IES Releases New Standard on Economic Analysis of Lighting

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The Illuminating Enegineering Society of North America (IES) recently published a new document, titled Recommended Practice for the Economic Analysis of Lighting, which gives a” framework for the lighting practitioner involved in making important economic decisions relative to lighting.”

Specifically, the framework looks at selecting from a group of competing lighting designs, establishing when a system under consideration will “pay off,” making energy conservation decisions, and, says IES, “most importantly, gauging the profitability of a capital investment in a lighting system that can be objectively compared to other competing capital investments.” 

According to IES, Life Cycle Cost/Benefit Analysis (LCCBA) is the most robust among analytical methods, accepted by experts in managerial economics from all industries. “The distinguishing and superior feature of this second-level method is that it includes the time value of money. First-level analysis methods are also covered so that the lighting professional can understand why their use is not encouraged.”  

 

 

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