in the First Fundamental for Calculating ROI.
Determine if the Light Fixture or Air Conditioning units, as warranted by the manufacturer, outlast the structure or if the structure outlasts the life of the equipment. Whichever is the shorter is the ROI time-span to be used for the ROI calculation. All equipment, conventional obsolescence model and new technology permanent model, has to be measured against the longest ROI time-span.
New Construction for use of Owner
There is a significantly different approach for determining the type of fixtures used in new construction depending on whether the new construction is for an Owner Occupied, Long Term Managed or for flipping in a short period after completion. Therefore ROI is not an appropriate way in the determination of which type of fixtures to use but whether or not the builder or the owner has to care about ongoing maintenance and running costs. For Owner Occupied or Long Term Managed buildings, lower running costs for maintenance and energy will mostly justify the increase in upfront investment for longer life lighting fixtures and controls.