Your Guide to LED Lighting for Business and Commercial Buildings

Never to be underestimated, LED lighting and well-designed lighting retrofits and upgrades offer businesses big improvements like reduced energy costs, reduced emissions, and improved working conditions, from enabling productivity to improving safety across all types of facilities. You can fully realize these benefits by identifying the right LED solutions for your industry. This guide tackles an overview of LED lighting in the US, current lighting trends, and things to know for those of us working directly in facility management. 

LED lighting benefits and technological advances 

Compared to other types of light fixtures, the benefits found in LEDs are energy and maintenance savings (because they can last up to four times longer than fluorescent lighting), and they are easily controlled. LEDs lend themselves to lighting controls more than any other technology since repeatedly turning them on and off has minimal effect on their operating life. 

There are a few challenges that a manager should run into after a good LED lighting design is implemented. Still, the implementation can pose a challenge to those unfamiliar with building-wide lighting retrofits. Lighting is all in the details, and it takes a lot of up-front planning and preparation for a project to go smoothly. Fortunately, with the addition of lighting controls, we can fine-tune light levels throughout the building to solve many issues. 

LED lighting adoption rate by sector 

Warehouses, manufacturing facilities, hospitals, 3-shift operations or any space that operates long hours will have comparably higher electrical energy usage and, therefore, can achieve the most savings. 

Beyond LEDs - other efficiency solutions with high-impact 

Implementing LED lighting and HVAC optimization concurrently is a great way to capture additional savings. It will also encourage the building owner or occupant to take a hard look at their HVAC system, which we have found usually offers many cost-effective efficiency opportunities, including better equipment control and/or upgrades to higher-efficiency equipment.  

Facility managers should begin with an energy audit, which can uncover valuable opportunities to optimize energy use within the existing facility.  

Current status of commercial LED lighting in the US 

LED lighting is being implemented differently throughout the country, depending on the utility incentive programs offered and the cost of electricity in each state. 

In New England, for example, the cost of electricity is much higher than that of other regions on the map, and we have great utility programs that offer generous incentives for LED projects. The resulting higher savings and decreased out-of-pocket cost squeeze the project payback from both sides, motivating more local businesses to become increasingly energy efficient. 

In other parts of the country, where the cost of electricity is lower, and utility programs are much less robust, businesses are slower to upgrade their lighting due to less attractive returns on their investment. 

LED lighting trends in commercial and industrial buildings 

Updating current LED lighting fixtures with second-generation LED systems 

Second-generation LED lighting systems take the solid foundation of first-gen LEDs and make them even better. They’re more energy-efficient, thanks to improved LED chips and heat management. These lights can last over 100,000 hours, cutting down on replacements and maintenance. Plus, they come with smart controls, including IoT integration for remote monitoring and customization. The light quality is top-notch, with better color accuracy and adjustable color temperatures. They’re also designed with sustainability, using recyclable materials and offering superior energy performance. 

For businesses, upgrading to these second-gen systems means big savings on energy bills and maintenance. The improved lighting quality can boost productivity and comfort for employees. Smart controls offer flexibility and convenience, helping optimize lighting based on need. Plus, these systems support sustainability goals and reduce carbon footprints, all while future-proofing your lighting setup for new features. 

Upgrading to advanced LED lighting controls 

Many businesses are shifting towards advanced lighting controls for new or existing fixtures and integrated lighting controls that connect to their building automation system (BAS). Businesses are showing greater interest in this IoT-style data collection that takes real-time information from the lighting system on their building occupancy. It gives them new capabilities, such as granular temperature setbacks on their HVAC, leading to additional savings. The occupancy data can also allow companies to manage their building footprint much better, especially as more employees telecommute. 

Installing lighting that mimics the circadian rhythm 

Another recent trend is LED lighting that mimics the human circadian rhythm. By adjusting the light level and color temperature wavelength of LED fixtures throughout specific periods of the day, “smart” fixtures can recreate the full range of natural daylight, boosting occupants’ alertness and productivity. Hospitals and schools seem to be the early adopters of this technology, but I believe this trend will continue in the commercial space. 

Integrating Bluetooth technology into LED lighting fixtures 

In the retail space, we see LED fixtures equipped with Bluetooth technology, allowing the fixtures to connect with a customer’s phone while shopping. The fixtures can track your progress through the store and communicate with you via a centralized controls system. For example, if a customer stops to look at several different choices of cereal in an aisle, a cereal manufacturer like General Mills could pay the retailer to have a coupon for their cereal pop up on the customer’s phone when they stop in front of a shelf containing their product. 

Retail stores have always been interested in lighting with a high color rendering index (CRI). This directly affects the product's appearance and makes it look more vibrant and attractive to consumers, influencing their purchasing decisions. 

Combined with CRI, color temperature can also be customized for specific products to enhance their appeal. For example, a cooler color temperature will make fish more appealing, while a warmer color with a high R9 value will make red meats appear fresher. Lighting is increasingly helping businesses become more profitable. 

What facility managers should know before installing LED lighting 

Don’t necessarily go for the lowest-cost option; try not to hold yourself to a certain payback threshold. 

Do your homework to the point where you can tell if a lighting salesperson is looking out for your best interest and suggesting solutions that alleviate your pain points or if they are pushing a low up-front cost product or service that could cost you more over a 10-year lifecycle. This could be due to lower efficiencies (lumens/watt) resulting in lower comparable savings, a lack of lighting controls, or simply an inferior product from a company that may not be around to provide warranty coverage. 

You should also consider implementing lighting controls when performing a building-wide LED retrofit. A controls implementation may not be financially attractive enough on its own, but when combined with fixtures with integrated sensors, it can sometimes make the ROI even more attractive, depending on the run hours and electricity cost. 

Maximize your LED lighting project ROI through a holistic efficiency strategy 

While LED lighting alone is a great investment, integrating it with other complementary efficiency solutions, such as energy procurement strategies, building automation systems (BAS), and efficiency-centered facility asset management, can significantly increase its impact and boost your ROI across your organization. A comprehensive energy management plan with LED lighting can enhance overall facility performance, reduce maintenance costs, and contribute to sustainability goals. By coupling lighting projects with solutions like these, businesses can achieve even greater energy savings and operational efficiencies. 

 Here are some realistic examples of solutions that would complement LED lighting projects effectively: 

• Energy procurement: By aligning LED lighting upgrades with strategic energy procurement, businesses can take advantage of lower energy rates and demand response programs. This approach helps ensure a more stable, predictable energy budget while reducing overall usage through improved lighting 

• HVAC & facility asset management: Automated lighting controls can be synchronized with HVAC systems to optimize energy use based on occupancy and daylight availability.  
• Building automation systems (BAS): Integrating LED lighting with BAS allows centralized control and monitoring of all building systems. This integration can enhance operational efficiency, as lighting, HVAC, and other systems work together seamlessly to maintain optimal conditions while minimizing energy use. 

To discover more about lighting projects for commercial and industrial buildings, check out our comprehensive LED Lighting Guide. ⬇