2

General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Energy Conservation Standards for 

General Service Fluorescent Lamps and 

Incandescent Reflector Lamps

ANOPR Public Meeting

Life-Cycle Cost Analysis

Building Technologies Program

Office of Energy Efficiency and Renewable Energy

U.S. Department of Energy

March 10-11, 2008

ANOPR Analyses Flow Diagram 

Framework 

Document ANOPR NOPR Final 

Rule 

National 

Impact 

Analysis 

Energy Use 

Characterization 

Market and 

Technology 

Assessment 

Screening 

Analysis 

Engineering 

Analysis 

Product Price 

Determination 

Life-Cycle 

Cost and 

Payback 

Period Analysis 

Shipments 

Analysis 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Purpose 

 Energy Use Characterization 

• To develop energy consumption estimates for the lamp or lamp-and-ballast 

systems selected in the engineering analysis. 

 Life-Cycle Cost and Payback Period Analyses 

• To develop the customer life-cycle cost savings and payback period for higher 

efficiency lamps. 

3 

Energy Use Characterization 

Energy Use Characterization 

Energy Use = Operating Hours x Power 

Distribution of Operating Hours developed by 

• Lamp type (i.e., GSFL, IRL) 

• Sector (i.e., Residential, Commercial, Industrial) 

• Building type 

• Region (9 census divisions, 4 large states) 

Power Developed in Engineering Analysis 

• For IRL: lamp wattage 

• For GSFL: system power: depends on ballast factor and lamp wattage 

4 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Energy Use Characterization 

Residential Sector Operating Hours 

 2002 U.S. Lighting Market Characterization Vol I.: 

• Average operating hours by building type (e.g., mobile home, single family 

detached, single family attached) and lamp type (i.e., IRL). 

 2001 Residential Energy Consumption Survey 

• Probability a certain building type resides in one of nine census divisions and 

four large states. 

 Operating Hours of Average IRL: 884 hrs/year

 Sensitivity using high and low operating hours by room type: 

• 1,210 hrs/ year (i.e., lamp placed in kitchen of a single-family detached) 

• 183 hrs/ year (i.e., lamp placed in the closet of a multi-family 2-4 unit) 

5 

Energy Use Characterization 

Commercial Sector Operating Hours 

2002 U.S. Lighting Market Characterization Vol I.: 

• Average operating hours by building type (e.g., office, refrigerated warehouse, 

lodging, food sales) and lamp type (e.g., IRL, GSFL) 

2003 Commercial Building Energy Consumption Survey 

• Probability a certain building type resides in one of nine census divisions and 

four large states. 

Operating Hours of Average IRL: 3,450 hrs/year 

Operating Hours of Average GSFL: 3,435 hrs/year 

6 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Energy Use Characterization 

Sample Commercial Sector Operating Hours Distribution 

20% 

Co

m

mercial Sector GSFL Probability 18% 

16% 

14% 

12% 

10% 

8% 

6% 

4% 

2% 

0% 

1 

2 

16 

15 

14 

13 

4 

5 

6 

7 

8 

11 

12 

17 

18 

25 

26 

1: Vacant 

2: Office 

4: Laboratory 

5: Nonrefrigerated warehouse 

6: Food sales 

7: Public order and safety 

8: Outpatient health care 

11: Refrigerated warehouse 

12: Religious worship 

13: Public assembly 

14: Education 

15: Food service 

16: Inpatient health care 

17: Nursing 

18: Lodging 

25: Retail other than 

mall 

26: Service 

91: Other 

91 

3,5453,6864,9733,4605,2243,5703,3313,8191,7052,5702,6434,5985,7514,3853,7803,6813,3943,638 

Annual Operating Hours by Building Type (hrs/year) 7 

Energy Use Characterization 

Industrial Sector Operating Hours

 2002 U.S. Lighting Market Characterization Vol I.:

• Average operating hours by building type (e.g., printing and publishing, textile 

mill, fabricated metal products) and lamp type (e.g., IRL, GSFL) 

 2002 Manufacturer Energy Consumption Survey 

• Probability a certain building type resides in the country 

 2007 Census 

• Probability a certain building type resides in census division or large state 

Operating Hours of Average IRL: 4,664 hrs/year

Operating Hours of Average GSFL: 4,795 hrs/year

DOE requests feedback on whether the average operating 

hours derived are a reasonable estimation of their end-uses. 

(Issue #6) 

8 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

9 

Fluorescent System Power Rating 

 DOE calculated system power rating using published catalog data. 

 To estimate system power for a range of ballast factors with similar 

attributes (BEF, THD, etc.), DOE developed a linear fit. 

 Example: 3-lamp 32W 4-foot T8 120V Ballasts with THD <20%, 

PF>0.95, and BEF 0.98 - 1.02 

Linear Fit: m=89.8, b=8.5 

DOE invites comments on the system power rating of the 

lamp-and-ballast systems analyzed. (Issue #7) 

60.0 

70.0 

80.0 

90.0 

100.0 

110.0 

0.70 0.75 0.80 0.85 0.90 0.95 1.00 

Ballast Factor 

System Power Rating (W) 

Energy Use Characterization 

Life-Cycle Cost and Payback Period Analyses 

Life-Cycle Cost and Payback Period Analyses 

 Purpose: To develop the customer life-cycle cost (LCC) 

savings and payback period (PBP) for higher efficiency product 

compared to the baseline product. 

10 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

11 

 LCC equals consumer price plus the sum of operating costs 

discounted to a particular base year. 

 Economic evaluation from the consumer perspective. 

 Analysis implemented in an Excel® spreadsheet. 

 Results are expressed as LCC savings (baseline minus candidate 

efficiency level). 

 Simple Payback Period (PBP, years) is also calculated and reported 

in this analysis. 

First Cost 

(Consumer Price + 

Installation Cost) 

Operating 

Expenses 

Combine Changes 

in Costs 

LCC Results 

Convert to Present Value 

Life-Cycle Cost and Payback Period Analyses 

Method 

Life-Cycle Cost and Payback Period Analyses 

Approach 

 The analysis only considers consumer choices that save energy: 

• Reduced-wattage lamps 

• Lamp and ballast combinations that have reduced system power 

 Various events that trigger the purchasing of a lamp are considered. 

 Varying lifetimes among lamp designs requires the use of a residual 

value. 

 Distributions are correlated in analysis (e.g., operating hours, sales 

tax, and electricity prices are correlated by region). 

12 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Life-Cycle Cost and Payback Period Analyses 

Events Triggering the Purchase of Lamp 

 Various events that trigger the purchasing of a lamp involve different 

consumer economics. DOE analyzes five such events: 

IRL 



; Lamp Failure - a lamp fails and must be replaced. 

Standards-Induced Retrofit - an increase in the efficacy standard 

prompts end-users to retrofit lamps and ballasts where, in the base case, 

they would otherwise only replace the lamp. 

GSFL 

;

;

 ; Ballast Failure - an existing ballast fails and the consumer purchases a 

new lamp and ballast. 

 ; Ballast Retrofit – consumers who were going to voluntarily retrofit their 

existing lamp and ballasts do so, and at certain CSLs are impacted by 

being forced to a higher standard. 

; ; New Construction and Renovation - all the new fixture installations where 

the lighting design will be new or can be completely reconfigured. 

13 

Life-Cycle Cost and Payback Period Analyses 

Detailed Summary of Triggering Events for T12 Baseline Lamps 

Event Base Case Action Standards Case Action 

Lamp Failure (a) Installs a T12 lamp. Installs a lower-wattage, higher efficacy 

lamp, where the system light output never 

drops below 10 percent of the baseline 

system. 

(b) Installs a T12 lamp. 

Installs a T12 or T8 electronic ballast and 

lamp, where the system light output never 

drops below 10 percent of the baseline 

system. 

Standards-Induced 

Retrofit 

Replace T12 lamp halfway 

through analysis period. 

Ballast Failure Installs a T12 electronic 

ballast and lamps in the 

existing fixture. 

Ballast Retrofit Installs a T8 electronic ballast 

and lamps in the existing 

fixture. 

New Construction 

and Renovation 

Installs a new T12 system 

(only applies to T12 HO 

systems) 

Installs a new T12 or T8 system that is 

where the system light output never 

drops below 10 percent of the baseline 

system. Light output can be maintained 

through spacing. 

14 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Life-Cycle Cost and Payback Period Analyses 

Detailed Summary of Triggering Events for T8 Baseline Lamps 

Event Base Case Action Standards Case Action 

Lamp Failure Installs a T8 lamp. Installs a lower-wattage, higher 

efficacy lamp, where the system light 

output never drops below 10 percent 

of the baseline system. 

Ballast Failure Installs a T8 

electronic ballast and 

lamps in the existing 

fixture. 

Installs new T8 ballast and lamps, 

where the system light output never 

drops below 10 percent of the baseline 

system. 

New Construction and 

Renovation 

Installs a new T8 

system. 

Installs a new T8 system, where the 

system light output never drops below 

10 percent of the baseline system. 

Light output can be maintained 

through spacing. 

15 

Life-Cycle Cost and Payback Period Analyses 

Residual Value 

To compare the life-cycle cost of two products, one must evaluate 

them over the same period of time (i.e., analysis period). 

The analysis period must be based on the lifetime of the product 

being regulated. 

To account for varying lifetimes among lamp designs, DOE uses a 

residual value (prorating the value of the remaining life of the lamp or 

ballast). 

The residual value is an estimate of the product’s value to the 

consumer at the end of the life-cycle cost analysis period. 

LCC = Installed Cost + Operating Cost – Residual Value 

DOE seeks comment on the use of residual value and on other 

possible approaches to calculating life-cycle costs for products 

with varying lifetimes. (Issue #8) 16 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Life-Cycle Cost and Payback Period Analyses 

T12 Lamp Failure (a) Cash Flows 

Lamp Purchase:

Operating Expense:

Lamp Residual Value:

Baseline T12 Lamp on 

Magnetic Ballast: 

5 year Service-Life 

2012 2013 2014 2015 2016 2017 

2012 2013 2014 2015 2016 2017 

17 

Standards-Compliant 

Reduced Wattage T12 

Lamp on Magnetic 

Ballast: 

6 year Service-Life 

18 

Life-Cycle Cost and Payback Period Analyses 

LCC Calculation Flowchart 

End-User 

Product Price 

Sales Tax 

Final 

Product 

Price 

Installation 

Cost 

Total 

Installed 

Cost 

Electricity 

Prices Annual 

Electricity 

Usage 

Cost 

PBP 

Electricity 

Price Trend 

Discount Rate 

Analysis 

Period 

Operating 

Cost Over 

Analysis 

Period 

Replacement 

Cost 

Residual 

Value 

LCC 

Power Rating 

Operating 

Hours 

Product 

Lifetime 

Service 

Life 

Energy 

Consumption 

Total 

Replacement 

Cost 

Calculated 

Value LCC Input LCC Output 

Legend 

From 

Product Price 

Determination 

From Energy Use 

Characterization 

From 

Engineering 

Analysis 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Life-Cycle Cost and Payback Period Analyses 

Total Installed Costs 

 Total Installed Costs = Retail Price + Installation Cost 

 Equipment Retail Price = End-User Product Price + Sales Tax 

• End-User Product Price and Sales Tax developed in the Product Price 

Determination.

 Installation costs represent the labor necessary to install the lamp or 

ballast. 

• Labor Times (minutes): 

– GSFL: 2000 Ballast Rule (depends on lamp type, weighted average group 

and spot) 

– IRL: 2007 RS Means Electrical Cost Data. (DOE assumes no installation 

costs for IRL in the residential sector.) 

• Labor Rate ($/hr): 

– Lamp Replacement: U.S. Bureau of Labor Statistics- General Maintenance 

Worker ($15.49/hr) 

– Lamp and Ballast Replacement: 2007 RS Means-Electrician and Electrician’s 

Helper ($53.88/hr) 19 

Life-Cycle Cost and Payback Period Analyses 

Installation Costs and the 2005 National Electric Code 

 The 2005 National Electric Code requires a means for disconnecting 

luminaires installed indoors. 

 This new requirement may affect the labor time to install a fluorescent 

lamp ballast. 

DOE seeks comment on average labor times and labor rates. 

Specifically, DOE requests comment on how labor times will be 

affected by the 2005 National Electric Code. (Issue #9) 

20 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Life-Cycle Cost and Payback Period Analyses 

Electricity Prices 

 Electricity Prices 

• Based on EIA Form 861 Data 

• Developed for 13 regions: 9 census divisions and 4 large states. 

Geographic Area Res. Elec 

(2006$ / kWh) 

Comm. Elec 

(2006$ / kWh) 

Ind. Elec 

(2006$ / kWh) 

New England $0.129 $0.105 $0.094 

Middle Atlantic (excludes NY) $0.110 $0.088 $0.059 

East North Central $0.087 $0.075 $0.054 

West North Central $0.082 $0.070 $0.075 

South Atlantic (excludes FL) $0.086 $0.074 $0.054 

East South Central $0.078 $0.078 $0.065 

West South Central (excludes TX) $0.086 $0.079 $0.065 

Mountain $0.089 $0.080 $0.058 

Pacific (excludes CA) $0.086 $0.084 $0.050 

New York State $0.160 $0.097 $0.056 

California $0.099 $0.087 $0.078 

Texas $0.113 $0.106 $0.095 

Florida $0.129 $0.121 $0.090 

Weighted Average Prices $0.100 $0.086 $0.070 21 

22 

Electricity Price Trends 

Life-Cycle Cost and Payback Period Analyses 

 Electricity Price Trend 

• Energy price projections to 2030 based on EIA/AEO Reference Case 

• AEO High Growth and Low Growth cases can be run as a sensitivity 

0.85 

0.87 

0.89 

0.91 

0.93 

0.95 

0.97 

0.99 

1.01 

1.03 

1.05 

2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 

Year 

Price Trend (2006=1) 

High Growth-Res Reference-Res Low Growth-Res 

High Growth-Comm Reference-Comm Low Growth-Comm 

High Growth-Ind Reference-Ind Low Growth-Ind 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Life-Cycle Cost and Payback Period Analyses 

Discount Rates 

 Based on the finance cost of raising funds to purchase products 

• Financial cost of any debt incurred to purchase product 

• Opportunity cost of any equity used to purchase product 

 Residential Rates 

• Weighted-average real rate associated with various household equity (e.g., 

savings bonds, stocks, CDs) and debt (e.g., credit card, home equity loans) 

• Primary data source: Federal Reserve Board’s Survey of Consumer Finances 

for the years 1989, 1992, 1995, 1998, 2001, and 2004 

• Average Residential Discount Rate: 5.6% 

 Commercial and Industrial Rates 

• Calculated from the weighted-average cost of capital to the firm (WACC) to 

obtain equity and debt financing. 

• Cost of Equity calculated using the Capital Asset Pricing Model. 

• Cost of Debt calculated by adding a risk adjustment factor to the current yield on 

long-term corporate bonds. 

• Average Commercial Discount Rate: 6.2% 

• Average Industrial Discount Rate: 7.5% 23 

Life-Cycle Cost and Payback Period Analyses 

Other Inputs 

 Lamp Lifetime: 

• GSFL: 

– Manufacturing Literature: rated life for a 3-hr start 

– 2000 Ballast Rule: group and spot re-lamping rates (group replacements 

are made at 75% of rated life) 

• IRL: Manufacturing literature 

 Ballast Lifetime 

• 2000 Ballast Rule: 49,054 hrs 

 Repair and Maintenance Costs 

• No repair or maintenance costs are included 

• DOE does account for lamp replacements 

 Analysis Period 

• Time span over which life-cycle cost is calculated 

• Based on the longest-lived baseline lamp in a product class. 

• The analysis period in years is equal to the life of the lamp in hours divided by 

the annual operating hours of the lamp for a given sector or building. 24 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Life-Cycle Cost and Payback Period Analyses 

3-lamp 4-foot Medium Bipin 34W T12 Baseline 

Standards-Induced Retrofit LCC and PBP Results 

CSL 

Lamp 

Efficacy 

lm/W 

Design Option LCC 

$ 

LCC 

Savings 

$ 

Installed 

Price 

$ 

Operating 

Cost 

Savings 

$ 

Payback 

Period 

yr 

Mean 

Lumen 

From 

Baseline 

% 

Baseline 77.9 34 W T12 & 0.88 BF Mag 138.35 N/A 11.04 N/A N/A 0.0 

CSL1 82.4 34 W T12 & 0.88 BF Elec 156.35 -18.00 65.93 4.44 12.4 7.0 

CSL2 85.3 34 W T12 & 0.86 BF Elec 161.71 -23.36 72.96 4.81 12.9 10.9 

CSL2 86.2 32.5 W T8 & 0.88 BF Elec 144.65 -6.31 56.52 5.56 8.2 9.6 

CSL3 90.8 32.5 W T8 & 0.78 BF Elec 136.74 1.60 59.62 8.00 6.1 4.4 

CSL3 91.2 34 W T12 & 0.86 BF Elec 162.00 -23.66 76.15 4.81 13.5 18.5 

CSL4 92.3 32.5 W T8 & 0.75 BF Elec 132.09 6.26 60.05 8.73 5.6 5.6 

CSL4 95.0 30 W T8 & 0.78 BF Elec 133.34 5.01 60.90 9.67 5.2 3.3 

CSL5 95.4 32.5 W T8 & 0.75 BF Elec 133.47 4.88 61.61 8.73 5.8 8.0 

CSL5 97.3 28 W T8 & 0.78 BF Elec 121.38 16.96 60.30 12.16 4.1 -1.3 

CSL5 96.0 25 W T8 & 0.88 BF Elec 125.13 13.22 64.66 11.18 4.8 -0.9 

25 

Life-Cycle Cost and Payback Period Analyses 

3-lamp 4-foot Medium Bipin 34W T12 Baseline 

Ballast Failure LCC and PBP Results 

CSL 

Lamp 

Efficacy 

lm/W 

Design Option LCC 

$ 

LCC 

Savings 

$ 

Installed 

Price 

$ 

Operating 

Cost 

Savings 

$ 

Payback 

Period 

yr 

Mean 

Lumen 

From 

Baseline 

% 

Baseline 77.9 34 W T12 & 0.88 BF Elec 152.66 N/A 62.25 N/A N/A 0.0 

CSL1 82.4 34 W T12 & 0.86 BF Elec 154.69 -2.02 65.93 0.37 10.0 4.5 

CSL2 85.3 34 W T12 & 0.86 BF Elec 161.71 -9.05 72.96 0.37 29.0 10.9 

CSL2 86.2 32.5 W T8 & 0.88 BF Elec 144.65 8.01 56.52 1.12 0.0 9.6 

CSL3 90.8 32.5 W T8 & 0.78 BF Elec 136.74 15.92 59.62 3.56 0.0 4.4 

CSL3 91.2 34 W T12 & 0.86 BF Elec 162.00 -9.34 76.15 0.37 37.7 18.5 

CSL4 92.3 32.5 W T8 & 0.75 BF Elec 132.09 20.58 60.05 4.29 0.0 5.6 

CSL4 95.0 30 W T8 & 0.78 BF Elec 133.34 19.33 60.90 5.22 .0.0 3.3 

CSL5 95.4 32.5 W T8 & 0.75 BF Elec 133.47 19.19 61.61 4.29 0.0 8.0 

CSL5 97.3 28 W T8 & 0.78 BF Elec 121.38 31.28 60.30 7.72 0.0 -1.3 

CSL5 96.0 25 W T8 & 0.88 BF Elec 125.13 27.53 64.66 6.74 0.4 -0.9 

26 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Life-Cycle Cost and Payback Period Analyses 

LCC and PBP Results for the

75W PAR38 Lamp Operating in the Commercial Sector

CSL 

Lamp 

Efficacy 

lm/W 

Design Option LCC 

$ 

LCC 

Savings 

$ 

Installed 

Price 

$ 

Operating 

Cost 

Savings 

$ 

Payback 

Period 

yr 

Initial 

Lumens 

From 

Baseline 

% 

Baseline 14.0 75W, 14 lm/W & 

2,500 hrs, Halogen 25.53 N/A 6.16 N/A N/A 0.0 

CSL1 15.9 66W, 15.9 lm/W & 

3,000 hrs, Improved Halogen 22.81 2.71 7.55 2.21 0.6 0.0 

CSL2 17.5 60W, 17.5 lm/W & 

3,000hrs, HIR 21.60 3.92 7.73 3.68 0.4 0.0 

CSL3 19.1 55W, 19.1 lm/W & 

4,000 hrs, Improved HIR 19.64 5.89 9.05 4.91 0.6 0.0 

 Additional GSFL and IRL results can be found in Chapter 8 of the 

Technical Support Document. 

27 

Life-Cycle Cost and Payback Period Analyses 

Life-Cycle Cost Sensitivities 

 Sensitivity Results Shown in Appendix 8B of the Technical Support 

Document. 

• Monte Carlo Runs: variability in operating hours, sales tax, electricity prices, 

discount rates. 

• High and Low Lamp Prices 

• IRL: High and Low Operating Hours in Residential Sector 

• GSFL: Assume No Ballast Price 

 Other Possible Sensitivities 

• High and Low Growth Electricity Price Trends 

• Variable Start Year 

• Analysis Period as Multiple of Baseline Service Life 

• Vary Sector for each Lamp Type 

28 
General Service Fluorescent Lamp and Incandescent Reflector Lamp March 10-11, 2008 

Energy Conservation Standard ANOPR Public Meeting 

Life-Cycle Cost and Payback Period Analyses 

Other Issues 

DOE seeks comment on any other aspects related to the LifeCycle Cost and Payback Period Analyses. 

29 

ANOPR Issues for Public Comment 

 Operating Hours (Issue #6)

 General Service Fluorescent Lamp Energy Consumption (Issue #7)

 Life-Cycle Cost Calculation (Issue #8)

 Installation Costs (Issue #9)

30