CHAPTER 5. LIFE-CYCLE COST ANALYSIS AND PAYBACK PERIOD ANALYSIS 

TABLE OF CONTENTS 

5.1 METHOD AND DATA ...................................................................................................... 5-1 

5.1.1 Annual Operating Hours...................................................................................... 5-3 

5.1.2 Lamp Prices ......................................................................................................... 5-3 

5.1.3 Ballast Prices........................................................................................................ 5-5 

5.1.4 Luminaire Prices .................................................................................................. 5-7 

5.1.5 Lamp Lifetime ..................................................................................................... 5-8 

5.1.6 Ballast Lifetime.................................................................................................. 5-10 

5.1.7 Contractor Mark-Up........................................................................................... 5-10 

5.1.8 Sales Tax............................................................................................................ 5-10 

5.1.9 Maintenance Costs............................................................................................. 5-10 

5.1.10 Electricity Price.................................................................................................. 5-12 

5.1.11 Discount Rate..................................................................................................... 5-12 

5.2 RESULTS FOR MEDIUM-WATTAGE MERCURY VAPOR DESIGN OPTIONS..... 5-12 

5.2.1 Event 1 – Lamp-Only Replacement................................................................... 5-12 

5.2.2 Event 1b – Lamp-Only Replacement ................................................................. 5-14 

5.3	 RESULTS FOR MEDIUM-WATTAGE PROBE-START METAL HALIDE DESIGN 

OPTIONS .......................................................................................................................... 5-15 

5.3.1 Event 1 – Lamp-Only Replacement................................................................... 5-15 

5.3.2 Event 1b – Lamp/Fixture Replacement ............................................................. 5-17 

5.3.3 Event 2 – New Construction / Luminaire Replacement .................................... 5-18 

5-i 
LIST OF TABLES 

Table 5.1.1. Lamp Prices from 2008 RS-Means.......................................................................... 5-3 

Table 5.1.2. Municipal Lamp Prices............................................................................................ 5-4 

Table 5.1.3. Lamp Price derived from Online Distributor Websites ........................................... 5-5 

Table 5.1.4. Lamp Price derived from Online Distributor Websites ........................................... 5-6 

Table 5.1.5. Prices from 2008 RS-Means for High-Intensity Discharge Luminaires .................. 5-7 

Table 5.1.6. Lamp Price derived from Online Distributor Websites ........................................... 5-8 

Table 5.1.7. Lamp Life Data (175-Watt Mercury Vapor Baseline)............................................. 5-8 

Table 5.1.8. Lamp Life Data (250-Watt Mercury Vapor Baseline)............................................. 5-9 

Table 5.1.9. Lamp Life Data (400-Watt Mercury Vapor Baseline)............................................. 5-9 

Table 5.1.10. Lamp Life Data (175-Watt Baseline) .................................................................... 5-9 

Table 5.1.11. Lamp Life Data (250-Watt Metal Halide Baseline) .............................................. 5-9 

Table 5.1.12. Lamp Life Data (360-Watt Baseline) .................................................................... 5-9 

Table 5.1.13. Lamp Life Data (400-Watt Baseline) .................................................................... 5-9 

Table 5.2.1. Life-Cycle Cost-Payback Period Analysis for 175-Watt Mercury Vapor Baseline5-13 

Table 5.2.2. Life-Cycle Cost-Payback Period Analysis for 250-Watt Mercury Vapor Baseline5-13 

Table 5.2.3. Life-Cycle Cost-Payback Period Analysis for 400-Watt Mercury Vapor Baseline5-13 

Table 5.2.4. Life-Cycle Cost-Payback Period Analysis for 175-Watt Mercury Vapor Baseline5-14 

Table 5.2.5. Life-Cycle Cost-Payback Period Analysis for 250-Watt Mercury Vapor Baseline5-14 

Table 5.2.6. Life-Cycle Cost-Payback Period Analysis for 400-Watt Mercury Vapor Baseline5-15 

Table 5.3.1. Life-Cycle Cost-Payback Period Analysis for 175-Watt Metal Halide Baseline.. 5-15 

Table 5.3.2. Life-Cycle Cost-Payback Period Analysis for 250-Watt Metal Halide Baseline.. 5-16 

Table 5.3.3. Life-Cycle Cost-Payback Period Analysis for 360-Watt Metal Halide Baseline.. 5-16 

Table 5.3.4. Life-Cycle Cost-Payback Period Analysis for 400-Watt Metal Halide Baseline.. 5-16 

Table 5.3.5. Life-Cycle Cost-Payback Period Analysis for 175-Watt Metal Halide Baseline.. 5-17 

Table 5.3.6. Life-Cycle Cost-Payback Period Analysis for 250-Watt Metal Halide Baseline.. 5-17 

Table 5.3.7. Life-Cycle Cost-Payback Period Analysis for 360-Watt Metal Halide Baseline.. 5-18 

Table 5.3.8. Life-Cycle Cost-Payback Period Analysis for 400-Watt Metal Halide Baseline.. 5-18 

Table 5.3.9. Life-Cycle Cost-Payback Period Analysis for 175-Watt Metal Halide Baseline.. 5-19 

Table 5.3.10. Life-Cycle Cost-Payback Period Analysis for 250-Watt Metal Halide Baseline 5-19 

Table 5.3.11. Life-Cycle Cost-Payback Period Analysis for 360-Watt Metal Halide Baseline 5-19 

Table 5.3.12. Life-Cycle Cost-Payback Period Analysis for 400-Watt Metal Halide Baseline 5-20 

LIST OF FIGURES 

Figure 5.1.1. Flow Diagram of Inputs for the Determination of LCC and PBP .......................... 5-2 

Figure 5.1.2. Lamp Wattage/Price Comparison........................................................................... 5-4 

Figure 5.1.3. Ballast Prices .......................................................................................................... 5-6 

Figure 5.1.4. Lamp Wattage/Luminaire Price Comparison ......................................................... 5-7 

5-ii 
 

 

CHAPTER 5. LIFE-CYCLE COST ANALYSIS AND PAYBACK PERIOD ANALYSIS 

5.1 METHOD AND DATA 

To assess the life-cycle cost (LCC) to end users of designs that improve lamp efficacy, 

the U.S. Department of Energy (DOE) conducted an analysis that compares the incremental first 

cost to the value of electricity savings. In particular, the LCC analysis compares the incremental 

first cost to the discounted value of electricity savings over the life of the lamp system. The LCC 

is defined by the following equation: 

N OC  RC LCC  FC  t t Eq. 5-1 t1 (1 r)

t 

 Where: 

LCC = life-cycle cost ($), 

FC = total first cost ($), 

N = analysis period, 

∑ = sum over the analysis period, from year 1 to year N, 

OC = operating cost ($), 

RC = lamp replacement cost ($), 

r = discount rate, and 

t = year for which operating cost, replacement cost, or disposal cost is 

determined. 

The payback period (PBP) is time it takes the consumer to recover the assumed higher 

purchase cost of a more energy-efficient product as a result of lower operating costs. 

Numerically, the PBP is the ratio of the increase in purchase cost (i.e., from a less efficient 

design to a more efficient design) to the decrease in annual operating expenditures. This type of 

calculation is known as a “simple” PBP because it does not account for changes in operating cost 

over time or the time value of money. That is, the calculation is done at an effective discount rate 

of 0 percent. The equation for PBP is: 

IC PBP  Eq. 5-2

OC 

 Where: 

PBP = payback period (years), 

∆IC =	 difference in the total installed cost between the more efficacious standard 

level; equipment (efficacy levels 1, 2, etc.) and baseline (efficacy level 0) 

equipment, and 

∆OC = difference in annual operating costs. 

DOE expresses all the costs in its LCC and PBP analyses in 2010$. 

5-1 
As illustrated in Figure 5.1.1, the LCC and PBP analyses require multiple inputs, with the 

following addressed in detail in this technical support document (TSD): 

1. Typical annual operating hours, 

2. Typical price for the lamp and new luminaire, 

3. Typical lamp lifetime, 

4. Typical ballast lifetime, 

5. Contractor mark-up, 

6. Sales tax, 

7. Typical maintenance costs, 

8. Electricity price, and 

9. Discount rate (to convert future operating cost savings into present value terms). 

Figure 5.1.1. Flow Diagram of Inputs for the Determination of Life-Cycle Cost and 

Payback Period 

5-2 
 

 

 

 

 

 

 

 

5.1.1 Annual Operating Hours 

High-intensity discharge (HID) lamps were assumed to operate in both exterior and 

interior environments, with the following assumed operating schedules. 

 Annual use, exterior applications: 4,200 hours 

 Annual use, interior applications: 5,840 hours 

The exterior operating hours were derived by assuming that the luminaire is controlled by 

a photocell and operates roughly from dusk to dawn. This translates to roughly 4,200 hours 

annually,1 based on a typical operation of 11.5 hours per day. The interior operating hours value 

was derived from published research, as reported in three different documents focusing on highbay luminaires. Reported operating periods ranged between 5,000 and 6,000 hours,2,3 with one 

document specifically citing 16 hours per day as typical operation.4 DOE’s assumed operation of 

16 hours per day (5,840 hours per year) is in line with surveyed research, as well as the 2004 

draft report, which used a value of 5,080 hours per year.5 

5.1.2 Lamp Prices 

Published prices for lighting equipment vary widely depending on their source. DOE 

surveyed several typical pricing data sources in developing representative prices for HID lamps 

in this determination. 

First, DOE reviewed a commonly cited construction estimation reference book from 

RSMeans, Building Construction Cost Data (RSMeans).6

 Table 5.1.1 presents HID lamp prices 

from the 2008 version. 

Table 5.1.1. Lamp Prices from 2008 RSMeans 

MV* Lamps MH** Lamps HPS† Lamps 

Lamp Power 

watts (W) 

Price 

$ 

Lamp Power 

W 

Price 

$ 

Lamp Power 

W 

Price 

$ 

--- --- --- --- 70 $44.50 

100 $31.00 --- --- --- --- 

--- --- 175 $38.25 --- --- 

250 $41.25 --- --- 250 $50.50 

400 $33.00 400 $41.00 400 $52.00 

1000 $77.25 1000 $99.00 1000 $143.00 

* MV = mercury vapor 

** MH = metal halide 

†HPS = high-pressure sodium 

DOE also reviewed the prices on municipal web sites. These are procurement contracts 

that the different municipalities negotiate with distributors. As illustrated in Table 5.1.2, these 

values can vary widely from state to state for the same lamp.7,8,9,10,11,12 

5-3 
 

 

 

 

 

 

 

 

     

             

Table 5.1.2. Municipal Lamp Prices 

Lamp 

Type 

Lamp 

Power 

W 

Arkansas 

Price 

$ 

West Virginia 

Price 

$ 

North Dakota 

Price 

$ 

Oklahoma 

Price 

$ 

Ohio 

Price 

$ 

New Jersey 

Price 

$ 

MV 250 44.15 18.89 --- --- --- --- 

MV 400 45.69 19.54 --- --- --- --- 

MH 175 31.68 15.31 --- --- --- --- 

MH 250 35.87 15.20 --- --- --- --- 

MH 360 39.11 13.95 --- --- --- --- 

MH 400 88.52 32.56 --- --- --- --- 

HPS 100 --- 10.17 --- 8.87 11.65 --- 

HPS 150 --- --- 9.30 8.87 11.65 --- 

HPS 250 --- 10.47 --- 9.89 --- 7.49 

PMH 150 45.93 19.19 --- --- --- --- 

PMH 175 39.95 40.20 --- --- --- --- 

PMH 250 66.52 66.95 --- --- --- --- 

PMH 320 68.79 69.24 --- --- --- --- 

Finally, DOE surveyed lamp prices on publicly accessible websites for W.W. Grainger, 

Inc. (Grainger) and GoodMart.com (Goodmart)13,14 in March 2010. These online retailer price 

catalogs were selected because they offer a wide range of products (i.e., lamps, ballasts, and 

luminaires) for multiple types of HID lamps and wattages. Figure 5.1.2 presents the lamp type, 

wattage, and price from the data surveyed. This methodology of reviewing Grainger for prices is 

consistent with the pricing methodology used in previous rulemakings, including the Small 

Electric Motor Determination.15 

0

50

100

150

200

250

300

350

400

0 200 400 600 800 1000 1200

Initial Price (U.S. $)

Lamp Rated Power (W)

Comparison of Lamp Power (W) and Price ($)

MH

MV

HPS

PMH

Figure 5.1.2. Lamp Wattage/Price Comparison 

5-4 
 

 

 

 

 

 

 

 

 

 

DOE developed trendlines to interpolate the price for different wattages. The interpolated 

lines resulted in the following functions per lamp type where x is the lamp wattage and y is the 

lamp price: 

0.4271  Mercury Vapor: y = 4.1461x R2

 = 0.2472a 

0.1915  Probe-Start Metal Halide: y = 15.366x R2

 = 0.1059 

0.456  Pulse-Start Metal Halide: y = 5.4365x R2

 = 0.5063 

0.525  High-Pressure Sodium: y = 3.6562x R2

 = 0.4029 

Based on its analysis, DOE chose to base HID lamp prices for the LCC-PBP analysis on 

the wattage-price functions developed from Grainger and Goodmart price data.13,14 This online 

retailer price data is publicly available (requiring no special login to access the data) and offers 

product information that could be applied to the full range of HID lighting system technologies 

and components. Table 5.1.3 summarizes the assumed prices for the evaluated lamps. 

Table 5.1.3. Lamp Price Derived from Online Distributor Websites 

Baseline Option Substitute Option 

Lamp 

Type 

Lamp Power 

W 

Lamp Price 

$ 

Lamp Type Lamp Power 

W 

Lamp Price 

$ 

MV 175 $37.64 HPS 100 $41.02 

MV 250 $43.83 HPS 150 $50.75 

MV 400 $53.58 HPS 250 $66.37 

MH 175 $41.31 PMH 150 $53.41 

MH 250 $44.24 PMH 175 $57.30 

MH 360 $47.43 PMH 250 $67.42 

MH 400 $48.40 PMH 320 $75.45 

5.1.3 Ballast Prices 

As with HID lamps, DOE evaluated pricing for HID ballasts from typical, publicly 

available sources. First, DOE reviewed RSMeans.6 However, RSMeans only had prices for 

fluorescent ballasts, not HID ballasts. 

DOE also surveyed ballast prices on publicly accessible websites for Grainger and 

Goodmart in April 2010.13,14 Figure 5.1.3 provides the lamp type, wattage, and price from the 

data surveyed. 

a

 R2 denotes the “correlation coefficient r” and is used to convey how good a fit data is to a line, curve, or equation. 

It is calculated by taking the square root of 1 – the square of the standard deviation of y for the same value of x 

divided by the square of the standard deviation of y. 

5-5 
 

 

 

     

                 

Figure 5.1.3. Ballast Prices 

0

100

200

300

400

500

600

700

800

900

1000

0 500 1000 1500 2000

Ballast Price (U.S. $)

Lamp Rated Power (W)

Comparison of Ballast Lamp Rated Power (W) and Price ($)

MH

HPS

PMH

Based on the data graphed, DOE used trendlines to interpolate the ballast price for 

different lamp wattages. The interpolated lines resulted in the following functions per lamp type 

where x is the lamp wattage and y is the ballast price: 

 Probe-Start Metal Halide: y = 0.1582x+147.77 R2

= 0.3377 

 Pulse-Start Metal Halide: y =0.1775x+131.89 R2

= 0.7368 

 High-Pressure Sodium: y=0.4347x+151.61 R2=0.5627 

As with HID lamps, DOE chose to base HID ballast prices on the wattage-price functions 

developed from Grainger and Goodmart price data.13,14 Although some MV ballasts exist, the 

long-term supply is restricted because these ballasts have not been manufactured or imported 

since December 31, 2007. DOE assumes that MV ballast shipments will decline to zero by the 

effective date of a possible energy conservation standard and therefore did not develop research 

prices for the remaining stock of MV ballasts on shelves. Table 5.1.4 summarizes the assumed 

ballast prices for the evaluated lamps. 

Table 5.1.4. Ballast Price Derived from Online Distributor Websites 

Baseline Option Substitute Option 

Lamp 

Type 

Lamp Wattage 

W 

Ballast Price 

$ 

Lamp Type Lamp Power 

W 

Ballast Price 

$ 

MV 175 --- HPS 100 195.08 

MV 250 --- HPS 150 216.82 

MV 400 --- HPS 250 260.29 

MH 175 175.46 PMH 150 158.52 

MH 250 187.32 PMH 175 162.95 

MH 360 204.72 PMH 250 176.27 

MH 400 211.05 PMH 320 188.69 

5-6 
 

 

 

   

           

5.1.4 Luminaire Prices 

As with HID lamps and ballasts, DOE evaluated pricing for HID luminaires from typical, 

publicly available sources. First, DOE reviewed RSMeans.6

 Table 5.1.5 presents HID luminaire 

prices from the 2008 version. 

Table 5.1.5. Prices from 2008 RSMeans for High-Intensity Discharge Luminaires 

MH Luminaires HPS Luminaires 

Roadway / Area Floodlighting Roadway / Area Floodlighting 

Power 

W 

Price 

$ 

Power 

W 

Price 

$ 

Power 

W 

Price 

$ 

Power 

W 

Price 

$ 

175 325 70 224 

400 465 400 405 400 485 400 365 

1,000 525 1,000 555 1,000 550 1,000 625 

DOE also surveyed luminaire prices on publicly accessible websites for W.W. Grainger, 

Inc. and GoodMart.com in March 2010.13,14 Figure 5.1.4 provides the lamp type, wattage, and 

price from the data surveyed. 

0

100

200

300

400

500

600

700

0 100 200 300 400 500

Luminaire Price (U.S. $)

Luminaire Power (W)

Comparison of Interior Luminaire Power and Price

MH

HPS

Figure 5.1.4. Lamp Wattage/Luminaire Price Comparison 

Based on the data graphed, DOE used trendlines to interpolate the price for different 

luminaire wattages. The interpolated lines resulted in the following functions per lamp type 

where x is the lamp wattage and y is the luminaire price: 

 Metal Halide: y = 0.5176x+180.75 R2

= 0.0942 

 High-Pressure Sodium: y=0.0944x+204.18 R2

=0.0271 

5-7 
 

 

 

 

 

 

 

 

As with HID lamps, DOE chose to base HID luminaire prices on the wattage-price 

functions developed from Grainger and Goodmart price data.13,14 DOE added $100 to the cost 

(e.g., 180.75+100 = 280.75) for the exterior prices regardless of the source technology. DOE 

assumed that probe-start MH luminaires were 20 percent less expensive than pulse-start MH 

luminaires for both interior and exterior luminaires. Prices for comparable MV luminaires were 

generally not available; consequently, DOE assumed that the prices for MV luminaires were 

67 percent (two-thirds) of the comparable pulse-start MH luminaires. Table 5.1.6 presents a 

summary of assumed HID luminaire prices used in the LCC-PBP analysis. 

Table 5.1.6. Lamp Price Derived from Online Distributor Websites 

Baseline Option Substitute Option 

Lamp 

Type 

Lamp 

Wattage 

Interior 

Luminaire 

Price 

$ 

Exterior 

Luminaire 

Price 

$ 

Lamp 

Type 

Lamp 

Wattage 

Interior 

Luminaire 

Price 

$ 

Exterior 

Luminaire 

Price 

$ 

MV 175 --- 248.81 HPS 100 213.62 313.62 

MV 250 --- 274.82 HPS 150 218.34 318.34 

MV 400 --- 326.84 HPS 250 227.78 327.78 

MH 175 217.09 297.09 PMH 150 258.42 358.42 

MH 250 248.14 328.14 PMH 175 271.36 371.36 

MH 360 293.69 373.69 PMH 250 310.18 410.18 

MH 400 310.26 390.26 PMH 320 346.41 446.41 

5.1.5 Lamp Lifetime 

Lifetime for HID lamps is determined when 50 percent of a sample population has failed. 

Within the lighting industry, this metric is known as B50. 

After issuing the 2003 draft report,16 DOE received comments about the rated lamp 

lifetimes. Routine group relamping time for MV and HPS lamps is typically four years and MH 

lamps is two years.17 (Caltrans, No. 8 at p. 2; Allegheny, No. 12 at p.1) Allegheny further stated 

that the lamp life is generally the rated lamp life by the manufacturer. 

DOE surveyed the available lamp catalogs and found that, for any given wattage, the 

rated life of the lamp can vary. Table 5.1.7 through Table 5.1.13 list the minimum, median, and 

maximum rated lifetimes for the different lamps. DOE is using the median rated life as the basis 

for relamping schedules in the LCC-PBP modeling. 

Table 5.1.7. Lamp Life Data (175-Watt Mercury Vapor Baseline) 

Lamp Type Lamp Power 

W 

 Minimum 

Rated Life 

hr

 Median 

Rated Life 

hr

 Maximum 

Rated Life 

hr 

Baseline MV 175 16,000 24,000 24,000 

Substitute 1 PMH 150 2,800 15,000 20,000 

Substitute 2 HPS 100 9,000 24,000 40,000 

5-8 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 5.1.8. Lamp Life Data (250-Watt Mercury Vapor Baseline) 

Lamp Type Lamp Power 

W 

 Minimum 

Rated Life 

hr

 Median 

Rated Life 

hr

 Maximum 

Rated Life 

hr 

Baseline MV 250 12,000 24,000 24,000 

Design Option 1 PMH 150 2,800 15,000 20,000 

Design Option 2 HPS 150 9,000 24,000 40,000 

Table 5.1.9. Lamp Life Data (400-Watt Mercury Vapor Baseline) 

Lamp Type Lamp Power 

W 

 Minimum 

Rated Life 

hr

 Median 

Rated Life 

hr

 Maximum 

Rated Life 

hr 

Baseline MV 400 12,000 24,000 24,000 

Design Option 1 PMH 250 10,000 15,000 20,000 

Design Option 2 HPS 150 9,000 24,000 40,000 

Table 5.1.10. Lamp Life Data (175-Watt Metal Halide Baseline) 

Lamp Type Lamp Power 

W 

 Minimum 

Rated Life 

hr

 Median 

Rated Life 

hr

 Maximum 

Rated Life 

hr 

Baseline MH 175 10,000 10,000 10,000 

Design Option 1 PMH 150 2,800 12,000 20,000 

Design Option 2 HPS 100 10,000 24,000 40,000 

Table 5.1.11. Lamp Life Data (250-Watt Metal Halide Baseline) 

Lamp Type Lamp Power 

W 

 Minimum 

Rated Life 

hr

 Median 

Rated Life 

hr

 Maximum 

Rated Life 

hr 

Baseline MH 250 10,000 10,000 15,000 

Design Option 1 PMH 175 10,000 15,000 15,000 

Design Option 2 HPS 150 9,000 24,000 40,000 

Table 5.1.12. Lamp Life Data (360-Watt Metal Halide Baseline) 

Lamp Type Lamp Power 

W 

 Minimum 

Rated Life 

hr

 Median 

Rated Life 

hr

 Maximum 

Rated Life 

hr 

Baseline MH 360 20,000 20,000 30,000 

Design Option 1 PMH 320 10,000 20,000 20,000 

Design Option 2 HPS 250 9,000 24,000 40,000 

Table 5.1.13. Lamp Life Data (400-Watt Metal Halide Baseline) 

Lamp Type Lamp Power 

W 

 Minimum 

Rated Life 

hr

 Median 

Rated Life 

hr

 Maximum 

Rated Life 

hr 

Baseline MH 400 8,000 20,000 20,000 

Design Option 1 PMH 320 10,000 20,000 20,000 

Design Option 2 HPS 250 9,000 24,000 40,000 

5-9 
 

 

 

5.1.6 Ballast Lifetime 

In the technical support document for the 2003 draft report, DOE assumed a ballast 

lifetime of 50,000 hours.18 During the public meeting for the metal halide lamp luminaire 

rulemaking framework, a manufacturer stated that NEMA, when in California for a meeting 

related to a similar California rule, agreed that the typical lifetimes for magnetic HID ballasts 

was 60,000 hours and electronic HID ballasts was between 30,000 and 50,000 hours.19 DOE 

reviewed California’s Database for Energy Efficient Resources website, which lists the life of 

electronic ballasts at 70,000 hours and magnetic ballasts at 45,000 hours.20 

The Environmental Protection Agency (EPA) developed a lighting maintenance checklist 

as part of the EPA’s Green Lights program. Within the document, the EPA acknowledges that 

there is no reliable long-term test data and recognizes the manufacturer’s claims about lifetime. 

Additionally, the EPA states that “ballast failure rate can be expected to be small in the first 70% 

of average life and increase beyond that point.”21 

Based on this research, DOE assumed that the average life of magnetic ballast was 

50,000 hours. Electronic ballasts represent a very small segment of the HID market and thus 

were not considered in the LCC-PBP analysis. 

5.1.7 Contractor Mark-Up 

DOE received comments after the 2003 draft report. The American Council for an 

Energy Efficient Economy commented that DOE should use 13% for contractor markup. 

(ACEEE, No. 11 at p 2) This value is consistent with the contractor markup used in previous 

rulemakings, including the Fluorescent Ballasts Energy Conservation Standards Final Rule22 as 

well as the current revision to that rule. 23 

5.1.8 Sales Tax 

DOE assumed a national average sales tax of 7 percent for the LCC-PBP analysis. This 

value is consistent with that presented in the Fluorescent Ballasts Energy Conservation Standards 

preliminary TSD.24,23 

5.1.9 Maintenance Costs 

The cost associated with maintenance is a real cost in the life-cycle analysis of a product. 

Typical applications of HID lamps often require lifts to access the luminaire for lamp 

replacement. The actual cost of maintenance will vary depending geographic region, mounting 

height, and whether the luminaire is located inside or outside. The overall wattage of the lamp 

should not factor in the individual relamping costs; however, the higher mounting heights 

typically require higher-wattage lamps with higher light output. 

To determine the maintenance costs, DOE surveyed a number of sources. 

During the January public meeting for the framework document for the Metal Halide 

Lamp Luminaire energy conservation standard, a manufacturer commented: 

5-10 
As far as maintenance costs, we’d urge you to consider that, particularly in exterior 

environments; maintenance costs can be quite significant. It's difficult to get a bucket 

truck to a site to work on pole-mounted luminaires for less than a thousand dollars just to 

get it there and the average that our experience shows needs to be attributed somewhere 

between $150 and $300 per luminaire per servicing. So that is higher than you would 

traditionally think it would be for interior and just wanted to make that comment.19 

As part of DOE’s solid-state lighting commercialization efforts, DOE conducts 

demonstrations of light-emitting diode (LED) technology in real-world applications through its 

GATEWAY program. A number of the GATEWAY demonstrations have focused on exterior 

lighting, where the maintenance costs often help with the payback of the typically more 

expensive LED luminaires. The maintenance costs are used in the GATEWAY demonstration 

program: 

	 A demonstration with the Federal Aviation Administration in Atlantic City, New Jersey 

assumed that annual maintenance costs for relamping was $39.24 for labor. These 

luminaires are mounted roughly 15 ft above finished grade (AFG) and thus do not 

require a truck. This annual relamping labor rate was estimated from a much larger 

general facilities maintenance contract.25 Assuming that the lamp will be replaced every 

5.5 years, the typical cost of relamping is $215.82. 

	 A demonstration in Portland, Oregon, replacing HPS luminaires with LED luminaires in 

a parking structure assumed an annual relamping cost of $10.5 including the lamp. The 

luminaires here were mounted just over 7 ft AFG and thus did not require a lift.26 

Assuming that the lamp will be replaced every 2.8 years, the typical cost of relamping is 

$28.76. 

	 A demonstration with Minnesota Department of Transportation (Mn/DOT) where LED 

luminaires were installed on a bridge on an interstate found the typical cost for relamping 

was $137.25 per luminaire. This was similar to average rate across all of Mn/DOT’s 

territory of $130 to $150 per luminaire.27 

	 A demonstration with Pacific Gas & Electric that replaced HPS streetlights with LEDs 

assumed an annual maintenance cost of $24.44.28 Assuming that the lamp will be 

replaced every 5.5 years, the typical cost of relamping is $134.42. 

	 A demonstration with Pacific Gas & Electric that replaced probe-start metal halide 

luminaires in a parking lot in the Sacramento, California, area had maintenance costs 

between $200 and $215 per luminaire for lamp servicing.29 

	 A demonstration in Portland, Oregon, that replaced HPS streetlights with LED 

streetlights had annual maintenance costs of $32.40 (100 W), $32.52 (150 W), $32.76 

(250 W), and $32.88 (400 W).30 Assuming that the lamp will be replaced every 5.5 

years, the typical cost of relamping is between: $178.20 and $180.84. 

A case study by Kwantlen Polytechnic University found that, when replacing 16 

incandescent luminaires with compact fluorescent lamps, a total of $3,500 in maintenance was 

deferred. This translates to a cost of $218.75 per luminaire for maintenance.31 

Based on this research, DOE assumed the average ($225) of the range ($150 to $300) 

provided during the MH lamp luminaire public meeting for the maintenance cost per relamping 

for exterior applications in the LCC-PBP analysis. 

5-11 
 

 

DOE could not find reliable cost data for interior relamping. Therefore, DOE assumed 

that the exterior maintenance is three times as expensive as interior relamping. This is consistent 

with the comment received during the metal halide lamp luminaire public meeting that exterior 

relamping is more expensive than interior relamping.19 Therefore, DOE used $75 for interior 

relamping for the LCC-PBP analysis. 

5.1.10 Electricity Price 

DOE determined the relevant price of electricity based on the types of entities that 

purchase and own the HID lamps being considered. DOE based commercial and industrial 

electricity prices on the average of the 2017 and 2030 forecasts from the Energy Information 

Administration’s Annual Energy Outlook 2010.

32 This approach is consistent with that presented 

in the Fluorescent Ballasts Energy Conservation Standards preliminary TSD.24,23 

5.1.11 Discount Rate 

The discount rate is the rate at which future expenditures are discounted to estimate their 

present value. For this determination, DOE used the industrial and commercial discount rates 

calculated in the Fluorescent Ballasts Energy Conservation Standards preliminary TSD, made 

available on March 24, 2010. 23 For commercial and industrial consumers, DOE estimated the 

cost of capital for commercial and industrial companies by examining both debt and equity 

capital, and developed an appropriately weighted average of the cost to the company of equity 

and debt financing. The resulting average discounted industrial and commercial discount rates 

used in the LCC-PBP analysis are 7.6 percent and 7.0 percent, respectively. 

5.2 RESULTS FOR MEDIUM-WATTAGE MERCURY VAPOR DESIGN OPTIONS 

DOE did not present LCC-PBP analysis results for MV lamps in the notice of 

determination for HID lamps. MV ballasts can no longer be imported or manufactured; 

consequently, DOE assumed that consumers would have to switch to another HID technology 

when existing MV ballasts failed, regardless of financial benefit or penalty. DOE also assumed 

that MV luminaires were not a viable option in a new construction or luminaire scenario and 

does not present related LCC-PBP results here. All LCC-PBP analysis results for MV lamps are 

presented for reference only. 

5.2.1 Event 1 – Lamp-Only Replacement 

Table 5.2.1 through Table 5.2.3 present the results for medium wattage (150 to 500 W) 

MV lamps and higher-efficiency substitute HID lamps in a lamp-only replacement scenario. 

DOE considered MV lamps in exterior applications only. In this scenario, a failed baseline lamp 

is replaced either with an identical baseline lamp or with a substitute lamp-and-ballast system. 

These analyses were based on representative, incremental lamp and luminaire prices as well as 

maintenance costs. Given the assumed disappearance of MV products from the marketplace, 

DOE did not consider the negative LCC savings for MV substitutes in its proposed 

determination. 

5-12 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 5.2.1. Life-Cycle Cost-Payback Period Analysis for 175-Watt Mercury Vapor 

Baseline

 Commercial/Exterior 

Baseline 

175 W MV 

$ 

Substitute 1 

150 W PMH* 

$ 

Substitute 2 

100 W HPS 

$ 

Ballast Price -- 190.22 234.10 

Lamp Price 45.17 64.09 49.23 

Total First Cost 45.17 254.31 283.33 

Incremental First Cost -- 209.14 238.16 

Annual Operating Cost 294.90 288.18 263.26 

Annual Operating Cost Differential -- 6.72 31.64 

Life-Cycle Cost (7% Discount Rate) 2,411.70 2,960.60 2,562.72 

LCC Savings -- -548.89 -151.01 

Payback Period (years) -- 66.77 12.02 

* PMH = pulse-start metal halide 

Table 5.2.2. Life-Cycle Cost-Payback Period Analysis for 250-Watt Mercury Vapor 

Baseline

 Commercial/Exterior 

Baseline 

250 W MV 

$ 

Substitute 1 

150 W PMH 

$ 

Substitute 2 

150 W HPS 

$ 

Ballast Price -- 190.22 260.18 

Lamp Price 52.60 64.09 60.91 

Total First Cost 52.60 254.31 321.09 

Incremental First Cost -- 201.71 268.49 

Annual Operating Cost 326.94 288.18 288.18 

Annual Operating Cost Differential -- 38.76 38.76 

Life-Cycle Cost (7% Discount Rate) 2,664.36 2,960.60 2,777.42 

LCC Savings -- -296.24 -113.07 

Payback Period (years) -- 11.39 10.07 

Table 5.2.3. Life-Cycle Cost-Payback Period Analysis for 400-Watt Mercury Vapor 

Baseline

 Commercial/Exterior 

Baseline 

400 W MV 

$ 

Substitute 1 

250 W PMH 

$ 

Substitute 2 

150 W HPS 

$ 

Ballast Price -- 312.34 260.18 

Lamp Price 64.29 80.90 60.91 

Total First Cost 64.29 393.24 321.09 

Incremental First Cost -- 328.95 256.80 

Annual Operating Cost 394.58 327.73 288.18 

Annual Operating Cost Differential -- 66.85 106.40 

Life-Cycle Cost (7% Discount Rate) 3,189.24 3,231.42 2,777.42 

LCC Savings -- -42.17 411.82 

Payback Period (years) -- 7.61 3.56 

5-13 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.2.2 Event 1b – Lamp/Luminaire Replacement 

Table 5.2.4 through Table 5.2.6 present the results for medium wattage (150 to 500 W) 

MV lamps and higher-efficiency substitute HID lamps in a scenario where the substitute 

lamp/ballast cannot fit (electrically or mechanically) in the existing luminaire a new luminaire is 

needed. DOE considered MV lamps in exterior applications only. In this scenario, a failed 

baseline lamp is replaced either with an identical baseline lamp or with a substitute luminaire and 

lamp. These analyses were based on representative, incremental lamp and luminaire prices as 

well as maintenance costs. Given the assumed disappearance of MV products from the 

marketplace, DOE did not consider the negative LCC savings for MV substitutes in its proposed 

determination. 

Table 5.2.4. Life-Cycle Cost-Payback Period Analysis for 175-Watt Mercury Vapor 

Baseline

 Commercial/Exterior 

Baseline 

175 W MV 

$ 

Substitute 1 

150 W PMH 

$ 

Substitute 2 

100 W HPS 

$ 

Luminaire Price (incl. ballast) -- 190.22 234.10 

Lamp Price 45.17 64.09 49.23 

Total First Cost 45.17 254.31 283.33 

Incremental First Cost -- 209.14 238.16 

Annual Operating Cost 294.90 288.18 263.26 

Annual Operating Cost Differential -- 6.72 31.64 

Life-Cycle Cost (7% Discount Rate) 2,411.70 2,960.60 2,562.72 

LCC Savings -- -548.89 -151.01 

Payback Period (years) -- 66.77 12.02 

Table 5.2.5. Life-Cycle Cost-Payback Period Analysis for 250-Watt Mercury Vapor 

Baseline

 Commercial/Exterior 

Baseline 

250 W MV 

$ 

Substitute 1 

150 W PMH 

$ 

Substitute 2 

150 W HPS 

$ 

Luminaire Price (incl. ballast) -- 190.22 260.18 

Lamp Price 52.60 64.09 60.91 

Total First Cost 52.60 254.31 321.09 

Incremental First Cost -- 201.71 268.49 

Annual Operating Cost 326.94 288.18 288.18 

Annual Operating Cost Differential -- 38.76 38.76 

Life-Cycle Cost (7% Discount Rate) 2,664.36 2,960.60 2,777.42 

LCC Savings -- -296.24 -113.07 

Payback Period (years) -- 11.39 10.07 

5-14 
 

 

 

 

 

 

 

 

 

Table 5.2.6. Life-Cycle Cost-Payback Period Analysis for 400-Watt Mercury Vapor 

Baseline

 Commercial/Exterior 

Baseline 

400 W MV 

$ 

Substitute 1 

250 W PMH 

$ 

Substitute 2 

150 W HPS 

$ 

Luminaire Price (incl. ballast) -- 312.34 260.18 

Lamp Price 64.29 80.90 60.91 

Total First Cost 64.29 393.24 321.09 

Incremental First Cost -- 328.95 256.80 

Annual Operating Cost 394.58 327.73 288.18 

Annual Operating Cost Differential -- 66.85 106.40 

Life-Cycle Cost (7% Discount Rate) 3,189.24 3,231.42 2,777.42 

LCC Savings -- -42.17 411.82 

Payback Period (years) -- 7.61 3.56 

5.3	 RESULTS FOR MEDIUM-WATTAGE PROBE-START METAL HALIDE 

DESIGN OPTIONS 

5.3.1 Event 1 – Lamp-Only Replacement 

Table 5.3.1 through Table 5.3.4 present the results for medium wattage (150 to 500 W) 

probe-start MH lamps and higher-efficiency substitute HID lamps in a lamp-only replacement 

scenario. DOE considered MH lamps in both interior and exterior applications. In this scenario, a 

failed baseline lamp is replaced either with an identical baseline lamp or with a substitute lampand-ballast system. These analyses were based on representative, incremental lamp and 

luminaire prices as well as maintenance costs. A full rulemaking would yield more detailed 

results than the representative analyses conducted. Generally, the LCC of a high-efficiency lamp 

and ballast replacement is higher than the LCC of an inefficient lamp-only replacement. 

Table 5.3.1. Life-Cycle Cost-Payback Period Analysis for 175-Watt Metal Halide Baseline 

 Industrial/Interior Commercial/Exterior 

Baseline 

175 W MH 

$ 

Substitute 1 

150 W PMH 

$ 

Baseline 

175 W MH 

$ 

Substitute 2 

100 W HPS 

$ 

Ballast Price -- 190.22 -- 234.10 

Lamp Price 49.58 64.09 49.58 49.23 

Total First Cost 49.58 254.31 49.58 283.33 

Incremental First Cost -- 204.73 -- 233.75 

Annual Operating Cost 149.23 141.02 297.28 263.26 

Annual Operating Cost Differential -- 8.21 -- 34.02 

Life-Cycle Cost (7% Discount Rate) 1,234.57 1,555.89 2,537.89 2,562.72 

LCC Savings -- -321.31 -- -24.82 

Payback Period (years) -- 39.55 -- 11.05 

5-15 
 

 

 

 

 

 

 

 

 

 

 

 

Table 5.3.2. Life-Cycle Cost-Payback Period Analysis for 250-Watt Metal Halide Baseline

 Industrial/Interior Commercial/Exterior 

Baseline 

250 W MH 

$ 

Substitute 1 

175 W PMH 

$ 

Baseline 

250 W MH 

$ 

Substitute 2 

150 W HPS 

$ 

Ballast Price -- 195.54 -- 260.18 

Lamp Price 53.08 68.76 53.08 60.91 

Total First Cost 53.08 264.30 53.08 321.09 

Incremental First Cost -- 211.22 -- 268.01 

Annual Operating Cost 178.85 149.59 330.11 288.18 

Annual Operating Cost Differential -- 29.26 -- 41.93 

Life-Cycle Cost (7% Discount Rate) 853.30 994.23 1,983.51 2,126.51 

LCC Savings -- -106.72 -- 17.63 

Payback Period (years) -- 11.66 -- 9.30 

Table 5.3.3. Life-Cycle Cost-Payback Period Analysis for 360-Watt Metal Halide Baseline

 Industrial/Interior Commercial/Exterior 

Baseline 

360 W MH 

$ 

Substitute 1 

320 W PMH 

$ 

Baseline 

360 W MH 

$ 

Substitute 2 

250 W HPS 

$ 

Ballast Price -- 226.43 -- 211.52 

Lamp Price 56.92 90.54 56.92 79.64 

Total First Cost 56.92 316.97 56.92 291.16 

Incremental First Cost -- 260.05 -- 234.24 

Annual Operating Cost 217.75 205.97 373.22 331.69 

Annual Operating Cost Differential -- 11.78 -- 41.53 

Life-Cycle Cost (7% Discount Rate) 788.24 1,083.54 1,919.94 2,146.17 

LCC Savings -- -295.30 -- -226.23 

Payback Period (years) -- 22.08 -- 5.64 

Table 5.3.4. Life-Cycle Cost-Payback Period Analysis for 400-Watt Metal Halide Baseline

 Industrial/Interior Commercial/Exterior 

Baseline 

400 W MH 

$ 

Substitute 1 

320 W PMH 

$ 

Baseline 

400 W MH 

$ 

Substitute 2 

250 W HPS 

$ 

Ballast Price -- 226.43 -- 211.52 

Lamp Price 58.08 90.54 58.08 79.64 

Total First Cost 58.08 316.97 58.08 291.16 

Incremental First Cost -- 258.89 -- 233.08 

Annual Operating Cost 237.74 205.97 395.37 331.69 

Annual Operating Cost Differential -- 31.77 -- 63.68 

Life-Cycle Cost (7% Discount Rate) 810.40 1,083.54 1,937.06 2,146.17 

LCC Savings -- -273.14 -- -209.11 

Payback Period (years) -- 8.15 -- 3.66 

5-16 
 

 

 

 

 

 

5.3.2 Event 1b – Lamp/Luminaire Replacement 

Table 5.3.5 through Table 5.3.8 present the results for medium wattage (150 to 500 W) 

probe-start MH lamps and higher-efficiency substitute HID lamps in a scenario where the 

substitute lamp/ballast cannot fit (electrically or mechanically) in the existing luminaire a new 

luminaire is needed. DOE considered MH lamps in both interior and exterior applications. In this 

scenario, a failed baseline lamp is replaced either with an identical baseline lamp or with a 

substitute luminaire and lamp. These analyses were based on representative, incremental lamp 

and luminaire prices as well as maintenance costs. A full rulemaking would yield more detailed 

results than the representative analyses conducted. Generally, the LCC of a high-efficiency 

luminaire and lamp replacement is higher than the LCC of an inefficient lamp-only replacement. 

Table 5.3.5. Life-Cycle Cost-Payback Period Analysis for 175-Watt Metal Halide Baseline 

 Industrial/Interior Commercial/Exterior 

Baseline 

175 W MH 

$ 

Substitute 1 

150 W PMH 

$ 

Baseline 

175 W MH 

$ 

Substitute 2 

100 W HPS 

$ 

Luminaire Price (incl. ballast) -- 190.22 -- 234.10 

Lamp Price 49.58 64.09 49.58 49.23 

Total First Cost 49.58 254.31 49.58 283.33 

Incremental First Cost -- 204.73 -- 233.75 

Annual Operating Cost 149.23 141.02 297.28 263.26 

Annual Operating Cost Differential -- 8.21 -- 34.02 

Life-Cycle Cost (7% Discount Rate) 1,234.57 1,555.89 2,537.89 2,562.72 

LCC Savings -- -321.31 -- -24.82 

Payback Period (years) -- 39.55 -- 11.05 

Table 5.3.6. Life-Cycle Cost-Payback Period Analysis for 250-Watt Metal Halide Baseline

 Industrial/Interior Commercial/Exterior 

Baseline 

250 W MH 

$ 

Substitute 1 

175 W PMH 

$ 

Baseline 

250 W MH 

$ 

Substitute 2 

150 W HPS 

$ 

Luminaire Price (incl. ballast) -- 195.54 -- 260.18 

Lamp Price 53.08 68.76 53.08 60.91 

Total First Cost 53.08 264.30 53.08 321.09 

Incremental First Cost -- 211.22 -- 268.01 

Annual Operating Cost 178.85 149.59 330.11 288.18 

Annual Operating Cost Differential -- 29.26 -- 41.93 

Life-Cycle Cost (7% Discount Rate) 853.30 994.23 1,983.51 2,126.51 

LCC Savings -- -106.72 -- 17.63 

Payback Period (years) -- 11.66 -- 9.30 

5-17 
 

 

 

 

 

 

 

 

Table 5.3.7. Life-Cycle Cost-Payback Period Analysis for 360-Watt Metal Halide Baseline

 Industrial/Interior Commercial/Exterior 

Baseline 

360 W MH 

$ 

Substitute 1 

320 W PMH 

$ 

Baseline 

360 W MH 

$ 

Substitute 2 

250 W HPS 

$ 

Luminaire Price (incl. ballast) -- 226.43 -- 211.52 

Lamp Price 56.92 90.54 56.92 79.64 

Total First Cost 56.92 316.97 56.92 291.16 

Incremental First Cost -- 260.05 -- 234.24 

Annual Operating Cost 217.75 205.97 373.22 331.69 

Annual Operating Cost Differential -- 11.78 -- 41.53 

Life-Cycle Cost (7% Discount Rate) 788.24 1,083.54 1,919.94 2,146.17 

LCC Savings -- -295.30 -- -226.23 

Payback Period (years) -- 22.08 -- 5.64 

Table 5.3.8. Life-Cycle Cost-Payback Period Analysis for 400-Watt Metal Halide Baseline

 Industrial/Interior Commercial/Exterior 

Baseline 

400 W MH 

$ 

Substitute 1 

320 W PMH 

$ 

Baseline 

400 W MH 

$ 

Substitute 2 

250 W HPS 

$ 

Luminaire Price (incl. ballast) -- 226.43 -- 211.52 

Lamp Price 58.08 90.54 58.08 79.64 

Total First Cost 58.08 316.97 58.08 291.16 

Incremental First Cost -- 258.89 -- 233.08 

Annual Operating Cost 237.74 205.97 395.37 331.69 

Annual Operating Cost Differential -- 31.77 -- 63.68 

Life-Cycle Cost (7% Discount Rate) 810.40 1,083.54 1,937.06 2,146.17 

LCC Savings -- -273.14 -- -209.11 

Payback Period (years) -- 8.15 -- 3.66 

5.3.3 Event 2 – New Construction / Luminaire Replacement 

Table 5.3.9 through Table 5.3.12 below present the results for medium wattage (150 to 

500 W) probe-start MH lamps and higher-efficiency substitute HID lamps in a new construction 

or luminaire replacement scenario. DOE considered MH lamps in both interior and exterior 

applications. In this scenario, a consumer selects either a baseline luminaire or a substitute 

luminaire and lamp. In the exterior lighting cases, the HPS substitutes have a lower LCC. These 

analyses were based on representative and incremental lamp and luminaire prices as well as 

maintenance costs. A full rulemaking would yield more detailed results than the representative 

analyses conducted. 

5-18 
 

 

 

 

 

 

 

 

 

 

 

 

 

Table 5.3.9. Life-Cycle Cost-Payback Period Analysis for 175-Watt Metal Halide Baseline 

 Industrial/Interior Commercial/Exterior 

Baseline 

175 W MH 

$ 

Substitute 1 

150 W PMH 

$ 

Baseline 

175 W MH 

$ 

Substitute 2 

100 W HPS 

$ 

Luminaire Price (incl. ballast) 260.51 310.10 356.51 376.34 

Lamp Price 49.58 64.09 49.58 49.23 

Total First Cost 310.09 374.19 406.09 425.57 

Incremental First Cost -- 64.10 -- 19.73 

Annual Operating Cost 149.23 141.02 297.28 263.26 

Annual Operating Cost Differential -- 8.21 -- 34.02 

Life-Cycle Cost (7% Discount Rate) 1,069.34 1,176.22 2,304.03 2,201.51 

LCC Savings -- -106.89 -- 102.52 

Payback Period (years) -- 7.81 -- 0.58 

Table 5.3.10. Life-Cycle Cost-Payback Period Analysis for 250-Watt Metal Halide Baseline 

 Industrial/Interior Commercial/Exterior 

Baseline 

250 W MH 

$ 

Substitute 1 

175 W PMH 

$ 

Baseline 

250 W MH 

$ 

Substitute 2 

150 W HPS 

$ 

Luminaire Price (incl. ballast) 297.77 325.63 393.77 382.01 

Lamp Price 53.08 68.76 53.08 60.91 

Total First Cost 350.85 394.39 446.85 442.92 

Incremental First Cost -- 43.54 -- -3.93 

Annual Operating Cost 178.85 149.59 330.11 288.18 

Annual Operating Cost Differential -- 29.26 -- 41.93 

Life-Cycle Cost (7% Discount Rate) 1,151.07 1,124.32 2,377.28 2,248.34 

LCC Savings -- 26.75 -- 128.94 

Payback Period (years) -- 1.49 -- -0.09 

Table 5.3.11. Life-Cycle Cost-Payback Period Analysis for 360-Watt Metal Halide Baseline 

 Industrial/Interior Commercial/Exterior 

Baseline 

360 W MH 

$ 

Substitute 1 

320 W PMH 

$ 

Baseline 

360 W MH 

$ 

Substitute 2 

250 W HPS 

$ 

Luminaire Price (incl. ballast) 352.43 415.69 448.43 393.34 

Lamp Price 56.92 90.54 56.92 79.64 

Total First Cost 409.35 506.23 505.35 472.98 

Incremental First Cost -- 96.88 -- -32.37 

Annual Operating Cost 217.75 205.97 373.22 331.69 

Annual Operating Cost Differential -- 11.78 -- 41.53 

Life-Cycle Cost (7% Discount Rate) 1,140.67 1,272.81 2,368.37 2,328.00 

LCC Savings -- -132.14 -- 40.37 

Payback Period (years) -- 8.22 -- -0.78 

5-19 
 

 

 

 

Table 5.3.12. Life-Cycle Cost-Payback Period Analysis for 400-Watt Metal Halide Baseline 

 Industrial/Interior Commercial/Exterior 

Baseline 

400 W MH 

$ 

Substitute 1 

320 W PMH 

$ 

Baseline 

400 W MH 

$ 

Substitute 2 

250 W HPS 

$ 

Luminaire Price (incl. ballast) 372.31 415.69 468.31 393.34 

Lamp Price 58.08 90.54 58.08 79.64 

Total First Cost 430.39 506.23 526.39 472.98 

Incremental First Cost -- 75.84 -- -53.41 

Annual Operating Cost 237.74 205.97 395.37 331.69 

Annual Operating Cost Differential -- 31.77 -- 63.68 

Life-Cycle Cost (7% Discount Rate) 1,182.71 1,272.81 2,405.37 2,328.00 

LCC Savings -- -90.10 -- 77.37 

Payback Period (years) -- 2.39 -- -0.84 

5-20 
7 

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U.S. Department of Energy, Washington, D.C. 

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