Many myths surround the use of LED lamps for indoor and greenhouse commercial growing, so last week we started tackle what we see as 5 common myths about LED grow lights within the grower community. Today we will continue to go myth-buster for you , this time with focus on cost and ROI.
"LEDs are too expensive in comparison to competitive technologies and the ROI has not proven itself."
Busted: While the cost of LED alone could justify the investment, depending on one’s end goal, cost is only one part of the equation. Commercial growers seek long term solutions, the right LED lamp can deliver the ROI investor operators demand several times over. Though more expensive in capital expenditure (assuming no subsidy, leasing or incentive program), LED lamps – with an expected lifespan of 50,000 hours – provide lower lifetime operating expenses that are comparable, if not significantly better, than HID systems. LED electricity bills can run between 40-75 percent less than an equivalent HID (or CFL) system. This includes savings from reduced amounts of energy used by smaller extraction equipment, reduced need for air conditioning, lower maintenance costs, etc. Savings also accrue because LED grow lights have no filament system to burn out or ballasts, reflectors and other equipment to be replaced. There are significant financial savings to be gained from eliminating years of new HID bulb and ballast purchases, lower upfront expenditure in HVAC (heating, ventilation and air conditioning) infrastructure, less chance of crop loss due to contamination (less labor hrs involved with bulb replacement and the option of vegging and flowering in the same location).
Is an LED lamp worth the higher initial cost? Heliospectra’s LX60 Series (240 LEDs, 10.5 to 630 W typical power consumption, 50k hours lifespan, two-year warranty) is the market’s premier product for indoor (sole-source) lighting applications.
Priced at US$1,999.
Years of reliable use: 10.
Estimated ROI on additional investment (due to higher LED price): 9 months
Estimated ROI on total investment: 24 months
Next up we will adress the misconceptions surrounding - Power Consumption.
Are you thinking about replacing you old HPS/HID fixtures, but not sure if the initial cost is worth it? Contact us today to discuss your ROI.