Global Economic Models: A Technical Report of IEA SHC Task 50 : Advanced Lighting Solutions for Retrofitting Buildings

This documents presents financial data relative to lighting installations, before and after retrofit operations. Data are calculated over a large number of years to combine installation costs, maintenance ,and energy use The general principe was to compare the running costs of the “do nothing” approach (keeping the installation as it is and let it die gradually) , and the costs associated with a retrofit with highly effiient equipment. For these reasons, long term costs of installation are quite sensitive to the initial cost, and the combined cost of electricity and energy efficiency. Total Cost of Ownership (TCO) of lighting installations has been calculated for various types of buildings: offices, schools, homes and industrial buildings. The data we supply attempt to answer to the following questions: Which installations are low hanging fruits ( with shortest payback time), For which type of building are retrofit operation more profitable, How do various parameters influence the payback time (investment costs, efficacy of luminaires and sources, cost of electricity, etc.) Then we have investigated various financial models to initiate successful investments in retrofit operations, Direct investment by the user, with significant benefits after the payback time Investment by the user with specific loan. This extends payback time, but doe nor require too high of a financial contribution at the beginning. Leasing of the entire installation: the building owner does not own the installation. The lighting installation is rented (installation and operation is supplied by a third party), From our experience, it appears that leasing options are the best way to trigger lighting retrofit to overcome the barriers associated to investment.
However such possibilities requires the benefits associated to lighting retrofit to be sufficiently high: large number of operating hour, large reduction of electric power density,
high electricity rates.