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Orion Lighting to Cut Electricity 70% at Two Kenco Warehouses

Logistics and warehousing service company Kenco has installed Orion Energy Systems high-intensity fluorescent (HIF) technology at two of its Chattanooga, Tenn., logistics facilities – a move expected to cut light-related electricity consumption by 70 percent, the company said.

The company calculates that its greenhouse gas emission reductions over the fixtures’ 20-year lifecycle will be about 14,000 tons.

Kenco’s leader of sustainability Deni Albrecht said that the cost savings, when passed on to customers, will give the company a competitive business edge for several years.

The new lighting uses Orion’s Compact Modular lights to replace 537 high-intensity discharge (HID) fixtures in the two facilities. The HIF fixtures are lightweight and easy to install, with an estimated 50 percent reduction in energy consumption while producing about 50 percent more light than traditional HID lights, Kenco said.

The new lights are paired with sensors that automatically dim lighting in response to increases in sunlight, the Chattanooga Times Free Press reported.

The installation cost about $285,000, and taking into account government incentives and rebates, Kenco expects an ROI in 18 months. It projects about 670,000 kWh a year in energy reductions, saving the company $62,000.

Photo: Kenco

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5 thoughts on “Orion Lighting to Cut Electricity 70% at Two Kenco Warehouses

  1. This is the big innovation: “The new lights are paired with sensors that automatically dim lighting in response to increases in sunlight”.
    Hope however, these HIFs are health-friendly too.

  2. How does $62,000 p.a. savings give an 18 mth payback period on an investment of $285,000?
    Answer, read the Chatanooga article and it actually says “after Government rebates and incentives” $62,000 energy savings gives an 18 month payback period.
    It’s important to get the metrics right.

  3. Read the Environmental Leader article, and it says that too: “and taking into account government incentives and rebates.”

  4. Wow, where do you think the money comes from for the incentives? Gov’mnts don’t make money, they get it from taxes. you and I pay taxes. So you and I are supplementing a multimillion $ company. That is almost reverse socialism, right? If the project can’t stand on it’s own then don’t do it. It takes the subsidy to make it justifiable, that is a shame.

  5. Incentives have generally had to be given to get folks to spend money where they would normally not spend it when it comes to sustainability. It is part of the educational process. Building owners, business owners, and property managers will not fix ANYTHING unless it breaks.Even though payback is still good at 3-4 years without incentives, it is a shame that folks are so shortsighted when it comes to seeing total cost of something – and that carrot on a stick thing helps them to see the value of such a capital expense. It is funny that a multi-million dollar company would not see the value of upgrading and saving energy dollars without a government lollipop, but they don’t. They’ll just keep wasting and send the ever increasing costs on to the customer. People/corporations are not very smart a great bit of the time unfortunately.

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