Tuesday, May 19, 2015

Cost savings of using LED lights

LED lights are more expensive than fluorescent lights, but are there any cost savings in the long run? How many years it takes before we spend less using LED than using fluorescent? Let's do a spreadsheet analysis to find out!

Assumptions:
Cost of LED light 24.6 W = $35
Cost of fluorescent light 32 W = $6.80 (Sheng Shiong)
Electricity tariff = 0.2233 per kWh
Days in a month = 31
Hours light is switched on per day = 6
Both the LED and fluorescent light does not spoil in the time period we are analyzing.

So there you have it! In the spreadsheet below, we showed that the initial cost of using LED is higher than fluorescent. However, after 92 months (7.7 years), the total cost of using LED will be less than the total cost of using fluorescent.

This is analysis of using LED purely from an economic standpoint, and it is up to you to decide whether LED lights make sense for you or not :)



Cost of LED light 24.6WCost of Fluorescent 32W (Sheng Shiong)
0 months356.8000
136.021731488.1290816
237.043462969.4581632
338.0651944410.7872448
439.0869259212.1163264
540.108657413.445408
641.1303888814.7744896
742.1521203616.1035712
843.1738518417.4326528
944.1955833218.7617344
1045.217314820.090816
1146.2390462821.4198976
1247.2607777622.7489792
1348.2825092424.0780608
1449.3042407225.4071424
1550.325972226.736224
1651.3477036828.0653056
1752.3694351629.3943872
1853.3911666430.7234688
1954.4128981232.0525504
2055.434629633.381632
2156.4563610834.7107136
2257.4780925636.0397952
2358.4998240437.3688768
2459.5215555238.6979584
2560.54328740.02704
2661.5650184841.3561216
2762.5867499642.6852032
2863.6084814444.0142848
2964.6302129245.3433664
3065.651944446.672448
3166.6736758848.0015296
3267.6954073649.3306112
3368.7171388450.6596928
3469.7388703251.9887744
3570.760601853.317856
3671.7823332854.6469376
3772.8040647655.9760192
3873.8257962457.3051008
3974.8475277258.6341824
4075.869259259.963264
4176.8909906861.2923456
4277.9127221662.6214272
4378.9344536463.9505088
4479.9561851265.2795904
4580.977916666.608672
4681.9996480867.9377536
4783.0213795669.2668352
4884.0431110470.5959168
4985.0648425271.9249984
5086.08657473.25408
5187.1083054874.5831616
5288.1300369675.9122432
5389.1517684477.2413248
5490.1734999278.5704064
5591.195231479.899488
5692.2169628881.2285696
5793.2386943682.5576512
5894.2604258483.8867328
5995.2821573285.2158144
6096.303888886.544896
6197.3256202887.8739776
6298.3473517689.2030592
6399.3690832490.5321408
64100.390814791.8612224
65101.412546293.190304
66102.434277794.5193856
67103.456009295.8484672
68104.477740697.1775488
69105.499472198.5066304
70106.521203699.835712
71107.5429351101.1647936
72108.5646666102.4938752
73109.586398103.8229568
74110.6081295105.1520384
75111.629861106.48112
76112.6515925107.8102016
77113.673324109.1392832
78114.6950554110.4683648
79115.7167869111.7974464
80116.7385184113.126528
81117.7602499114.4556096
82118.7819814115.7846912
83119.8037128117.1137728
84120.8254443118.4428544
85121.8471758119.771936
86122.8689073121.1010176
87123.8906388122.4300992
88124.9123702123.7591808
89125.9341017125.0882624
90126.9558332126.417344
91127.9775647127.7464256
92128.9992962129.0755072
93130.0210276130.4045888
94131.0427591131.7336704
95132.0644906133.062752
96133.0862221134.3918336
97134.1079536135.7209152
98135.129685137.0499968
99136.1514165138.3790784
100137.173148139.70816

Monday, May 18, 2015

Hello World!


I started this blog to raise awareness of simple ways you can do to save money and result in larger cash flows for investments/savings/enjoyment etc. As to the name, 'opti' is short for 'optimization' and as its name suggests, we aim to optimize our personal finances. Stay tuned for our articles!