Different schemes for replacing conventional light bulbs with LED bulbs for greatest return on investment

Abstract

A country can reduce its energy consumption significantly by encouraging more LED lighting usage. To encourage LED transition, more information showing the light bulb transition scheme with minimum cost is needed. We propose three possible transition schemes and provide a method to choose the most profitable one in a specific market condition. The total cost of each scheme is calculated as the sum of the electricity payment incurred during the transition, the capital cost needed to purchase LED light bulbs, and the business loss from discarding unexpired conventional light. The utility of our analysis is shown by applying it to two markets: Bahrain and Thailand. The two markets are chosen because of the large difference in electricity rates. Our analysis shows that market conditions select the most profitable transition scheme. With our analysis, a consumer can choose the most profitable scheme that responds to changing market conditions and consumers’ needs.

Keywords

• decision making
• led technology adoption
• energy conservation
• profitability
• sustainable energy consumption