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Total Cost of Ownership- Added Savings with Utility Rebates

by Nicole Michaud 14 October, 2015 03:50

Last week we introduced the topic of Total Cost of Ownership (TCO) for lighting. In the post we showed a simple equation to calculate the TCO of a bulb. The cheaper or less expensive upfront cost of a bulb may not always be the best option in the long run. Factors including the wattage, kWh rate, product cost, rated life, are all considered in your cost of ownership.

There are other ways to save when considering a switch to energy efficiency lighting such as LED. In addition to your long-term cost savings, utility sponsored rebates are an excellent way to reduce your upfront or initial costs- further reducing your Total Cost of Ownership.

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What is Total Cost of Ownership?

by Nicole Michaud 5 October, 2015 04:19

**An earlier version of this post included inaccurate information regarding Total Cost of Ownership and has since been corrected**

When deciding which light bulb to purchase, the cost of the bulb can be a major factor in your decision. But the cheapest bulb on the shelf might not always be the least expensive option in the long run. The truth is that the bulb you buy will determine your cost in the long term. Some bulbs cost more to use, operate, and maintain than others. These costs, all together, are known as your total cost of ownership. Total cost of ownership (TCO) is a financial estimate intended to help consumers and business owners determine the direct and indirect costs of a product. In terms of lighting, the cost of ownership takes into account the upfront cost of the product, the hours used, kWh rate, and the rated life of the light bulb.

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