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LED Technology for efficient Illumination

LED Technology for efficient Illumination. Team Element. Project Scope. Make Indiana the “Lighting Innovation H ub ” by Increasing the adoption of the LED lights with businesses, government and consumers.

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LED Technology for efficient Illumination

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  1. LED Technology for efficient Illumination Team Element

  2. Project Scope Make Indiana the “Lighting Innovation H ub” by • Increasing the adoption of the LED lights with businesses, government and consumers. • Recruiting from Indiana’s top schools to drive down costs of LED technology through advancements and breakthroughs. • Creating center of excellence for light innovation in major engineering programs. • Attracting major lighting manufacturers such as GE and Sylvania. • Creating jobs in R&D, manufacturing, consulting and installation. • Minimize impact of conversion to LED by evaluating the viability of converting at a single point. • Launching a consulting company for lighting solutions.

  3. Energy Usage Alliance to Save Energy Estimates 22% of U.S. electrical demand is from lighting Recommends Energy Star certified lighting Energy Independence and Security Act of 2007 Will phase out the manufacturing of incandescent light bulbs from 2012 to 2014 Effectively makes the Compact Florescent Light (CFL) the new standard Requires all lighting in Federal buildings to use Energy Star products

  4. What is an LED? • Light Emitting Diode (LED) • Invented by Nick Holonyak, Jr. in 1962 • Electroluminescence occurs when a semiconductor diode is turned on • This allows for electrons to recombine with holes • Energy is then released in the form of light • Color is determined based on energy gap of the semiconductor • First LEDs only emitted dim red light • New technology allows for high brightness along the color spectrum

  5. LED Benefits Efficiency – 80 percent less energy used Less thermal waste – lower cooling costs Durable – solid state shock resistant Longer life – 25,000 to 100,000 hour utility Environment friendly – no mercury to dispose of Guarantee – 3 years if Energy Star certified Instant on – no warm up time Ability to dim

  6. Fluorescent versus LED

  7. Energy Savings Calculator

  8. LED Applications • Initially LEDs were very expensive • Over time costs have become more reasonable, but there is still work to do on this front • Early applications were as indicator lights on laboratory testing equipment • Later LEDs were utilized for radios, phones, calculators, and other electronic devices. • Currently LEDs are used more frequently for automobile lights, signs, traffic lights, street lights, parking garages, architectural lighting (home light bulbs and fixtures) and flashlights. • The possibilities are endless as technology advances

  9. Macro Impact Eliminating incandescent bulbs completely would save $18 billion per year (equivalent to the output of 80 coal plants) If every United States household changed their five (5) highest-use light fixtures (or the light bulbs in them) to Energy Star certified lighting, Americans would collectively save more than $6 billion (or $60/household) every year in energy costs

  10. Five Forces Analysis: LED Lighting Industry in Indiana (Who & What) Possible Entrants Current Lighting Industry Clout Initial cost Related Service Providers: - Incandescent bulbs - CFL lighting providers Foreign Players: - Foreign LED Companies - Manufacturers in other US states (Eg. Silicon Valley) Supplies/Suppliers Competitors Customers External: - Incandescent lighting - CFL Lighting providers - Foreign LED producers - Other US states Internal: - Indiana’s non-LED business • - Light innovation labs • Current LED producers (GE, • Sylvania etc) • - Lighting installers • - Engineering institutions • - Maintenance and Services • Customers • - Institutions, Corporations • Homeowners • Government agencies • Channels • Government agencies • Green groups Substitutes Technology adoption Economy Gov’t Initiatives Direct: - CFL Indirect: - Alternative energy lighting - Building/engineering re-design for natural light use Environmental impact

  11. Challenges of LED Adoption • Initial cost - the use of LED lighting has a high initial capital cost when compared to conventional lighting • Current lighting industry clout – as incandescent bulbs are phased out, CFL will be natural replacement • High temperature sensitivity • Light output from LEDs is directional leading to a more complicated fixture design

  12. Construction Requirements • Federal, State, and Municipal Standards • Although these standards vary according to the region, LED lighting does not pose a challenge to building codes. • Retrofitting Existing Structures • Large initial capital investments will need to be made in order to change over to LED. • New Construction • Utilizing LED technology will have long-term benefits in the areas of safety & security, cost reduction and energy consumption.

  13. Why Indiana? • R&D • Existing universities with strong research capabilities • Availability of stimulus funds • Ability to partner with existing institutions like the Richard Lugar Center for Renewable Energy • Manufacturing • Strong manufacturing infrastructure. • Large manufacturing workforce that is unemployed due to automotive crisis • Installation • New state requirements of building codes • Large manufacturing workforce that is unemployed due to automotive crisis • Logistics • Crossroads of America • Indiana’s strategic objectives • Aligns with Indiana’s energy policy • IEDC successful in attracting businesses and FDI • Budget surplus

  14. Tax Incentives Commercial Lighting Tax Deduction The Energy Policy Act of 2005 created the Energy Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap eligible for tax deductions of as much as $1.80 per square foot.

  15. What Indiana is already doing Indianapolis is eligible to receive $8,032,300 over the next two years as part of the EECBG program funded by the American Recovery and Reinvestment Act LED Street Lighting Pilot Projects - $800,000 High-efficiency LED street lighting projects will be installed at various locations where replacement street lighting is needed. LED Traffic Signal Retrofits - $2,503,900 Currently, only 370 of the city's 1,100 intersections have LED traffic signals.  This activity proposes to retrofit the remaining 730 intersections to LED. http://www.sustainindy.org/

  16. Strategic Action Plan • Partner with • Allocation of state funds to further research at universities in Indiana to reduce the cost of LEDs ??? • Partner with Light Research Institute (http://www.lrc.rpi.edu/aboutUs/becomePartner.asp) • Provide incentives (tax credits etc) to businesses and home owners to switch to LED lighting.  create installation jobs. • Allocate state funds to change signs and street lights  creates installation jobs. • Retool existing factories to manufacture LEDs?

  17. Recommendation - Consulting Company • Setup a consulting company in Indiana to promote the use of LED technology on a global scale • Services offered • Promote the benefits of using LED technology via seminars, workshops, advertisements etc • Assess the current energy costs • Recommend areas for the implementation of LEDs • Provide a cost benefit analysis • Provide information on government funding programs for the installation of LEDs • Own and execute the implementation of project

  18. Recommendation - Consulting Company • Target Customers: • Government agencies • Universities • Commercial and home builders • Key Partnerships: • National organizations like Light Research to leverage existing research and expertise • Partnership with vendors to offer competitive prices • Partnership with installation services

  19. Recommendation - Consulting Company • Key success Factors for consulting company • Ability to hire credible and talented resources. • Funding and support from the state government.

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