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Calculator · E-505

LED retrofit payback calculator

The energy and demand saved when fixtures are replaced, and the simple payback at the prices and project cost you enter.

LED retrofit payback · E-505Metric · SI
fixtures
W
W
h
¢/kWh
Use the energy rate on your bill.
$/kW-month
From your bill, if demand-metered. 0 if not.
$
$
The inputs start with example values: replace them with your fixtures, hours and bill. Estimate only.

CCT 01How it works

kW saved = fixtures × (old W − new W) ÷ 1,000; kWh saved = kW saved × hours. Energy dollars = kWh × price. Demand dollars = kW saved × demand charge × 12, assuming the lights run at the monthly peak. Simple payback = (project cost − incentives) ÷ yearly savings.

The default energy price is the Rate of Last Resort energy rate for ENMAX customers in Calgary1; larger businesses usually buy on retail contracts, so use your own bill.

CCT 02Assumptions and limits

  • Energy charge only; delivery charges scale partly with demand, which the demand input covers roughly.
  • This model uses the same hours before and after the retrofit. Additional savings from occupancy or daylight controls need a separate before-and-after hours calculation. See lighting controls.
  • Simple payback ignores financing, maintenance savings and the time value of money.

Questions people ask

What is the payback on an LED retrofit?

It is driven by hours: fixtures that run most of the year pay back far faster than ones that are rarely on. Enter your hours above; the result is only as good as the wattages and prices you enter.

Are there rebates for LED retrofits in Alberta?

Programs open and close. Check current status before counting on one; see LED lighting retrofits.

Should we replace fixtures or install retrofit kits?

Kits reuse the housing and can be cheaper; new fixtures cost more but reset the fixture’s life. Either way the work needs a permit and certified parts. Read LED lighting retrofits.

Sources

  1. Utilities Consumer Advocate: Default ratesGovernment of Alberta (Utilities Consumer Advocate) · Fixed 2025-01-01 to 2026-12-31; page read 2026-09-25