Commercial LED Lighting Upgrades: Working With Contractors, Suppliers and ESCOs
How commercial LED lighting upgrades are delivered: audits, design, supply, installation and financing; contractor vs supplier vs ESCO; what a good proposal contains and how to compare quotes.
Key points
- A commercial LED upgrade has five stages: audit, design, supply, installation and verification. Contractors, suppliers and ESCOs split these differently.
- A good proposal states existing and new wattage per area, light levels, energy savings, payback and warranty, not just a price per fitting.
- Comparing quotes means comparing light delivered and lifetime cost, not fitting prices.
- Buying fixtures directly from a manufacturer and using a local installer suits large, repeatable projects; turnkey contractors suit smaller sites.
Upgrading the lighting of a factory, warehouse, shop or office to LED is one of the fastest-paying energy projects. Owners can buy it in different ways: from a turnkey contractor, directly from a manufacturer with a local installer, or through an energy service company that is paid from the savings. Each route suits different projects.
The five stages of an upgrade
| Stage | What happens |
|---|---|
| 1. Audit | Count and measure existing fittings, hours of use, light levels, problems |
| 2. Design | Choose fittings, layout, controls; calculate light levels and savings |
| 3. Supply | Source fixtures, drivers, controls and accessories |
| 4. Installation | Remove old fittings, install new ones, wire controls |
| 5. Verification | Measure light levels and energy, hand over documents |
Who does what
| Turnkey contractor | Manufacturer + local installer | ESCO | |
|---|---|---|---|
| Audit and design | Contractor | Manufacturer (often) and owner | ESCO |
| Supply | Contractor buys from suppliers | Direct from manufacturer | ESCO |
| Installation | Contractor | Local electrician | ESCO’s contractor |
| Payment | Upfront or staged | Upfront for goods, local labour | From savings over years |
| Best for | Small and medium sites | Large or repeat projects, distributors | Owners without capital |
We work as the manufacturer in the second model: design support, fixtures and documents, with installation by the client’s electricians or contractor.
The audit
A good audit records, for each area:
- Existing fitting type, lamp and ballast wattage, quantity
- Mounting height and ceiling type
- Hours of use per day and days per year
- Measured light levels and complaints (too dark, glare, flicker)
- Special needs: hazardous areas, high temperature, wash-down, cold stores
Without this, savings estimates are guesses.
Design
- Target light levels per area (for example 150–300 lux in warehouses, 500 lux in offices)
- Fitting type and wattage, chosen from photometric data
- Layout, especially where rack aisles or machines changed since the old design
- Controls: occupancy sensors, daylight dimming, schedules
Our high bay calculator gives a quick lumen-method check for halls and warehouses.
A worked savings estimate
A factory replacing 150 metal halide high bays of 400 W (about 455 W with ballast) by 150 W LED high bays, running 6,000 hours a year at US$0.12/kWh:
- Saving per fitting: about 305 W
- Annual saving: 305 W × 150 × 6,000 h ≈ 274,500 kWh, about US$33,000
- Plus lamp replacements avoided and less cooling load
Use the LED retrofit savings calculator for your own numbers. Our guide to how many LED high bay lights you need shows how to size the new layout.
What a good proposal contains
| Item | Why |
|---|---|
| Area-by-area table of old and new fittings | Shows exactly what changes |
| Light levels achieved | Proves the design meets needs |
| Energy before and after | Basis of savings |
| Payback and 10-year cost | Compares options fairly |
| Fixture datasheets and test reports | Proves performance |
| Warranty terms | Who pays if fittings fail |
| Installation plan | Phasing, downtime, safety |
| Disposal of old lamps | Mercury lamps need proper handling |
Comparing quotes
Quotes are often compared by price per fitting, which rewards fewer, weaker fittings. Compare instead:
- Light delivered: lux and uniformity per area
- Total wattage: the energy bill depends on it
- Quality: efficacy, driver brand, surge rating, IP, warranty
- Lifetime cost: fittings + installation + energy + maintenance over 10 years
- Service: spare parts, response time
Warranty and spares
- Five years is common for good commercial LED fittings
- Check who pays for labour and access equipment on warranty claims
- Order a small stock of spares (1–2%) from the same batch
- Keep records of where each batch is installed
Financing
- Upfront purchase: highest return for the owner
- Leasing: spreads cost; payments often lower than savings
- ESCO / shared savings: no capital needed; the ESCO keeps part of the savings for a period
- Utility rebates or government programmes: in some countries, these cut project cost significantly
Common mistakes
- One-for-one replacement without checking light levels, leaving areas over- or under-lit
- Ignoring controls, which often add another 20–40% saving
- Cheap fittings with short warranties in hard-to-reach places
- No verification after installation
Installation planning
Most commercial buildings cannot stop work for an upgrade. A good installation plan:
- Works area by area, often at night or at weekends
- Uses scissor lifts or booms sized for the ceiling height and floor loading
- Keeps emergency lighting working at all times
- Collects and recycles old lamps and ballasts properly; metal halide and fluorescent lamps contain mercury
- Labels new circuits and records fitting positions for maintenance
Verification
After installation, measure light levels at the same points as in the audit and compare energy use from meters or sub-meters over a few weeks. Verification proves the savings to management and lenders, and finds problems such as sensors set too sensitively or areas left over-lit. For ESCO contracts, the verification method should be agreed before work starts, because payments depend on it.
Questions to ask any bidder
- Which fittings exactly, and can we see test reports?
- What light levels will each area have, and how were they calculated?
- What is the warranty, and who pays labour and access costs for claims?
- How will work be phased to keep the building running?
- Who will verify the savings, and how?
Working with us
For factories, warehouses, logistics centres and commercial buildings, send the audit data or floor plans with existing fittings. We will propose fittings, layouts and savings estimates, and supply documents for your contractor. See our factory high bay projects for examples.
Sources
Frequently asked questions
What does a commercial lighting contractor do?
A commercial lighting contractor surveys the building, designs the new lighting, supplies or sources the fixtures, installs them, and commissions controls. Many also handle rebates, permits and disposal of old lamps.
What is an ESCO in lighting?
An energy service company. It designs and installs energy-saving measures such as LED lighting and is paid from the energy savings over several years, often with little or no upfront cost for the building owner.
How do I compare LED lighting quotes?
Ask each bidder for the light levels they will achieve, the new wattage per area, the energy saving, the warranty terms and the fixture data. Then compare total cost over 10 years, including energy and maintenance, not just the price per fitting.