LED lights up way to green business

MANILA, Philippines - Millions of people around the world switched off their lights to join Earth Hour recently. But millions more have found out that switching completely to LED lighting would actually help Mother Earth better.

Lighting expert Beth Navarro revealed that more and more people are discovering LED lighting as the most earth-friendly way of using energy.

“We cannot just switch off our lights for one hour and say that we are saving this planet. That’s not enough. We must take some measures for the long run,” said Navarro, who heads the Retail Division of NXLED, a brand of LED lighting products. 

It is estimated that lighting accounts for roughly 19 percent of energy used globally, and industry experts like Navarro say consumers and companies can bring that number down substantially by using energy efficient lighting solutions such as LEDs. 

LEDs are light emitting diodes that use energy more efficiently and save energy both in direct and indirect ways. They use very small amounts of energy yet produce powerful lighting that illuminates when electrons move through semiconductor materials. Since they shine in only one direction, they produce only a small fraction of the heat of fluorescent and incandescent lights, and last longer than these types of lighting.

Though they are still more expensive to acquire, Navarro said that many have discovered that switching to LED actually saves cost in the long run. 

Navarro said that LED’s low-energy usage saves money in utility bills. Studies done by NXLED, a brand of LED lighting that Navarro represents, shows that a 25-watt compact fluorescent lamp (CFL) will consume P11,000 worth of electricity over the course of 40,000 hours, while an eight-watt LED bulb would only cost P3,520. This was based on an P11 per kilowatt-hour of electricity cost.

“We did not even factor in here the cost of the CFL lamps which last for 8,000 hours only. That would mean you would replace your lamp five times in the course of 40,000 hours which is the life-span of a NXLED lamp,” she said. 

Navarro added that many of their customers are phasing out their CFLs in favor of LED lamps. 

“They have realized that saving 85 percent in electricity is a good business proposition,” she said.

To help incentivize shoppers to make the switch, NXLED and its sister brand Akari have committed to offering the lowest priced LED lighting in the country, pricing their products at 20 percent less than major competitors and even offering a warranty to prove its point that LED lamps are durable.

Global trend

And it seems the whole world is counting on LED to lead the way in earth-friendly lighting. 

According to a report titled “Lighting The Way: Perspectives on the Global Lighting Market” by investment firm McKinsey and Company, the market for LED lighting is growing rapidly, thanks to two factors: The advent of strict regulations on energy-saving lighting, and the erosion in prices of LED lights.

“Regulations around the world has become more stringent, fueling the penetration of energy-efficient light sources. And LED prices have eroded more aggressively, pulling back the payback time of LED lighting,” McKinsey said in its report published last year.

McKinsey noted that the total market globally is expected to grow by five percent annually through 2016, and by three percent thereafter up to 2020, with projected global revenues of EUR100 billion in 2020.

And the company explained that the business of lighting is divided into seven applications, namely residential, office, shop, hospitality, industrial, outdoor and architectural lighting.

“The eroding LED prices are raising the penetration of LED lighting in the office, shop and hospitality segments, while decreasing the market of the whole lighting market by value,” McKinsey said.

In terms of regional distribution, McKinsey pointed to Asia as the region that would account for 45 percent of global lighting market by 2020. “Asia leads the penetration of LED lighting, driven by China and Japan,” the company said. 

Meanwhile, new business opportunities are emerging as the industry landscape is redrawn. McKinsey cited the lighting control market as an example. This market is already mushrooming with growth rate anticipated at 20 percent per annum up to 2020.

“While office is currently the largest segment in this area, expansion is expected in residential and outdoor,” it said. 

McKinsey sees LED as the most promising technology compared to solar power, wind power or even electric vehicles as far as commercial viability is concerned.

“LED can contribute to reducing energy demand, supporting the possible phase out of nuclear power plants or curbing the number of new power plants needed,” it said.

Local scene

And this observation is shared by Filipino businessmen as well. 

In the recently concluded 18th World Building & Construction Exposition (Worldbex) held at the World Trade Center, contractors and designers trooped to NXLED’s booth to see the latest innovations in LED lighting.

They were particularly impressed with the new 4.5-watt light bulb that gives the same amount of lighting as a 60-watt incandescent bulb. Another point of interest is the LED emergency lamp that can last for five hours and have a hand-crank charging feature, a perfect product for the Philippines especially the rural areas.

NXLED’s Retail Department Head said business executives are seriously looking at LED to reduce their energy consumption as well as improve their corporate image.

“These executives know that with LED, they will not only save on money but also promote a more sustainable life while helping Mother Earth,” she said.

Gradually, the NXLED team believes that as an eco-friendly lighting source, LEDs will take place of the traditional light, and make contributions for the environment.

“Earth Hour is not just anniversary that make people remind of the crisis of climate change, we should put this awareness into practice in every moment such as phasing out the ineffective lightings and adopt eco-friendly LED lights,” she said.

“The more green actions we take, the less energy we consume, so that we can create a more sustainable planet,” she added.