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Installing LEDs gives warehouses cheaper, cleaner lighting, experts say

By August 11, 2022July 28th, 2023No Comments

Many people have switched to LED lights in their homes because they know how much money and energy it saves. So why haven’t companies with huge warehouses around the world done the same?

It’s not as simple as it may seem. “An LED retrofit is a disruptive retrofit,” Sam Stockdale, senior vice president and head of sustainability at last-mile logistics real estate company Link Logistics, told FreightWaves.

It often requires coordination between tenants and landlords, changes to leases or contracts, and optimal timing to reduce disruptions to warehouse operations.

But the environmental benefits of LED lighting are substantial, and in many instances, the economic benefits make it financially well worth the investment.

Cost, energy, emissions savings of LED lighting

Lighting is “one of the largest electrical loads in warehouses and distribution centers,” Rafat Shehadeh, global head of essentials and procurement at supply chain real estate company Prologis, told FreightWaves. So improving energy efficiency can have a big impact on electricity costs.

According to the Department of Energy, LEDs use 75% less energy than incandescent bulbs. The main reason for the energy savings is that incandescent bulbs release 90% of the energy generated through heat, not light, the DOE said. CFLs, another type of bulb, lose about 80% of energy as heat.