Incremental Business Opportunity for Electrical Contractors
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Introduction
Sign retrofits with LEDs are a relatively new phenomenon, several years behind the lighting retrofits that have flourished over the past decade. The sign industry has not aggressively addressed the market potential, leaving customers to spend their hard earned dollars on excessive energy and maintenance bills. Service companies outside the sign industry have been reluctant to approach signage, even when they are on site performing various other lighting retrofits. Signs are considered complex or hard to service, and very often require expensive equipment to service. These are exactly the reasons that they make the perfect retrofit target for electrical contractors.
There are approximately 1,062,942 retail establishments in the United States, according to the 2011 US Census. Included in this list (NAICS code 44-45) are gas stations, grocery stores, clothing stores, hardware stores and pharmacies, to name a few. In addition, there are more than 800,000 banking, finance, insurance and real estate establishments (NAICS code 52-53) and nearly 650,000 hotels and motels (NAICS code 72). If the old saying holds true, Signs Drive Business, each and every one of these establishments is adorned with at least one illuminated sign, with many including more than one sign.
A typical street corner gas station will have as many as 7 different illuminated signs. Channel letter branding, pylon or pole sign branding and pricing signs typically make up the sign type mix per location. Similar sign combinations are found at stand-alone restaurants, banks and retail stores; strip mall establishments will most commonly have only one sign. These outdoor light fixtures present a unique opportunity to add revenue to projects for which retrofit work is already being proposed or planned for completion.
A recent retrofit of the signs at a Shell gas station in Stratford, CT, netted an annual reduction in energy for the business owner of just over 29,000 kWh per year, while generating sign retrofit revenues for the electrical contractor of over $30,000 for this single location. This dollarized gas station example represents an average to above average retrofit opportunity.
Sign Lighting Retrofit Objectives
The success of any retrofit revolves around the energy savings delivered to the business owners plus the confidence that the system will deliver as promised. A key success factor is the Return on Investment (ROI), typically measured in years. Once inside a sign cabinet or channel letter, you are simply dealing with another light fixture. Typically illuminated with neon or fluorescent lamps, the energy savings potential for these retrofits will range from 60%-90% of their current consumption. Customer confidence levels can be enhanced by the selection of an LED Sign Lighting System that is UL Classified for retrofits. Many systems are not. In 3
the sign business, UL is king, and a UL classification for LED retrofits is critical.
The key elements to a successful sign retrofit that delivers a satisfactory ROI are:
Not all LED Sign Lighting Systems are created equal. If energy reduction is the main objective of a retrofit, the true measure of an LED Sign Lighting Systems energy efficiency is System Efficacy, measured in lumens per watt. The lumen output of an LED Sign Lighting System dictates the brightness of the sign face. If the sign isnt guaranteed to be brighter than it was before the retrofit, the business owner is not likely to sign off on the project.
LED Sign Lighting Systems are sold by the module or the foot, with the individual LED chips encased in or mounted to a module. The modules are connected to each other by a wire or wires and the final product is supplied in flexible strings. The strings are cut to length and mounted inside the sign cabinet, typically by two-sided tape or mechanical fasteners (screws or rivets), and are designed for simple cut and splice adjustments in the field.
To insure that proper sign face illumination is achieved, LED Sign Lighting System manufac- turers typically provide module layouts to sign service companies at no charge, based on information provided to them about the existing sign lighting system. When available, the existing sign lighting data provides the information necessary for the LED Sign Lighting System manufacturer to provide a layout that is most likely to deliver proper illumination. The position of each module in the string is provided, typically along with energy consumption and power supply requirements. While individual sign characteristics can vary dramatically causing some field adjustments to be necessary, when followed accurately, these layouts should deliver proper illumination. If not, field modifications are easily accomplished by cutting the strings and adding or subtracting modules so the illumination delivered provides the desired results. 4
2. Energy Savings
The second piece of the retrofit puzzle is maximizing energy reduction while insuring proper illumination. The System Efficacies of LED Sign Lighting Systems will quickly reveal the system that consumes the least energy for each lumen produced. It is critical in a true comparison of the performance of any two LED Sign Lighting Systems to compare System Efficacies, not just String Efficacy. The difference in the two lies in the energy consumption of the power supplies themselves, with String Efficacy measuring only the energy consumed by the LED string, and System Efficacy measuring the consumption of the LED string plus the power supply. The energy consumption variance between the string and system efficacy can be as much as 20%, depending on the efficiency of the power supplies used. Many LED Sign Lighting System manufacturers do not publish their System Efficacy, so some calculations may be required to perform a fair comparison.
Energy consumption, lumen output, color consistency and longevity are the most critical performance characteristics to sign owners. Simply reducing the energy consumed will not satisfy a customer if their sign doesnt look right. However, assuming all other things are equal, energy reduction is the main objective of a sign retrofit. Typical energy savings varies based on the type of illumination being replaced, as follows:
Neon-to-LED sign retrofits 60%-90% savings to deliver equal or improved illumination Fluorescent-to-LED sign retrofits 50-75% savings to deliver equal or improved illumination LED-to-LED retrofits 30%-50% savings to deliver equal or improved illumination HID-to-LED fixture retrofits 60%-80% savings to deliver equal or improved illumination
3. Maintenance Expense Reduction
While energy reduction is the objective the power companies are looking to achieve, business owners may be more interested in the maintenance cost reductions they will realize with an LED retrofit. The older a sign is, the more likely the business owner is to be paying for more and more frequent service calls to keep the sign properly illuminated. As LED technologies have improved, maintenance calls are virtually eliminated from the business owners budget with a reliable LED retrofit. 5
Since their introduction into the sign industry, LEDs have promised sign owners maintenance- free performance along with energy conservation. Early LED Sign Lighting Systems did not always deliver on that promise. Dramatic improvements in LED technology have increased reliability, longevity, and ultimately, maintenance costs.
In any lighting system, the driving device, whether it be a ballast, transformer or power supply, has typically been the most common failure point. With LED systems, this is also the case. LED strings with properly designed heat sinking have proven over recent years to perform as promised. The vast majority of LED Sign Lighting System service calls result from issues with the power supply. LED power supplies fail for various reasons, including exposure to excessive heat, power surges and lightning strikes. Regardless of the cause, LED power supply manufacturer warranties typically cover only the cost of the part, leaving the business owner or service company to pay for the labor to fix a failed power supply. For this reason, mounting the power supply in an easily accessible location is a significant advantage.
Electrical contractors can provide their customers peace of mind by moving the power supplies out of the sign to a remote location with easy access. This dramatically reduces the potential for costly service calls in the future. Future service calls, if needed, can now be made by one technician in a pickup truck rather than a crew with cranes. Sign owners with any track record of service calls on their signs will immediately appreciate the implications of relocating the power supplies. Combine remote mounted power supplies with module lifetime projections in excess of 100,000 hours, and it is easy to show how an LED sign retrofit can virtually eliminate maintenance costs for years to come.
4. Retrofit Cost
Any ROI analysis starts with the upfront cost of the retrofit. The cost will be calculated as the sum of material costs plus labor costs plus equipment rental. The most unique aspect about sign retrofits is access to the sign. Once inside, the retrofit is barely different than any other light fixture. For electrical contractors not familiar with signage, the most common retrofitable illumination sources in signs are neon and fluorescent lamps.
A. Neon Sign Retrofits If not familiar with neon, retrofits can range from very simple to fairly complex. Typically, a site survey is recommended to get a solid lay of the land, both literally and figuratively. It is critical in the project estimating process to accurately account for the work to be done. Selecting the most appropriate and cost effective UL Classified LED 6
Sign Lighting Retrofit System will also dramatically affect your labor and materials costs. Identify systems that will make for the simplest retrofit of the existing illumination source to minimize material and labor costs. Neon signs are wired in series, so a series wired LED system will allow for reuse of existing wiring, and therefore the fastest and easiest retrofit.
B. Fluorescent Sign Retrofits Fluorescent lamp replacements are not much different for signs than for typical light fixtures. Using an LED system that is UL Classified for retrofits will insure ongoing compliance with NEC and local codes. Fluorescent ballasts are virtually always located in the sign cabinet. If remote mounting the LED power supplies from the cabinet is desirable, using the conduit for the main power running to the ballasts in the sign, if possible, is the simplest and least expensive method to remote mount the LED power supplies.
C. Power Company Incentives Power company rebates are available to help cover the cost of sign lighting retrofits in most parts of the United States. Power companies vary in their recognition of signage as a potential source of energy reduction, but even if the power company doesnt have a specific program for signage, they typically authorize rebates based simply on the kilowatt hours saved with the retrofit. Even the smallest energy rebates available can pay for between 50% of the materials cost to 75% of the total cost of a sign lighting retrofit. Maximize rebate dollars with LED Sign Lighting Systems that offer maximum System Efficacy, delivering the highest lumen output per watt consumed.
Material cost for an LED sign lighting retrofit will be provided by the LED manufacturers in the form of a Bill of Materials generated by the layout they provide for the sign to be retrofitted. Whether you are replacing neon or fluorescent lamps, a layout from the LED manufacturer is highly recommended. For maximum labor efficiency, a minimum of a two man crew is recommended for most sign retrofits. Topography and accessibility to a sign can vary dramatically, and will dictate the size of the crew and the equipment needed, and therefore a good part of the cost of the job. The larger the sign, the more critical an accurate site survey will be to give the LED manufacturer the data they need to provide and accurate layout, and to determine appropriate labor and equipment requirements.
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Electrical Contractor Revenue Opportunities HVAC Outdoor Lighting Sign Lighting? ?? Indoor Lighting Refrigeration As previously mentioned, it is becoming more popular to remove the illumination power source from sign cabinets and remote mount them for easy access in the future. This can also simplify the installation process. However, certain LED systems are much less expensive and easier with which to work than others, from a labor and materials standpoint. Power supply driving distances, wire gauge requirements and wiring accessory requirements can limit the viability of the work required or dramatically increase the labor and materials costs. Research the specifications of the various LEDs that are available on the market and select the system that best suits the specific application to minimize time and materials costs.
Summary
Sign lighting retrofits are a huge, virtually untapped market that is just starting to be realized. Unlike many other types of retrofits, the sign lighting retrofit industry is only now ramping up, with millions of existing signs with inefficient and costly to maintain illumination sources still waiting for retrofits. Adding signage to any locations retrofit work is financially sensible. With travel costs already covered, only the additional time on site and material costs will need to be factored into existing retrofit project costs to maximize both profits and rebate dollars. With a little research, information and experience, sign lighting retrofits will add valuable revenue and profits to the electrical contractor industry for years to come.
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Ventex Technologys LED Sign Retrofit Solution
Since 1993, Ventex Technology, Inc. has been the industry leader in sign lighting technology. The innovations introduced with our electronic neon power supplies have saved hundreds of millions of dollars in energy and maintenance costs over the years. As with our approach to driving neon, Ventex has again revolutionized sign lighting with its patented Venbrite LED Sign Lighting System.
The industry standard Class 2 LED Sign Lighting Systems were developed using power supply technology that was intended for uses other than sign lighting. LED Sign Lighting Systems were then engineered to work using this power supply technology, despite the numerous limitations and shortcomings. Although certainly more energy efficient than their neon and fluorescent predecessors, Class 2 LED Sign Lighting Systems do not deliver the most effective or efficient use of LEDs for the illumination of signage.
LEDs are current rated devices. They are specified, manufactured and sold based on their current ratings. They require constant current to illuminate evenly and properly throughout the string, insuring that the left end of a sign is the same brightness as the right end. Furthermore, flexibility is required to use as many or as few LEDs as necessary to properly illuminate any given sign. The power supply must therefore be able to drive one LED to dot an i, up to as many LEDs as the power supply is designed to handle at full load.
Delivering constant current throughout an LED string using constant voltage, variable current Class 2 power supplies is highly inefficient. Each module in the string requires circuitry to regulate the excessive current being delivered to the module by the power supply. With Class 2 LED power supplies producing variable current output, typically maximizing at 5 amps (5000 milliamps), and LED chips used in LED Sign Lighting Systems having current capacities between 100mA and 400mA, the module based circuitry is substantial. This circuitry consumes energy, and as a byproduct, generates heat.
Ventex developed the sign industrys only series wired, low current, constant current LED system. In doing so, we eliminated the system losses and energy-consuming, heat-generating electronic components that our competitors must include in each and every LED module to regulate the current from their constant voltage Class 2 power supplies. Additionally, the energy losses from a two stage Class 2 power supply are double that of our single stage power 9
supply. Lastly, our series wired solution enables the fastest, simplest, least costly LED retrofits on the sign market. The end result is the sign industrys only solution for neon-to-LED and fluorescent-to-LED retrofit systems Rapid Retrofit by Ventex.
Venbrite Meets All LED Retrofit Objectives
A. Proper Illumination Ventex has been helping sign manufacturers and service companies insure proper illumination in signs for more than 20 years. Our expert sales team and layout technicians produce the sign industrys most comprehensive and consistent LED layouts. Typical turnaround times for layouts are 48 hours. Fast, detailed and accurate layouts help reduce material costing errors, minimize installation time and insure proper illumination.
B. Energy Savings The Venbrite LED Sign Lighting System is the most energy efficient in the sign industry. Delivering up to 144 lumens per watt, no other system comes close. In fact, because of the inefficiencies of Class 2 LED systems, no Class 2 LED ever will. Venbrites low current output and simple module design maximizes energy bill reduction and Energy Company rebates. See Appendix A for a comparison to leading LED Sign Lighting Systems.
C. Maintenance Expense Reduction Venbrite offers unsurpassed driving distances from a remote mounted power supply to the LEDs. Using 18 awg gauge wire, Venbrite power supplies are the only power supplies in the industry that can accommodate up to 175 feet, enabling placement of power supplies in easy-to-reach locations at a minimum of cost.
D. Retrofit Cost Whether neon or fluorescent, Rapid Retrofits with the Venbrite LED Sign Lighting System deliver the lowest cost retrofit options in the sign industry. Our UL Classified Rapid Retrofit systems have been designed with the installer in mind. Keep it simple. Make it flexible. Make it profitable.
1. Neon Sign Retrofits were the first application our engineering team had in mind when designing Venbrite products. Series wired to allow for the use of existing sign wiring and conduit, no other LED Sign Lighting System retrofits as fast as Venbrite. Why do you think we call it Rapid Retrofit?
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2. Snap Stick is a simple, field cut extrusion into which our Venbrite modules slide quickly and easily. No fastening of modules required, just slide them into the extrusion and snap the extrusion into our easy mount Snap Clips. Because we utilize our standard LED strings with the Snap Stick, all the advantages of the Venbrite LED Sign Lighting System are realized, and lamp changes are a thing of the past.
UL Classified Venbrite LED retrofits. The simplest, most energy efficient, cost effective, user friendly, LED retrofit system in the Sign Industry. Another arrow in every electrical contractors quiver. See Appendix B for a case study of a typical LED Sign Retrofit and the ROI model.
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Case Study Lordship Shell, Stratford, CT
The Lordship Shell gas station in Stratford, CT was looking to refresh their image and reduce their electric bills. They were open 24 hours per day, and their indoor, outdoor and sign lighting were showing their age. They selected Efficient Lighting and Maintenance of nearby Brookfield, CT to perform the retrofit work.
Tom Phillips, owner of Efficient Lighting and Maintenance, has made a living in the retrofit market for more than 14 years. We got into energy conservation around 14 years ago, before it became popular. said Mr. Phillips. With this project, he knew they could execute a job of this large scale and maintain their energy conservation focus. Because EL&M is an approved vendor for the SBEA (Small Business Energy Advantage Program), he also knew there would be significant rebates involved in this massive facelift. The SBEA is funded through Connecticuts Energy Conservation and Load Management Fund, which provides incentives and turnkey services for energy conservation projects for small businesses. As an approved vendor, Efficient Lighting & Maintenance would be able to apply those incentives to the Lordship Shell project to help offset the upfront costs.
EL&M had used GE and Sloan LED products in the past to perform sign lighting retrofits, but had recently learned of the Venbrite Rapid Retrofit system for sign lighting. Familiar with Ventex products from years of use of the Generation III Electronic Neon Power Supply product line, the system advantages of the Venbrite product line intrigued Mr. Phillips enough to request and evaluate samples for this project. Following their hands-on review, they chose Venbrite. Since EL&M and the SBEA Program focus primarily on energy conservation, the Rapid Retrofit system was a logical choice, given the performance of the Venbrite system.
The Venbrite Difference
The Venbrite LED Sign Lighting system is the most energy efficient system in the LED sign lighting industry. It has the highest light output per energy consumed (System Efficacy) of any LED Sign Lighting System. Quite simply, the energy efficiency is unparalleled.
Industry standard Class 2 LED systems rely on power supply technology designed for uses other than sign lighting. The LED strings were then engineered to work using this existing technology, despite numerous limitations and shortcomings. The Engineering team at Ventex developed a better and more efficient way to power LEDs.
Every other LED manufacturer uses constant voltage, variable current Class 2 power supplies to drive their LEDs. To accommodate the varying loads required in the sign manufacturing process, excessive output current, up to 5 amps or 5000 mA (milliamps), is required with a 12 volt constant voltage system. The problem is that the LED chips used in Class 2 LED Sign Lighting Systems can only handle between 100 and 400 mA. Out of necessity, the excess 12
current is regulated using energy consuming, heat generating electronic components in each and every module.
Ventex saw an opportunity to improve on the Class 2 design, and repurposed our energy efficient electronic neon power supply technology to develop Venbrite, our patented, series wired, constant current LED Sign Lighting System. The performance of the Venbrite LED Sign Lighting System is extraordinary:
Highest Lumen per Watt output of any LED system on the market Only one powered component per module - the LED chip LED junction temperature 50 C lower than all competitors Class 2 systems Power supplies can be remote mounted up to 175' feet using #18AWG wire Evenly illuminates up to 8 wide cans with a single stroke, reducing module counts and material costs Single wire design simplifies and expedite installation, reducing labor costs Series wired, just like neon, for fast easy neon retrofits UL Classified for neon to LED retrofits using existing GTO and conduit
Efficient Lighting & Maintenance Delivers Results with Venbrite LEDs
Through proper product selection and careful installation efforts, Efficient Lighting & Maintenance was able to reduce the power bill for the Lordship Shell station by 47,090 kWh per year, resulting in an annual cash flow savings of $7349.00. By taking advantage of the energy incentives available through the SBEA Program in Connecticut, Lordship Shell was the grateful recipient of $18,658 in rebates, representing 36% of the cost of the entire retrofit, and the resulting Return on Investment (ROI) was more than satisfactory.
Pre-retrofit lighting levels and uniformity varied noticeably due to intermittent outages from aged neon, fluorescent lamps, transformers and ballasts. The resulting illumination failed to produce the branding image that Lordship Shell desired. New illumination at the Lordship Shell station now projects a more professional and attractive brand image.
Tom Phillips of Efficient Lighting & Maintenance summed up the project, stating, We are energy driven, first and foremost. We view our role as a function of customer service - we save customer money and make them aware of the rebates that are out there, and what they qualify for. Cost reductions and image enhancement, Ventex and Efficient Lighting & Maintenance delivered both in a big way.