Life-Cycle Costing Analysis

AS WE AT GREEN APPLE LANDSCAPING consider and put into practice better choices for the environment, one of these areas of concern has to be the products we are installing and recommending.  Which of them should we be designing with?   How do we determine this?  Are there tools out there that can help with these decisions?

WHEN WAS THE LAST TIME WE CONSIDERED all the costs of purchasing an item? Are we only considering what the cost will be upfront?  Or do we also determine the maintenance costs, the disposal costs, and the environmental impacts?  So many questions . . .

WELL, THIS IS WHAT WE HAVE FOUND OUT SO FAR: There are different types of life-cycle analyses that can be done.  The emerging science of environmental full life-cycle analyses or cradle-to-grave, from manufacture (‘cradle’) to use phase and disposal phase (‘grave’), are being done .  This type of assessment helps us make more informed decisions through a better understanding of the human health and environmental impacts of products, processes, and activities.

ANOTHER TYPE OF ANALYSIS IS A LIFE-CYCLE COSTING STUDY. The up-front costs of any purchase represent only a small proportion of the total cost of ownership.  The cost of ownership of an item or service is incurred throughout its whole life and does not all occur at the point of acquisition.  A purchasing decision normally commits us to over 95 per cent of the through-life costs.  There is very little scope to change the cost of ownership after the item has been delivered.  Furthermore, recurring costs can increase with time for example through increased maintenance costs as the item ages.

WITH OUR FORAY INTO THIS TYPE OF ANALYSES, we started with a comparison of a life-cycle cost analysis for LED bulbs in low voltage landscape lighting compared to the standard halogen bulbs.  We analyzed a system we were about to install which comprised quite a few lights, more than our average system, although the conclusions would not change with less lights.

THERE ARE FOUR VARIABLES that go into calculating the life cycle cost with LED lights:

•    savings in electricity costs

•    the cost of maintenance being lowered because the bulbs last much longer and don’t have to be changed every year

•    the savings in bulb costs

•    savings by using a smaller transformer as the electricity draw is less

See the detailed analysis

Conclusions

IF YOU WANT TO SAVE MONEY and have a lighter footprint, go with LED bulbs in your outdoor lighting system.  Actually go with them for your indoor lights too.  Although you will be increasing your initial cost, the initial cost will be recouped in two years.  After 20 years your savings will pay for your whole lighting system.  I suspect that no other choice in products will have this large an impact on your pocket book or your conscience.

Tags: LED lighting