Annual Electricity Saved
Utility Rebate as % of Project
(Providing Utility Offers No Rebates/ROI still
ROI: Return on Investment
Net Present Value
Nucor Corporation is North America’s largest steel producer, and is also the largest recycler of any material in the U.S. Consistent with Nucor’s focus on sustainability, in 2016 a unit of Nucor’s Building Systems Division engaged to retrofit their vast array of 1000W Metal Halide fixtures.
In addition to sustainability, this division desired to achieve significant operating savings on electricity and maintenance, while improving working conditions, productivity, and quality by improving workplace lighting.
Nucor chose to engage Optica Lighting to partner in this endeavor due to our responsiveness and flexibility. Nucor opted for our Buy As You Save program, wherein they would purchase 10 320W LED High Bay fixtures per month. Within a few months, the new fixture expenditures were less than the monthly savings from the previously-purchased fixtures, allowing Nucor to continue expanding the LED installation while enjoying a net-positive cash flow.
The way to build your savings is by spending less each month.
The Optica Lighting LED retrofit, replacing 1000W metal halide fixtures with 320W LED High Bay fixtures, will allow Nucor to save over $ 70,000 in electricity and maintenance savings. In addition, the facility will be cooler, as the large facility is not air-conditioned in the summer, and the LED fixtures emit significantly less heat than the fixtures they replace. From a sustainability standpoint, the facility will use 802,000 fewer kilowatt-hours than before.
The 10-year value (NPV) of this investment to Nucor is greater than $ 400,000 (net gain), with a 58% return on investment. Meanwhile, quality and productivity have improved due to better lighting at work stations.