Create a detailed, accurate, and user‑friendly ROI calculator that helps a large enterprise determine the financial benefits of replacing traditional lighting (fluorescent, HID, halogen, etc.) with LED lighting across its facilities.
1. Project Definition
- Define the purpose of the calculator: estimate cost savings, payback period, and long‑term financial impact of switching to LED lighting.
- Include assumptions and variables that can be customised by the user.
2. Data Inputs Required
The calculator should request or allow entry of the following variables:
A. Existing Lighting Data
- Number of existing fixtures
- Type of existing lighting (fluorescent, HID, halogen, incandescent, etc.)
- Wattage per fixture
- Average lifespan (hours)
- Replacement cost (lamp + labour)
- Maintenance interval (e.g., every 10k hours)
B. Proposed LED Lighting Data
- LED fixture wattage
- LED fixture cost
- LED lifespan (hours)
- Installation cost (labour + materials)
C. Operational Data
- Hours of operation per day
- Days of operation per year
- Electricity cost per kWh
- Number of facilities or floors (if scaling is required)
D. Financial Modelling Inputs
- Cost of capital or discount rate (for NPV)
- Time horizon (years)
- Tax incentives or rebates (optional)
3. Calculations Required
The AI must generate formulas for:
A. Energy Consumption
- Baseline energy usage (kWh/year)
- LED energy usage (kWh/year)
- Annual energy savings
B. Maintenance Cost Savings
- Annual replacement cost for traditional lighting
- Annual replacement cost for LED lighting
- Net maintenance savings
C. Total Project Cost
- LED fixture cost
- Installation labour cost
- Removal/disposal cost (if applicable)
- Total upfront investment
D. Financial Outcomes
- Annual savings (energy + maintenance)
- Payback period (in years)
- Return on investment (ROI) formula
- Net present value (NPV) using discount rate
- Total cost of ownership (TCO) comparison over selected timeframe (e.g., 5, 10, or 15 years)
4. Output Requirements
The ROI calculator must output:
A. Numeric Results
- Annual cost savings
- Payback period
- ROI percentage
- NPV (if discount rate provided)
- TCO for traditional vs. LED lighting
- Total CO₂ emissions reduced (optional sustainability metric)