Energy Efficiency and the Price Tags

Did you know that all lighting products have three price tags?

Every lighting product you buy has three price tags. We are all familiar with the first—the purchase price, which is the one you see in the store. The second price tag is less familiar but just as important: it is the cost of the energy your new fixture consumes. The third price is maintenance: it is the cost of labor to maintain the fixture over a period of time.

1.      Purchase Price: Think of the purchase price as the down payment.

2.      Operating Cost: Think of this as an ongoing operating cost as a series of monthly installments’ you must pay until the unit is replaced.

3.      Maintenance Cost: Think of this as added labor cost to the Operating Cost.

For example, a 60 W incandescent bulb you buy for $0.50 can cost you another $4.90 in electricity before it has to be replaced. Since the second price tag will cost you additional money, it should be considered when making a purchase decision (example of the impact of the second price tag).

However, a low second price tag is not in itself a good enough reason to buy a particular product. Make sure the fixture or bulb you choose is suitable in quality for the application and location you have in mind.  The fixture must also be good quality or the first and third price tag will become a nightmare and end up costing you more than the higher end product. Some energy-efficient products can be more expensive, but the extra purchase cost can often be justified by the lower second/third price tag and the environmental benefits of reduced energy use.