DNV, a Houston-based independent energy expert and assurance provider, recently released the results of a study identifying six “next-generation” commercial lighting opportunities considered likely to provide noteworthy program savings of more than 3,700,000 megawatt-hours.

The study, conducted in partnership with 11 organizations across the United States and Canada, ranked these opportunities according to the potential size of the market, potential to deliver significant program savings and ease of delivery. Data was also gathered from vendors, manufacturers and lighting contractors.

According to Richard S. Barnes, DNV’s region president for energy systems, North America, “This study outlines new ways that lighting can be used to provide customers and utilities with deeper energy savings while using established and effective utility energy programs.” 

DNV considers three of these opportunities to be mass-market opportunities with the ability to fit into established energy management programs or to have the ability to scale. They include higher-efficacy LEDs, advanced lighting controls and redesigned LED-to-LED retrofits.

The other three opportunities are deemed niche market opportunities, applying only to specific conditions or customers and not suited to broad adoption. They include demand management, germicidal UV lighting and tunable lighting.

Replacing existing LEDs with newer, higher-efficacy products was thought to be the most promising and given an “A” grade. Not only is market potential widespread because older LEDs eventually burn out and need to be replaced, but also because replacing them with the highest-efficacy LED products will provide a 20% increase in energy savings as opposed to using baseline products.

While the cost of higher-efficacy LEDs is slightly higher, other benefits offset that, such as the ability for utilities to take advantage of established energy programs targeted to the consumer or retailer.

In comparison, advanced lighting controls that adjust the light based on occupancy to reduce energy use were given a “B” grade. This is due partly to a smaller market and higher cost.

Commercial and industrial lighting is running second to LEDs as acceptance reaches the late majority stage of market adoption. However, Geoffrey Cooper, director of energy markets at DNV and one of the study’s main authors, said, “While the conventional wisdom is that LEDs have sufficiently embedded themselves into the market, this study shows that there are ample opportunities to transition the market towards next-generation lighting technologies. Given the complexity of these solutions, however, electrical contractors are essential to their installation and utilization.”

Next-generation options offer the potential for significant energy savings in an area that is considered fully tapped, but there are areas of traditional lighting upgrades in harder-to-reach populations or areas that can be explored, such as small businesses located in underserved communities that have not made the switch from CFLs or similar to LEDs, perhaps due to lack of funding.

The study provides an accurate depiction of the lighting market across North America that includes next-generation opportunities and other methods of energy savings that can come from lighting.