CHAPTER 8. LIFE-CYCLE COST AND PAYBACK PERIOD ANALYSES 

TABLE OF CONTENTS 

8.1 INTRODUCTION ........................................................................................................... 8-1

8.1.1 General Approach for Life-Cycle Cost and Payback Period Analyses ...............8-1

8.1.2 Overview of LCC and PBP Inputs....................................................................... 8-3

8.2 LIFE-CYCLE COST INPUTS ........................................................................................ 8-6

8.2.1 Definition .............................................................................................................8-6

8.2.2 Total Installed Cost Inputs...................................................................................8-7

8.2.2.1 Installation Costs......................................................................................8-8

8.2.3 Operating Cost Inputs ........................................................................................ 8-10

8.2.3.1 Operating Hours..................................................................................... 8-11

8.2.3.2 Power Rating.......................................................................................... 8-12

8.2.3.3 Electricity Prices .................................................................................... 8-12

8.2.3.4 Electricity Price Trend ........................................................................... 8-13

8.2.4 Lifetime.............................................................................................................. 8-16

8.2.5 Replacement Cost .............................................................................................. 8-17

8.2.6 Disposal Cost ..................................................................................................... 8-18

8.2.7 Analysis Period ..................................................................................................8-18

8.2.8 Residential GSFL Analysis................................................................................8-19

8.2.9 Discount Rate..................................................................................................... 8-20

8.2.9.1 Residential Discount Rate......................................................................8-20

8.2.9.2 Commercial Discount Rate.................................................................... 8-24

8.2.10 Effective Date of Standard................................................................................. 8-27

8.2.11 Residual Value...................................................................................................8-28

8.3 PAYBACK PERIOD INPUTS...................................................................................... 8-28

8.3.1 Definition ...........................................................................................................8-28

8.3.2 Rebuttable Presumption Payback Period........................................................... 8-29

8.3.3 Inputs.................................................................................................................. 8-30

8.4 LAMP PURCHASING EVENTS ................................................................................. 8-30

8.5 LIFE-CYCLE COST AND PAYBACK PERIOD RESULTS......................................8-34

8.5.1 Results for General Service Fluorescent Lamps................................................ 8-35

8.5.1.1 Product Class: 4-foot medium bipin ≤4,500K ....................................... 8-36

8.5.1.2 Product Class: 4-foot T5 miniature bipin high output ≤4,500K ............8-56

8.5.1.3 Product Class: 4-foot T5 miniature bipin standard output ≤4,500K...... 8-58

8.5.1.4 Product Class: 8-Foot single pin slimline ≤4,500K............................... 8-60

8.5.1.5 Product Class: 8-foot recessed double contact HO ≤4,500K.................8-69

8.5.2 Life-Cycle Cost Results for Incandescent Reflector Lamps.............................. 8-78

8.6 DETAILED RESULTS AND SENSITIVITY RUNS................................................... 8-85

REFERENCES ..........................................................................................................................8-86

LIST OF TABLES 

8-i
Table 8.1.1 Product Classes Analyzed in the LCC and PBP Analyses ..........................8-3

Table 8.1.2 Summary Information of Inputs for the Life-Cycle Cost and Payback 

Period Analyses ............................................................................................................... 8-6

Table 8.2.1 Inputs for Total Installed Costs................................................................ 8-7

Table 8.2.2 Relamping Times for General Service Fluorescent Lamps and Incandescent 

Reflector Lamps*............................................................................................................. 8-9

Table 8.2.3 Relamping and Lamp-and-Ballast Labor Cost for General Service 

Fluorescent Lamps and Incandescent Reflector Lamps................................................. 8-10

Table 8.2.4 Inputs for Operating Costs..................................................................... 8-10

Table 8.2.5 Average Operating Hours by Sector and Lamp Type................................8-11

Table 8.2.6 High Operating Hours for GSFL in the Residential Sector.......................8-12

Table 8.2.7 Electricity Prices by Census Division, 2008.............................................. 8-13

Table 8.2.8 Average Percentage Shares of Household Debt and Equity Types...........8-21

Table 8.2.9 Average Nominal and Real Interest Rates for Household Debt Classes...8-22

Table 8.2.10 Average Nominal and Real Interest Rates for Household Equity Types 8-23

Table 8.2.11 Shares and Interest or Return Rates Used for Household Debt and Equity 

Types.............................................................................................................................. 8-23

Table 8.2.12 Variables Used to Estimate Company Discount Rates............................8-25

Table 8.2.13 Real Discount Rates by Lamp Ownership Category ...............................8-26

Table 8.2.14 Estimated Share of Lamp Purchases by Ownership Category in the 

Commercial Sector......................................................................................................... 8-27

Table 8.2.15 Lamp Ownership by Sector ..................................................................... 8-27

Table 8.2.16 Average Discount Rate by Sector............................................................ 8-27

Table 8.4.1 Framework of Event-Type Scenarios for T12 Baseline Lamp Consumers 8-33

Table 8.4.2 Framework of Event-Type Scenarios for T8 Baseline Lamp Consumers. 8-34

Table 8.4.3 Framework of Event-Type Scenarios for T5 Baseline Lamp Consumers. 8-34

Table 8.5.1 LCC and PBP Results for a Three-Lamp 4-Foot 40W T12 Medium Bipin 

System Operating in the Commercial Sector................................................................. 8-38

Table 8.5.2 LCC and PBP Results for a Three-Lamp 4-Foot 34W T12 Medium Bipin 

System Operating in the Commercial Sector................................................................. 8-42

Table 8.5.3 LCC and PBP Results for a 3-Lamp 4-foot 32W T8 Medium Bipin System 

Operating in the Commercial Sector.............................................................................. 8-45

Table 8.5.4 Summary of the LCC Results for a Three-Lamp 4-Foot Medium Bipin 

System Operating in the Commercial Sector................................................................. 8-46

Table 8.5.5 LCC and PBP Results for a Two-Lamp 4-Foot 40W T12 Medium Bipin 

System Operating in the Residential Sector Using High Operating Hours...................8-49

Table 8.5.6 LCC and PBP Results for a Two-Lamp 4-Foot 40W T12 Medium Bipin 

System Operating in the Residential Sector Using Average Operating Hours..............8-50

Table 8.5.7 LCC Savings Results at Various Remaining Fixture Lives for a Two-Lamp 

4-Foot 40W T12 Medium Bipin System Operating in the Residential Sector Using 

Average Operating Hours and Lamp Preservation Behavior ........................................ 8-52

Table 8.5.8 LCC and PBP Results for a Two-Lamp 4-Foot 40W T12 Medium Bipin 

System Operating in the Residential Sector Using Average Operating Hours and Lamp 

Preservation Behavior With Seven Years of Remaining Fixture Life at the Beginning of 

the Analysis Period ........................................................................................................ 8-53

8-ii
8-iii

Table 8.5.9 Summary of the LCC Results for a Two-Lamp 4-Foot 40W T12 Medium 

Bipin System Operating in the Residential Sector Using High Operating Hours .........8-55

Table 8.5.10 Summary of the LCC Results for a Two-Lamp 4-Foot 40W T12 Medium 

Bipin System Operating in the Residential Sector Using Average Operating Hours....8-55

Table 8.5.11 LCC and PBP Results for a Two-Lamp 4-Foot 54W T5 Miniature Bipin 

High Output System Operating in the Commercial Sector............................................ 8-57

Table 8.5.12 Summary of the LCC Results for a Two-Lamp 4-Foot 54W T5 Miniature 

Bipin High Output System Operating in the Commercial Sector..................................8-57

Table 8.5.13 LCC and PBP Results for a Two-Lamp 4-Foot 28W T5 Miniature Bipin 

Standard Output System Operating in the Commercial Sector ..................................... 8-59

Table 8.5.14 Summary of the LCC Results for a Two-Lamp 4-Foot 28W T5 Miniature 

Bipin Standard Output System Operating in the Commercial Sector............................8-59

Table 8.5.15 LCC and PBP Results for a Two-Lamp 8-Foot 75W T12 Single Pin 

Slimline System Operating in the Commercial Sector.................................................. 8-62

Table 8.5.16 LCC and PBP Results for a Two-Lamp 8-Foot 60W T12 Single Pin 

Slimline System Operating in the Commercial Sector.................................................. 8-64

Table 8.5.17 LCC and PBP Results for a Two-Lamp 8-Foot 59W T8 Single Pin Slimline 

System Operating in the Commercial Sector................................................................. 8-67

Table 8.5.18 Summary of the LCC Results for a Two-Lamp 8-Foot Single Pin Slimline 

System Operating in the Commercial Sector................................................................. 8-68

Table 8.5.19 LCC and PBP Results for a Two-Lamp 8-Foot 110W T12 Recessed Double 

Contact HO System Operating in the Industrial Sector................................................. 8-71

Table 8.5.20 LCC and PBP Results for a Two-Lamp 8-Foot 95W T12 Recessed Double 

Contact HO System Operating in the Industrial Sector................................................. 8-74

Table 8.5.21 Summary of the LCC Results for a Two-Lamp 8-Foot Recessed DoubleContact HO System Operating in the Industrial Sector................................................. 8-77

Table 8.5.22 LCC and PBP Results for a 90W PAR38 Lamp Operating in the 

Commercial Sector......................................................................................................... 8-79

Table 8.5.23 LCC and PBP Results for a 90W PAR38 Lamp Operating in the Residential 

Sector ............................................................................................................................. 8-80

Table 8.5.24 LCC and PBP Results for a 75W PAR38 Lamp Operating in the 

Commercial Sector......................................................................................................... 8-81

Table 8.5.25 LCC and PBP Results for a 75W PAR38 Lamp Operating in the Residential 

Sector ............................................................................................................................. 8-82

Table 8.5.26 LCC and PBP Results for a 50W PAR30 Lamp Operating in the 

Commercial Sector......................................................................................................... 8-83

Table 8.5.27 LCC and PBP Results for a 50W PAR30 Lamp Operating in the Residential 

Sector ............................................................................................................................. 8-84

LIST OF FIGURES 

Figure 8.1.1 Flow Diagram of Inputs for the Determination of LCC and PBP..............8-5

Figure 8.2.1 Residential Sector Electricity Price Trend ............................................... 8-14

Figure 8.2.2 Commercial Sector Electricity Price Trend.............................................. 8-15

Figure 8.2.3 Industrial Sector Electricity Price Trend .................................................. 8-16
CHAPTER 8. LIFE-CYCLE COST AND PAYBACK PERIOD ANALYSES 

8.1 INTRODUCTION 

This chapter describes the analysis the U.S. Department of Energy (DOE) conducts to 

evaluate the economic impacts on individual consumers of possible energy conservation 

standards for general service fluorescent lamps (GSFL) and incandescent reflector lamps (IRL). 

New standards usually decrease operating costs and increase purchase costs for consumers. This 

chapter describes the three metrics used in this analysis to determine the impact of standards on 

individual consumers: 

Life-cycle cost (LCC) is the total (discounted) consumer cost over the analysis period 

including purchase price, operating costs (including energy expenditures), and 

installation costs. 

Payback period (PBP) is the number of years it takes a customer to recover the generally 

higher purchase price of a more energy-efficient product through the operating cost 

savings of using the more energy-efficient product. The PBP is calculated as the change 

in first cost divided by the change in operating costs in the first year. 

Rebuttable payback period is a special case in which the PBP is calculated based on 

laboratory conditions, specifically DOE test procedure inputs. DOE calculates the 

aforementioned LCC and PBP using a range of inputs, which are designed to reflect 

actual conditions. 

Sections 8.2 and 8.3 discuss inputs to the LCC and PBP, respectively. Section 8.4

discusses the different purchasing events DOE analyzes, which affect consumer economics. 

Section 8.5 presents the results for the LCC and PBP. Key variables and calculations are 

presented for each metric. DOE performs the calculations discussed here using a series of 

Microsoft Excel® spreadsheets developed for this rulemaking. Stakeholders are invited to 

download and examine the spreadsheets, which are available at 

http://www.eere.energy.gov/buildings/appliance_standards/residential/incandescent_lamps.html. 

Appendix 8A presents details and instructions for using the spreadsheets. Appendix 8B presents 

sensitivity results as well as results of the Monte Carlo model. Appendix 8C presents detailed 

sources for the residential-sector discount rate computation. Appendix 8D presents the impact of 

“hot shock” on the life-cycle cost savings of incandescent reflector lamps. 

8.1.1 General Approach for Life-Cycle Cost and Payback Period Analyses 

Recognizing that several inputs to the LCC and PBP analysis are either variable or 

uncertain, DOE incorporates Monte Carlo simulation and probability distributions into its LCC 

and PBP model. Appendix 8B contains a detailed set of results using Monte Carlo simulation. 

DOE incorporates both Monte Carlo simulation and probability distributions by using Microsoft 

Excel spreadsheets combined with Crystal Ball®, a commercially-available add-in program. 

8-1
The relationship between increasing total installed cost and increasing efficacy is the 

predominant influence on the LCC and PBP results. However, other factors related to the 

characteristics of the consumer using the products also affect the results. Based on the 

geographic region, sector, and application in which a consumer uses the lamps, factors such as 

energy prices, sales tax, and energy usage can vary. By using the Monte Carlo simulation and 

separate sensitivity runs, DOE accounts for this variability. 

For the LCC and PBP analyses, DOE considers variability in the discount rate. DOE also 

models variability in operating hours by sector, lamp type, and building applications. By 

developing samples by building type, DOE can perform the LCC and PBP calculations and 

account for the variability in operating hours, electricity price, and sales tax among a variety of 

buildings. DOE uses the Energy Information Administration’s (EIA) 2005 Residential Energy 

Consumption Survey (RECS),i

 2003 Commercial Buildings Energy Consumption Survey 

CBECS,ii and 2002 Manufacturing Energy Consumption Survey (MECS)iii to develop samples 

by building type, as well as the U.S. Lighting Market Characterization: Volume I (LMC)iv to 

develop the operating hour characteristics by application in those buildings. The LCC and PBP 

spreadsheets present the results of the analysis as average values, relative to the baseline 

conditions. (Appendix 8B presents more information on the distribution of results from the LCC 

and PBP analysis, including the average and median PBP values and the percentages of trials 

which result in positive or negative LCCs.) 

In the LCC and PBP analyses, DOE considers multiple pathways to energy savings. 

Generally, when moving up in lamp efficacy consumers choose whether to stay at the same rated 

lamp wattage and have more light output, or move to a lower wattage and have the same or 

roughly equivalent light output as the baseline lamp or lamp-and-ballast system. While 

consumers clearly would have other choices in addition to those presented in the LCC, DOE 

considers only energy-saving lamp designs and lamp-and-ballast system designs in the LCC. 

Other choices, such as substituting a lamp that is outside the scope of this rulemaking (e.g., 

exempted 65 watt bulged reflector (BR) IRL) or substituting a lamp with a higher-efficacy lamp 

that does not save energy are addressed in Chapter 10, the national impact analysis (NIA). 

For GSFL, DOE considers various scenarios that prompt consumers to buy a lamp or 

lamp-and-ballast system in the base case versus standards case. Specifically, the “event” that 

prompts the purchase of a new lamp (e.g., a lamp failure or a ballast failure) will influence the 

cost-effectiveness of the consumer purchase decision. For example, depending on the efficacy 

level (EL), a consumer may or may not have to purchase a new ballast to install a moreefficacious lamp. Whether the consumer would have replaced the ballast absent standards 

affects the economics of the substitution. DOE, therefore, bases the LCC and PBP analyses 

around “lamp purchasing events.” For IRL, where no ballast is involved, DOE simply analyzes 

lamp failure or new construction/renovation scenarios. Section 8.4 discusses the lamp 

purchasing events for GSFL in more detail. The LCC and PBP analyses spreadsheet reports 

results by purchasing event. 

The time period used for the LCC and PBP analyses in this rulemaking is the service life 

of the longest-life baseline lamp, or a multiple thereof. By using this analysis period, LCC 

results are more easily compared and contrasted for different ELs. However, to account for any 

remaining lamp life at the end of the analysis period in a manner consistent with the Federal 

8-2
Energy Management Program’s Life-Cycle Costing Manualv

, DOE designates a discounted 

“residual value” for lamps or ballasts that have remaining value. For example, if a moreefficacious lamp expires before the end of the analysis period, DOE assumes that the lamp is 

replaced during the analysis period and credits the unused lamp life of this replacement lamp 

back as a residual value at the end of the analysis period. 

DOE is conducting the LCC and PBP analyses on the baseline lamps from the 

representative product classes identified in Chapter 3. Table 8.1.1 shows the set of five 

representative GSFL product classes and the one representative IRL product class that DOE is 

evaluating in this analysis. 

Table 8.1.1 Product Classes Analyzed in the LCC and PBP Analyses 

General Service Fluorescent Lamps 

4-Foot Medium Bipin, ≤4,500K 

8-Foot Single Pin Slimline, ≤4,500K 

8-Foot Recessed Double-Contact High-Output (HO), ≤4,500K 

4-Foot T5 Miniature Bipin Standard Output (SO), ≤4,500K 

4-Foot T5 Miniature Bipin High Output (HO), ≤4,500K 

Incandescent Reflector Lamps 

Standard-Spectrum, Voltage < 125V, Diameter > 2.5 Inches 

8.1.2 Overview of LCC and PBP Inputs 

As mentioned earlier, the LCC represents the total consumer expense over the analysis 

period, including purchase expenses, operating costs (including energy expenditures), and 

installation costs. DOE discounts future operating costs to the time of purchase and sums them 

over the analysis period. Due to the large variance of lamp lifetimes, for this rulemaking, DOE 

bases the analysis period on the longest-life baseline lamp within a product class. The LCC 

calculation credits back the residual value of a lamp, or lamp-and-ballast system, if it has any 

operating life remaining at the end of the analysis period. The residual value is the discounted 

total installed cost of a lamp, or lamp-and-ballast system, multiplied by the percentage of the 

remaining life past the analysis period. The PBP represents the number of years it takes 

customers to recover the purchase price of more-energy-efficient equipment through lower 

operating costs. The PBP is calculated as the change in first cost divided by the change in 

operating costs in the first year. 

DOE categorizes inputs to the LCC and PBP analysis as follows: (1) inputs for 

establishing the purchase expense, otherwise known as the total installed cost; and (2) inputs for 

calculating the expenses incurred during the operation of the lamp, otherwise known as the 

operating cost. In addition, inputs to the LCC are used to calculate a residual value for any 

remaining product lifetime beyond the analysis period and replacement costs for those lamps 

whose service life is less than the analysis period. 

The primary inputs for establishing the life-cycle cost and payback period are: 

8-3
End-User Product Price: As discussed in Chapter 7, DOE starts with manufacturer catalog 

(“blue-book”) pricing, and applies discounts to develop low, medium, and high prices for 

all lamp types. The end-user product prices represent the consumer price before tax and 

installation. 

Sales Tax: DOE then applies sales tax to convert the end-user product price to a final 

product price including sales tax. Chapter 7 describes the sales tax markup in detail. 

Installation Cost: This input represents the cost to the commercial or industrial customers of 

installing the lamps or lamp systems. (In the residential sector, there is only an 

installation cost for lamp systems when a new ballast is being installed.) The installation 

cost represents all costs required to install the lamp or lamp system but does not include 

the end-user product price. The installation cost includes labor and overhead. Thus, the 

total installed cost equals the end-user product price including sales tax plus the 

installation cost. 

Disposal Cost: After a GSFL reaches its end of life, some consumers pay to recycle those 

lamps. The disposal cost represents the cost of recycling a GSFL and is only applicable 

to those consumers in the commercial and industrial sectors. 

 

 The primary inputs for calculating the operating cost include the following: 

Annual Operating Hours: The annual operating hours are the hours that a lamp is estimated 

to be in use during one year. The energy use characterization (Chapter 6) details how 

DOE determines the lamp operating hours as a function of end-user sector, geographic 

region, and building type. 

Power Rating: The power rating is the site-energy usage rate associated with operating the 

lamp or lamp-and-ballast system. The energy use characterization (Chapter 6) details how 

DOE determines the power ratings for the lamps and lamp-and-ballast systems 

considered in the analyses. 

Electricity Prices: DOE uses the average price per kilowatt-hour (i.e., $/kWh) paid by 

customers. DOE determines electricity prices using national average residential, 

commercial, and industrial electricity prices for the sample calculation. For the Monte 

Carlo distribution, DOE uses average residential, commercial, and industrial values for 

13 regions and large States. DOE develops all electricity price inputs using 2007 EIA 

data. 

Electricity Price Trends: DOE uses the EIA’s April 2009 Annual Energy Outlook 2009 

(AEO2009) to forecast electricity prices.vi This AEO2009 includes the impacts of the 

American Recovery and Reinvestment Act (ARRA) of February 2009 (Pub. L. 111-5). 

For the results presented in this chapter, DOE uses the April 2009 AEO2009 reference 

case to forecast future electricity prices. 

Lifetime: Lifetime is the total hours in operation after which the consumer retires the lamp or 

components of a lamp system from service. 

Discount Rate: The discount rate is the rate at which DOE discounts future expenditures to 

establish their present value. 

8-4
Analysis Period: Analysis period is the time span over which DOE calculates the LCC. 

The residual value calculation also uses all of the installed cost inputs as well as several 

operating cost inputs. Figure 8.1.1 depicts the relationships between the installed cost, operating 

cost, and residual value inputs for the calculation of the LCC and PBP. In this figure, the 

rectangular boxes indicate the inputs, the parallelograms indicate intermediate calculated values, 

and the diamond boxes indicate the analysis outputs (the LCC and PBP). 

Figure 8.1.1 Flow Diagram of Inputs for the Determination of LCC and PBP 

Table 8.1.2 summarizes the input values that DOE uses to calculate the LCC and PBP for 

GSFL and IRL. Each row summarizes the total installed cost inputs as well as operating cost, 

replacement cost, and residual value inputs, including the lifetime, discount rate, and electricity 

price trend. DOE characterizes all of the total installed cost inputs with single-point values, but 

characterizes several of the operating cost inputs with probability distributions that capture the 

input’s uncertainty and/or variability in the Monte Carlo analysis. Table 8.1.2 also lists the 

chapters of the Technical Support Document that detail the inputs. 

8-5
Table 8.1.2 Summary Information of Inputs for the Life-Cycle Cost and Payback Period 

Analyses 

Factor Weighted-Average Value TSD Reference 

Section 

Total Installed Cost Primary Inputs 

End-User Product Price Varies with lamp and ballast Chapter 7 

Sales Tax Varies by census region Chapter 7 

Installation Cost Varies by equipment installed and sector Chapter 8 

Operating Cost Primary Inputs 

Annual Operating Hours Vary by lamp type, sector, and building type. Chapter 6 

Power Rating Varies with lamp type, and lamp or lamp-andballast system Chapter 6 

Electricity Prices Vary by sector and census region Chapter 8 

Electricity Price Trends Vary with price forecast scenario Chapter 8 

Discount Rate Varies with sector Chapter 8 

Analysis Period Varies with baseline lamp and annual operating 

hours. Chapter 8 

Replacement Cost and Residual Value Primary Inputs

Total Installed Cost Varies with lamp and ballast, census region, 

equipment installed and sector Chapters 7, 8 

Lifetime Varies with lamp and system Chapters 5, 8 

Disposal Cost Varies by lamp type and sector Chapter 8 

Discount Rate Varies with sector Chapter 8 

Analysis Period Varies with baseline lamp and annual operating 

hours. Chapter 8 

Sections 8.2 and 8.3 discuss the installed cost and operating cost inputs depicted in Table 

8.1.2 . 

8.2 LIFE-CYCLE COST INPUTS 

8.2.1 Definition 

LCC is the total customer cost over the life of a product, including total installed costs, 

operating costs, replacement costs, and residual value. Future operating costs and replacement 

costs are discounted to the analysis start year (2012) and summed over the analysis period. The 

residual value (if any) is credited back to the LCC, if the operating life of the standards case 

technology exceeds that of the analysis period. The LCC is defined by the following equation: 

    

























N

t

t t N

tt

r

RV

r

DC

r

RCOC ICLCC

1 )1()1( 1 Eq. 8.1 

where 

8-6
LCC = life-cycle cost ($), 

IC = total installed cost ($), 

N = analysis period, 

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

OC = operating cost ($), 

RC = replacement cost ($), 

r = discount rate, 

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

 determined, 

DC = disposal cost of the lamp, and 

RV = residual value for an analysis period N. 

DOE expresses all the costs in its LCC and PBP analyses in 2008 dollars. 

8.2.2 Total Installed Cost Inputs 

The total installed cost to the customer is defined by the following equation: 

  INSTFPPIC

 Eq. 8.2 

where 

FPP = final product price (i.e., customer price for the product only, including 

sales tax), expressed in dollars, and 

INST = installation cost or the customer price to install products (i.e., the cost for 

labor and materials), expressed in dollars. 

In the product price determination (Chapter 7), DOE develops end-user product prices 

and sales taxes to derive final product prices. DOE then applies installation costs, where 

necessary, to derive the total installed costs for use in the LCC. The table below shows inputs to 

determine total installed costs. 

Table 8.2.1 Inputs for Total Installed Costs

End-User Product Price ($) 

Sales Tax ($) 

Installation Cost ($) 

The end-user product price is the average purchase price a consumer pays before sales tax 

for lamp designs or lamp-and-ballast designs. The sales tax represents State and local sales taxes 

applied to the end-user product price. It is a multiplicative factor that increases the end-user 

product price. Installation cost is the cost to the customer of installing the lamps or lamp 

systems, and only applies in the commercial and industrial sectors. The installation cost 

represents all costs required to install the lamp or lamp-and-ballast system but does not include 

the final product price. The installation cost includes labor and overhead. Thus, the total 

installed cost equals the final product price plus the installation cost. DOE calculates the total 

installed cost for the lamps analyzed based on the following equation: 

8-7
FPP INST

PRICE MU INST

IC

TAX 

 

Eq. 8.3

where 

IC = total installed cost, 

FPP = final product price, 

INST = installation cost, 

PRICE = end-user product price, and 

MUTAX = sales tax mark up 

Chapter 7 provides detail on the end-user product price and sales tax. Discussion on the 

installation costs follows. 

8.2.2.1 Installation Costs 

DOE applies installation costs to individual lamps as well as lamp-and-ballast systems 

installed in the commercial and industrial sectors. DOE assumes that in the residential sector, 

the homeowner replaces individual lamps; thus, DOE applies installation costs only to lamp-andballast systems in the residential sector. 

On September 19, 2000, DOE issued a final rule establishing energy conservation 

standards for ballasts (hereafter referred to as ‘‘the 2000 Ballast Rule’’). 65 FR 56740 (Sept. 19, 

2000); 10 CFR 430.23(m)(4). For GSFL, DOE obtains estimates of the prevalence of group 

versus spot relamping from the 2000 Ballast Rule. DOE then weighs the spot and group 

relamping times by the percent occurrence of spot versus group relamping to derive weighted 

averaged relamping times. According to the 2000 Ballast Rule, group relamping occurs, on 

average, 25 percent of the time for 4-foot medium bipin systems, 37 percent for 8-foot single pin 

slimline systems, and 31 percent for 8-foot recessed double contact high-output systems.vii 

These percentages are used to calculate an average time to install lamps in the commercial and 

industrial sectors. When entire lamp-and-ballast systems are being installed, DOE uses the times 

shown in the “Time to Install Lamps and Ballasts” column in Table 8.2.2. 

To account for installation costs for IRL, DOE uses relamping time estimates from the RS 

Means Electrical Cost Data, 2007 (RS Means).viii Table 8.2.2 lists average labor times to install 

a lamp (for IRL and GSFL) and a lamp and ballast (for GSFL only). For new construction, 

renovation, and major retrofit GSFL purchase events, DOE also adds 2.5 minutes to the labor 

times when installing lamps and ballasts to account for the installation of a luminaire disconnect. 

DOE adds this additional installation time because the 2005 National Electric Code requires a 

means for disconnecting luminaires before they are serviced for lamp or ballast replacements.ix

8-8
Table 8.2.2 Relamping Times for General Service Fluorescent Lamps and Incandescent 

Reflector Lamps* 

Lamp Type 

Spot 

Relamp 

Time 

minutes

Group 

Relamp 

Time 

minutes 

Average 

Relamp 

Time 

minutes 

Time to Install Lamps and 

Ballasts** 

minutes

General Service Fluorescent Lamps (Commercial and Industrial) 

2-Lamp Fixture - 4-Foot Medium 

Bipin, 4-Foot Miniature Bipin 27.0 14.0 23.8 30.0 

3-Lamp Fixture - 4-Foot Medium 

Bipin 27.5 14.5 24.3 35.0 

2-Lamp Fixture - 8-Foot Single Pin 

Slimline 20.5 10.5 16.8 55.0 

2-Lamp Fixture - 8-Foot Recessed 

Double Contact High-Output 26.5 13.5 22.5 60.0 

Incandescent Reflector Lamps (Commercial) 

All 4.0 N/A 

*GSFL labor times are obtained from the 2000 Ballast Rule. IRL labor times are obtained from RS Means. DOE 

assumes that residential-sector consumers install their own lamps when replacing lamps; thus, DOE only models 

residential-sector installation costs when entire lamp-and-ballast systems are being installed, and only the times in 

the “Time to Install Lamps and Ballasts” column apply. 

** For new construction, renovation, and major retrofit GSFL purchase events, labor times are increased by 2.5 

minutes to allow for the installation of a luminaire disconnect.

For lamp-and-ballast installations, DOE derives labor rates for electricians and helpers 

from RS Means. Labor rates are the sum of the wage rate, employer-paid fringe benefits (i.e., 

vacation pay, employer-paid health, and welfare costs), and any appropriate training and industry 

advancement funds costs. An electrician’s average hourly rate with overhead and profit is 

typically $69.79 (in 2008$), and a helper’s average hourly rate is $45.28 (in 2008$). As in the 

2000 Ballast Rule, DOE assumes that 50 percent of the electrician labor rate and 50 percent of 

the helper labor rate (for a total of $57.55 in 2008$) comprise the lamp-and-ballast installation 

rate. 

For lamp replacements in the commercial sector, DOE assumes that the task is performed 

by a general maintenance worker. The labor rate of $16.55 (adjusted to 2008$ from $15.01 in 

2005) was obtained from the U.S. Bureau of Labor Statistics for a General Maintenance 

Worker.x

 Using these labor rates and the labor times listed in Table 8.2.2, DOE derives the 

average cost to install a lamp and the average cost to install a lamp and ballast. 

8-9
Table 8.2.3 Relamping and Lamp-and-Ballast Labor Cost for General Service Fluorescent 

Lamps and Incandescent Reflector Lamps 

Lamp Type 

Relamping Labor Cost 

(2008$) 

Labor Cost to Install 

Lamps and Ballast* 

(2008$) 

General Service Fluorescent Lamp (Commercial and Industrial) 

2-Lamp Fixture, 4-Foot Medium Bipin and 

4-Foot Miniature Bipin $6.55 $28.77 

3-Lamp Fixture, 4-Foot Medium Bipin $6.69 $33.56 

2-Lamp Fixture, 8-Foot Single Pin Slimline $4.63 $52.74 

2-Lamp Fixture, 8-Foot Recessed Double 

Contact High Output $6.20 $57.54 

Incandescent Reflector Lamps (Commercial) 

All $1.10 N/A 

*For new construction, renovation, and major retrofit GSFL purchase events, DOE increases the labor cost to install 

lamps and ballast by $2.40 (in 2008$) to allow for the installation of a luminaire disconnect. 

8.2.3 Operating Cost Inputs 

The operating cost represents the costs incurred in the operation of the lamp or lamp-andballast system. Table 8.2.4 lists the inputs for operating costs. The analysis period, discount 

rate, and effective date of the standard are required to determine the operating cost and for 

establishing the operating cost present value. The electricity consumption for the baseline and 

other ELs examined enable comparison of standards’ operating costs. 

Table 8.2.4 Inputs for Operating Costs 

Annual Operating Hours 

Power Rating 

Electricity Prices 

Electricity Price Trends 

Discount Rate 

Analysis Period 

The annual operating hours are the estimated hours that a lamp is in use during one year. 

Power rating refers to the rate of site energy usage associated with operating the lamp or lampand-ballast system. Both the annual operating hours and power rating are used to calculate the 

total annual energy consumption. Electricity prices used in the analysis are the price per 

kilowatt-hour in cents or dollars (e.g., $/kWh) paid by each customer for electricity. DOE uses 

electricity price trends to forecast electricity prices for future year analysis. These trends with 

the electricity price and annual energy consumption are used to calculate the energy cost in each 

year. DOE defines energy cost by the following equation: 

  EPTEPOHPWR

cons



 EPTEPEOC

Eq. 8.4

where 

8-10
 OC = operating costs in 2008$, 

 Econs = annual energy consumed, 

 EP = electricity price in 2008$, 

 EPT = electricity price trend factor relative to 2008, 

 PWR = power rating (rate of energy use, measured in watts), and 

 OH = annual operating hours. 

The remainder of this section provides information about each of the above input 

variables that DOE used to calculate the operating costs for GSFL and IRL. 

8.2.3.1 Operating Hours 

The energy use characterization (Chapter 6) details how DOE determines the annual 

energy consumption for baseline and standard-compliant products. An important input to 

determining the energy consumption is the total hours per year that the product is in operation. 

The operating hours are also used to calculate the lamp service life, which is ultimately used in 

calculating the total replacement cost and residual value. 

As described in Chapter 6, DOE establishes operating hour distributions for GSFL and 

IRL. In conjunction with data from LMC, DOE uses data from EIA’s CBECS 2003, RECS 

2005, and the MECS 2002. These EIA studies provide information on the distribution of 

buildings within the United States by building type and census division. DOE associates the 

LMC’s operating hour data by building type with the EIA’s data by building type and census 

division to derive operating hours by census division and large States. This allowed DOE to 

correlate its electricity price distribution and sales tax distribution (see Chapter 7) with its 

operating hour distribution by census division and large State in the LCC spreadsheet. Table 

8.2.5 presents the mean operating hours for GSFL and IRL for each sector. 

Operating hours for GSFL and IRL the residential sector are shown in Table 8.2.5. The 

high operating hours value shown in Table 8.2.6 is the highest operating hours value in the LMC 

for residential-sector GSFL and is typical of residential kitchens. See section 8.2.8 for 

information on how each operating hours value is used in the residential sector. 

Table 8.2.5 Average Operating Hours by Sector and Lamp Type 

Average Annual Operating Hours 

Sector Lamp Category 

hours/year 

GSFL 791 

Residential 

IRL 889 

GSFL 3,435 

Commercial 

IRL 3,450 

Industrial GSFL 4,795 

8-11
Table 8.2.6 High Operating Hours for GSFL in the Residential Sector 

High Annual Operating Hours 

Sector Lamp Category 

hours/year 

Residential GSFL 1,210 

8.2.3.2 Power Rating 

As described in the energy use and end load characterization (Chapter 6), DOE uses the 

power rating (in watts) and the annual operating hours (in hours) to calculate the annual energy 

usage (in kilowatt-hours) of the lamp and lamp-and-ballast system designs DOE considers. 

General Service Fluorescent Lamps

Because a fluorescent lamp requires a ballast to operate, DOE analyzes these lamps as 

systems consisting of both lamps and ballasts. Therefore, in the “lamp replacement” and “lamp 

and ballast replacement” scenarios, the system input power represents the energy consumption 

rate of the lamps and their associated ballast and therefore is different than simply the rated lamp 

power alone. When each lamp is paired with ballasts with differing ballast factors (BFs), the 

lamp systems have different power ratings. See Chapter 6 for detailed results showing power 

ratings and annual energy consumption estimates given a BF and lamp power and operating 

hours. 

Incandescent Reflector Lamps 

Because an IRL lamp system consists solely of a lamp, the system’s annual energy use is 

simply the product of the rated power and operating hours of the lamp. Detailed tables depicting 

the power rating and annual energy consumption for all of the IRL lamp designs are available in 

Chapter 6. 

8.2.3.3 Electricity Prices 

DOE estimates electricity prices for residential, commercial, and industrial consumers in 

each of the 13 regions and large States by using EIA Form 861 data.xi Table 8.2.7 lists the 13 

geographic regions. The EIA Form 861 data are published annually and include annual 

electricity sales in kilowatt hours; revenues from electricity sales; and number of consumers for 

the residential, commercial, and industrial sectors for every utility serving final consumers. The 

calculation of an average electricity prices proceeds in two steps: 

1) For each utility, estimate an average residential, commercial, or industrial price by 

dividing the residential, commercial, or industrial revenues by residential, commercial, or 

industrial sales. 

2) Calculate a regional average price, weighting each utility with customers in a region 

by the number of residential, commercial, or industrial consumers served in that region. 

 The calculation uses the most recent available EIA data at the time the analysis was 

conducted, from 2007. Table 8.2.7 shows the results for each geographic region. Because DOE 

8-12
conducted the LCC and PBP analyses in 2008$, it needed to convert all electricity prices into 

2008$. To perform the necessary monetary conversion, DOE uses the consumer price index 

(CPI) to convert the electricity prices from 2007$ to 2008$. As described in the following 

section on electricity price trends, DOE normalizes energy prices to 2008. Therefore, to forecast 

energy prices for any given future year, DOE establishes energy prices for 2008. In Table 8.2.7, 

DOE uses data from the April 2009 AEO2009 (which includes the impacts of the American 

Reinvestment and Recovery Act of February 2009) to estimate the electricity prices for 2008. 

DOE multiplies the electricity price in 2007 by the ratio of the April 2009 AEO2009-estimated 

residential, commercial, or industrial prices for 2008 and 2007. 

Table 8.2.7 Electricity Prices by Census Division, 2008 

Electricity Prices,* 2008 

Census Division Residential Commercial Industrial 

2008$/kWh 2008$/kWh 2008$/kWh

New England $0.177 $0.159 $0.135 

Middle Atlantic $0.130 $0.115 $0.084 

East North Central $0.105 $0.095 $0.069 

West North Central $0.090 $0.078 $0.081 

South Atlantic $0.101 $0.088 $0.070 

East South Central $0.089 $0.089 $0.074 

West South Central $0.095 $0.088 $0.072 

Mountain $0.099 $0.087 $0.065 

Pacific $0.101 $0.098 $0.063 

New York State $0.189 $0.175 $0.108 

California $0.153 $0.141 $0.114 

Texas $0.131 $0.123 $0.108 

Florida $0.119 $0.105 $0.097 

U.S. Weighted Average $0.119 $0.108 $0.088 

* DOE converts dollars to 2008$ by multiplying costs in 2007$ by the ratio of 2008 CPI (215.303) to 2007 CPI 

(207.342). DOE converts the price for 2007 to the price in 2008 by multiplying the 2007 price by the ratio of the 

average AEO electricity price in 2008 to the average AEO electricity price in 2007.

8.2.3.4 Electricity Price Trend 

The electricity price trend projects the future cost of electricity to 2030. DOE normally 

calculates the LCC and PBP using three separate projections from AEO: reference, low 

economic growth, and high economic growth. The high and low growth cases show the 

projected effects of alternative economic growth assumptions on energy markets. Together, 

these three cases reflect the uncertainty of electricity price trends in the forecast period. The 

April 2009 AEO2009, featuring the impacts of the American Reinvestment and Recovery Act of 

February 2009 (ARRA), was the most recent AEO available at the time of this rulemaking. This 

AEO2009 contained only the reference-case economic growth projection, however. In order to 

develop high-economic-growth and low-economic-growth cases for the LCC and PBP analysis, 

DOE obtained the differences between the reference case and the high- and low-economicgrowth cases in the March 2009 AEO2009, xii which includes all three cases and does not include 

8-13
the impacts of ARRA. DOE then utilized these differences as scaling factors to generate highand low-economic-growth cases based on the April 2009 AEO2009 reference case. 

DOE normalizes these three April 2009 AEO2009 scenarios to the 2008 electricity price, 

and then utilizes the electricity price trends to scale the 2008 electricity prices. Figure 8.2.1

through Figure 8.2.3 show the residential, commercial, and industrial electricity price trends, 

respectively, based on the three April 2009 AEO2009 projections. The LCC results presented in 

this chapter are based on the April 2009 AEO2009 reference case. Appendix 8B contains LCC 

results based on the high- and low-economic growth cases. 

0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

1.20

2005 2010 2015 2020 2025 2030 2035

Price Trend (2008=1)

Year

High Growth

Reference

Low Growth

Figure 8.2.1 Residential Sector Electricity Price Trend 

8-14
0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

1.20

2005 2010 2015 2020 2025 2030 2035

Price Trend (2008=1)

Year

High Growth

Reference

Low Growth

Figure 8.2.2 Commercial Sector Electricity Price Trend 

8-15
0.80

0.85

0.90

0.95

1.00

1.05

1.10

1.15

1.20

2005 2010 2015 2020 2025 2030 2035

Price Trend (2008=1)

Year

High Growth

Reference

Low Growth

Figure 8.2.3 Industrial Sector Electricity Price Trend 

In the LCC spreadsheet, these electricity price trends are used to project electricity prices 

into the future, which are then multiplied by the annual energy usage. The resulting operating 

costs are presented in both the LCC spreadsheets and the LCC results tables in this chapter. 

8.2.4 Lifetime 

DOE defines lifetime as the age in hours in operation when a lamp or ballast is retired 

from service. DOE uses published manufacturing literature when available to derive lamp 

lifetimes. When published manufacturing literature on lamp lifetime is not available, DOE 

derives lamp lifetimes in the engineering analysis (Chapter 5). For GSFL, DOE bases its 

calculation of lamp lifetimes for both base- and standards-case lamps on 3-hour start data. 

Like the calculation of relamping costs, DOE averages the group versus spot relamping 

impact on lifetime by their percent occurrence for GSFL in the commercial and residential 

sectors. (DOE assumes that residential-sector consumers replace their lamps either when they 

fail or when the associated fixture is removed; thus, there are no spot or group relamping lifetime 

impacts on residential-sector GSFL. See section 8.2.8 for further details on residential-sector 

GSFL consumer behavior.) DOE assumes that a lamp subject to group re-lamping practices 

operates for 75 percent of its rated life. This is because during group relamping, a collection of 

lamps that are near the end of their lives are removed and replaced at once, as a way of avoiding 

the failure of any individual lamp in the collection. Thus, some lamps in the collection will still 

have life remaining even though they are being replaced. DOE obtained the 75-percent estimate 

from the 2000 Ballast Rule. DOE then applies this life impact factor to the rated lifetimes from 

the manufacturing literature for the GSFL it is analyzing. For 4-foot medium bipin lamps and 4-

foot miniature bipin lamps, the average lifetime DOE uses in the analysis is 94 percent of the 

8-16
rated lifetime. For 8-foot single pin slimline lamps, the average lifetime is 91 percent of the 

rated lifetime. For 8-foot recessed double contact HO lamps, the average lifetime is 92 percent 

of the rated lifetime. DOE does not assume an impact on lifetime due to group relamping for 

IRL. 

As discussed in the technology assessment (Chapter 3), many technology options to 

improve GSFL and IRL efficiencies affect the lifetime of the lamp. For this reason, the baseline 

and standard level designs for the LCC and PBP analyses have a wide range of lifetimes. 

 For ballasts in the commercial and industrial sectors, DOE uses the average ballast 

lifetime used in the 2000 Ballast Rule (49,054 hrs). Using DOE’s estimate of 49,054 hours and 

average operating hours for GSFL in the commercial sector, the lifetime of an average ballast is 

approximately 14.2 years. This lifetime is consistent with a study on the “measure life” of 

ballasts (i.e., the true service life of a ballast in the field), which found that the average ballast 

lifetime after a retrofit in the commercial sector is 13 years, and the average ballast lifetime after 

new construction is 15 years.xiii DOE found in a separate measure life report that the average 

fixture and ballast in the residential sector lasts for 15 years, as discussed in section 8.2.3.1. 

Therefore, in its residential sector analysis for GSFL, DOE established 15 years as the average 

ballast lifetime in the residential sector, regardless of operating hours.xiv This is equivalent to, 

11,865 hours at average operating hours of 791 hours per year, and 18,150 hours at high 

operating hours of 1,210 hours per year. 

8.2.5 Replacement Cost 

As stated earlier, the lifetime is the age (total hours in operation) at which the lamp or 

components of a lamp system are retired from service. The lifetime paired with the operating 

hours yields the service life of the lamp in years. Replacement costs include the labor and 

materials costs associated with replacing a lamp or ballast if either component must be replaced 

during the analysis period. By using the service life and replacement cost, DOE calculates the 

total replacement cost each year. 

Replacement costs are the labor and materials costs associated with replacing a lamp or 

ballast at the end of its lifetime. Because the lifetimes of GSFL and IRL lamp designs vary 

within each of their respective product classes, it is at times necessary to replace a lamp within 

the analysis period. Generally, if the analysis period is greater than the lamp service lifetime for 

a particular baseline or standard level design, those lamps will require replacement to reach the 

end of the analytical period. Each year in which a lamp reaches the end of its life, a new lamp is 

purchased and installed at the beginning of that year, and the first cost and installation cost are 

discounted back to the base year of the analysis period. Certain residential-sector GSFL 

consumers must also replace a ballast in the middle of the analysis period. See section 8.2.8 for 

further details on these consumers. For IRL in all sectors, because there is no ballast in the 

analysis, the replacement cost is solely the total installed cost of the lamp itself. During years in 

which replacement of a lamp or ballast is necessary, DOE based the replacement costs on the 

total installed cost inputs, as seen in the following equation: 

L TAX L

L L

PRICE MU INST

FPPRC INST



  Eq. 8.5

8-17
where 

RC = replacement cost in 2008 dollars, 

FPPL = final product price (price for the product only) in 2008 dollars, 

INSTL = installation cost in 2008 dollars, 

PRICEL = end-user product price in 2008 dollars, and 

MUTAX = sales tax.

For the years when no replacement is necessary, the replacement costs are set to zero. 

8.2.6 Disposal Cost 

When a GSFL fails, some consumers choose to recycle the lamp. The cost of recycling 

the GSFL is its disposal cost. DOE performed research on recycling costs for GSFL and found 

that, on average, disposing of a GSFL costs about 10 cents per linear foot.xv A report released by 

the Association of Lighting and Mercury Recyclers in 2004 noted that approximately 30% of 

lamps used by businesses and 2 percent of lamps in the residential sector are recycled.xvi 

Because a relatively large percentage of consumers recycle lamps in the commercial and 

industrial sectors, DOE applies a cost of 10 cents per linear foot in 2008$ every time a lamp is 

replaced during the LCC analysis period. For 4-foot lamps, the disposal cost is thus $0.40 per 

lamp in 2008$ while for 8-foot lamps, the disposal cost is thus $0.80 per lamp in 2008$. The 

disposal cost also impacts the residual value of lamps that operate beyond the end of the analysis 

period (described in 8.2.11). In the Monte Carlo analysis, DOE assumes that commercial and 

industrial consumers pay recycling costs for approximately 30% of lamp failures. Because few 

residential sector consumers recycle lamps, DOE does not apply the disposal costs to this sector. 

Disposal costs are also not applied to the LCC analysis for IRL in any sector because consumers 

do not pay for their disposal. 

8.2.7 Analysis Period 

The analysis period is the time span over which the LCC is calculated. To account for 

variability in lifetime of lamp designs, DOE develops a consistent analytical time 

periodcomparing more-efficacious lamps against a baseline lamp over the lifetime of the 

longest-lived baseline lamp in a particular product class. When this analysis period is shorter 

than the lifetime of the replacement lamp, DOE accounts for the remaining life of the 

replacement lamp as a residual value. When the analysis period is longer than the lifetime of the 

replacement lamp, a second replacement lamp is installed, and if any operating life of that 

second replacement lamp remains at the end of the analysis period, then its residual value is 

added back into the LCC. By using the annual operating hours paired with published lamp 

lifetimes, DOE calculates the lamp service lifetime in years. 

For the IRL and the commercial and industrial sector GSFL LCC analyses, DOE bases 

the analysis period on the longest baseline lamp life in a certain product class divided by the 

annual operating hours of that lamp. If the user chooses to run the LCC using weighted-average 

values (i.e., in “sample calculation” mode), then the analysis period is based on the longest 

baseline lamp life divided by the average annual operating hours for that lamp in a chosen sector, 

or a multiple thereof. For example, the longest-lived baseline IRL is 3,000 hours. If the user 

8-18
chooses to analyze this lamp in the commercial sector, then the analysis period is the lamp 

lifetime of 3,000 hours divided by the average annual operating hours of IRL in the commercial 

sector (3,450 hours per year), or 0.9 years. To allow users to compare the cost of IRL over 

multiple lamp lifetimes, one can select a multiple of this analysis period (i.e., 1.8, 2.7, or 3.6 

years). If the user chooses to run the LCC using the Monte Carlo simulation (i.e., in “Crystal 

Ball” mode), the analysis period is based on the longest baseline lamp life divided by the annual 

operating hours chosen by Crystal Ball®. For example, if Crystal Ball® selects a building that is 

used for religious worship, the analysis period for IRL for that selection will be based on a lamp 

lifetime of 3,000 hours divided by the annual operating hours of IRL in a building used for 

religious worship (1,609 hours per year), or 1.9 years. Users cannot select a multiple of this 

analysis period when using the Monte Carlo simulation. 

8.2.8 Residential GSFL Analysis 

As described in section 8.2.4, the average useful lifetime of ballasts in the residential 

sector is approximately 15 years, regardless of operating hours.xvii When operated for the 

residential-sector high operating hours value of 1,210 hours per year, the baseline GSFL (which 

has a lifetime of 15,000 hours) has a rated lifetime equivalent to approximately 12.4 years. 

When operated for average operating hours, however, the baseline lamp has a rated lifetime 

equivalent to approximately 19 years, which is greater than the 15-year ballast life. Thus, DOE 

assumes two types of GSFL consumer behavior in the residential sector. In the first kind of 

consumer behavior, consumers dispose of their lamps when replacing a ballast, regardless of 

how much lifetime the lamps have remaining. Because a lamp failure for these consumers would 

not occur under average operating hours of 791 hours per year (as the fixture would be removed 

before the lamp would reach the end of its rated life), DOE uses only high operating hours in the 

lamp failure event for these consumers. DOE selected the highest operating hours in the LMC 

for GSFL in order to represent the best possible LCC savings these consumers could obtain when 

replacing a failed lamp. 

In the second kind of consumer behavior, residential-sector GSFL consumers preserve 

their lamps when replacing a fixture, then install the lamps on the new fixture. This allows the 

lamps to live for their entire rated lifetimes in situations of average operating hours, and DOE is 

thus able to model a lamp failure event for average operating hours. 

For the residential-sector GSFL LCC analysis, DOE thus uses the useful life of a baseline 

lamp for a specific event. Because the fixed fixture life of 15 years limits the useful life of a 

lamp when operated for average operating hours by consumers who do not preserve their lamps, 

DOE uses a different analysis period for the lamp replacement event than that used for the ballast 

failure and new construction and renovation events when modeling consumers who do not 

preserve their lamps. When using the highest GSFL operating hours in the residential sector, the 

lifetime of the baseline lamp is approximately 12.4 years. When this lamp fails and is replaced 

at the 12.4-year mark, triggering the beginning of the LCC analysis period, the ballast has 

another 2.6 years of life remaining. Therefore, for GSFL in the residential sector operated at high 

operating hours by consumers who do not preserve their lamps, the longest useful life of the 

baseline replacement lamp is 2.6 years or 3,146 operating hours. At the end of this lifetime, the 

ballast is removed and the lamps are disposed of. For the lamp replacement event in the 

8-19
residential sector for consumers who do not preserve their lamps, the analysis period is therefore 

2.6 years. 

For the ballast failure and new construction and renovation events in the residential 

sector, DOE uses average operating hours only and assumes that a consumer will purchase a new 

lamp when purchasing a ballast. DOE models only non-lamp-preserving consumers for the 

ballast failure and new construction and renovation events in order to obtain a lower bound of 

LCC savings. Because the lamp lifetime exceeds the ballast lifetime when under average 

operating hours conditions, DOE assumes that the ballast lifetime of 15 years limits the lamp 

lifetime. Therefore for GSFL in the residential sector, the useful life of the baseline lamp and 

therefore the analysis period is 15 years for the ballast failure and new construction and 

renovation events. 

Residential-sector GSFL consumers who exhibit lamp-preserving behavior are able to 

realize the full rated lifetime of their lamps even when utilizing average operating hours. At 

average operating hours (791 hours per year), the full lifetime of the baseline lamp is 19 years. 

Thus, DOE models the lamp failure event at average operating hours and utilizes 19 years as the 

analysis periods for consumers who preserve their lamps. DOE assumes that when a ballast is 

removed in the middle of the analysis period, these consumers preserve their lamps, purchase a 

new ballast of the same type as the initial ballast, and then have the new ballast installed with the 

preserved lamps (incurring a lamp-and-ballast system installation cost). 

8.2.9 Discount Rate 

The discount rate is the rate at which DOE discounts future expenditures to establish their 

present values. DOE derives the discount rates for the lamps rulemaking separately for 

residential and commercial/industrial consumers. For residential consumers, DOE estimates the 

discount rate by looking across all possible debt or asset classes that might be used to purchase 

lamps. For the commercial and industrial consumers, DOE estimates the cost of capital for 

commercial and industrial companies by examining both debt and equity capital, and develops an 

appropriately weighted average of the cost to the company of equity and debt financing. 

8.2.9.1 Residential Discount Rate 

GSFL and IRL are comparatively low-cost products for households to replace. With 

retail prices under one dollar for certain lamp types, households typically purchase lamps as 

needed. DOE’s approach involves identifying all possible debt or asset classes that might be 

used to purchase replacement equipment, including household assets that might be affected 

indirectly.1

 DOE does not include debt from primary mortgages and equity of assets considered 

non-liquid (such as retirement accounts), since these would likely not be used to finance 

replacement lamp purchases. DOE estimated the average shares of the various debt and equity 

classes in the average U.S. household equity and debt portfolios using data from the Federal 

 

1 An indirect effect would arise if a household sold assets to pay off a loan or credit card debt that might have been 

used to finance the actual lamp purchase. 

8-20
Reserve Board’s Survey of Consumer Finances (SCF) for 1989, 1992, 1995, 1998, 2001, 2004, 

and 2007.xviii Table 8.2.8 shows the average shares of each considered class. DOE uses the 

mean share of each class across the six survey years (15 years) as the basis for estimating 

household financing of lamps and lighting equipment. 

Table 8.2.8 Average Percentage Shares of Household Debt and Equity Types 

Type 

1989 

SCF 

1992 

SCF 

1995 

SCF 

1998 

SCF 

2001 

SCF 

2004 

SCF 

2007 

SCF 

Mean 

(%) 

Home equity loans 4.3 4.5 2.7 2.8 2.8 4.4 4.6% 3.7% 

Credit cards 1.6 2.1 2.6 2.2 1.7 2.0 2.4% 2.1% 

Other installment loans 2.8 1.7 1.4 1.7 1.1 1.3 1.1% 1.6% 

Other residential loans 4.4 6.9 5.2 4.3 3.1 5.8 7.1% 5.3% 

Other line of credit 1.1 0.6 0.4 0.2 0.3 0.5 0.3% 0.5% 

Checking accounts 5.8 4.7 4.9 3.9 3.6 4.2 3.4% 4.4% 

Savings & money market 19.2 18.8 14.0 12.8 14.2 15.1 13.0% 15.3% 

Certificate of deposit (CD) 14.5 11.7 9.4 7.0 5.4 5.9 6.5% 8.6% 

Savings bond 2.2 1.7 2.2 1.1 1.2 0.9 0.7% 1.4% 

Bonds 13.8 12.3 10.5 7.0 7.9 8.4 6.7% 9.5% 

Stocks 22.4 24.0 25.9 36.9 37.5 28.0 28.6% 29.0% 

Mutual funds 8.0 11.1 20.9 20.1 21.3 23.4 25.5% 18.6% 

Total 100 100 100 100 100 100 100 100 

 DOE estimated interest or return rates associated with each type of equity and debt. The 

data source for the interest rates for loans, credit cards, and lines of credit is the Federal Reserve 

Board’s SCF in 1989, 1992, 1995, 1998, 2001, 2004, and 2007. The top half of Table 8.2.9

shows the average nominal interest rates in each year and the inflation rates used to calculate real 

rates. For home equity loans, DOE calculates effective interest rates in a similar manner as for 

mortgage rates, since interest on such loans is tax deductible. The bottom half of the table shows 

the average effective real interest rates in each year and the mean rate across all the years. Since 

the interest rates for each debt carried by households in these years were established over a range 

of time, DOE believes they are representative of rates that may apply when amended standards 

take effect. 

8-21
Table 8.2.9 Average Nominal and Real Interest Rates for Household Debt Classes 

Type 

1989 

SCF 

1992 

SCF 

1995 

SCF 

1998 

SCF 

2001 

SCF 

2004 

SCF 

2007 

SCF 

Mean 

(%)

Nominal Interest Rates %

Home Equity Loans 11.5 9.6 9.6 9.8 8.7 5.7 6.3% 7.9%

Credit Cards* - - 14.2 14.5 14.2 11.7 7.9% 9.0%

Other Installment Loans 9.0 7.8 9.3 7.8 8.7 7.4 12.6% 13.4%

Other Residential Loans 8.8 7.6 7.7 7.7 7.5 6.0 10.4% 8.6%

Other Line of Credit 14.8 12.7 12.4 11.9 14.7 8.8 6.3% 7.4%

Inflation rate 4.82 3.01 2.83 1.56 2.85 2.66 2.85

Real Interest Rates %

Home Equity Loans 3.8 4.3 4.4 5.8 3.8 1.9 2.1% 3.0%

Credit Cards* - - 11.0 12.7 11.1 9.1 3.3% 3.9%

Other Installment Loans 4.9 5.8 7.0 6.6 6.1 5.4 9.7% 10.7%

Other Residential Loans 4.0 4.7 4.8 6.0 4.6 3.3 5.8% 6.0%

Other Line of Credit 9.6 9.4 9.3 10.2 7.3 6.0 3.4% 4.4%

* No interest rate data available for credit cards in 1989 or 1992. 

 To account for variation among new households, DOE samples a rate for each household 

from a distribution of rates for each of the above debt classes. DOE develops a probability 

distribution of interest rates for each debt class based on the SCF data. Appendix 8C presents the 

probability distribution of interest rates for each debt class that DOE used in the LCC and PBP 

analyses. 

 Similar rate data are not available from the SCF for the asset classes, so DOE derives 

data for these classes from national historical data. The interest rates associated with certificates 

of deposit (CDs), xix savings bonds,xx and bonds (AAA corporate bonds) xxi are from Federal 

Reserve Board time-series data 1977-2008. DOE assumes rates on checking accounts to be zero. 

Rates on savings and money market accounts are from Cost of Savings Index data covering 

1984-2008.xxii The rates for stocks are the annual returns on the Standard and Poor’s (S&P) 500 

1977-2008.xxiii The mutual fund rates are a weighted average of the stock rates (two-thirds 

weight) and the bond rates (one-third weight) in each year from 1977 to 2008. DOE adjusts the 

nominal rates to real rates using the annual inflation rate in each year. Average nominal and real 

interest rates for the classes of assets are shown in Table 8.2.10. Since the interest and return 

rates for each asset type cover a range of time, DOE believes they are representative of rates that 

may apply when amended standards take effect. . 

8-22
Table 8.2.10 Average Nominal and Real Interest Rates for Household Equity Types 

Type Average Nominal Rate % Average Real Rate %

Checking Accounts - 0.0

Savings and Money Market 5.4 2.2 

CDs 6.6 2.3 

Savings Bonds 7.7 3.3 

Bonds 8.5 4.1

Stocks 11.6 7.1 

Mutual Funds 10.3 5.8 

 To account for variation among new households, DOE samples a rate for each household 

from a distribution of rates for each of the above asset types. DOE develops a normal probability 

distribution of interest rates for each asset type by using the mean value and standard deviation 

from the distribution. Appendix 8C presents the probability distribution of interest rates for each 

asset type that DOE used in the LCC and PBP analysis. 

Table 8.2.11 summarizes the mean real effective rates of each type of equity or debt. 

DOE determines the average share of each debt and asset using SCF data for 1989, 1992, 1995, 

1998, 2001, 2004, and 2007. Each year of SCF data provides the debt and asset shares for U.S. 

households. DOE averages the debt and asset shares over the six years of survey data to arrive at 

the shares shown below. The average rate across all types of household debt and equity, 

weighted by the shares of each class, is 4.8 percent. 

Table 8.2.11 Shares and Interest or Return Rates Used for Household Debt and Equity 

Types 

Type 

Average Share of Household 

Debt Plus Equity

%* Mean Effective Real Rate %**

Home Equity Loans 3.7 3.9 

Credit Cards 2.1 10.7 

Other Installment Loans 1.6 6.0 

Other Residential Loans 5.3 4.4 

Other Line of Credit 0.5 8.8 

Checking Accounts 4.4 0.0 

Savings and Money Market Accounts 15.3 2.2 

CDs 8.6 2.3 

Savings Bonds 1.4 3.3 

Bonds 9.5 4.1 

Stocks 29.0 7.1 

Mutual Funds 18.6 5.8 

Total/Weighted-Average Discount Rate 100 4.8

* Not including primary mortgage or retirement accounts. 

** Adjusted for inflation and, for home equity loans, loan interest tax deduction. 

8-23
8.2.9.2 Commercial Discount Rate 

Most companies use both debt and equity capital to fund investments; for most 

companies, therefore, the cost of capital is the weighted average of the cost to the firm of equity 

and debt financing.xxiv 

DOE estimates the cost of equity financing using the Capital Asset Pricing Model 

(CAPM). The CAPM, among the most widely used models to estimate the cost of equity 

financing, assumes that the cost of equity is proportional to the amount of systematic risk 

associated with a firm. For example, the cost of equity financing tends to be high when a firm 

faces a large degree of systematic risk, and the cost tends to be low when the firm faces a small 

degree of systematic risk. 

The degree of systematic risk facing a firm and the subsequent cost of equity financing 

are determined by several variables, including the risk coefficient of a firm (beta, or B), the 

expected return on risk-free assets (Rf), and the additional return expected on assets facing 

average market risk (known as the equity risk premium, or ERP). The beta indicates the degree 

of risk associated with a given firm, relative to the level of risk (or price variability) in the 

overall stock market. Betas usually vary between 0.5 and 2.0. A firm with a beta of 0.5 faces 

half the risk of other stocks in the market; a firm with a beta of 2.0 faces twice the overall stock 

market risk. 

Following this approach, the cost of equity financing for a particular company is by the 

equation: 

 Rk  ERP  fe    Eq. 8.6

where 

 ke = the cost of equity for a company, expressed in dollars,

 Rf = the expected return of the risk free asset, expressed in dollars, 

β = the risk coefficient, and 

 ERP = the expected equity risk premium, expressed in dollars. 

The cost of debt financing (kd) is the yield or interest rate paid on money borrowed by a 

company (raised, for example, by selling bonds). As defined here, the cost of debt includes 

compensation for default risk and excludes deductions for taxes. 

DOE estimates the cost of debt for companies by adding a risk adjustment factor to the 

current yield on long-term corporate bonds (the risk-free rate). This procedure is used to 

estimate current and future company costs to obtain debt financing. The adjustment factor is 

based on indicators of company risk, such as credit rating or variability of stock returns. 

The discount rate of companies is the weighted average cost of debt and equity financing, 

less expected inflation. DOE estimates the discount rate using the equation: 

8-24
     wkwkk ddee Eq. 8.7

where 

 k = the (nominal) cost of capital, 

 ke and kd = the expected rates of return on equity and debt, 

 respectively, and 

 we and wd = the proportion of equity and debt financing, respectively. 

The real discount rate deducts expected inflation from the nominal rate. 

The expected return on risk-free assets, or the risk-free rate, is defined by the current 

yield on long-term (20-year) Government bonds, as suggested by Ibbotson’s Associatesxxv and 

Damodaran.xxvi The ERP represents the difference between the expected (average) stock market 

return and the risk-free rate. As Table 8.2.12 shows, DOE uses an ERP estimate of 5.1 percent, 

which it took from the Damodaran Online site (a private website associated with New York 

University’s Stern School of Business, which aggregates information on corporate finance, 

investment, and valuation).xxvii

DOE calculates an expected inflation of 3.1 percent from the average of five quarters’ 

change in GDP prices.xxviii DOE obtained the cost of debt, percent debt financing, and 

systematic firm risk from the Damodaran Online website. Table 8.2.12 shows average values 

across all private companies. However, the cost of debt, percent debt financing, and systematic 

firm risk vary by sector. 

Table 8.2.12 Variables Used to Estimate Company Discount Rates 

Variable Symbol Average 

Value 

% 

Source 

Risk-Free Asset Return Rf 7.3 Damodaran Online 

Equity Risk Premium ERP 5.6 Damodaran Online 

Expected Inflation R 3.1 U.S. Bureau of Economic Analysis 

Cost of Debt (After Tax) kd 6.9 Damodaran Online 

Percent Debt Financing wd 25.6 Damodaran Online 

Systematic Firm Risk B 1.02 Damodaran Online 

In the commercial building sector, lamps are purchased and owned by commercial 

building property owners, commercial companies, industrial companies and the Government. 

DOE uses a sample of 4,207 companies drawn from these owner categories to represent lamp 

purchasers. It took the sample from the list of companies included in the Value Line investment 

surveyxxix and listed on the Damodaran Online website. DOE obtained the cost of debt, the firm 

beta, the percent of debt and equity financing, the risk-free return, and the equity risk premium 

from Damodaran Online. 

DOE estimates the cost of debt financing for these companies from the long-term 

Government bond rate and the standard deviation of the stock price. For Government-officetype owners, the discount rate represents an average of the Federal rate and the State and local 

bond rate. DOE drew the Federal rate directly from the U.S. Office of Management and Budget 

8-25
discount rate for investments in Government building energy efficiency.xxx DOE estimates the 

State and local discount rate from the interest rate on State and local bonds between 1977 and 

2001.xxxi DOE uses this information to estimate the weighted-average cost of capital for the 

sample of companies included in the commercial property owner, commercial, and industrial 

company database. 

The cost of capital may be viewed as the discount rate that should be used to reduce the 

future value of typical company project cash flows. It is a nominal discount rate, since 

anticipated future inflation is included in both stock and bond expected returns. Deducting 

expected inflation from the cost of capital provides estimates of the real discount rate by 

ownership category (see Table 8.2.13). The mean real discount rate for these companies varies 

between 2.3 percent (Government offices) and 8.3 percent (industrial companies). 

Table 8.2.13 Real Discount Rates by Lamp Ownership Category

Ownership Category SIC 

Codes* 

Mean Real 

Discount Rate 

% 

Standard 

Deviation 

% 

Number of 

Observations 

Industrial Companies 1 - 4 7.6 2.3 1942 

Commercial Companies 5 - 8 8.3 2.4 2339 

Commercial Property Owners 6720 6.3 2.0 7 

Government Offices N/A 2.3 1.1 N/A 

* SIC Codes refer to the U.S. Standard Industrial Classification system. 

Source: Lawrence Berkeley National Laboratory (LBNL) calculations based on firms sampled from the Damodaran 

Online website as performed for the distribution transformers rulemaking. 

DOE’s approach for estimating the cost of capital provides a measure of the discount rate 

spread as well as the average discount rate. DOE infers the discount rate spread by ownership 

category from the standard deviation, which ranges between 1.1 percent and 2.4 percent (Table 

8.2.13). 

 Different combinations of commercial property owners and commercial, industrial, and 

Government buyers purchase the lamp types considered in the LCC analysis. Accordingly, DOE 

constructs the discount rates associated with each building sector from different combinations of 

commercial property owner, commercial, industrial, and Government rates. 

 To estimate the share of each ownership category in total commercial sector purchases of 

lamps, DOE uses the share of each category in total commercial building square footage with 

lighting provided by EIA’s 2003 CBECS. Table 8.2.14 presents the estimated shares of 

commercial lamp purchases by ownership category of commercial building space. 

8-26
Table 8.2.14 Estimated Share of Lamp Purchases by Ownership Category in the 

Commercial Sector 

Ownership Category Percent 

Property Owners and Managers 22.3 

Industrial Firms 10.1 

Commercial Firms 54.8 

Government 12.8 

Source: 2003 CBECS. 

* The share of total square footage occupied by property owners is actually 44.6%. However, in some of these 

buildings, the tenants purchase lamps. DOE assumes that this is the case for half of the square footage occupied by 

property owners. DOE allocates this quantity among the other categories in proportion to their shares of total square 

footage. 

Table 8.2.15 presents the distribution of lamp ownership for the commercial and 

industrial lighting sectors. 

Table 8.2.15 Lamp Ownership by Sector 

Sources: Commercial, CBECS; Industrial, DOE estimate. 

Sector Property Owners 

% 

Industrial 

Companies

% 

Commercial 

Companies 

% 

Government 

% 

Industrial 0 100 0 0 

Commercial 22.3 10.1 54.8 12.8 

DOE estimates discount rate distributions for the different sectors as a weighted average 

of the distributions for the different ownership types. The resulting weighted average discount 

rates are 7.6 percent for the industrial sector and 7.0 percent for the commercial sector. Table 

8.2.16 summarizes the weighted average discount rates in all three sectors. 

Table 8.2.16 Average Discount Rate by Sector 

Sector Discount Rate 

% 

Industrial 7.6 

Commercial 7.0 

Residential 4.8 

8.2.10 Effective Date of Standard 

The effective date is the date when a new standard becomes operative, i.e., the date by 

which lamp manufacturers must manufacture products that comply with the standard. DOE’s 

publication of a final rule in this standards rulemaking is scheduled for completion in June 2009. 

The effective date of any new energy conservation standards for these lamps must be 3 years 

after the final rule is published, (42 U.S.C. 6295(i)(3) and (i)(5)), which will be June 2012. DOE 

calculates the LCCs for all consumers as if each would purchase a new product in the year the 

standard takes effect. However, DOE bases the cost of the equipment on the most recent 

available data; all dollar values are expressed in 2008$. 

8-27
8.2.11 Residual Value 

The residual value represents the remaining value of a lamp or a ballast from the end of 

the period of analysis to the end of the service life of the lamp or ballast. Since the analysis 

period is based on the lifetime of the longest-lived baseline lamp, DOE assumes lamps with 

lifetimes shorter than the analysis period are replaced. To account for the remaining value of 

these lamps (with remaining life) to the consumer, the LCC model applies this residual value as a 

“credit” at the end of the analysis period, and discounts it back to the start of the analysis period. 

This methodology is shown in Equation 8.1, where DOE presents how it incorporates residual 

value into its LCC calculation. The equation for residual value is as follows: 

   



























 SL

SLnP

DC

SL

SLnPSL

ICRV Analysis Analysis  )( 

 

Eq. 8.8

where 

IC = total installed cost of the product, 

n = the number of replacements within the analysis period, 

SL = the service life of the product, 

DC = disposal cost (commercial and industrial sectors only), and 

PAnalysis = the analysis period. 

DOE determines the residual value of the product by linearly prorating the replacement 

cost (i.e., total installed cost) and the disposal cost by the remaining service life. For example, 

consider a $10 4-foot GSFL that has a service life of 5 years and a disposal cost of $0.40 and is 

used to replace a baseline lamp that has a service life of 3 years in the commercial sector. Since 

the baseline lamp defines the analysis period, DOE would calculate the residual value of the 

lamp design as (2 5) x $10 + (3 5) x $0.40, or $4.24. Thus, the residual value in equation 8.8 

would be $4.24, and that value would be discounted back to the start of the time period of 

analysis. This equation is used for both lamps and ballasts installed by consumers. 

8.3 PAYBACK PERIOD INPUTS 

8.3.1 Definition 

The PBP is the amount of 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 take into account changes in 

operating cost over time or the time value of money. That is, the calculation is done at an 

effective discount rate of zero percent. 

8-28
The equation for PBP is: 

OC

IC PBP



  Eq. 8.9

where 

PBP = payback period in years,

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

standard level; equipment (efficacy levels 1, 2, etc.) and the 

baseline (efficacy level 0) equipment, and 

∆OC = difference in annual operating costs. 

PBPs are expressed in years. PBPs greater than the life of the product mean that the 

increased total installed cost of the more-efficacious product is not recovered in reduced 

operating costs over the lifetime of that product. Because all lamp designs and lamp-and-ballast 

designs in the LCC and PBP analyses save energy and thus yield a positive ∆OC, PBPs that are 

zero indicate that the total installed cost of the equipment that meets the more-efficacious EL is 

less than that of the baseline. 

8.3.2 Rebuttable Presumption Payback Period 

 Section 325(o)(2)(B)(iii) of EPCA establishes a rebuttable presumption that a standard 

for GSFL or IRL is economically justified if the Secretary finds that “the additional cost to the 

consumer of purchasing a product complying with an energy conservation standard level will be 

less than three times the value of the energy. . . savings during the first year that the consumer 

will receive as a result of the standard, as calculated under the applicable test procedure . . . .” 

(42 U.S.C. 6295(o)(2)(B)(iii)) This rebuttable presumption test is an alternative path to 

establishing economic justification, as compared to consideration of the seven factors set forth in 

42 U.S.C. 6295(o)(2)(B)(i)(I)-(VII). 

DOE’s lamp test procedures measure the rate of light output per unit power consumption 

of a lamp (i.e., lumens per watt; lm/W) rather than a measurement of energy consumption (i.e., a 

measurement over a duration or operating time period). Therefore, to calculate energy savings 

for the rebuttable presumption payback period, one would need to multiply the rate of power 

consumption of a lamp times the usage profile of that lamp. For IRL, energy savings 

calculations in the LCC and PBP analyses use both the relevant test procedures as well as the 

relevant usage profile. Because DOE calculates payback periods in a methodology consistent 

with the rebuttable presumption test for IRL in the LCC and payback period analyses, DOE is 

not performing a stand-alone rebuttable presumption analysis for IRL, as it is already embodied 

in the LCC and PBP analyses. For GSFL, DOE believes that the rate of energy consumption of 

the lamp-and-ballast system is a more accurate measure of real world power consumption than 

the rate of power consumption of the lamp as measured on a reference ballast as prescribed by 

8-29
the test procedure.2

 Because calculations of energy savings in the LCC are based under realworld conditions, DOE will also rely on standard payback periods for GSFL. 

8.3.3 Inputs 

The data inputs to PBP are the total installed cost of the product to the customer for each 

EL and the first-year operating costs for each EL. The inputs to the total installed cost are the 

end-user product price and the installation cost incurred by a consumer at the very beginning of 

the analysis period. Thus, purchases and associated installation costs incurred by consumers in 

the middle of the analysis period are not reflected in the payback period computation. The inputs 

to the operating costs are the lamp or lamp-and-ballast system power rating, annual operating 

hours, and electricity cost. The PBP uses the same inputs as the LCC calculation described in 

section 8.2, except that electricity price trends are not required. Since the PBP is a “simple” 

(undiscounted) PBP, the required electricity cost is only for the year in which a new energy 

conservation standard is to take effect—in this case, 2012. The electricity price DOE uses in the 

PBP calculation for electricity cost is the price projected for 2012, expressed in 2008$. 

8.4 LAMP PURCHASING EVENTS 

DOE designs the LCC and PBP analyses for this rulemaking around scenarios where 

consumers need to replace a lamp; DOE collectively refers to these as “lamp purchasing events.” 

Each of these events may present the consumer with a different set of lamp or lamp-and-ballast 

designs and therefore a different set of LCC savings for a certain EL. For GSFL, DOE has 

identified five possible scenarios under which consumers would purchase a lamp and potentially 

be affected by an energy conservation standard. These scenarios are: 1) lamp failure, 2) 

standards-induced retrofit, 3) ballast failure, 4) ballast retrofit and 5) new construction/ 

renovation. 

 Only the lamp failure and new construction and renovation events apply for IRL since the 

IRL analyzed by DOE in this rulemaking do not have ballasts. For GSFL, the five lamp 

purchasing events are described in more detail below. In addition to these descriptions, Table 

8.4.1 and Table 8.4.2 summarize the lamp purchasing events considered in this analysis. 

 Event I: Lamp failure - This event reflects a scenario in which a lamp either fails (spot relamping) or is about to fail (group re-lamping, in the commercial and industrial sectors only) 

and must be replaced. DOE assumes that in the base case (the absence of an energy 

conservation standard), an identical lamp would be installed as a replacement. However, 

under an energy conservation standard, a standards-compliant lamp that operates on the 

existing ballast is required. Thus, the first consumer response to a lamp failure is expected to 

 

2

 For example, T8 lamps which are often operated on high-frequency electronic ballasts, may be tested and 

measured on a line-frequency (60 Hz) reference ballast using DOE’s test procedure, resulting in different 

performance characteristics than this lamp would exhibit in the field, operated on an electronic ballast. 

8-30
be a lamp replacement with the same type of lamp; DOE denotes this event as Event IA 

(Lamp Failure: Lamp Replacement). A second response occurs for owners of T12 systems. 

Unlike T8 or T5 lamps, there are some standard levels that a T12 lamp cannot meet. 

Therefore, at certain levels, these users would be required to purchase a new lamp-andballast system to meet the standard. DOE denotes this event as Event IB (Lamp Failure: 

Lamp and Ballast Replacement). At these certain levels, DOE believes the scenario of a 

lamp failure and lamp-and-ballast replacement would be more common in the residential 

sector. For the commercial and industrial sectors, DOE believes consumers would primarily 

experience the standards-induced retrofit event described below. 

 Event II: Standards-induced retrofit - This is a scenario in which an increase in the energy 

conservation standard induces certain commercial- and industrial-sector end-users of T12 

lamps to retrofit both lamps and ballasts before they experience a lamp failure (whereas, in 

the base case, they would have installed only a lamp after the failure of their initial lamp), as 

there are certain standard levels that a T12 lamp cannot meet. The standards-induced retrofit 

event does not apply to the residential sector because DOE assumes that residential-sector 

consumers will not replace their lamps before they fail, even in response to standards. DOE 

assumes a uniform age distribution of T12 lamps. Based on this age distribution, the average 

T12 lamp is halfway through its lifetime when the standards-case T12 consumer decides to 

perform a standards-induced retrofit (by purchasing a standards-compliant lamp-and-ballastsystem), triggering the start of the analysis period. Base-case consumers continue to operate 

their T12 lamp for the remaining half of its life and then purchase a replacement lamp in the 

middle of the analysis period. 

 Event III: Ballast failure - This is a scenario in which the failure of the installed ballast 

triggers a lamp and ballast purchase. DOE recognizes that energy conservation standards set 

by the 2000 Ballast Rule and the Energy Policy Act of 2005 (EPACT 2005), Pub. L. 109-58, 

are effective in 2010 and may affect the types of systems available to the consumer to 

purchase. These standards ban the sale of magnetic 4-foot medium bipin and 8-foot single 

pin slimline ballasts in the commercial and industrial sectors. Therefore, in the base case, 

users who had a magnetic or electronic T12 ballast would be expected to replace it with an 

electronic T12 ballast and corresponding standards-compliant lamp (if available). The 

regulations from the 2000 Ballast Rule, however, allow the continued sale of magnetic cold 

temperature ballasts, which operate a portion of the installed base of 8-foot T12 recessed 

double contact HO lamps. The 2000 Ballast Rule also includes exceptions for magnetic 

ballasts in the residential sector. Therefore, failed 8-foot recessed double contact HO ballasts 

as well as residential ballasts are expected to be replaced with magnetic ballasts or fixtures 

containing magnetic ballasts Users in all product classes who had a T8 or T5 ballast fail 

would be expected to replace it with a T8 or T5 ballast and corresponding standardscompliant lamp. However, in the standards case, end-users would select a standardscompliant lamp-ballast combination such that the system light output never drops below 10 

percent of the baseline system. 

 Event IV: Ballast retrofit - DOE applies this event only to commercial- and industrialsector T12 users because the majority of ballasts that are currently being retrofitted are T12 

lamp-and-ballast systems, according to industry experts. Absent standards, end-users may 

decide to retrofit their old ballasts and lamps to save energy. With standards, end-users will 

8-31
also retrofit their old lamp-and-ballast systems, but with standards-compliant lamps. DOE 

assumes that end-users continue to use the existing fixture and replace only the ballast. 

Because the spatial layout in the building space is a constrained by the number of fixtures, 

light output of the replacement lamp-and-ballast system never drops below 10 percent of the 

baseline system. 

 Event V: New construction and renovation - This lamp purchasing event encompasses all 

the new fixture installations where the lighting design will be completely new or can be 

completely changed. This scenario is only applicable to those baseline lamps that are usually 

used in new construction and renovation (4-foot T8 medium bipin lamps, 4-foot T5 miniature 

bipin SO and HO lamps in the commercial and industrial sectors (respectively), 8-foot single 

pin slimline T8 lamps, and 8-foot recessed double contact HO T12 lamps). DOE assumes 

that 4-foot T8 medium bipin lamps with electronic ballasts would be chosen during the new 

construction and renovation event for the 4-foot T12 medium bipin baseline in the residential 

sector. During new construction and renovation, the spatial layout of fixtures in the building 

space is not constrained to any previous configuration. Because new fixtures can be 

installed, consumers could install a lamp-and-ballast system that would not maintain the light 

output of the baseline system. For instance, if light output of the standards case system is 

lower than the base case system, consumers can increase the number of standards case lampand-ballast systems installed in the building by a certain percentage to maintain the light 

output of base case lamp-and-ballast systems. DOE takes this capability into account in the 

LCC and PBP analyses. 

Table 8.4.1 through Table 8.4.3 outline the events and actions taken by base-case and 

standards-case consumers in response to the five events described above. 

8-32
Table 8.4.1 Framework of Event-Type Scenarios for T12 Baseline Lamp Consumers 

Event Base-Case 

Action 

Standards-Case 

Action 

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

lamp such that the system light output never 

drops below 10 percent of the baseline 

system. 

Type 1. Lamp Failure 

(b) Installs a T12 lamp. Installs a T12 or T8 electronic ballast and 

lamp such that the system light output never 

drops below 10 percent of the baseline 

system. 

Type 2. StandardsInduced Retrofit** Replaces lamp halfway through analysis 

period in the commercial and industrial 

sectors.* 

Installs a new T12 or T8 electronic ballast 

and lamp such that the system light output 

never drops below 10 percent of the 

baseline system. 

Type 3. Ballast 

Failure 

Installs a T12 ballast and lamps in the 

existing fixture. HO ballasts and residential 

ballasts are magnetic, while other ballasts 

are electronic. 

Installs a new T12 or T8 ballast and lamps 

such that the system light output never 

drops below 10 percent of the baseline 

system. 

Type 4. Ballast 

Retrofit** 

Installs a T8 electronic ballast and lamps in 

the existing fixture. 

Installs a new T12 or T8 ballast and lamps 

such that the system light output never 

drops below 10 percent of the baseline 

system. 

Type 5. New 

Construction and 

Renovation 

For the 4-foot medium bipin and 8-foot 

single pin slimline product classes, installs a 

new electronic T8 system. For the 8-foot 

recessed double contact HO product class, 

installs a new magnetic T12 system. 

Installs a new T12 or T8 system such that 

the system light output never drops below 

10 percent of the baseline system. Light 

output can be maintained through alternate 

spacing. 

* Note: Event Type 2 represents a standards-induced retrofit, where lamps are substituted before the end of their 

lifetime in the commercial and industrial sectors. DOE assumes that lamps live to half of their average lifetime 

when substituted in the base case under this scenario. 

** Note 2: Only applicable to the commercial and industrial sectors. 

8-33
Table 8.4.2 Framework of Event-Type Scenarios for T8 Baseline Lamp Consumers 

Event Base Case Action Standards Case Action 

Type 1. Lamp Failure Installs a lamp. 

Installs a lower-wattage, higher-efficacy 

lamp such that the system light output never 

drops below 10 percent of the baseline 

system. 

Type 3. Ballast 

Failure 

Installs a T8 electronic ballast and lamps in 

the existing fixture. 

Installs new T8 ballast and lamps such that 

the system light output never drops below 

10 percent of the baseline system. 

Type 5. New 

Construction and 

Renovation 

Installs a new T8 system. 

Installs a new T8 system such that the 

system light output never drops below 10 

percent of the baseline system. Light output 

can be maintained through alternate 

spacing. 

Table 8.4.3 Framework of Event-Type Scenarios for T5 Baseline Lamp Consumers 

Event Base Case Action Standards Case Action 

Type 1. Lamp Failure Installs a lamp. 

Installs a lower-wattage, higher efficacy 

lamp such that the system light output never 

drops below 10 percent of the baseline 

system. 

Type 3. Ballast 

Failure 

Installs a T5 electronic ballast and lamps in 

the existing fixture. 

Installs a new T5 ballast and lamps such 

that the system light output never drops 

below 10 percent of the baseline system. 

Type 5. New 

Construction and 

Renovation 

Installs a new T5 system. 

Installs a new T5 system such that the 

system light output never drops below 10 

percent of the baseline system. Light output 

can be maintained through alternate 

spacing. 

8.5 LIFE-CYCLE COST AND PAYBACK PERIOD RESULTS 

This section presents LCC results for each lamp and lamp-and-ballast design that DOE 

considers. This section uses the terms “positive LCC savings” and “negative LCC savings.” 

When a standard results in “positive LCC savings,” the life-cycle cost of the standards-compliant 

lamp is less than the life-cycle cost of the baseline lamp and the consumer benefits. A consumer 

is adversely affected when a standard results in “negative LCC savings” (i.e., when the life-cycle 

cost of the standards-compliant lamp is higher than the life-cycle cost of the baseline lamp). 

As stated earlier, DOE conducts a series of LCC calculations for each baseline lamp. For 

GSFL, DOE considers lamp-only substitutions as well as lamp-and-ballast substitutions. For 

IRL, DOE considers lamp-only substitutions. In all cases, DOE considers only designs that save 

energy and maintain light output above a maximum 10 percent decrease from the baseline lamp 

or system. 

All replacement options are designed around lamp purchasing events, described in 

section 8.4. The LCC spreadsheet calculates the LCC impacts for each of these scenarios 

8-34
separately. Examining the impacts on each scenario separately allows one to view the results of 

many sub-populations in the LCC analysis. 

8.5.1 Results for General Service Fluorescent Lamps 

DOE is analyzing five representative product classes for GSFL: 4-foot medium bipin 

≤4,500K, 8-foot single pin slimline ≤4,500K, 8-foot recessed double contact HO ≤4,500K, 4-foot 

T5 miniature bipin standard output ≤ 4,500K, and 4-foot T5 miniature bipin high output ≤

4,500K. This section presents all of the results for each of these representative product classes 

and for each baseline lamp. The results are presented by lamp purchasing event, by sector, and 

by whether a consumer purchases a lamp or a lamp and ballast, both of which influence the LCC 

and PBP results. 

For each product class and baseline lamp, a summary of the most pertinent results in the 

LCC analysis is also presented. In this summary, DOE indicates why the LCC savings and 

installed price increases are not presented for certain ELs under certain baselines and events with 

an acronym. For instance, DOE assumed that consumers wish to purchase systems or lamp 

replacements with a lumen output within 10 percent of their baseline system output. In some 

cases, the only available replacement options produce less light than this. Thus, certain 

replacement options are considered unsuitable substitutions. These options are marked with 

“LL” (less light) in the LCC results summary tables. In some cases, when consumers who 

currently own a T12 system need to replace their lamps, no T12 energy saving lamp 

replacements are available. In these cases, in order to save energy, the consumers must switch to 

other options, such as a T8 lamp and appropriate ballast. These cases are marked with “NER” 

(no energy-saving replacement) in tables. 

Because some baseline lamps already meet higher efficacy levels (e.g., the baseline 32W 

4-foot T8 medium bipin lamp achieves EL2), LCC savings at the levels below the baseline are 

zero. In these cases, “BAE” (baseline above efficacy level) is listed in the tables to indicate that 

the consumer makes the same purchase decision in the standards-case as they do in the basecase. Also, not all lamp purchase events apply for all baseline lamps or efficacy levels. For 

example, DOE assumed that the standards-induced retrofit event does not apply to the 32W T8 

system, because it is already the most efficacious 4-foot medium bipin GSFL system. For these 

events, an “EN/A” (event not applicable) exists in the table. Finally, because LCC savings are 

not relevant when no energy conservation standard is established, “N/A” (not applicable) exists 

in the LCC savings column for the baseline system. 

DOE is also presenting the installed prices of the lamp-and-ballast systems in order to 

compare the up-front costs that consumers must bear when purchasing baseline or standards-case 

systems. For example, the installed price results for a lamp replacement in response to a lamp 

failure event (Event IA) only include the lamp purchase price and lamps installation costs. On 

the other hand, the ballast failure event (Event III) and the new construction/renovation event 

(Event IV) include the purchase and installation costs for lamps and a ballast for the baseline and 

standards-case systems. This is because the occurrences of these events require the purchase of 

new lamps and ballasts in all cases. Note that the installed price value contains only purchase 

and installation costs incurred by consumers at the very beginning of the analysis period. Thus, 

8-35
any purchases and installation costs incurred by consumers in the middle of the analysis period 

are not reflected in the installed price value. 

8.5.1.1 Product Class: 4-foot medium bipin ≤4,500K 

For the 4-foot medium bipin ≤4,500K product class in the commercial sector, DOE 

analyzes three baseline lamps: 40W T12, 34W T12, and 32W T8. In the residential sector, 

DOE only analyzes the 4-foot 40W T12 medium bipin lamp as a baseline for this product class 

as DOE believes this is the predominant lamp type installed in that sector. For each baseline 

lamp, DOE analyzes multiple lamp substitutions with each lamp substitution corresponding to 

the efficacy levels. Table 8.5.1 presents the findings of the LCC and PBP analyses on the first 4-

foot medium bipin baseline GSFL. This table presents the LCC and PBP results for the 40W 

T12 baseline lamp operating in the commercial sector. Key inputs consist of using April 2009 

AEO2009 reference case electricity prices, an analysis period of 5.5 years, and medium-range 

lamp and ballast prices. 

 The results for Event IA (Lamp Failure) show that the LCC of the baseline 4-foot 40W 

T12 medium bipin lamp on a magnetic ballast is higher than the LCC of the 34W T12 on a 

magnetic ballast that meets EL3. Any EL beyond EL3 for this baseline would require a lampand-ballast replacement. As discussed in the engineering analysis (Chapter 5), although a 4-foot 

34W T12 medium bipin lamp is often considered a reduced wattage replacement of the 40W T12 

lamp, there were no lamp options that emitted enough lumens to fall within 10 percent of the 

baseline system lumens. The highest efficacy 34W T12 lamp replacement is shown below. The 

system light output of this lamp-and-ballast design is 10.3 percent less than that of the baseline 

system. The same drop in lumen output is also exhibited by the 34WT12 lamp on an electronic 

ballast of the same BF. 

Because no 4-foot T12 medium bipin lamps would be standards-compliant at EL4 and 

EL5, consumers with T12 ballasts who are confronted with a lamp failure beyond EL3 would be 

forced to retrofit their ballasts and instead purchase a T8 system. The LCC savings and 

incremental costs related to this action can be seen under the standards-induced retrofit event 

(Event II). At EL4 and EL5, consumers who are forced to retrofit their ballast would achieve 

positive LCC savings; however, they would also incur an incremental installed price (baseline 

installed price minus standards-case installed price) greater than $51.21 per system. In 

particular, 4-foot 40W T12 medium bipin consumers who retrofit would obtain the greatest LCC 

savings at EL4 and EL5 by retrofitting to an electronically-ballasted 32W T8 system. 

Event III represents consumers who are already faced with replacing both a lamp and a 

ballast. The baseline ballast for this event in the commercial sector is assumed to be an 

electronic T12, since the ballast standards from the 2000 Ballast Rule and EPACT 2005 would 

be effective in 2010. In order to save energy with similar lumen output at EL1 and EL2, 

consumers would purchase a higher-efficacy 4-foot 40W T12 medium bipin with a lower-BF 

ballast. These choices result in negative LCC savings. However, under such a standard, 40W 

T12 consumers would be able to achieve positive LCC savings under a ballast failure scenario by 

purchasing systems at EL3 through EL5. Similar to the standards-induced retrofit, at EL4 and 

8-36
8-37

EL5 consumers are forced to purchase T8 systems. Those who purchase a 4-foot 32W T8 

medium bipin lamp generally achieve the highest LCC savings. Consumers prompted by this 

event would experience positive LCC savings if they purchase a high efficacy 4-foot T8 medium 

bipin lamp on an electronic ballast at all ELs. 

Event IV represents consumers who are already planning on retrofitting a 4-foot T12 

medium bipin system with a T8 system. The baseline system for this event is assumed to be a T8 

system. To save energy with similar lumen output at EL3, consumers could purchase a 34W T12 

with an electronic ballast. However, those who purchase a 32W T8 lamp generally achieve the 

highest LCC savings. 
Table 8.5.1 LCC and PBP Results for a Three-Lamp 4-Foot 40W T12 Medium Bipin System Operating in 

Sector 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option3 LCC LCC Savings Installed Price 

Op

C

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 78.0 41 W T12 & 0.95 BF Mag 203.59 0.00 14.50 

A: Lamp 

Replacement EL3 91.2 34 W T12 & 0.88 BF Mag 181.51 22.09 26.10 

EL1 80.5 41 W T12 & 0.88 BF Elec 211.15 -7.55 75.31 EL1 82.9 41 W T12 & 0.87 BF Elec 211.94 -8.34 80.14 EL2 86.2 32.5 W T8 & 1.18 BF Elec 211.23 -7.63 67.62 EL2 87.8 41 W T12 & 0.87 BF Elec 212.21 -8.62 80.45 EL3 91.2 34 W T12 & 0.88 BF Elec 189.48 14.11 80.04 1EL3 90.8 32.5 W T8 & 1 BF Elec 191.20 12.39 70.85 1EL4 92.3 32.5 W T8 & 0.88 BF Elec 169.51 34.08 63.31 1EL4 93.8 30.4 W T8 & 1 BF Elec 182.16 21.43 72.17 1EL4 93.0 26.6 W T8 & 1.18 BF Elec 177.49 26.10 76.08 1EL5 95.4 32.5 W T8 & 0.88 BF Elec 170.95 32.64 64.93 1

Event I: Lamp 

Failure B: Lamp & 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 1 BF Elec 176.38 27.21 71.55 1

3 Throughout the GSFL results tables, descriptions such as “41W T12 & 0.95 BF Mag” are used. The first term (e.g., 41W) is the rated 

lamp diameter (e.g., T12), the third is the ballast factor of the ballast (e.g., 0.95 BF), and the fourth is the ballast type (e.g., “Mag” for M

Electronic). 

8-38
Table 8.5.1 LCC and PBP Results for a Three-Lamp 4-Foot 40W T12 Medium Bipin System Operating in 

Sector (continued) 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Op

C

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 78.0 41 W T12 & 0.95 BF Mag 196.53 0.00 14.50 

EL1 80.5 41 W T12 & 0.88 BF Elec 212.56 -16.04 77.71 EL1 82.9 41 W T12 & 0.87 BF Elec 213.35 -16.83 82.54 EL2 86.2 32.5 W T8 & 1.18 BF Elec 212.64 -16.12 70.02 EL2 87.8 41 W T12 & 0.87 BF Elec 213.63 -17.10 82.84 EL3 91.2 34 W T12 & 0.88 BF Elec 190.90 5.63 82.44 1EL3 90.8 32.5 W T8 & 1 BF Elec 192.62 3.91 73.25 1EL4 92.3 32.5 W T8 & 0.88 BF Elec 170.92 25.60 65.71 1EL4 93.8 30.4 W T8 & 1 BF Elec 183.58 12.95 74.57 1EL4 93.0 26.6 W T8 & 1.18 BF Elec 178.91 17.62 78.48 1EL5 95.4 32.5 W T8 & 0.88 BF Elec 172.37 24.16 67.33 1

Event II: 

Standards 

Induced 

Retrofit 

Lamp & 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 1 BF Elec 177.80 18.73 73.94 1

Baseline Baseline 78.0 41 W T12 & 0.88 BF Elec 204.27 0.00 68.44 

EL1 80.5 41 W T12 & 0.87 BF Elec 210.16 -5.88 75.31 EL1 82.9 41 W T12 & 0.87 BF Elec 211.94 -7.66 80.14 EL2 87.8 41 W T12 & 0.87 BF Elec 212.21 -7.94 80.45 EL3 91.2 34 W T12 & 0.88 BF Elec 189.48 14.79 80.04 EL3 90.8 32.5 W T8 & 1 BF Elec 191.20 13.07 70.85 EL4 92.3 32.5 W T8 & 0.88 BF Elec 169.51 34.76 63.31 EL4 93.8 30.4 W T8 & 1 BF Elec 182.16 22.11 72.17 EL4 93.0 26.6 W T8 & 1.18 BF Elec 177.49 26.78 76.08 EL5 95.4 32.5 W T8 & 0.88 BF Elec 170.95 33.32 64.93 

Event III: 

Ballast Failure 

Lamp & 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 1 BF Elec 176.38 27.89 71.55 

* Comparative lumens are sometimes non-zero for baseline T12 electronic systems under Event Type 3 and 4 (ballast failure and ballast retrofit) because the lumen pacT12 magnetic ballast. DOE chose to compare these systems for these events because it recognizes that though federal regulations will prohibit the use of magnetic ball

the current lumen package delivered by current T12 magnetic systems. 

8-39
8-40

Table 8.5.1 LCC and PBP Results for a Three-Lamp 4-Foot 40W T12 Medium Bipin System Operating in Sector (continued) 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Op

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline/EL2 86.2 32.5 W T8 & 1.18 BF Elec 212.64 0.00 70.02 

EL3 91.2 34 W T12 & 0.88 BF Elec 190.90 21.74 82.44 EL3 90.8 32.5 W T8 & 1 BF Elec 192.62 20.03 73.25 EL4 92.3 32.5 W T8 & 0.88 BF Elec 170.92 41.72 65.71 EL4 93.8 30.4 W T8 & 1 BF Elec 183.58 29.07 74.57 EL4 93.0 26.6 W T8 & 1.18 BF Elec 178.91 33.73 78.48 EL5 95.4 32.5 W T8 & 0.88 BF Elec 172.37 40.27 67.33 

Event 

IV: 

Ballast 

Retrofit 

Lamp & 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 1 BF Elec 177.80 34.85 73.94 
Table 8.5.2 presents the findings of the LCC and PBP analyses on a second baseline 4-

foot medium bipin GSFL. This table presents the LCC and PBP results for the 4-foot 34W T12 

medium bipin baseline lamp operating in the commercial sector. Key inputs consist of using 

April 2009 AEO2009 reference case electricity prices, an analysis period of 5.5 years, and 

medium-range lamp and ballast prices. 

For the 4-foot 34W T12 medium bipin baseline, when commercial-sector consumers are 

confronted with a lamp failure in the base case, they purchase the 34W T12 baseline lamp as a 

lamp replacement on their magnetic T12 ballast. As this is the lowest-wattage commerciallyavailable T12 lamp, there are no energy-saving lamp replacement options for this system. 

Because there are no energy-saving lamp replacement options for a 34W T12 lamp, Event IA is 

not shown. However, consumers do have the option to purchase higher-efficacy 34W T12 

lamps, resulting in no energy savings and an installed price increase ranging from $3.84 to 

$14.45. 

For Event II, the standards-induced retrofit event, consumers retrofitting to a 4-foot 34W 

T12 medium bipin lamp on an electronic T12 ballast experience negative LCC savings. 

However, under such a standard, consumers would also be able to achieve positive savings by 

purchasing EL3, EL4, and EL5 T8 systems with either a higher-efficacy 32W T8 lamp or other 

reduced-wattage lamps. Because no 4-foot T12 medium bipin lamps would be standardscompliant at EL4 and EL5, consumers with T12 ballasts who are confronted with a lamp failure 

at these levels would be forced to retrofit their ballasts and instead purchase a T8 system. The 

incremental installed prices associated with this forced retrofit are greater than $54.06 per 

system. 

For the 4-foot 34W T12 medium bipin baseline, when commercial-sector consumers are 

confronted with a ballast failure (Event III) in the base case, they purchase the 34W T12 baseline 

lamps and a 0.88 ballast factor electronic ballast. In order to save energy with similar lumen 

output at EL1 and EL2, consumers would purchase a higher-efficacy 34W T12 with a lower-BF 

ballast. In addition, at EL3, consumers may purchase a 4-foot 34W T12 medium bipin lamp 

with a lower-BF ballast as well. However, these choices result in negative LCC savings. In the 

face of a standard established at EL3, 34W T12 consumers can achieve positive LCC savings 

under a ballast failure scenario by purchasing systems at EL4 and EL5. Similar to the standardsinduced retrofit, at EL4 and EL5, consumers would be forced to purchase T8 systems. Those 

who purchase the reduced-wattage 4-foot 25W and 28W T8 medium bipin lamps achieve the 

highest LCC savings. 

Event IV represents consumers who are already planning on retrofitting a 4-foot T12 

medium bipin system with a T8 system. The baseline system for this event is assumed to be a T8 

system. To save energy with similar lumen output at EL3, consumers could purchase a 34W T12 

with an electronic ballast. However, those who purchase a 25W T8 lamp generally achieve the 

highest LCC savings. 

8-41
Table 8.5.2 LCC and PBP Results for a Three-Lamp 4-Foot 34W T12 Medium Bipin System Operating in 

Sector 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Op

C

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 77.9 34 W T12 & 0.88 BF Mag 170.09 0.00 11.65 

EL1 82.4 34 W T12 & 0.88 BF Elec 181.90 -11.81 69.42 EL2 85.3 34 W T12 & 0.86 BF Elec 187.22 -17.13 76.72 EL2 86.2 32.5 W T8 & 0.88 BF Elec 167.76 2.33 59.64 EL3 90.8 32.5 W T8 & 0.78 BF Elec 158.07 12.02 62.87 EL3 91.2 34 W T12 & 0.86 BF Elec 187.50 -17.41 80.04 EL4 92.3 32.5 W T8 & 0.75 BF Elec 152.72 17.38 63.31 1EL4 93.8 30.4 W T8 & 0.78 BF Elec 150.96 19.13 64.19 1EL4 93.0 26.6 W T8 & 0.88 BF Elec 141.78 28.31 68.10 1EL5 95.4 32.5 W T8 & 0.71 BF Elec 148.99 21.10 64.93 1

Event I: Lamp 

Failure 

B: Lamp & 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 0.78 BF Elec 146.72 23.37 63.57 1

Baseline Baseline 77.9 34 W T12 & 0.88 BF Mag 164.33 0.00 11.65 

EL1 82.4 34 W T12 & 0.88 BF Elec 183.32 -18.98 71.82 EL2 85.3 34 W T12 & 0.86 BF Elec 188.63 -24.30 79.12 EL2 86.2 32.5 W T8 & 0.88 BF Elec 169.18 -4.84 62.04 EL3 90.8 32.5 W T8 & 0.78 BF Elec 159.49 4.85 65.26 EL3 91.2 34 W T12 & 0.86 BF Elec 188.92 -24.58 82.44 EL4 92.3 32.5 W T8 & 0.75 BF Elec 154.13 10.20 65.71 1EL4 93.8 30.4 W T8 & 0.78 BF Elec 152.37 11.96 66.59 1EL4 93.0 26.6 W T8 & 0.88 BF Elec 143.20 21.14 70.50 1EL5 95.4 32.5 W T8 & 0.71 BF Elec 150.41 13.93 67.33 1

Event II: 

Standards 

Induced 

Retrofit 

Lamp & 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 0.78 BF Elec 148.13 16.20 65.96 1

8-42
8-43

Table 8.5.2 LCC and PBP Results for a Three-Lamp 4-Foot 34W T12 Medium Bipin System Operating in Sector (continued) 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Operatin

Cost 

Saving

(Start 

Year) 

lms/W $ $ $ $ 

Baseline Baseline 77.9 34 W T12 & 0.88 BF Elec 178.07 0.00 65.59 0.00 

EL1 82.4 34 W T12 & 0.86 BF Elec 179.92 -1.85 69.42 0.44 EL2 85.3 34 W T12 & 0.86 BF Elec 187.22 -9.15 76.72 0.44 EL2 86.2 32.5 W T8 & 0.88 BF Elec 167.76 10.30 59.64 1.59 EL3 90.8 32.5 W T8 & 0.78 BF Elec 158.07 20.00 62.87 4.47 EL3 91.2 34 W T12 & 0.86 BF Elec 187.50 -9.43 80.04 0.44 EL4 92.3 32.5 W T8 & 0.75 BF Elec 152.72 25.35 63.31 5.33 EL4 93.8 30.4 W T8 & 0.78 BF Elec 150.96 27.11 64.19 6.35 EL4 93.0 26.6 W T8 & 0.88 BF Elec 141.78 36.29 68.10 8.19 EL5 95.4 32.5 W T8 & 0.71 BF Elec 148.99 29.08 64.93 6.48 

Event III: 

Ballast 

Failure 

Lamp & 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 0.78 BF Elec 146.72 31.35 63.57 7.85 

Baseline Baseline/EL2 86.2 32.5 W T8 & 0.88 BF Elec 169.18 0.00 62.04 0.00 

EL3 90.8 32.5 W T8 & 0.78 BF Elec 159.49 9.69 65.26 2.88 EL4 92.3 32.5 W T8 & 0.75 BF Elec 154.13 15.05 65.71 3.75 EL4 93.8 30.4 W T8 & 0.78 BF Elec 152.37 16.80 66.59 4.76 EL4 93.0 26.6 W T8 & 0.88 BF Elec 143.20 25.98 70.50 6.60 EL5 95.4 32.5 W T8 & 0.71 BF Elec 150.41 18.77 67.33 4.90 

Event IV: 

Ballast 

Retrofit 

Lamp & 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 0.78 BF Elec 148.13 21.04 65.96 6.27 
Table 8.5.3 presents the findings of an LCC and PBP analyses on a third baseline 4-foot 

medium bipin GSFL. This table presents the LCC and PBP results for the 4-foot 32W T8 

medium bipin baseline lamp operating in the commercial sector. Key inputs consist of using 

April 2009 AEO2009 reference case electricity prices, an analysis period of 5.5 years, and 

medium-range lamp and ballast prices. 

For the 4-foot 32W T8 medium bipin baseline, commercial-sector consumers purchase 

either the 32W T8 baseline lamp (under lamp failure or new construction/renovation) or the 32W 

T8 baseline lamp and an electronic 0.88 BF ballast (under ballast failure). Event I (Lamp 

Failure) displays results for consumers who must replace a baseline lamp with a higher-efficacy 

lamp. For this event, installing reduced-wattage lamps is the only opportunity for energy 

savings. At EL4, consumers who purchase 4-foot 30W T8 medium bipin lamps achieve lower 

LCC savings than those who purchase 25W T8 lamps. At EL5, the only reduced-wattage lamp 

replacement option (the 28W T8) achieves positive LCC savings. 

When confronted with a ballast failure or new construction purchase (Events III and V), 

consumers who would have purchased the 4-foot 32W T8 medium bipin baseline system in the 

base case would achieve positive LCC savings at EL3 by purchasing higher-efficacy 32W T8 

lamps on a lower-BF ballast. At EL4, these consumers could obtain the greatest LCC savings by 

purchasing an electronically-ballasted 25W T8 system on a 0.88 BF ballast. However, there is a 

6.7 percent decrease in mean lumens from the baseline. At EL5, they achieve the higher LCC 

savings by purchasing the 4-foot 32W T8 medium bipin lamp on a lower-BF ballast. 

8-44
Table 8.5.3 LCC and PBP Results for a 3-Lamp 4-foot 32W T8 Medium Bipin System Operating in the C

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

lms/W $ $ $ 

Baseline Baseline/EL2 86.2 32.5 W T8 & 0.88 BF Elec 139.89 0.00 12.43 

EL4 93.8 30.4 W T8 & 0.88 BF Elec 135.13 4.76 16.98 EL4 93.0 26.6 W T8 & 0.88 BF Elec 113.91 25.98 20.89 

Event I: 

Lamp 

Failure 

A: Lamp 

Replacement 

EL5 96.0 28.4 W T8 & 0.88 BF Elec 130.19 9.70 16.35 

Baseline Baseline/EL2 86.2 32.5 W T8 & 0.88 BF Elec 167.76 0.00 59.64 

EL3 90.8 32.5 W T8 & 0.78 BF Elec 158.07 9.69 62.87 EL4 92.3 32.5 W T8 & 0.75 BF Elec 152.72 15.05 63.31 EL4 93.8 30.4 W T8 & 0.78 BF Elec 150.96 16.80 64.19 EL4 93.0 26.6 W T8 & 0.88 BF Elec 141.78 25.98 68.10 EL5 95.4 32.5 W T8 & 0.75 BF Elec 154.16 13.60 64.93 

Event III: 

Ballast 

Failure 

Lamp & 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 0.88 BF Elec 158.06 9.70 63.57 

Baseline Baseline/EL2 86.2 32.5 W T8 & 0.88 BF Elec 169.18 0.00 62.04 

EL3 90.8 32.5 W T8 & 0.78 BF Elec 159.49 9.69 65.26 EL4 92.3 32.5 W T8 & 0.75 BF Elec 154.13 15.05 65.71 EL4 93.8 30.4 W T8 & 0.78 BF Elec 152.37 16.80 66.59 EL4 93.0 26.6 W T8 & 0.88 BF Elec 143.20 25.98 70.50 EL5 95.4 32.5 W T8 & 0.75 BF Elec 155.58 13.60 67.33 

Event V: 

New 

Construction 

and 

Renovation 

New Lamp 

& Ballast 

Purchase 

EL5 96.0 28.4 W T8 & 0.88 BF Elec 159.48 9.70 65.96 

8-45
Table 8.5.4 summarizes the range of commercial sector LCC results for the 4-foot 

medium bipin product class. Only the most relevant events under each baseline lamp are shown. 

As discussed above, the imposition of a standard at or above EL4 would induce the replacement 

of T12 systems with T8 systems, as no 4-foot 40W or 34W T12 medium bipin lamps can meet 

these ELs. For all baseline lamps and for all failure events shown, there are design options with 

positive LCC savings at ELs 3 and higher. 

Table 8.5.4 Summary of the LCC Results for a Three-Lamp 4-Foot Medium Bipin System 

Operating in the Commercial Sector 

LCC Savings Installed Price 

2008$ 2008$ 

Baseline 

Efficacy Level 

Event IA: 

Lamp 

Replacement

* 

Event II: 

StandardsInduced 

Retrofit 

(Lamp and 

Ballast 

Replacement)

* 

Event III: 

Ballast 

Failure*† 

Event IA: 

Lamp 

Replacement 

Event II: 

StandardsInduced 

Retrofit 

(Lamp and 

Ballast 

Replacement) 

Event III: 

Ballast 

Failure† 

Baseline N/A N/A N/A 14.50 14.50 68.44 

EL1 LL EN/A -7.66 to 

-5.88 LL EN/A 75.31 to 80.14 

EL2 LL EN/A -7.94 LL EN/A 80.45 

EL3 22.09 EN/A 13.07 to 

14.79 26.10 EN/A 70.85 to 80.04 

EL4 NR 12.95 to 

25.60 

22.11 to 

34.76 NR 65.71 to 78.48 

63.31 to 

76.08 

40 Watt T12 

EL5 NR 18.73 to 

24.16 

27.89 to 

33.32 NR 67.33 to 73.94 

64.93 to 

71.55 

Baseline N/A N/A N/A 11.65 11.65 65.59 

EL1 NER -18.98 -1.85 15.49 71.82 69.42 

EL2 NER -24.30 to 

-4.84 

-9.15 to 

10.30 

12.43 to 

22.79 

62.04 to 

79.12 

59.64 to 

76.72 

EL3 NER -24.58 to 

4.85 

-9.43 to 

20.00 

15.65 to 

26.10 

65.26 to 

82.44 

62.87 to 

80.04 

EL4 NR 10.20 to 

21.14 

25.35 to 

36.29 NR 65.71 to 70.50 

63.31 to 

68.10 

34 Watt T12 

EL5 NR 13.93 to 

16.20 

29.08 to 

31.35 NR 65.96 to 67.33 

63.57 to 

64.93 

Baseline N/A N/A N/A 12.43 12.43 59.64 

EL1 BAE EN/A BAE BAE EN/A BAE 

EL2 BAE EN/A BAE BAE EN/A BAE 

EL3 NER EN/A 9.69 NER EN/A 62.87 

EL4 4.76 to 25.98 EN/A 15.05 to 

25.98 

16.98 to 

20.89 EN/A 63.31 to 

32 Watt T8 

68.10 

EL5 9.70 EN/A 9.70 to 13.60 16.35 EN/A 63.57 to 

64.93 

†For 32 Watt T8 baseline, includes Event V (New Construction and Renovation). 

*Analysis period is 5.5 years. 

N/A: Not Applicable; NER: No Energy-Saving Replacement; LL: Available Options Produce Less Light; EN/A: 

Event Not Applicable; BAE: Baseline Above Efficacy Level; NR: No Replacement 

8-46
Table 8.5.5 and Table 8.5.6 present the findings of the LCC and PBP analyses on the 4-

foot 40W T12 medium bipin baseline GSFL in the residential sector for consumers who do not 

preserve their lamps during fixture replacement. See section 8.2.8 for a description of 

residential-sector GSFL consumer behavior. The results in Table 8.5.5 were generated using 

high operating hours (of 1,210 hours per year), allowing the lamp failure event to occur for these 

consumers. The 4-foot 40W T12 medium bipin lamp is the only baseline for the residential 

sector GSFL analysis due to the rarity of 34W T12 and 32W T8 lamps in the residential sector. 

Key inputs consist of using April 2009 AEO2009 reference case electricity prices and mediumrange lamp and ballast prices. The analysis period is 15 years for Event III, which represents the 

15-year life of the fixture. For Events IA (Lamp Replacement) and IB (Lamp & Ballast 

Replacement), the analysis period is 2.6 years because when a lamp fails and is replaced, the 

fixture has 2.6 years of life remaining before it is removed. As discussed in section 8.2.8, 

operating hours for Event III are average operating hours for residential-sector GSFL (791 

hours/year) while operating hours for Event IA and IB are high operating hours for residentialsector GSFL (1,210 hours/year). 

In general, residential non-lamp-preserving consumers responding to a lamp failure 

experience negative LCC savings in the face of standards. For Event IA (Lamp Replacement), 

there are no energy-saving replacement lamp options for the 4-foot 40W T12 medium bipin 

residential system. DOE recognizes that not all consumers can use a 4-foot 34W T12 medium 

bipin lamp on a residential magnetic low power factor ballast because not all ballasts are 

designated to operate this lamp. However, in its review of manufacturer literature, DOE 

identified several low power factor residential magnetic ballasts that are designated to operate 

the 34W T12 lamp. Therefore, DOE considers this event applicable for some residential 

consumers. These consumers are adversely impacted by EL3 when replacing only a failed lamp 

(Event IA). The reduced-wattage 4-foot 34W T12 medium bipin lamp, while more efficacious 

than the baseline, does not save enough energy to offset its increased purchase price within the 

2.6-year analysis period, leading to negative LCC savings. 

Event IB (Lamp & Ballast Replacement) differs from a standards-induced retrofit 

because DOE assumes that Event IB occurs as a response to a lamp failure. In both Event IB and 

a standards-induced retrofit, a consumer purchases only a lamp in the base case and a lamp-andballast system in the standards case. However, DOE assumes that residential consumers will not 

proactively replace their 4-foot T12 medium bipin systems before their T12 lamp fails; thus, the 

standards-induced retrofit event does not apply to the residential sector. At EL4 and EL5, 

consumers must purchase a 4-foot T8 medium bipin system as T12 lamps do not meet these ELs. 

At all ELs in Event IB, the available system options do not save non-lamp-preserving consumers 

enough energy to offset their increased purchase price of the lamp and ballast in 2.6 years, 

leading to negative LCC savings. 

In the case of Event III (Ballast Failure), residential consumers purchase a magnetic 4-

foot T12 medium bipin system in the base case and an electronic or magnetic T12 system or 

electronic T8 system in the standards case. At all standard levels, LCC savings are positive. The 

least positive LCC savings occurs at EL3 where a consumer purchases a magnetic T12 system 

with a 34W lamp in the standards case. LCC savings are the most positive when a consumer 

purchases a 25W T8 system at EL4. 

8-47
8-48

For Event V (New Construction and Renovation), DOE assumes that the baseline 

residential sector lamp will be a 4-foot T8 medium bipin lamp and electronic ballast. In the 

standards case, only one T12 option exists, which is a reduced-wattage electronically-ballasted 

T12 at EL3. At all other standard levels, only T8s can be purchased. All standard levels 

applicable to Event V produce positive LCC savings for consumers. LCC savings are the most 

positive when a consumer purchases a 4-foot 28W T8 medium bipin lamp at EL5.
Table 8.5.5 LCC and PBP Results for a Two-Lamp 4-Foot 40W T12 Medium Bipin System Operating in t

Sector Using High Operating Hours 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Op

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 76.8 41 W T12 & 0.68 BF Mag 27.12 0.00 4.13 

A: Lamp 

Replacement EL3 91.2 34 W T12 & 0.66 BF Mag 32.65 -5.53 12.94 

EL1 80.5 41 W T12 & 0.65 BF Elec 34.02 -6.90 52.97 EL1 82.4 34 W T12 & 0.85 BF Elec 34.22 -7.10 49.04 EL1 82.9 41 W T12 & 0.65 BF Elec 34.93 -7.80 56.19 EL2 85.3 34 W T12 & 0.75 BF Elec 31.00 -3.88 53.91 EL2 86.2 32.5 W T8 & 0.78 BF Elec 31.24 -4.12 50.51 EL2 87.8 41 W T12 & 0.65 BF Elec 34.99 -7.86 56.39 EL3 91.2 34 W T12 & 0.66 BF Mag 36.71 -9.59 60.19 EL3 91.2 34 W T12 & 0.75 BF Elec 31.62 -4.50 56.12 EL3 90.8 32.5 W T8 & 0.75 BF Elec 31.16 -4.04 52.66 EL4 92.3 32.5 W T8 & 0.75 BF Elec 31.25 -4.13 52.96 EL4 93.8 30.4 W T8 & 0.75 BF Elec 30.64 -3.51 53.55 EL4 93.0 26.6 W T8 & 0.78 BF Elec 29.16 -2.04 56.15 EL5 95.4 32.5 W T8 & 0.71 BF Elec 30.65 -3.52 54.04 

Event I: Lamp 

Failure B: Lamp and 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 0.78 BF Elec 29.99 -2.87 53.13 

8-49
Table 8.5.6 LCC and PBP Results for a Two-Lamp 4-Foot 40W T12 Medium Bipin System Operating in t

Sector Using Average Operating Hours

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

lms/W $ $ $ 

Baseline Baseline 76.8 41 W T12 & 0.68 BF Mag 120.44 0.00 51.38 

EL1 80.5 41 W T12 & 0.65 BF Elec 110.20 10.25 52.97 EL1 82.4 34 W T12 & 0.85 BF Elec 110.22 10.23 49.04 EL1 82.9 41 W T12 & 0.65 BF Elec 113.41 7.03 56.19 EL2 85.3 34 W T12 & 0.75 BF Elec 101.27 19.17 53.91 EL2 86.2 32.5 W T8 & 0.78 BF Elec 101.47 18.97 50.51 EL2 87.8 41 W T12 & 0.65 BF Elec 113.62 6.82 56.39 EL3 91.2 34 W T12 & 0.66 BF Mag 119.38 1.06 60.19 EL3 91.2 34 W T12 & 0.75 BF Elec 103.48 16.96 56.12 EL3 90.8 32.5 W T8 & 0.75 BF Elec 101.58 18.86 52.66 EL4 92.3 32.5 W T8 & 0.75 BF Elec 101.87 18.57 52.96 EL4 93.8 30.4 W T8 & 0.75 BF Elec 100.12 20.32 53.55 EL4 93.0 26.6 W T8 & 0.78 BF Elec 96.08 24.36 56.15 EL5 95.4 32.5 W T8 & 0.71 BF Elec 100.23 20.21 54.04 

Event III: 

Ballast 

Failure 

Lamp and 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 0.78 BF Elec 98.12 22.32 53.13 

Baseline Baseline/EL2 86.2 32.5 W T8 & 0.88 BF Elec 110.69 0.00 52.91 

EL3 91.2 34 W T12 & 0.75 BF Elec 105.88 4.81 58.52 EL3 90.8 32.5 W T8 & 0.78 BF Elec 106.02 4.67 55.06 EL4 92.3 32.5 W T8 & 0.78 BF Elec 106.31 4.37 55.36 EL4 93.8 30.4 W T8 & 0.78 BF Elec 104.20 6.49 55.95 EL4 93.0 26.6 W T8 & 0.88 BF Elec 103.33 7.35 58.55 EL5 95.4 32.5 W T8 & 0.75 BF Elec 105.35 5.33 56.44 

Event V: 

New 

Construction 

and 

Renovation 

New Lamp 

& Ballast 

Purchase 

EL5 96.0 28.4 W T8 & 0.78 BF Elec 100.52 10.17 55.53 

8-50
Table 8.5.9 and Table 8.5.10 present the findings of the LCC and PBP analyses on the 4-

foot 40W T12 medium bipin baseline GSFL in the residential sector for consumers who 

experience a lamp failure under average operating hours, preserve their lamps during fixture 

replacement, and install those lamps on a new fixture, allowing the lamps to live for their full 

rated lifetimes. The analysis period is 19 years under average operating hours. Key inputs 

consist of using April 2009 AEO2009 reference case electricity prices and medium-range lamp 

and ballast prices. See section 8.2.8 for a further description of residential-sector GSFL 

consumer behavior. 

Residential-sector GSFL consumers who preserve their lamps when responding to a lamp 

failure experience positive LCC savings in the face of standards established at EL1 through EL3. 

At these standard levels, consumers experience Event IA (Lamp Failure: Lamp Replacement) 

and select a 4-foot 34W T12 medium bipin lamp that allows the attainment of positive LCC 

savings under average operating hours as well as under high operating hours. DOE recognizes 

that not all consumers can use a 4-foot 34W T12 medium bipin lamp on a residential magnetic 

low power factor ballast because not all ballasts are designated to operate this lamp. However, in 

its review of manufacturer literature, DOE identified several low power factor residential 

magnetic ballasts that are designated to operate the 34W T12 lamp. Therefore, DOE considers 

this event applicable for some residential consumers. 

In the face of standards established at EL4 or EL5, DOE assumes that residential-sector 

consumers will experience Event IB (Lamp & Ballast Replacement). At EL4 and EL5, 

consumers must purchase a 4-foot T8 medium bipin system as T12 lamps do not meet these ELs. 

DOE assumes that a consumer purchases only a lamp in the base case and a lamp-and-ballast 

system in the standards case for Event IB. Both base-case and standards-case consumers 

preserve their lamps during ballast replacements in the middle of the analysis period. The ability 

of lamp-preserving consumers to obtain positive LCC savings in response to Event IB when 

utilizing average operating hours depends on how much fixture life is remaining at the beginning 

of the analysis period, as shown in Table 8.5.9. Consumers with less remaining fixture life can 

obtain greater LCC savings when responding to Event IB. DOE’s analysis indicates that 

consumers must have less than seven years of fixture life remaining in order to obtain positive 

LCC savings for at least one system option at EL4 or EL5, as shown in Table 8.5.10. 

8-51
Table 8.5.7 LCC Savings Results at Various Remaining Fixture Lives for a Two-Lamp 4-Foot 40W T12 M

System Operating in the Residential Sector Using Average Operating Hours and Lamp Preservation Beha

LCC Savings (2008$) 

Event Remaining Fixture Life (years) Efficacy Level 1 3 6 9 12 

EL 1 LL LL LL LL LL 

IA: Lamp Repl. EL 2 LL LL LL LL LL 

EL 3 4.78 4.78 4.78 4.78 4.78 EL 4 18.69 to 27.06 10.06 to 18.43 -0.14 to 8.23 -8.69 to -0.33 -16.62 to -8.2

IB: Lamp & 

Ballast Repl. EL 5 20.98 to 22.62 12.35 to 13.99 2.15 to 3.79 -6.40 to -4.77 -14.33 to -12

8-52
8-53

Table 8.5.8 LCC and PBP Results for a Two-Lamp 4-Foot 40W T12 Medium Bipin System Operating in tSector Using Average Operating Hours and Lamp Preservation Behavior With Seven Years of Remaining Beginning of the Analysis Period 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Op

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 76.8 41 W T12 & 0.68 BF Mag 115.61 0.00 4.13 

A: Lamp 

Replacement EL3 91.2 34 W T12 & 0.66 BF Mag 110.83 4.78 12.94 

EL1 80.5 41 W T12 & 0.65 BF Elec 127.77 -12.16 52.97 EL1 82.4 34 W T12 & 0.85 BF Elec 128.89 -13.28 49.04 EL1 82.9 41 W T12 & 0.65 BF Elec 130.00 -14.39 56.19 EL2 85.3 34 W T12 & 0.75 BF Elec 116.98 -1.37 53.91 EL2 86.2 32.5 W T8 & 0.78 BF Elec 119.21 -3.60 50.51 EL2 87.8 41 W T12 & 0.65 BF Elec 130.18 -14.56 56.39 EL3 91.2 34 W T12 & 0.66 BF Mag 137.12 -21.51 60.19 EL3 91.2 34 W T12 & 0.75 BF Elec 118.32 -2.70 56.12 EL3 90.8 32.5 W T8 & 0.75 BF Elec 118.73 -3.12 52.66 EL4 92.3 32.5 W T8 & 0.75 BF Elec 118.68 -3.07 52.96 EL4 93.8 30.4 W T8 & 0.75 BF Elec 116.77 -1.15 53.55 EL4 93.0 26.6 W T8 & 0.78 BF Elec 110.31 5.30 56.15 EL5 95.4 32.5 W T8 & 0.71 BF Elec 116.38 -0.77 54.04 

Event I: Lamp 

Failure B: Lamp and 

Ballast 

Replacement 

EL5 96.0 28.4 W T8 & 0.78 BF Elec 114.75 0.86 53.13 
Table 8.5.9 and Table 8.5.10 present a summary of the residential-sector LCC results for 

the 4-foot 40W T12 medium bipin baseline GSFL assuming that consumers do not preserve their 

lamps during fixture replacements. Only the most relevant events are shown. As discussed 

above, an EL at or above EL4 would induce the replacement of T12 magnetic ballasts with 

electronic T8 ballasts, as no 4-foot 40W or 34W T12 medium bipin lamps can meet these ELs. 

There are design options with positive LCC savings at all ELs for Event III. No positive LCC 

savings are possible under lamp failure events Event IA and Event IB for consumers who do not 

preserve their lamps. 

8-54
8-55

Table 8.5.9 Summary of the LCC Results for a Two-Lamp 4-Foot 40W T12 Medium Bipin 

System Operating in the Residential Sector Using High Operating Hours 

LCC Savings Installed Price 

2008$ 2008$ 

Baseline Efficacy Level Event IA: Lamp 

Replacement* 

Event IB: Lamp 

and Ballast 

Replacement* 

Event IA: Lamp 

Replacement 

Event IB: 

Lamp and 

Ballast 

Replacement 

Baseline N/A N/A 4.13 4.13 

EL1 LL EN/A LL EN/A 

EL2 LL EN/A LL EN/A 

EL3 -5.53 EN/A 12.94 EN/A 

EL4 NR -4.13 to -2.04 NR 52.96 to 56.15 

40 Watt T12 

EL5 NR -3.52 to -2.87 NR 53.13 to 54.04 

*Analysis period is 2.6 years. 

N/A: Not Applicable; LL: Available Options Produce Less Light; EN/A: Event Not Applicable; NR: No 

Replacement 

Table 8.5.10 Summary of the LCC Results for a Two-Lamp 4-Foot 40W T12 Medium 

Bipin System Operating in the Residential Sector Using Average Operating Hours 

LCC Savings Installed Price 

2008$ 2008$ Baseline Efficacy Level 

Event III: Ballast Failure* Event III: Ballast Failure 

Baseline N/A 51.38 

EL1 7.03 to 10.25 49.04 to 56.19 

EL2 6.82 to 19.17 50.51 to 56.39 

EL3 1.06 to 18.86 52.66 to 60.19 

EL4 18.57 to 24.36 52.96 to 56.15 

40 Watt T12 

EL5 20.21 to 22.32 53.13 to 54.04 

*Analysis period is 15.0 years. 

N/A: Not Applicable 
8.5.1.2 Product Class: 4-foot T5 miniature bipin high output ≤4,500K 

Table 8.5.11 presents the results for an electronically ballasted 4-foot T5 miniature bipin 

HO baseline system operating in the commercial sector. For this baseline, the analysis period is 

3.9 years. Other key inputs consist of using April 2009 AEO2009 reference case electricity 

prices and medium-range lamp and ballast prices. DOE analyzes multiple lamp substitutions 

with each lamp substitution corresponding to the efficacy level requirement. 

Negative LCC savings exist for Events I and III. For these events, the standards case 4-

foot T5 miniature bipin high output lamps do not save enough energy to offset their increased 

installed price. However, positive LCC savings exist for Event V. For this event, consumers can 

change the physical layout of their system in order to match the mean lumen output of the 

baseline system. Because the 4-foot T5 miniature bipin HO baseline halophosphor lamps have 

such poor lumen maintenance compared to the 800-series lamps LCC savings for the new 

construction event are high. In this event, the selection of a reduced wattage 4-foot T5 miniature 

bipin HO lamp gives the most positive LCC savings. Table 8.5.12 shows a summary table of 

LCC results for the 4-foot T5 miniature bipin HO baseline system.

8-56
Table 8.5.11 LCC and PBP Results for a Two-Lamp 4-Foot 54W T5 Miniature Bipin High Output System 

Commercial Sector 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Opera

Cos

Savin

(Sta

Yea

lms/W $ $ $ $ 

Baseline Baseline 76.6 53.8 W T5 & 1 BF Elec 150.89 0.00 10.84 0.0

Event I: Lamp 

Failure A: Lamp 

Replacement EL1 98.0 51 W T5 & 1 BF Elec 153.92 -3.03 20.61 1.0

Baseline Baseline 76.6 53.8 W T5 & 1 BF Elec 183.68 0.00 71.69 0.0

Event III: 

Ballast Failure Lamp and Ballast 

Replacement 

EL1 98.0 51 W T5 & 1 BF Elec 186.71 -3.03 81.47 1.0

Baseline Baseline 76.6 53.8 W T5 & 1 BF Elec 184.97 0.00 74.09 0.0

EL1 92.9 53.8 W T5 & 1 BF Elec 119.28 65.69 79.31 15.9

Event V: New 

Construction 

and 

Renovation 

New Lamp & 

Ballast 

Purchase EL1 98.0 51 W T5 & 1 BF Elec 117.91 67.06 83.87 16.5

Table 8.5.12 Summary of the LCC Results for a Two-Lamp 4-Foot 54W T5 Miniature Bipin High Output in the Commercial Sector 

LCC Savings Installed Price 

2008$ 2008$ 

Baseline Efficacy Level Event IA: 

Lamp 

Replacement* 

Event V: New 

Construction/Renovation* 

Event IA: 

Lamp 

Replacement 

Event V: New 

Construction/Renovation 

54 Watt Baseline N/A N/A 10.84 74.09 

T5 EL1 -3.03 65.69 to 67.06 20.61 79.31 to 83.87 

*Analysis period is 3.9 years. N/A: Not Applicable; NER: No Energy-Saving Replacement 

8-57
8.5.1.3 Product Class: 4-foot T5 miniature bipin standard output ≤4,500K 

Table 8.5.13 presents the results for an electronically ballasted 4-foot T5 miniature bipin 

standard output baseline system operating in the commercial sector. The analysis period is 5.5 

years. Other key inputs consist of using April 2009 AEO2009 reference case electricity prices 

and medium-range lamp and ballast prices. DOE analyzes multiple lamp substitutions with each 

lamp substitution corresponding to EL efficacy level requirements. 

Positive LCC savings exist at all of the ELs analyzed for all events. For Event V, 

consumers can change the physical layout of their system in order to match the mean lumen 

output of the baseline system. Because the 4-foot T5 miniature bipin SO baseline halophosphor 

lamps have such poor lumen maintenance compared to the 800-series lamps, LCC savings for 

the new construction event are high. For Events III and V, the selection of a reduced wattage 4-

foot T5 miniature bipin SO lamp gives the most positive LCC savings. Table 8.5.14 shows a 

summary table of LCC results for the 4-foot T5 miniature bipin standard output baseline system.

8-58
Table 8.5.13 LCC and PBP Results for a Two-Lamp 4-Foot 28W T5 Miniature Bipin Standard Output Sy

the Commercial Sector 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Operati

Cost 

Saving

(Start 

Year) 

lms/W $ $ $ $ 

Baseline Baseline 86.0 27.8 W T5 & 1.15 BF Elec 113.47 0.00 9.75 0.00 

Event I: 

Lamp Failure A: Lamp Replacement EL2 111.5 26 W T5 & 1.15 BF Elec 112.37 1.10 15.44 1.05 

Baseline Baseline 86.0 27.8 W T5 & 1.15 BF Elec 148.72 0.00 69.47 0.00 

EL1 104.3 27.8 W T5 & 0.95 BF Elec 138.83 9.90 73.38 3.08 EL2 109.7 27.8 W T5 & 0.9 BF Elec 137.66 11.07 75.67 3.85 

Event III: 

Ballast 

Failure 

Lamp & 

Ballast 

Replacement EL2 111.5 26 W T5 & 0.9 BF Elec 128.50 20.22 75.16 5.32 

Baseline Baseline 86.0 27.8 W T5 & 1.15 BF Elec 150.14 0.00 71.87 0.00 

EL1 104.3 27.8 W T5 & 0.95 BF Elec 106.84 43.30 75.78 7.83 EL2 109.7 27.8 W T5 & 0.9 BF Elec 102.65 47.49 78.06 8.87 

Event V: New 

Construction 

and 

Renovation 

New Lamp & 

Ballast 

Purchase EL2 111.5 26 W T5 & 0.9 BF Elec 104.47 45.67 77.56 8.78 

Table 8.5.14 Summary of the LCC Results for a Two-Lamp 4-Foot 28W T5 Miniature Bipin Standard OuOperating in the Commercial Sector 

LCC Savings Installed Price 

2008$ 2008$ 

Baseline Efficacy Level Event IA: 

Lamp 

Replacement* 

Event V: New 

Construction/Renovation* 

Event IA: 

Lamp 

Replacement 

Event V: New 

Construction/Renovation 

Baseline N/A N/A 9.75 71.87 

EL1 NER 43.30 13.66 75.78 28 Watt T5 EL2 1.10 45.67 to 47.49 15.44 77.56 to 78.06 

*Analysis period is 5.5 years. N/A: Not Applicable; NER: No Energy-Saving Replacement 

8-59
8.5.1.4 Product Class: 8-Foot single pin slimline ≤4,500K 

For the 8-foot single pin slimline ≤4,500K product class, DOE is analyzing three baseline 

lamps: 75W T12, 60W T12, and 59W T8. For each baseline lamp, DOE analyzes multiple lamp 

substitutions with each lamp substitution corresponding to the efficacy level requirements. 

Table 8.5.15 presents the findings of the LCC and PBP analyses on the first baseline 8-

foot single pin slimline GSFL. This table presents the LCC and PBP results for the 8-foot 75W 

T12 single pin slimline baseline lamp operating in the commercial sector. Key inputs consist of 

using April 2009 AEO2009 reference case electricity prices, an analysis period of 4 years, and 

medium-range lamp and ballast prices. 

 The results for Event IA show that the LCC of the baseline 8-foot 75W T12 single pin 

slimline lamp on a magnetic ballast is higher than the LCC of the 60W T12 on a magnetic ballast 

that meets EL3. Any EL above EL3 for this baseline would require a lamp-and-ballast 

replacement. As discussed in the engineering analysis (Chapter 5), although a 8-foot 60W T12 

single pin slimline lamp is often considered a reduced-wattage replacement of the 75W T12 

lamp, there are no lamp options with a CCT of 4,100K that emit enough lumens to fall within 10 

percent of the baseline system lumens. Shown below is the highest-efficacy 4,100K, 8-foot 60W 

T12 single pin slimline lamp replacement. The system light output of this lamp-and-ballast 

design is 13 percent less than that of the baseline system. Note that any standard level beyond 

EL3 would likely require consumers to replace their 8-foot T12 single pin slimline lamps and 

ballasts with T8 systems, since no T12 lamp currently meets the efficacy requirements of EL4 

and EL5. 

 The results for Event II show that consumers who replace a functioning 8-foot 75W T12 

single pin slimline lamp on a magnetic ballast with a high efficacy T8 lamp that meets EL5 on an 

electronic ballast benefit from lower LCCs at EL5 while incurring an incremental installed price 

of $82.01 per system. The EL4 lamp available in this event does not produce sufficient light 

output, so DOE assumes that at standard level EL4, 8-foot 75W T12 single pin slimline 

consumers would retrofit to the EL5 59W T8 and 0.88 ballast factor ballast. All ELs greater than 

EL3 can only be met by replacing the baseline ballast. 

Event III represents consumers who are already faced with replacing both a lamp and a 

ballast. The baseline ballast for this event is assumed to be an electronic T12, since the ballast 

standards from the 2000 Ballast Rule and EPACT 2005 would be effective in 2010. In the 

standards case, 8-foot 75W T12 single pin slimline consumers can purchase more-efficacious 

75W T12 lamps and lower-ballast-factor ballasts at EL1 and EL2. However, these systems do 

not save enough energy over their lifetimes to offset their increased installed price. The systems 

at EL3 and EL4 do not produce sufficient lumen output in comparison to the baseline system, so 

DOE assumes that 8foot 75W T12 single pin slimline consumers encountering ballast failures 

would purchase the EL5 59W T8 and 0.88 ballast factor ballast in the face of standard levels EL3 

and EL4. At standard levels EL4 and EL5, only T8 systems are available. At EL5, 8-foot 75W 

T12 single pin slimline consumers can achieve positive LCC savings by purchasing the T8 

system. 

8-60
8-61

 For Event IV, the ballast retrofit event, the baseline is assumed to be an electronically 

ballasted T8 system. Only one replacement lamp system option (at EL5) can match the lumen 

output of the baseline system for Event IV. This option gives positive LCC savings. 
Table 8.5.15 LCC and PBP Results for a Two-Lamp 8-Foot 75W T12 Single Pin Slimline System Operatin

Commercial Sector 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Operatin

g Cost 

Savings 

(Start 

Year) 

lms/W $ $ $ $ 

Baseline Baseline 85.6 75 W T12 & 0.94 BF Mag 197.66 0.00 16.79 0.00 

A: Lamp 

Replacement EL3 97.5 60.5 W T12 & 0.88 BF Mag 161.09 36.57 20.19 10.42 

Baseline 85.6 75 W T12 & 0.94 BF Mag 197.66 0.00 16.79 0.00 

EL1 87.3 75 W T12 & 0.85 BF Elec 211.15 -13.49 98.99 8.46 EL2 92.0 75 W T12 & 0.85 BF Elec 207.01 -9.35 100.97 8.46 EL3 94.8 60.1 W T8 & 1.18 BF Elec 226.14 -28.48 114.12 2.63 

Event I: 

Lamp 

Failure B: Lamp & 

Ballast 

Replacement 

EL5 101.5 60.1 W T8 & 0.88 BF Elec 177.80 19.86 96.40 14.71 

Baseline Baseline 85.6 75 W T12 & 0.94 BF Mag 188.57 0.00 16.79 0.00 

EL1 87.3 75 W T12 & 0.85 BF Elec 212.23 -23.66 101.39 8.46 EL2 92.0 75 W T12 & 0.85 BF Elec 208.09 -19.53 103.36 8.46 EL3 94.8 60.1 W T8 & 1.18 BF Elec 227.22 -38.66 116.52 2.63 

Event II: 

Standards 

Induced 

Retrofit 

Lamp & 

Ballast 

Replacement 

EL5 101.5 60.1 W T8 & 0.88 BF Elec 178.88 9.68 98.80 14.71 

Baseline Baseline 85.6 75 W T12 & 0.88 BF Elec 206.23 0.00 92.37 0.00 

EL1 87.3 75 W T12 & 0.85 BF Elec 211.15 -4.91 98.99 0.98 EL2 92.0 75 W T12 & 0.85 BF Elec 207.01 -0.78 100.97 0.98 

Event III: 

Ballast 

Failure 

Lamp & 

Ballast 

Replacement EL5 101.5 60.1 W T8 & 0.88 BF Elec 177.80 28.43 96.40 7.22 

Baseline Baseline/EL3 94.8 60.1 W T8 & 1.18 BF Elec 227.22 0.00 116.52 0.00 

Event IV: 

Ballast 

Retrofit 

Lamp & 

Ballast 

Replacement 

EL5 101.5 60.1 W T8 & 0.88 BF Elec 178.88 48.34 98.80 12.08 

8-62
Table 8.5.16 presents the findings of LCC and PBP analyses on a second baseline 8-foot 

single pin slimline GSFL. This table presents the LCC and PBP results for the 8-foot 60W T12 

single pin slimline baseline lamp operating in the commercial sector. Key inputs consist of using 

April 2009 AEO2009 reference case electricity prices, an analysis period of 4 years, and 

medium-range lamp and ballast prices. 

Because consumers of 8-foot 60W T12 single pin slimline lamps do not have access to 

any energy-saving T12 replacement lamps in response to a lamp failure, Event IA is not shown. 

However, at EL1, EL2, and EL3, consumers could still purchase more-efficacious 8-foot 60W 

T12 single pin slimline lamps for their magnetic ballast. Although these T12 lamps do not save 

energy, the installed price increase of purchasing these lamps ranges from $4.86 to $8.42. 

 Event II represents consumers who respond to higher lamp standards by retrofitting a 

functioning 8-foot 60W T12 single pin slimline system with a new lamp and ballast that save 

energy. For example, to save energy at EL2 and EL3, consumers of 8-foot 60W T12 single pin 

slimline lamps can choose to retrofit to T12 or T8 systems with electronic ballasts. 8-foot 60W 

T12 single pin slimline consumers cannot achieve positive LCC savings with any of the systems 

available for a standards-induced retrofit at any EL, although they would save energy. Standard 

levels EL4 and EL5 also force 8-foot T12 lamps single pin slimline lamps from the market, 

requiring consumers to retrofit to T8 systems and incur installed price increases of at least 

$80.69. 

Event III represents consumers who are already faced with replacing both a lamp and a 

ballast. The baseline ballast for this event is assumed to be an electronic T12, since the ballast 

standards from the 2000 Ballast Rule and EPACT 2005 would be effective in 2010. At standard 

levels EL2 and EL3, consumers could purchase more-efficacious 8-foot 60W T12 single pin 

slimline lamps and lower-ballast-factor electronic ballasts when faced with a ballast failure. 

However, consumers cannot save enough energy with these systems to achieve positive LCC 

savings. Instead, they can purchase the 8-foot T8 single pin slimline systems on electronic 

ballasts available at EL4 and EL5 to achieve positive LCC savings. In the face of standard levels 

EL4 and EL5, T12 systems are eliminated from the market. Consumers can achieve the greatest 

positive LCC savings with a 8-foot 57W T8 single pin slimline lamp on a 0.78 ballast factor 

electronic ballast at EL5, while consumers purchasing the 8-foot 59W T8 single pin slimline 

lamp on a 0.78 ballast factor electronic ballast at EL4 achieve the least positive LCC savings. 

Three replacement lamp system options exist in response to Event IV. For this event, 

consumers obtain the most positive LCC savings at EL5 with an electronically ballasted 8-foot 

57W T8 single pin slimline lamp system. 

8-63
Table 8.5.16 LCC and PBP Results for a Two-Lamp 8-Foot 60W T12 Single Pin Slimline System Operatin

Commercial Sector 

Event Response Efficacy Level Rated Lamp Efficacy Design Option LCC LCC Savings Installed Price 

Opera

Co

Savi

(Sta

Yea

lms/W $ $ $ $ 

Baseline Baseline/EL1 87.6 60.5 W T12 & 0.88 BF Mag 155.94 0.00 11.77 0.0

EL2 92.6 60.5 W T12 & 0.85 BF Elec 175.00 -19.06 92.22 6.1EL3 97.5 60.5 W T12 & 0.85 BF Elec 174.10 -18.17 95.77 6.1EL3 94.8 60.1 W T8 & 0.88 BF Elec 174.16 -18.22 90.07 4.2EL4 98.2 60.1 W T8 & 0.78 BF Elec 165.00 -9.06 94.62 8.3EL5 101.8 57 W T8 & 0.78 BF Elec 162.16 -6.23 95.02 7.6

Event I: 

Lamp 

Failure 

B: Lamp & 

Ballast 

Replacement 

EL5 101.5 60.1 W T8 & 0.78 BF Elec 164.09 -8.15 96.40 8.3

Baseline Baseline/EL1 87.6 60.5 W T12 & 0.88 BF Mag 149.35 0.00 11.77 0.0

EL2 92.6 60.5 W T12 & 0.85 BF Elec 176.08 -26.73 94.61 6.1EL3 97.5 60.5 W T12 & 0.85 BF Elec 175.18 -25.83 98.17 6.1EL3 94.8 60.1 W T8 & 0.88 BF Elec 175.24 -25.89 92.46 4.2EL4 98.2 60.1 W T8 & 0.78 BF Elec 166.08 -16.72 97.01 8.3EL5 101.8 57 W T8 & 0.78 BF Elec 163.24 -13.89 97.41 7.6

Event II: 

Standards 

Induced 

Retrofit 

Lamp & 

Ballast 

Replacement 

EL5 101.5 60.1 W T8 & 0.78 BF Elec 165.17 -15.81 98.80 8.3

8-64
8-65

Table 8.5.16 LCC and PBP Results for a Two-Lamp 8-Foot 60W T12 Single Pin Slimline System OperatinCommercial Sector (continued) 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Operat

Cos

Savin

(Star

Year

lms/W $ $ $ $ 

Baseline Baseline/EL1 87.6 60.5 W T12 & 0.88 BF Elec 172.27 0.00 87.35 0.00 

EL2 92.6 60.5 W T12 & 0.85 BF Elec 175.00 -2.73 92.22 0.98 EL3 97.5 60.5 W T12 & 0.85 BF Elec 174.10 -1.83 95.77 0.98 EL4 98.2 60.1 W T8 & 0.78 BF Elec 165.00 7.28 94.62 3.11 EL5 101.8 57 W T8 & 0.78 BF Elec 162.16 10.11 95.02 2.44 

Event III: 

Ballast 

Failure Lamp & Ballast 

Replacement 

EL5 101.5 60.1 W T8 & 0.78 BF Elec 164.09 8.18 96.40 3.11 

Baseline Baseline/EL3 94.8 60.1 W T8 & 0.88 BF Elec 175.24 0.00 92.46 0.00 

EL4 98.2 60.1 W T8 & 0.78 BF Elec 166.08 9.16 97.01 4.03 EL5 101.8 57 W T8 & 0.78 BF Elec 163.24 12.00 97.41 3.36 

Event IV: 

Ballast 

Retrofit 

Lamp & Ballast 

Replacement 

EL5 101.5 60.1 W T8 & 0.78 BF Elec 165.17 10.07 98.80 4.03 
Table 8.5.17 presents the findings of LCC and PBP analyses on 8-foot single pin slimline 

GSFL. This table presents the LCC and PBP results for the 8-foot 59W T8 single pin slimline 

baseline lamp operating in the commercial sector. Key inputs consist of using April 2009 

AEO2009 reference case electricity prices, an analysis period of 4 years, and medium-range lamp 

and ballast prices. 

 The results for Event IA show that the LCC of the baseline 8-foot 59W T8 single pin 

slimline lamp on an electronic ballast is higher than the LCC of the 8-foot 57W or 55W T8 

single pin slimline lamps on an electronic ballast that meets EL5. Consumers purchasing these 

lamps achieve positive LCC savings and incur installed price increases ranging from $4.10 to 

$4.95. Those purchasing the 8-foot 55W T8 single pin slimline lamp achieve the greatest 

positive LCC savings. 

 Event III represents consumers who must replace both a lamp and a ballast in response to 

a ballast failure. In response to a ballast failure, consumers of 8-foot 59W T8 single pin slimline 

lamps can purchase the baseline 59W T8 system at EL1 through EL3. The available system at 

EL4 is a 8-foot 59W T8 single pin slimline lamp on a 0.85 ballast factor electronic ballast, and 

consumers purchasing this system would achieve negative LCC savings. At EL5, 8-foot 59W T8 

single pin slimline consumers could purchase 59W, 57W, or 55W T8 systems on electronic 

ballasts and achieve positive LCC savings. Those purchasing the 8-foot 55W T8 single pin 

slimline system would achieve the greatest positive LCC savings, while those purchasing the 

57W T8 system would achieve the least positive LCC savings. Results are identical for Event V. 

Table 8.5.18 summarizes the range of results for the 8-foot single pin slimline product 

class. Only the most relevant events under each baseline lamp are shown. 

8-66
Table 8.5.17 LCC and PBP Results for a Two-Lamp 8-Foot 59W T8 Single Pin Slimline System Operating 

Sector 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Ope

C

Sa

(S

Y

lms/W $ $ $ 

Baseline Baseline/EL3 94.8 60.1 W T8 & 0.88 BF Elec 139.52 0.00 13.23 0

EL5 101.8 57 W T8 & 0.88 BF Elec 133.07 6.45 18.18 

Event I: 

Lamp 

Failure 

A: Lamp 

Replacement EL5 103.6 55 W T8 & 0.88 BF Elec 129.24 10.28 17.33 3

Baseline Baseline/EL3 94.8 60.1 W T8 & 0.88 BF Elec 174.16 0.00 90.07 0

EL4 98.2 60.1 W T8 & 0.85 BF Elec 174.60 -0.44 94.62 EL5 101.8 57 W T8 & 0.85 BF Elec 166.04 8.12 95.02 2EL5 101.5 60.1 W T8 & 0.78 BF Elec 164.09 10.07 96.40 4

Event III: 

Ballast 

Failure 

Lamp & 

Ballast 

Replacement 

EL5 103.6 55 W T8 & 0.88 BF Elec 163.88 10.28 94.17 3

Baseline Baseline/EL3 94.8 60.1 W T8 & 0.88 BF Elec 175.24 0.00 92.46 0

EL4 98.2 60.1 W T8 & 0.85 BF Elec 175.68 -0.44 97.01 EL5 101.8 57 W T8 & 0.85 BF Elec 167.12 8.12 97.41 2EL5 101.5 60.1 W T8 & 0.78 BF Elec 165.17 10.07 98.80 4

Event V: 

New 

Construction 

and 

Renovation 

New Lamp 

& Ballast 

Purchase 

EL5 103.6 55 W T8 & 0.88 BF Elec 164.96 10.28 96.56 3

8-67
Table 8.5.18 Summary of the LCC Results for a Two-Lamp 8-Foot Single Pin Slimline 

System Operating in the Commercial Sector 

LCC Savings Installed Price 

2008$ 2008$ 

Baseline 

Efficacy Level 

Event IA: 

Lamp 

Replacement* 

Event II: 

StandardsInduced 

Retrofit (Lamp 

and Ballast 

Replacement)* 

Event III: 

Ballast 

Failure*† 

Event IA: 

Lamp 

Replacement 

Event II: 

StandardsInduced 

Retrofit 

(Lamp and 

Ballast 

Replacement) 

Event III: 

Ballast 

Failure† 

Baseline N/A N/A N/A 16.79 16.79 92.37 

EL1 LL EN/A -4.91 LL EN/A 98.99 

EL2 LL EN/A -0.78 LL EN/A 100.97 

EL3 36.57 EN/A LL 20.19 EN/A LL 

75 Watt T12 

EL4 NR LL LL NR LL LL 

EL5 NR 9.68 28.43 NR 98.80 96.40 

Baseline N/A N/A N/A 11.77 11.77 87.35 

EL1 BAE BAE BAE BAE BAE BAE 

EL2 NER -26.73 -2.73 16.63 94.61 92.22 

EL3 NER -25.89 to -25.83 -1.83 13.23 to 

20.19 92.46 to 98.17 95.77 

60 Watt T12 

EL4 NR -16.72 7.28 NR 97.01 94.62 

EL5 NR -15.81 to -13.89 8.18 to 

10.11 NR 97.41 to 98.80 95.02 to 96.40 

Baseline N/A EN/A N/A 13.23 EN/A 90.07 

EL1 BAE EN/A BAE BAE EN/A BAE 

EL2 BAE EN/A BAE BAE EN/A BAE 

EL3 BAE EN/A BAE BAE EN/A BAE 

EL4 NER EN/A -0.44 NER EN/A 94.62 

59 Watt T8 

EL5 6.45 to 10.28 EN/A 8.12 to 

10.28 

17.33 to 

18.18 EN/A 94.17 to 96.40 

†For 59-Watt T8 baseline, includes Event V (New Construction and Renovation). 

*Analysis period is 4.0 years. 

N/A: Not Applicable; NER: No Energy-Saving Replacement; LL: Available Options Produce Less Light; EN/A: 

Event Not Applicable; BAE: Baseline Above Efficacy Level; NR: No Replacement 

8-68
8.5.1.5 Product Class: 8-foot recessed double contact HO ≤4,500K 

For the 8-foot recessed double contact HO ≤4,500K product class, DOE analyzed two 

baseline lamps: a 110W T12 and a 95W T12. Each lamp was analyzed at five efficacy levels. 

Table 8.5.19 presents the findings of LCC and PBP analyses on the 8-foot recessed 

double contact HO GSFL. This table presents the LCC and PBP results for the 8-foot 110W T12 

recessed double contact HO baseline lamp operating in the industrial sector. Key inputs consist 

of using April 2009 AEO2009 reference case electricity prices, an analysis period of 2.3 years, 

and medium-range lamp and ballast prices. 

Consumers who own 8-foot 110W T12 recessed double contact HO lamps faced with a 

lamp failure (Event IA) would be expected to purchase 110W T12 baseline lamps for their 

magnetic ballast in the base case. The available replacement lamps at EL1 and EL2 do not 

produce sufficient light output in comparison to the baseline system, so DOE assumes that 8-foot 

110W T12 recessed double contact HO consumers would purchase the reduced-wattage (95W) 

T12 lamp options at EL3 when faced with standard levels EL1 and EL2. Consumers could 

achieve positive LCC savings with these lamps while incurring installed price increases of 

$13.13 or $13.38. 

Standard levels EL4 and EL5 eliminate 8-foot T12 recessed double contact HO lamps 

from the market, requiring consumers to retrofit their systems to T8 systems in the face of a lamp 

failure (Event II). The available 8-foot T8 recessed double contact HO system at EL4 does not 

produce sufficient light in comparison with the baseline system, so DOE assumes that at EL4, 

consumers would instead purchase the 86W T8 system and 0.88 ballast factor electronic ballast 

at EL5. Eight-foot 110W T12 recessed double contact HO consumers purchasing this system 

could achieve positive LCC savings while incurring an installed price increase of $110.87. 

In the face of a ballast failure (Event III), 8-foot 110W T12 recessed double contact HO 

consumers would be expected to purchase the 110W T12 baseline lamp and a 0.95 ballast factor 

magnetic ballast in the base case. Consumers who own 8-foot 110W T12 recessed double 

contact HO systems can purchase replacement systems that comply with EL1, EL3, or EL5 and 

achieve positive LCC savings. The available systems at EL2 and EL4 do not produce sufficient 

light, so DOE assumes that in the face of standard levels EL2 or EL4, consumers would purchase 

systems meeting higher standard levels. At EL1, 8-foot 110W T12 recessed double contact HO 

consumers could purchase a 110W T12 lamp on an electronic ballast but would achieve the least 

positive LCC savings. At EL3, consumers could purchase reduced-wattage (95W) lamps on a 

magnetic ballast or on an electronic ballast. Consumers could achieve the most positive LCC 

savings of any EL by purchasing the 8-foot 86W T8 recessed double contact HO system 

available at EL5. Standard levels EL4 and EL5 would eliminate 8-foot T12 recessed double 

contact HO systems from the market, making the 86W T8 system the only available option. 

 Event V represents consumers who are renovating an existing building or constructing a 

new building. Consumers in this scenario can change the spacing of the 8-foot T8 recessed 

double contact HO system to achieve the same lumens as the baseline T12 system. In this 

scenario, the lowest LCC occurs at EL3 with an 8-foot 95W T12 recessed double contact HO 

8-69
8-70

lamp and 0.9 BF electronic ballast. This system provides negative LCC savings. The EL2 95W 

T12 and 0.91 BF magnetic ballast also provides negative LCC savings at Event V.
Table 8.5.19 LCC and PBP Results for a Two-Lamp 8-Foot 110W T12 Recessed Double Contact HO Syst

Industrial Sector 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Op

C

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 80.1 113 W T12 & 0.95 BF Mag 192.87 0.00 20.51 

A: Lamp EL3 87.6 97 W T12 & 0.91 BF Mag 181.47 11.40 33.64 1

Replacement EL3 88.9 97 W T12 & 0.91 BF Mag 182.12 10.75 34.29 1

EL1 83.2 113 W T12 & 0.88 BF Elec 210.18 -17.32 117.60 1EL3 87.6 97 W T12 & 0.91 BF Mag 208.21 -15.35 114.49 1EL3 88.9 97 W T12 & 0.91 BF Mag 208.86 -16.00 115.14 1EL3 88.9 97 W T12 & 0.9 BF Elec 197.74 -4.88 119.40 1

Event I: 

Lamp Failure B: Lamp & 

Ballast 

Replacement 

EL5 95.3 86 W T8 & 0.88 BF Elec 168.01 24.86 128.99 2

Baseline Baseline 80.1 113 W T12 & 0.95 BF Mag 181.87 0.00 20.51 

EL1 83.2 113 W T12 & 0.88 BF Elec 210.98 -29.10 120.00 1EL3 87.6 97 W T12 & 0.91 BF Mag 209.00 -27.13 116.89 1EL3 88.9 97 W T12 & 0.91 BF Mag 209.65 -27.78 117.54 1EL3 88.9 97 W T12 & 0.9 BF Elec 198.54 -16.67 121.80 1

Event II: 

Standards 

Induced 

Retrofit 

Lamp & 

Ballast 

Replacement 

EL5 95.3 86 W T8 & 0.88 BF Elec 168.80 13.07 131.38 2

8-71
8-72

Table 8.5.19 LCC and PBP Results for a Two-Lamp 8-Foot 110W T12 Recessed Double Contact HO SystIndustrial Sector (continued) 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Op

C

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 80.1 113 W T12 & 0.95 BF Mag 219.61 0.00 101.36 

EL1 83.2 113 W T12 & 0.88 BF Elec 210.18 9.43 117.60 1EL3 87.6 97 W T12 & 0.91 BF Mag 208.21 11.40 114.49 1EL3 88.9 97 W T12 & 0.91 BF Mag 208.86 10.75 115.14 1EL3 88.9 97 W T12 & 0.9 BF Elec 197.74 21.86 119.40 1

Event III: 

Ballast Failure 

Lamp & 

Ballast 

Replacement 

EL5 95.3 86 W T8 & 0.88 BF Elec 168.01 51.60 128.99 2

Baseline Baseline 80.1 113 W T12 & 0.95 BF Mag 220.40 0.00 103.76 

EL1 83.2 113 W T12 & 0.88 BF Elec 210.98 9.43 120.00 1EL2 86.1 97 W T12 & 0.9 BF Elec 211.74 8.66 108.34 EL2 86.1 97 W T12 & 0.91 BF Mag 222.00 -1.59 104.09 EL3 87.6 97 W T12 & 0.9 BF Elec 222.40 -2.00 121.15 1EL3 87.6 97 W T12 & 0.91 BF Mag 209.00 11.40 116.89 1EL3 88.9 97 W T12 & 0.9 BF Elec 198.54 21.86 121.80 1EL3 88.9 97 W T12 & 0.91 BF Mag 209.65 10.75 117.54 1EL4 91.9 86 W T8 & 0.88 BF Elec 202.37 18.04 128.03 1EL4 93.0 86 W T8 & 0.81 BF Elec 212.54 7.87 128.38 1

Event V: New 

Construction 

and 

Renovation 

New Lamp & 

Ballast 

Purchase 

EL5 95.3 86 W T8 & 0.81 BF Elec 198.78 21.62 131.38 1
Table 8.5.20 presents the findings of LCC and PBP analyses on 8-foot recessed double 

contact high-output GSFL. This table presents the LCC and PBP results for the 8-foot 95W T12 

recessed double contact HO baseline lamp operating in the industrial sector. Key inputs consist 

of using April 2009 AEO2009 reference case electricity prices, an analysis period of 2.3 years, 

and medium-range lamp and ballast prices. 

 

When faced with a lamp failure (Event IA), consumers of the 8-foot 95W T12 recessed 

double contact HO baseline lamp would be expected to purchase the 95W T12 baseline for their 

magnetic ballast in the base case. This lamp also complies with EL1. None of the lamps 

available at EL1 through EL3, when in combination with the magnetic ballast save energy as 

compared to the baseline system. Therefore, results for this event are not shown. However, 

consumers can purchase these lamps and incur installed price increases ranging from $6.37 to 

$19.83. 

 Consumers of the 8-foot 95W T12 recessed double contact HO baseline lamp could 

instead retrofit their systems to save energy (Event II). The EL1 system available for retrofit 

does not produce sufficient light output, and consumers could not achieve positive LCC savings 

with any of the system options available for retrofit at EL2 through EL4. None of the systems 

available in response to this event will provide positive LCC savings to consumers. Standard 

levels EL4 and EL5 would eliminate 8-foot T12 recessed double contact HO lamps from the 

market, thereby forcing consumers of the 8-foot 95W T12 recessed double contact HO baseline 

lamp to retrofit to T8 systems when faced with a lamp failure and incur installed price increases 

ranging from $113.57 to $116.92. 

When faced with a ballast failure, consumers of 8-foot 95W T12 recessed double contact 

HO lamps could purchase a 95W T12 baseline lamp on a magnetic ballast in the base case. 

Consumers purchasing a higher-efficacy 8-foot 95WT12 recessed double contact HO lamp at 

EL2 on an electronic ballast achieve positive LCC savings. Consumers purchasing the T12 

systems at EL3 achieve negative LCC savings. Standard levels EL4 and EL5 would eliminate 8-

foot T12 recessed double contact HO systems from the market, making the EL4 and EL5 8-foot 

86W recessed double contact HO T8 systems the only available options for consumers faced 

with a ballast failure. Those who purchase the 8-foot 86W T8 recessed double contact HO 

systems at EL4 or EL5 can achieve positive LCC savings. 

Event V represents consumers who are renovating an existing building or constructing a 

new building. Consumers in this scenario can change the spacing of the 8-foot T8 recessed 

double contact HO system to achieve the same lumens as the baseline T12 system. In this 

scenario, the lowest LCC occurs at EL3 and is negative.

8-73
Table 8.5.20 LCC and PBP Results for a Two-Lamp 8-Foot 95W T12 Recessed Double Contact HO Syste

Industrial Sector 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Op

S

(

Y

lms/W $ $ $ 

Baseline Baseline 82.5 97 W T12 & 0.91 BF Mag 162.29 0.00 14.46 

EL2 86.1 97 W T12 & 0.89 BF Elec 181.17 -18.88 105.95 EL3 87.6 97 W T12 & 0.88 BF Elec 190.84 -28.56 118.75 EL3 88.9 97 W T12 & 0.88 BF Elec 191.49 -29.20 119.40 EL4 91.9 86 W T8 & 0.88 BF Elec 162.61 -0.32 125.64 EL4 93.0 86 W T8 & 0.88 BF Elec 165.89 -3.60 125.98 

Event I: Lamp 

Failure 

B: Lamp & 

Ballast 

Replacement 

EL5 95.3 86 W T8 & 0.81 BF Elec 161.51 0.77 128.99 

Baseline Baseline 82.5 97 W T12 & 0.91 BF Mag 154.33 0.00 14.46 

EL2 86.1 97 W T12 & 0.89 BF Elec 181.96 -27.63 108.34 EL3 87.6 97 W T12 & 0.88 BF Elec 191.64 -37.30 121.15 EL3 88.9 97 W T12 & 0.88 BF Elec 192.29 -37.95 121.80 EL4 91.9 86 W T8 & 0.88 BF Elec 163.40 -9.07 128.03 EL4 93.0 86 W T8 & 0.88 BF Elec 166.68 -12.35 128.38 

Event II: 

Standards 

Induced 

Retrofit 

Lamp & Ballast 

Replacement 

EL5 95.3 86 W T8 & 0.81 BF Elec 162.31 -7.97 131.38 

8-74
8-75

Table 8.5.20 LCC and PBP Results for a Two-Lamp 8-Foot 95W T12 Recessed Double Contact HO SysteIndustrial Sector (continued) 

Event Response Efficacy Level 

Rated Lamp 

Efficacy 

Design Option LCC LCC Savings Installed Price 

Op

C

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 82.5 97 W T12 & 0.91 BF Mag 189.03 0.00 95.31 

EL2 86.1 97 W T12 & 0.89 BF Elec 181.17 7.87 105.95 EL3 87.6 97 W T12 & 0.88 BF Elec 190.84 -1.81 118.75 EL3 88.9 97 W T12 & 0.88 BF Elec 191.49 -2.46 119.40 EL4 91.9 86 W T8 & 0.88 BF Elec 162.61 26.42 125.64 1EL4 93.0 86 W T8 & 0.88 BF Elec 165.89 23.14 125.98 1

Event III: 

Ballast Failure 

Lamp & 

Ballast 

Replacement 

EL5 95.3 86 W T8 & 0.81 BF Elec 161.51 27.52 128.99 1

Baseline Baseline 82.5 97 W T12 & 0.91 BF Mag 189.82 0.00 97.71 

EL2 86.1 97 W T12 & 0.89 BF Elec 181.96 7.87 108.34 EL3 87.6 97 W T12 & 0.88 BF Elec 191.64 -1.81 121.15 EL3 88.9 97 W T12 & 0.88 BF Elec 192.29 -2.46 121.80 EL4 91.9 86 W T8 & 0.88 BF Elec 163.40 26.42 128.03 1EL4 93.0 86 W T8 & 0.88 BF Elec 166.68 23.14 128.38 1

Event V: New 

Construction 

and 

Renovation 

New Lamp & 

Ballast 

Purchase 

EL5 95.3 86 W T8 & 0.81 BF Elec 162.31 27.52 131.38 1
Table 8.5.21 summarizes the range of results for the 8-foot recessed double contact HO 

product class. Only the most relevant events under each baseline lamp are shown. An EL at or 

above EL3 would induce the replacement of T12 electronic ballasts with electronic T8 ballasts, 

as no 8-foot 95W or 110W recessed double contact HO T12 lamps meet these ELs. This 

migration may result in negative LCC savings for consumers who would not otherwise replace 

their T12 electronic system. 

8-76
Table 8.5.21 Summary of the LCC Results for a Two-Lamp 8-Foot Recessed DoubleContact HO System Operating in the Industrial Sector 

LCC Savings Installed Price 

2008$ 2008$ 

Baseline 

Efficacy Level 

Event I: 

Lamp 

Replacement* 

Event II: 

StandardsInduced 

Retrofit (Lamp 

and Ballast 

Replacement)* 

Event III: 

Ballast 

Failure* 

Event I: 

Lamp 

Replacement 

Event II: 

StandardsInduced 

Retrofit 

(Lamp and 

Ballast 

Replacement) 

Event III: 

Ballast 

Failure 

Baseline N/A N/A N/A 20.51 20.51 101.36 

EL1 LL EN/A 9.43 LL EN/A 117.60 

EL2 LL EN/A LL LL EN/A LL 

EL3 10.75 to 

11.40 EN/A 10.75 to 21.86 

33.64 to 

34.29 EN/A 114.49 to 119.40 

110 Watt T12 

EL4 NR LL LL NR LL LL 

EL5 NR 13.07 51.60 NR 131.38 128.99 

Baseline N/A N/A N/A 14.46 14.46 95.31 

EL1 BAE LL LL BAE LL LL 

EL2 NER -27.63 7.87 20.83 108.34 105.95 

EL3 NER -37.95 to 

-37.30 -2.46 to -1.81 33.64 to 34.29 

121.15 to 

121.80 

118.75 to 

119.40 

EL4 NR -12.35 to -9.07 23.14 to 

26.42 NR 128.03 to 128.38 

125.64 to 

125.98 

95 Watt T12 

EL5 NR -7.97 27.52 NR 131.38 128.99 

*Analysis period is 2.3 years. 

N/A: Not Applicable; NER: No Energy-Saving Replacement; LL: Available Options Produce Less Light; EN/A: 

Event Not Applicable; BAE: Baseline Above Efficacy Level; NR: No Replacement 

8-77
8.5.2 Life-Cycle Cost Results for Incandescent Reflector Lamps 

The following tables present the findings of the LCC and PBP analyses on standardspectrum IRL. Table 8.5.22 provides the LCC and PBP results for a 90W PAR38 lamp 

operating in the commercial sector. These results are based on the April 2009 AEO2009

reference case electricity prices, an analysis period of 0.9 years in the commercial sector and 3.4 

years in the residential sector, and medium-range lamp prices. 

Table 8.5.22, Table 8.5.24, and Table 8.5.26 provide the LCC and PBP results for a 90W 

PAR38, 75W PAR38, and 50W PAR30 lamp operating in the commercial sector. These results 

are based on the April 2009 AEO2009 reference case electricity prices, an analysis period of 0.9 

years, and medium-range lamp prices. 

Table 8.5.23, Table 8.5.25, and Table 8.5.27 provides the LCC and PBP results for a 

90W PAR38, 75W PAR38, and 50W PAR30 lamp operating in the residential sector. These 

results are based on the April 2009 AEO2009 reference case electricity prices, an analysis period 

of 3.4 years, and medium-range lamp prices. 

In general, the majority of efficacy levels result in positive LCC savings in spite of the 

higher installed prices of the standards-case lamps in comparison with the baseline lamps. At 

EL1, in all but the residential 90W PAR38 lumen package, consumers would achieve negative 

LCC savings when purchasing the improved halogen (xenon) lamp. Maximum LCC savings 

would be achieved at EL5 for the 90W and 75W lumen packages in both the commercial and 

residential sectors when a consumer purchases a normal-life improved halogen infrared (HIR) 

plus lamp. For the 50W baseline, the EL4 and EL5 replacement lamps are 40W lamps, as this is 

the lowest-wattage IRL covered by standards. Because the EL4 lamps consume the same 

amount of energy as the EL5 lamps but have lower prices, consumers can achieve greater LCC 

savings by purchasing the EL4 lamps instead of the EL5 lamps. In general, the lamps with the 

highest LCC savings are more efficacious and have longer lifetimes than the baseline lamps. 

8-78
Table 8.5.22 LCC and PBP Results for a 90W PAR38 Lamp Operating in the Commercial Sector 

Event Response Efficacy Level Lamp Efficacy Lamp Option LCC LCC Savings Installed Price 

Op

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 14.6 90W, 14.6lm/W & 2500hrs, Halogen 33.33 0.00 6.44 

EL1 15.3 

85.7W, 15.3lm/W & 

2500hrs, Improved Halogen 

(Xenon) 

33.45 -0.12 7.41 

EL2 15.9 82.5W, 15.9lm/W & 6000hrs, Long Life HIR 27.21 6.12 8.06 EL2 16.6 79W, 16.6lm/W & 3000hrs, Improved Halogen (Silver) 29.61 3.72 7.88 EL3 18.0 70W, 18lm/W & 3000hrs, HIR 27.31 6.01 8.06 EL4 19.8 66W, 19.8lm/W & 2500hrs, Improved HIR 30.72 2.61 9.43 EL4 19.8 66W, 19.8lm/W & 4000hrs, Improved HIR 25.38 7.95 9.43 EL5 21.0 60W, 21lm/W & 2500hrs, Improved HIR Plus 29.07 4.26 9.43 

Event I: Lamp 

Failure; or Event 

V: New 

Construction 

and Renovation 

Lamp 

Replacement or 

New Lamp 

Purchase 

EL5 21.0 60W, 21lm/W & 4200hrs, Improved HIR Plus 24.18 9.14 10.02 

8-79
Table 8.5.23 LCC and PBP Results for a 90W PAR38 Lamp Operating in the Residential Sector 

Event Response Efficacy Level Lamp Efficacy Lamp Option LCC LCC Savings Installed Price 

Op

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 14.6 90W, 14.6lm/W & 2500hrs, Halogen 34.53 0.00 5.33 

EL1 15.3 

85.7W, 15.3lm/W & 

2500hrs, Improved Halogen 

(Xenon) 

34.39 0.14 6.31 

EL2 15.9 82.5W, 15.9lm/W & 6000hrs, Long Life HIR 29.59 4.94 6.96 EL2 16.6 79W, 16.6lm/W & 3000hrs, Improved Halogen (Silver) 31.34 3.19 6.78 EL3 18.0 70W, 18lm/W & 3000hrs, HIR 28.72 5.81 6.96 EL4 19.8 66W, 19.8lm/W & 2500hrs, Improved HIR 30.75 3.78 8.33 EL4 19.8 66W, 19.8lm/W & 4000hrs, Improved HIR 27.08 7.45 8.33 EL5 21.0 60W, 21lm/W & 2500hrs, Improved HIR Plus 28.88 5.65 8.33 

Event I: Lamp 

Failure; or Event 

V: New 

Construction 

and Renovation 

Lamp 

Replacement or 

New Lamp 

Purchase 

EL5 21.0 60W, 21lm/W & 4200hrs, Improved HIR Plus 25.43 9.10 8.92 

8-80
Table 8.5.24 LCC and PBP Results for a 75W PAR38 Lamp Operating in the Commercial Sector 

Event Response Efficacy Level Lamp Efficacy Lamp Option LCC LCC Savings Installed Price 

Op

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 14.0 75W, 14lm/W & 2500hrs, Halogen 29.20 0.00 6.44 

EL1 14.6 

71.7W, 14.6lm/W & 

2500hrs, Improved Halogen 

(Xenon) 

29.60 -0.40 7.41 

EL2 15.3 68.8W, 15.3lm/W & 6000hrs, Long Life HIR 23.44 5.76 8.06 EL2 15.9 66W, 15.9lm/W & 3000hrs, Improved Halogen (Silver) 26.03 3.17 7.88 EL3 17.5 60W, 17.5lm/W & 3000hrs, HIR 24.56 4.64 8.06 EL4 19.1 55W, 19.1lm/W & 2500hrs, Improved HIR 27.69 1.51 9.43 EL4 19.1 55W, 19.1lm/W & 4000hrs, Improved HIR 22.35 6.85 9.43 EL5 20.3 51.7W, 20.3lm/W & 2500hrs, Improved HIR Plus 26.79 2.42 9.43 

Event I: Lamp 

Failure; or Event 

V: New 

Construction 

and Renovation 

Lamp 

Replacement or 

New Lamp 

Purchase 

EL5 20.3 51.7W, 20.3lm/W & 4200hrs, Improved HIR Plus 21.90 7.30 10.02 

8-81
8-82

Table 8.5.25 LCC and PBP Results for a 75W PAR38 Lamp Operating in the Residential Sector 

Event Response Efficacy Level Lamp Efficacy Lamp Option LCC LCC Savings Installed Price 

Op

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 14.0 75W, 14lm/W & 2500hrs, Halogen 29.86 0.00 5.33 

EL1 14.6 

71.7W, 14.6lm/W & 

2500hrs, Improved Halogen 

(Xenon) 

30.04 -0.17 6.31 

EL2 15.3 68.8W, 15.3lm/W & 6000hrs, Long Life HIR 25.33 4.54 6.96 EL2 15.9 66W, 15.9lm/W & 3000hrs, Improved Halogen (Silver) 27.29 2.57 6.78 EL3 17.5 60W, 17.5lm/W & 3000hrs, HIR 25.61 4.25 6.96 EL4 19.1 55W, 19.1lm/W & 2500hrs, Improved HIR 27.33 2.54 8.33 EL4 19.1 55W, 19.1lm/W & 4000hrs, Improved HIR 23.66 6.20 8.33 EL5 20.3 51.7W, 20.3lm/W & 2500hrs, Improved HIR Plus 26.30 3.56 8.33 

Event I: Lamp 

Failure; or Event 

V: New 

Construction 

and Renovation 

Lamp 

Replacement or 

New Lamp 

Purchase 

EL5 20.3 51.7W, 20.3lm/W & 4200hrs, Improved HIR Plus 22.85 7.01 8.92 
Table 8.5.26 LCC and PBP Results for a 50W PAR30 Lamp Operating in the Commercial Sector 

Event Response Efficacy Level Lamp Efficacy Lamp Option LCC LCC Savings Installed Price 

Op

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 12.6 50W, 12.6lm/W & 3000hrs, Halogen 19.56 0.00 5.81 

EL1 13.2 

47.8W, 13.2lm/W & 

3000hrs, Improved Halogen 

(Xenon) 

19.93 -0.37 6.78 

EL2 13.5 46W, 13.5lm/W & 6000hrs, Long Life HIR 16.81 2.74 7.43 EL2 14.0 45W, 14lm/W & 3000hrs, Improved Halogen (Silver) 19.62 -0.07 7.25 EL3 15.1 41.8W, 15.1lm/W & 3000hrs, HIR 18.93 0.63 7.43 EL4 17.0 40W, 17lm/W & 3000hrs, Improved HIR 19.80 -0.25 8.80 EL4 17.0 40W, 17lm/W & 4000hrs, Improved HIR 17.75 1.81 8.80 EL5 19.1 40W, 19.1lm/W & 2500hrs, Improved HIR Plus 22.73 -3.17 8.80 

Event I: Lamp 

Failure; or Event 

V: New 

Construction 

and Renovation 

Lamp 

Replacement or 

New Lamp 

Purchase 

EL5 19.1 40W, 19.1lm/W & 4200hrs, Improved HIR Plus 18.20 1.36 9.39 

8-83
8-84

Table 8.5.27 LCC and PBP Results for a 50W PAR30 Lamp Operating in the Residential Sector 

Event Response Efficacy Level Lamp Efficacy Lamp Option LCC LCC Savings Installed Price 

Op

Sa

(

Y

lms/W $ $ $ 

Baseline Baseline 12.6 50W, 12.6lm/W & 3000hrs, Halogen 20.25 0.00 4.70 

EL1 13.2 

47.8W, 13.2lm/W & 

3000hrs, Improved Halogen 

(Xenon) 

20.54 -0.29 5.68 

EL2 13.5 46W, 13.5lm/W & 6000hrs, Long Life HIR 17.88 2.36 6.33 EL2 14.0 45W, 14lm/W & 3000hrs, Improved Halogen (Silver) 20.14 0.11 6.15 EL3 15.1 41.8W, 15.1lm/W & 3000hrs, HIR 19.32 0.92 6.33 EL4 17.0 40W, 17lm/W & 3000hrs, Improved HIR 20.13 0.11 7.70 EL4 17.0 40W, 17lm/W & 4000hrs, Improved HIR 18.50 1.75 7.70 EL5 19.1 40W, 19.1lm/W & 2500hrs, Improved HIR Plus 21.89 -1.64 7.70 

Event I: Lamp 

Failure; or Event 

V: New 

Construction 

and Renovation 

Lamp 

Replacement or 

New Lamp 

Purchase 

EL5 19.1 40W, 19.1lm/W & 4200hrs, Improved HIR Plus 18.73 1.51 8.29 
8.6 DETAILED RESULTS AND SENSITIVITY RUNS 

DOE presents more detailed results and sensitivity runs from the LCC analysis in 

Appendix 8B. These results include Monte Carlo probability distributions, price sensitivity 

scenarios, and operating hour sensitivity scenarios. 

8-85
8-86

 

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