LED Retrofits: How to Hit ROI in 6 Months

Looking for proof that LED retrofits pay off fast? Below is the real-world cost stack we use to hit six-month ROI targets for Central Ohio warehouses.

1. Energy Savings—The Big Slice

  • Swap 400 W metal-halide high-bays for 185 W LEDs ⟶ 54 % kWh reduction.
  • At $0.11 kWh and 5,000 annual burn-hours, that’s $117 saved per fixture.

2. Maintenance Avoidance

LED drivers carry 5–10 year warranties. Zero lamp-swap labor vs. MH relamp every 18 months; average $25 / fixture / year saved.

3. Utility Rebates & Tax Deductions

AEP Ohio currently pays up to $0.06 per kWh reduced. On 50 fixtures, that’s a $4,000 instant check. Section 179D can boost the write-off.

4. The Payback Math

Project Cost (50 LEDs @ $350 installed)$17,500
Minus Utility Rebate– $4,000
Net Cost$13,500
Annual Energy + Maint. Savings$26,000
Simple Payback≈ 6 months

Next Steps

Want your own custom ROI model? Request a free LED audit and we’ll calculate savings, rebates and financing.