Marketing Energy Efficient Lighting

Presented byJeffrey Schwartz, LC, IES

ICF International

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Marketing

• Marketing is more than a sales flyer, billboard, or radio advertisement

• Marketing is positioning you, your company, or your product in a way that helps you sell your “product.”

• Marketing is what sets you apart from the competition

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Lighting of the Future

2016:A Fixture Odyssey

2016: A Fixture OdysseyA vision of what the fixture of the futures should, and should NOT do.By Jeffrey Schwartz, and Kenn Latal LD&A 2006

The material simply glows to produce light. The light comes from LEDs, OLEDs, nanotechnology, a self-luminous material with no electricity required, or a new source not even conceived of in 2006

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Why is Green Marketed

Sixty-three percent of Americans say energy prices have increased enough to make them change their consumption habits.– (Shelton Group/Energy Pulse 2006)

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So What?

• How do I position me, my company, or my product to take advantage of the buyer that:– Wants to save energy– Wants to be positioned as “green”

• for environmental purposes• for bragging rights

• So I have to start from scratch, or are there roads paved for my journey?

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Introduction

• Energy-Efficient Lighting– Effective tool to improve customer satisfaction– Increase sales– Set your company apart from others– Improve the environment– Help your customers “go green”– Residential, and Commercial applications

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What I Need to Know

• In order to market energy efficiency you need to understand what you are selling better than anyone else (pay attention today):– Technology – Features– Benefits

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What I Need to Know

• What programs are available to help me?– Incentives– Training– Tax Deductions

• How to sell (understanding the buyer’s needs)

• What tools are available to help me?

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Today’s Agenda

• Learn About– Technologies – what do you have to work with– Design Approaches – How and where to use

the technologies– Residential and Commercial Lighting– Marketing Strategies and Tools that will help

you set yourself apart in the marketplace

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Residential

• Energy-Efficient Residential Lighting has come a long way in the last few years.

• All market actors – manufacturers, distribution, builders, and home owners –have an opportunity to “go green,” reduce electrical costs, and benefit from quality, energy efficient residential light fixtures.

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Energy Efficiencyand Global Warming

• Eighty-six percent of Americans would choose one home over another based on its energy efficiency.– (Shelton Group/Energy Pulse 2006)

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Why Care?

• Green = reduced energy costs • Green = a better environment • Reducing energy use helps decelerate climate change by

preventing greenhouse gas emissions

Which picture brings a smile to your face?

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Why Lighting?

• Lighting provides one of the most visible opportunities for energy savings.

• Lighting is better understood by homeowners than other more complex energy-saving technologies.

• Lighting is more heavily promoted than most other energy-efficient technologies.

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ENERGY STAR®

Residential Light Fixtures&

The Advanced Lighting Package

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Why use ENERGY STAR Residential Light Fixtures?

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Why ENERGY STAR?

• Homebuyers want energy-efficient homes, and ENERGY STAR qualified fixtures contribute to the home’s efficiency and help lower energy costs.

• Qualified fixtures are environmentally friendly and help reduce greenhouse gas emissions.

• The ENERGY STAR brand has strong market recognition which will help you sell the qualified fixtures and ENERGY STAR homes.

• ENERGY STAR is more than just energy savings. Fixtures must meet high performance standards.

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ENERGY STAR Brand Influence

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Understanding ENERGY STAR Qualified Fixtures

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ENERGY STAR Qualified Fixtures

• ENERGY STAR qualified light fixtures deliver quality lighting by using advanced technologies. Fixtures must meet stringent performance criteria verified by independent testing.

• Energy efficiency means lower utility billsfor the owner. 75% more efficient (less energy = lower costs).

• ENERGY STAR qualified fixtures also produce less heat, reducing cooling costs.

• Less energy used results in a cleaner environment.

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Why Sell ENERGY STAR qualified fixtures?

• For the Home Builder:

– Increased Sales – higher dollars and/or more homes sales

– Builders need to differentiate themselves in the market

– Marketing Tools– Lighting is part of Going Green– Good for the environment– Modern Home: using advanced technology

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Why Sell ENERGY STAR qualified fixtures?

• For the Home Owner:

– Good for the environment• This is important to many homeowners

– Saves Energy: reduced utility bills • One of the few upgrades that pays for itself and

puts a positive cash flow in their pocket.– Long lasting bulbs: fewer lamp changes

• The lamps in ENERGY STAR qualified fixtures have a 10,000 average rated life

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Features and Benefits

ENERGY STAR • 75% less energy than old technology fixtures

– Reduces energy costs• Long lamp life (10,000 hour average rated life)

– Results in fewer lamp changes• Appropriate color temperature

– Blends with other light fixtures• Electronic ballast required

– Eliminates flicker and hum– Lamp must start in less than 1 second

• Lamp and ballast tested in the fixture– Assures maximum performance

• Lamp sold with the fixture– Assures right size, shape, and performance

• Good color rendering lamps– Helps people and objects look natural

Performance backedby a two-yearManufacturer

Warranty

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Fixture Availability

• 120 Fixture Manufacturing Partners• Over 17,000 qualified models• Every finish, every style, for any room, and

every room in the house• Interior and exterior qualified fixtures

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ENERGY STAR Qualified FixturesAs a Whole-House Solution

Pendant MountedFoyer, dining

Outdoor Yard, walkway, facade lighting

PortableLiving room, bedroom, home office

Close-to-CeilingHallway, kitchen, bath

Wall Mountedbath, living room

Recessed Living room, kitchen, hallway

Vanity Bathroom

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ENERGY STAR Qualified: Dining and Entry

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ENERGY STAR Qualified:Kitchen Ambient or Decorative

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ENERGY STAR Qualified:Hallway & Kitchen Island

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ENERGY STAR Qualified: Bathroom Vanity, and Sconces

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ENERGY STAR Qualified: Utility Fixtures

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For use in:GaragesStorage AreasLaundry RoomsBasements

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ENERGY STAR Qualified:Recessed Fixtures

Recessed Lighting Must Undergoadditional testing to verify the ballast temperature. This avoidsOverheating.

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ENERGY STAR Qualified: Outdoor Fixtures

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Emerging Technologies

• GU24– The lamps – Allows for new fixture styles– The next generation of keyless sockets and

closet lights

• LEDs – coming soon to a showroom near you!!

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New GU 24 Products

The Faux-Can Keyless Sockets

“26 watt 10,000 hour flat disk that mounts flush to the ceiling using a standard fixture box with a twist and lock GU24 connection. Requires no ceiling holes, no heat loss or gain through openings.”

These keyless socketsin both open and covered options use GU24 technology.Economical way to provide ENERGY STAR qualified light fixtures in closets, garages, basements, etc.

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Residential Lighting FixtureENERGY STAR specification 4.2:

– New testing procedure for LED Light Engines included in residential light fixtures

– Testing evaluates the light source only, as is consistent with the current RLF specification

– Specification is effective as of June 3rd, 2008

– No change to CFL products in this revision

LED Light Engines

Technical Amendment of Residential Light Fixture Specification (RLF 4.2)

Revision also applies to ceiling fans and vent fans

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Understanding the Advanced Lighting Package

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• Lighting packages that consist of a minimum of 60% ENERGY STAR qualified hard-wired fixtures– In addition to the light fixture

requirements, all installed ceiling fans must be ENERGY STAR qualified

– ENERGY STAR qualified ceiling fan light kits (not just the fan) can be counted toward the Advanced Lighting Package 60% requirement

ENERGY STAR Advanced Lighting Package

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ENERGY STAR Advanced Lighting Package Builder Benefits

• Increased Revenue• Market Differentiation • Design Flexibility and

Fixture Aesthetics• Enhanced Customer

Satisfaction• Free marketing materials

including:– Builder brochure– Consumer brochure– Savings calculation tool– Case Studies

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Supply-Side Marketing Materials

Advanced Lighting Package Builder BrochureDescribes the ENERGY STAR Advanced Lighting Package, the benefits to the builder for participating in the program, and the added value the builder can provide their customers

Advanced Lighting Package Builder Case Studies

Feature success stories of builders who have used the Advanced Lighting Package to better their business

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ENERGY STAR Advanced Lighting Package Tools

* Savings Calculator Customizable by Floor plan

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Consumer Marketing Materials

Advanced Lighting Package Consumer Brochure

Educates customers on the key benefits

- Quality

- Performance (lower maintenance)

- Environmental protection

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Advanced Lighting Package Declaration

• Available for every homeowner to show the savings they are achieving by having the ALP installed

• Provides a tangible record of the home’s energy savings due to the ALP

• Can be included in the welcome packet of documentation at each home’s closing

• Also can be posted as information in each model home

• send request to: ENERGYSTAR_ALP@icfi.com

Marketing Tools for ALP

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More Information

• For more information about ENERGY STAR– Visit: www.energystar.gov/ALP– Talk to your lighting supplier– Contact local utility program managers

and implementers – Efficiency Vermont

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Marketing ENERGY STAR

• Know the product:– Technology, features, and benefits

• Understand the features and benefits• What programs are available to help me?

– Incentives – for ENERGY STAR homes or lighting

– Training – on the ENERGY STAR Website– Tax Deductions – Sorry, not for residential

lighting

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Marketing ENERGY STAR

• How to sell (understanding the buyer’s needs)– Energy Savings – pays for itself and then

some– Environmental – reduces green house gas

emissions

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Marketing ENERGY STAR

• What tools are available to help me?– Builder Brochure– Consumer Brochure– Savings Calculator– ENERGY STAR Advanced Lighting Package– Advanced Lighting Package Declaration

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Commercial

• Energy-Efficient Lighting– Effective tool to improve customer satisfaction– Increase sales– Set your company apart from others– Improve the environment– Help your customers “go green”– Commercial applications

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Commercial Drivers

• Need to reduce operating costs• Environmental Stewardship• LEED• EPAct Tax Deductions (up to $0.60 per sf)• Energy Codes• Energy Efficiency Program Incentives

through Efficiency Vermont

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Technologies

• High Performance T8• T5, T5 High Output• Controls

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High Performance T8 Technology

• HPT8– High efficiency T8 electronic ballasts save

about 7% in energy costs compared to standard ballasts

– High-lumen lamps combined with low ballast factor ballast (.77) save about 20% energy compared to standard T8 Systems, and about 40% compared to old T12 Systems

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How and Where to Buy HPT8

• Consortium for Energy Efficiency (CEE at www.cee1.org) has a complete listing of qualified lamps and ballasts.

• DesignLightsTM Consortium hosts an entire HPT8 training site which provides more information.

• Marketing materials available for download.

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Why Use HPT8

• IF you are going to use T8 systems, then HPT8 is an energy efficient solution:– Saves energy– Longer lamp life and higher maintained

lumens means fewer lamp changes and reduced disposal costs

– May allow you to design with fewer fixtures or fewer lamps per fixture while maintaining appropriate light levels and uniform lighting.

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HPT8 Example

HPT8 Savings Example: 3,000 sq. ft. Retail Store

• Annual energy cost using (35) 3-lamp fixtures and a target light level of 75 footcandles (fc) for general merchandise:– F34T12 System at 60fc : $1,890– F32T8 Standard System at 78fc: $1,441– HPT8 low BF System at 76fc : $1,196

• The HPT8 System saves $694 per year in energy costs compared to an old T12 system in the same application.

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What About Light Output?

• By combining HPT8 High Performance Lamps with the Low BF Ballasts, similar light output can be obtained for similar fixture types.

• Example of Mean Lumens for 3-lamp fixtures:F34T12 with magnetic energy saving ballast and T12 lamps:

6072 Mean LumensF32T8 with standard electronic ballast and standard T8 lamps:

7022 Mean LumensF32T8 with Low BF HPT8 ballast (.77BF) and HPT8 lamps:

6699 Mean Lumens• Result: similar light output with reduced wattage.

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Reduced Wattage Lamps

• CEE has also set criteria for reduced wattage lamps (4ft. T8 28W and T8 25W) to provide additional energy saving design options.

• Consider temperature, lamp life and compalibility.

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Retail Store ComparisonFewer Fixtures

Fewer Fixtures

Average Illuminance Calculation Sheet

highlight indicates calculated numbers (do not delete info or remove formula)

Base = Standard T8 Alternate 1 Alternate 2 Alternate 3Space Description Retail - Base Retail Retail Retail

Standard T8 HPT8 Low BF HPT8 Normal HPT8 HighFixture Type 3-lamp 3-lamp 3-lamp 3-lamp

0.88 0.77 0.88 1.18Room SizeRoom Length 120.00 120.00 120.00 120.00Room Width 100.00 100.00 100.00 100.00Room Height 10.00 10.00 10.00 10.00Work Plane 3.00 3.00 3.00 3.00Fixture Distance from Ceiling in inches 0.00 0.00 0.00 0.00Ceiling Cavity Ratio 7.00 7.00 7.00 7.00

ReflectanceCeiling 0.80 0.80 0.80 0.80Wall 0.50 0.50 0.50 0.50Floor 0.20 0.20 0.20 0.20

RCR/CURoom Cavity Ratio 0.64 0.64 0.64 0.64CU from fixture 0.95 0.95 0.95 0.95

Ballast Factor 0.88 0.77 0.88 1.18Other LLF (assumptions)** 0.95 0.95 0.95 0.95

Lamp & Fixture Info

Mean Lumens Per Lamp 2660 2950 2950 2950Number of lamps per fixture 3 3 3 3Lumens per fixture 6671 6474 7399 9921Number of Fixtures 150 150 150 100Watts per fixture 90 72 83 113Total Wattage 13500 10800 12450 11300

Area 12000.00 12000.00 12000.00 12000.00

ResultsFootcandles 79.2 76.9 87.9 78.5

Watts per square ft. 1.13 0.90 1.04 0.94Annual Savings***Compared to Base Fixture $1,269.00 $493.50 $1,034.00

Project NameDate Fewer fixtures (100 vs. 150) with High Ballast Factor

*Typical Reflectance:Office or retail: 80/50/20Industrial: 50/30/20

**Typical Light Loss Factor : Adjust as needed (.85 or .80)

***Typical Savings: Based on 60hrs per week and $0.15 per kWh

Fewer fixtures (150 vs. 100):Standard T8 (150, 3-lamp, 90W)HPT8 Low BF (150, 3-lamp, 72W)HPT8 Normal BF (150, 3-lamp, 83W)HPT8 High BF (100, 3-lamp, 110W)

In this example, the 150HPT8, Low BF 3-lamp fixturewith 32W high-lumen lampsprovides the best overall savings at0.90W per square foot.

HOWEVER, the 100 HPT8, High BF 3-lamp fixturewith 32W high-lumen lampsprovides similar savings at0.92W/sf with 50 LESS FIXTURES!

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Life Cycle Cost 3,000 sq. ft. Retail Store

TYPICAL T8 OPTION• 2x4 Lens T8 • Electronic Ballast• 3-Lamps: F32T8/735

Initial Project Cost: $3,745Lamp Replace. $940Energy Costs: $14,410

LC Costs: $19,095

EFFECTIVE, ENERGY-EFFICIENT HPT8 OPTION• 2x4 Lens HPT8• HPT8 Low BF Electronic Ballast• 3-Lamps: F32HPT8

High Lumen/835 Initial Cost: $3,990Lamp Costs: $920Energy Costs: $11,960

Total LC Costs: $16,870

Figures based on 10 yr term, $0.15/kWh, 3120 hrs/yr operation.

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Life Cycle Cost 3,000 sq. ft. Retail Store

TYPICAL T8 OPTION• $1.25 /sq. ft. initial installed cost • $0.48 /sq. ft. annual energy cost• 3080 total system watts• 78 average maintained fc• 1.03 watts per square foot

EFFECTIVE, ENERGY-EFFICIENT HPT8 OPTION•$1.33 /sq. ft. initial installed cost• $0.40 /sq. ft. annual energy cost• 2555 total system watts• 76 average maintained fc• .85 watts per square foot

Figures based on $0.15/kWh, 3120 hrs/yr operation.

$245 HPT8 System Incremental Cost Increase $245 Annual Energy Cost Savings1-year Simple Payback Period100% Incremental Cost Return on Investment

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Marketing Materials

WWW.DESIGNLIGHTS.ORG

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Marketing HPT8

• Technology, features, and benefits• What programs are available to help me?

– Incentives– Training– Tax Deductions

• How to sell (understanding the buyer’s needs)

• What tools are available to help me?

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T5 and T5 HO

• High lumen package per lamp• Not for retrofit – requires new fixtures• Efficient fixture design allows for less

lamps per fixture, or fewer fixtures based on fixture efficiency, or increased spacing criteria.

• You can’t look at lumens only.

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Lamp Lumen Comparison

T8-T5-T5HO 2-Lamp Comparison

• HPT8 = 2900ML / 32W = 90.63 MLPW• T5 = 2750ML / 28W = 98.22 MLPW*• T5HO = 4750ML / 54W = 87.97 MLPW

*Based on best case scenario for T5 lampshighest lumens at design temperature

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SYSTEM Comparison

System Efficacy – including ballast• HPT8 (.88BF) = 5104ML / 55W =

– 92.8 System MLPW• T5 (1.0BF) = 5500ML / 65W =

– 84.62 System MLPW• T5HO (1.0BF) = 9500ML / 117W =

– 81.2 System MLPW

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Why use T5 & T5HO

• High lumen package• Fixture efficiency• Fixtures that allow for increased spacing

– Indirect pendent mount can often be spaced on 15ft. centers, vs. 12ft. centers, reducing the total number of fixtures and overall energy savings

• Slim Design (looks - style)

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High Efficiency Low Glare Fixtures

• T5 allows for shallow design• High level of distribution at

upper levels reduces contrast and perception of glare

• High efficiency• Many have increased

spacing criteria compared to basket fixtures

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Marketing T5 and T5 HO

• Technology, features, and benefits• What programs are available to help me?

– Incentives– Training– Tax Deductions

• How to sell (understanding the buyer’s needs)

• What tools are available to help me?

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So How Do Controls Help?

• Electric utility bills are based on not just on the Wattage Load, but also on the amount of time we use the power (kWh).

• If you can lower the load – dimming, or the hours used – occupancy sensors, then the bill goes down.

• Systems vary, but on average dimming = 20% overall load reduction; occupancy sensors, in the right application = 30% hour reduction.

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So, how do we sell?

• Back to residential, the ENERGY STAR label will help us market and sell lighting fixtures based on:– High Recognition– Energy Savings – Long Life; Good Color Rendering; Performance– Marketing Tools including the Advanced Lighting

Package

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So, how do we sell?

• High Performance T8 and Other Energy Efficient Lighting Products:– Energy Savings– Performance– Fewer Fixtures, or Fewer Lamps per Fixture

• Case Studies• Life Cycle Cost Tools

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So, how do we sell?

• We need to REALLY understand what we are selling so we can:– Explain the Features and Benefits– Sell the Right System (lamp comparison vs.

system comparison). LCC– Know the Limits – temperature, glare, and

other situations that are essential to determining the right solution

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Summary

• Energy and energy efficiency are important.

• So is performance.• Once you believe you have the right

solution, use the available marketing tools and resources, INCLUDING EFFICIENCY VERMONT INCENTIVE PROGRAMS, to provide the best solution for your customer

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Winding Down

• Questions and Answers