New Survey: 95% of US Cities Satisfied with LED Streetlights and Saving Nearly 60% in Costs
WASHINGTON, Oct. 29, 2012 /PRNewswire/ -- Among cities and municipalities in the United States that have implemented Light-Emitting Diode (LED) streetlight projects, 95% were satisfied with the overall performance of the streetlights. The more efficient LED streetlights were found to save on average nearly 60% in combined energy and maintenance costs, according to a new survey published today by Washington, DC-based research firm Northeast Group, LLC. The firm surveyed nearly 100 cities and municipalities across the US that have implemented some form of LED streetlight initiatives. The results were published today in the new study "United States Smart Infrastructure: LED and Smart Street Lighting."
"LED streetlights are transforming cities and municipalities across the US," said Northeast Group. "Not only are LEDs helping save money through reduced energy and maintenance costs, but 95% of the cities and municipalities we surveyed said both they and residents were very happy with the performance and light quality of the new streetlights. Many reported that law enforcement officials in particular had praised the lights for improving visibility and public safety. The success of these LED projects is also helping to set the stage for more advanced 'smart' street lighting systems, which will reduce energy consumption by a further 20-30%. In total, the LED and smart street lighting markets are expected to reach a cumulative $4.7 billion in the US by 2025."
But there are also some challenges facing the market. The survey revealed that 45% of the respondents had funded their LED streetlight projects almost entirely with stimulus funding from the American Recovery and Reinvestment Act (ARRA). A further 36% relied on ARRA funding or other grants for at least a portion of their financing. As this stimulus funding recedes, financing for future LED streetlight projects has been more difficult to secure, despite the success of early projects. However, the price of LED streetlights is steadily falling and on track to hit parity with legacy technology within a few years. As a result, the payback period for these projects is becoming more favorable and within the reaches of budget-constrained cities and municipalities. As the LED streetlight business case continues to improve, the number of projects is expected to expand rapidly in the coming years.
Northeast Group's study identified nearly 400 US cities and municipalities that had either already begun or had considered installing LED streetlights. After conducting interviews with nearly 100 of them, the survey was able to draw conclusions such as the actual savings captured by pilot projects and full deployments, the public reaction, the most common financing mechanisms, and the vendors serving this market. Northeast Group found that over 25 vendors were already active in the US LED streetlight market and that, with expected strong growth, the market will continue to attract many vendors offering diverse solutions.
"Perhaps the most surprising finding in our survey was that most cities had only converted a small percentage of their streetlights to LEDs, even though they've been extremely popular," added Northeast Group. "It was hard to find any detractors from these projects, yet LED penetration remains below 1% of the overall streetlight population in the US. Certainly, some hurdles, such as financing, remain. But overall these findings show that the market has vast growth potential."
In addition to consuming less energy and reducing maintenance costs, LED streetlights also turn on and off nearly instantly and have dimming capability. This enables cities to install "smart" features to the streetlights, which further reduce energy consumption through dimming, improve billing, and enable remote monitoring features. Cities that have already installed communications networks for related smart grid infrastructure can take advantage of existing installations to lower overall costs.
"Smart streetlights are the logical next step," according to Northeast Group. "Current pilot projects such as in Chattanooga, Tennessee have demonstrated that smart streetlights improve safety while lowering costs. As more cities invest in LED streetlights and smart grid infrastructure, smart streetlights will help cities further reduce energy consumption. A majority of the cities in our survey were interested in pursuing smart streetlight systems in the future."
Northeast Group's study provides full survey results and analysis, forecasts to 2025 for the LED and smart streetlight markets, detailed cost-benefit analyses, and profiles of the leading vendors. It also includes detailed case studies of the largest and most successful projects. The study is 120 pages long and includes over 80 charts, tables, and graphics. The study was completed using both primary and secondary sources, including a survey of nearly 100 cities and municipalities. The study provides valuable insights for those vendors hoping to expand in the US streetlight market and also those cities and municipalities who are considering these types of projects and would like further data and analysis to help make their decisions.
ABOUT: Northeast Group, LLC is a Washington, DC-based smart grid market intelligence firm.
Key questions answered in this study:
- What were the average energy and maintenance cost savings for cities and municipalities implementing LED and smart streetlight projects?
- What are the typical break-even periods for these projects?
- What are the primary financing mechanisms for these deployments?
- How large will the LED and smart streetlight markets be through 2025?
- Who are the leading vendors in the US LED market and who is poised to lead the growing smart streetlight market?
- Which cities are leading the way in smart streetlight installations and how can other cities emulate them?
- How will smart streetlights fit into larger smart infrastructure plans?
Table of Contents |
|
i. Executive summary |
1 |
ii. Methodology |
9 |
1. Introduction to smart infrastructure |
12 |
1.1 What makes infrastructure "smart?" |
12 |
1.2 Smart infrastructure applications |
14 |
1.3 How do smart infrastructure applications build on each other? |
20 |
2. Overview of LED and smart streetlight benefits |
21 |
2.1 Background of LED streetlights and comparison to other technologies |
21 |
2.2 Cost savings potential of LEDs |
25 |
2.3 Advanced "smart" lighting features |
30 |
3. Survey analysis: the current status of LED and smart streetlights in the US |
38 |
3.1 Energy and maintenance cost savings from LED streetlights |
39 |
3.2 Financing LED streetlights |
42 |
3.3 Scale of LED streetlight installations |
46 |
3.4 Public reaction to LED streetlights |
48 |
3.5 Interest in "smart" streetlight features |
49 |
4. Contested issues in LED and smart streetlight systems |
51 |
4.1 City vs. utility streetlight ownership |
51 |
4.2 Legal issues involving dimmed streetlights |
59 |
5. Case studies |
62 |
5.1 Chattanooga |
62 |
5.2 Los Angeles |
67 |
5.3 San Jose |
69 |
5.4 Seattle |
74 |
6. LED and smart streetlight market forecast |
79 |
6.1 LED and smart streetlight deployment pace |
79 |
6.2 Cost of LED and smart streetlight deployments |
81 |
6.3 LED streetlight market forecast |
82 |
6.4 Smart streetlight market forecast |
85 |
7. Vendors |
90 |
7.1 Cooper |
90 |
7.2 Cree |
91 |
7.3 Echelon |
93 |
7.4 GE |
94 |
7.5 Global Green Lighting |
94 |
7.6 Holophane |
95 |
7.7 Leotek |
96 |
7.8 LSI |
97 |
7.9 Philips |
98 |
7.10 Schreder |
99 |
7.11 Sensus |
100 |
7.12 Additional vendors |
101 |
8. Conclusion |
102 |
9. Appendix |
104 |
9.1 Cities responding to municipal street lighting survey |
104 |
9.2 Cities identified as having considered LED streetlights |
105 |
9.3 Companies covered in this report |
111 |
9.4 List of acronyms |
112 |
List of Figures, Boxes, and Tables |
|
Survey highlights |
3-6 |
LED and smart streetlights: key takeaways |
7 |
Combined LED and smart streetlight market forecast |
8 |
LED and smart streetlight market forecast data |
8 |
Table 1.1: Smart infrastructure market segments |
13 |
Figure 1.1: Smart infrastructure overview |
15 |
Table 1.2: Communications technologies |
16 |
Figure 1.2: Smart grid value chain |
17 |
Table 2.1: LED streetlight benefits |
22 |
Table 2.2: Different types of streetlight luminaires |
23 |
Table 2.3: HPS to LED wattage cross-reference |
25 |
Table 2.4: Payback on Ann Arbor's LED streetlight program |
27 |
Figure 2.1: Payback on Ann Arbor's LED streetlight program |
27 |
Table 2.5: Simple payback on replacement of 4-year HPS streetlights |
28 |
Figure 2.2: Adjusted payback on replacement LED streetlights in Ann Arbor |
28 |
Table 2.6: Simple payback -- 4-year lifetime HPS replacement and higher energy costs |
29 |
Figure 2.3: Payback on replacement LED streetlights assuming higher energy costs |
29 |
Table 2.7: Summary of payback in LED cost-benefit examples |
30 |
Figure 2.4: Conservative estimate of payback with dimming |
33 |
Table 2.8: Conservative estimate of payback with dimming |
33 |
Figure 2.5: Payback with better scaled dimming |
34 |
Table 2.9: Estimate of payback with better scaled dimming |
34 |
Figure 2.6: Payback with better scaled dimming and higher energy prices |
35 |
Table 2.10: Estimate of payback with better scaled dimming and higher energy prices |
35 |
Table 2.11: Summary of payback in smart lighting cost-benefit examples |
37 |
Figure 3.1: LED streetlight projects in the US |
38 |
Table 3.1: Northeast Group municipal streetlight survey summary |
39 |
Figure 3.2: Average energy savings from LEDs |
40 |
Figure 3.3: Reported energy savings from LEDs |
40 |
Figure 3.4: Cities with access to LED streetlight rates |
41 |
Figure 3.5: LED streetlight financing |
43 |
Figure 3.6: Percentage streetlights converted to LED |
47 |
Figure 3.7: Completion of LED streetlight projects |
47 |
Figure 3.8: Interest in "smart" streetlight features |
49 |
Table 4.1: Streetlight ownership models |
52 |
Figure 4.1: Major investor-owned utilities offering LED rates |
53 |
Box 4.1: Calculating streetlight flat rates at PG&E |
55 |
Box 4.2 Traditional and decoupled rate making |
57 |
Figure 4.2: States with electric decoupling |
57 |
Box 4.3: Hypothetical streetlight decoupling example |
58 |
Figure 4.3: Legal framework for assessing liability of streetlights |
60 |
Table 4.2: Dimming criteria for the standard IESNA RP-8-05 |
61 |
Table 5.1: Summary of case studies |
64 |
Table 5.2: Payback on LED and smart systems in Chattanooga |
66 |
Figure 5.1: Payback on Chattanooga's smart streetlight project |
66 |
Table 5.3: Payback on Los Angeles' LED streetlight program |
70 |
Figure 5.2: Payback on Los Angeles' LED streetlight program |
70 |
Table 5.4: Cost breakdown of San Jose's smart lighting system |
73 |
Table 5.5: Payback on San Jose's smart streetlight program |
74 |
Figure 5.3: Payback on San Jose's first 2,100 smart streetlights |
74 |
Table 5.6: Seattle vendor selection cost analysis |
76 |
Figure 5.4: Cost of different streetlight manufacturers in Seattle |
76 |
Figure 5.5: Price per streetlight of Seattle's LED streetlight project |
77 |
Figure 5.6: Payback on Seattle's LED streetlight project |
77 |
Table 5.7: Payback on Seattle's LED streetlight project |
78 |
Figure 6.1: Annual investment in LED and smart streetlights |
79 |
Figure 6.2: Common types of streetlight fixtures |
81 |
Figure 6.3: Price range for different watt LED streetlights in municipal survey |
82 |
Figure 6.4: Average cost of sub-100 W cobra head LED streetlights |
82 |
Figure 6.5: Average cost per streetlight of smart streetlight projects |
82 |
Figure 6.6: Detailed LED streetlight market forecast |
83 |
Table 6.1: LED streetlight forecast data |
83 |
Figure 6.7: LED streetlight penetration rate |
84 |
Table 6.2: LED and smart streetlight market drives and barriers |
85 |
Table 6.3: Smart streetlight forecast data |
87 |
Figure 6.8: Smart streetlight market forecast |
87 |
Figure 7.1: Market share of leading LED streetlight vendors in municipal lighting survey |
90 |
Figure 7.2: LED vendors by number of cities served |
91 |
Table 7.1: Leading LED and smart streetlight vendors |
91 |
Table 7.2: Vendors in largest US LED streetlight projects |
92 |
Table 7.3: Additional vendors in the US LED streetlight market |
102 |
Companies covered in this report
- American Electric Lighting
- Amerlux
- Arizona Public Service Co
- Cooper Lighting
- Cree
- Detroit Edison
- Dialight
- Duke Energy
- Duralight
- Echelon
- Ecofit
- ESL Spectrum
- GE
- Georgia Power
- Global Green Lighting
- Greenstar
- Holophane
- Kansas City Light & Power
- Kim
- King
- LED Roadway
- Leotek
- Lighting Science
- LSI
- Omega Pacific
- Pacific Gas & Electric
- Portland General Electric
- Progress Energy
- Ringdale
- San Diego Gas & Electric
- Schreder
- Sensus
- Southern California Edison
- Sternberg
- Sylvania
SOURCE Northeast Group, LLC
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