Benefits of an LED Retrofit for Your Business

Written by Ben Schafer on October 1, 2025 in Commercial

If your business is still relying on outdated lighting, you could be wasting thousands of dollars a year without even realizing it. According to the U.S. Department of Energy (DOE), lighting accounts for up to 20% of total energy usage for U.S. buildings.¹ Inefficient bulbs can drive up electricity bills, burn out quickly, and leave your space looking dim and outdated.

The good news is, there’s a better lighting solution for commercial buildings. LED retrofits give your business higher quality lighting that lasts longer and costs less to operate.

In this blog, we explore the top benefits of upgrading to LED lighting for businesses, from cost savings to employee safety and more.

Reduced Energy and Maintenance Costs

LED light bulbs on a white desk, next to a calculator and coins, showing the concept of energy savings

For many business owners looking to cut back on electricity costs, one question remains: how much money can businesses actually save with LED lighting?

According to a survey conducted by the U.S. Energy Information Administration (EIA), 5.9 million commercial buildings spent a total of $141 billion on energy in 2018.² If lighting accounts for 20% of electricity usage, this means the average commercial building spent about $4,779 on lighting that year. That’s money that could easily go to growing the business instead of being wasted on outdated systems.

So how can an LED retrofit reduce energy costs for your business, exactly? We break it down in detail below.

Less Energy Waste

Traditional incandescent lightbulbs release 90% of their energy as heat.³ So if your business is still relying on outdated bulbs, only 10% of the lighting energy you’re paying for is actually being used.

LED lightbulbs provide the same brightness as conventional bulbs, but they use 90% less energy and produce very little heat.³This can translate into substantial electricity savings over time.

Bulbs that produce a lot of heat can also raise indoor temperatures, forcing air conditioning systems to work harder to keep spaces comfortable. When you switch to LEDs, this can lower cooling costs and reduce strain on HVAC systems.

LED Lightbulbs Last Longer

Unlike fluorescent tubes or incandescent bulbs that need frequent replacing, LED lights have incredibly long lifespans. In fact, they last 15 times longer than traditional bulbs, giving you up to 50,000 hours of illumination or more.^3,4

For businesses, this can mean significant savings when it comes to operational costs and maintenance.

Better Lighting Quality and Productivity

The interior of a busy office with employees at computers, showing the concept of productivity

Lighting quality has a direct impact on productivity. Outdated bulbs provide lower quality illumination, causing fatigue, eye strain, headaches, and other discomforts that can hinder focus.

LED retrofits can make workspaces brighter and more comfortable. This helps boost morale, improve visibility, and support employee performance. In fact, one study by Phillips found that better lighting can improve productivity by 8%.⁵More productivity means more energy spent toward core business goals.

Improved Employee Safety

Old lighting systems do more than waste energy alone. Flickering fluorescent lights or dimly lit spaces can create hazards for both employees and customers. This means poor lighting is not only a liability, but a danger.

LED lightbulbs provide bright, consistent illumination for critical areas like stairwells, hallways, and parking lots. This makes it much easier to stay aware of potential safety issues. One study by the CDC found that LED lighting helped employees detect tripping hazards 94% faster.⁶

LED lighting contributes to a safer, more compliant workplace with fewer liability issues.

Contact the North Bay’s Trusted Commercial Electricians

LED lighting retrofits replace outdated lighting systems with modern solutions. Compared to spaces using conventional halogen or incandescent bulbs, a building outfitted with LED lighting is safer, more efficient, and cheaper to operate in the long-term.

At Schafer Electric, we have years of experience providing North Bay businesses with expert commercial electrician services. Our friendly team of experts is ready to help your business find the best lighting solutions for your needs and budget.

Explore Our Services

References

1. Energy Department recognizes commercial lighting leaders in interior lighting campaign. (2018, August 22). Energy.gov. https://www.energy.gov/eere/articles/energy-department-recognizes-commercial-lighting-leaders-interior-lighting-campaign

2. Energy Information Administration (EIA)- Commercial Buildings Energy Consumption Survey (CBECS). (n.d.). https://www.eia.gov/consumption/commercial/

3. Upgrade your lighting. (n.d.). ENERGY STAR. https://www.energystar.gov/buildings/save-energy-commercial-buildings/ways-save/upgrade-lighting

4. LED Basics. (n.d.). Energy.gov. https://www.energy.gov/eere/ssl/led-basics

5. Van Bommel, W. J. M., Van Den Beld, G. J., Van Ooyen, M. H. F., & Philips Lighting. (2002). Industrial lighting and productivity. Philips Lighting, The Netherlands. https://www.pecnw.com/wp-content/uploads/2021/02/industrial_lighting_and_productivity.pdf

6. Archive App | CDC. (n.d.). https://archive.cdc.gov/#/details?url=https://www.cdc.gov/niosh/mining/topics/Illumination.html