Annual Energy Saving (£s)
4 Step Calculation

- All values are based on a 12 month period
  • Cost for 1kW of Electricity = £0.06
  • 1kW = 1000watts (60W = 0.06kW)
  • (60W lamp running for 1hour uses 0.06kW of power)
  • Average yearly run time = 3000 hours
  • Labour cost to change a lamp = £2.00
Step 1:
Total cost to run a lamp = [wattage(kW) x average yearly run time(hrs) x cost for 1kW (£)]

Example 60watt lamp
Cost (£) = (0.06 x 3000 x 0.06)
Cost (£) = 10.80

Step 2:
Total cost of lamp replacements = (number of lamps used x cost of lamp)
Number of lamps used = [average yearly run time(hrs) / lifetime of bulb(hrs)]


Example 1000hr £0.15 lamp
Cost of Lamps used = [(3000/1000) x 0.15]
Cost of Lamps used = £0.51

Step 3:
Total cost of labour = (labour cost to replace x no. of bulbs used)

Example 3 lamps used
Cost of labour = (2 x 3)
Cost of labour = £6.00

Step 4:
Total cost of Lamp for 1 year = [(Total cost to run) + (Total cost replacements) + (Total cost labour)]


Accountants View
Example 1
Cost of replacement lamp = £3.64
Lifetime of lamp = 12000 hrs
Average yearly run time = 3000 hrs

Year Cost £’s (equation) Cost £’s (actual)
1 0.91 3.64
2 0.91 0.0
3 0.91 0.0
4 0.91 0.0


In step 2 we worked out that;
Number of lamps used = [average yearly run time(hrs) / lifetime of bulb(hrs)]
For the 12000 hr lamp; (3000/12000) = 0.25
For that year the total spent on replacement lamps, will be ¼ of the full price.
This allows the lifetime of the bulb to be incorporated into the cost equation.
Accountants would say the money going out in year 1 is £3.64 and £0.00 for the next 3 years. The expenditure for year 1 is therefore higher than years 2, 3 and 4.
If the calculation for energy saving is done from the accountants view, then over a 12 month period (where a new lamp was installed in month 1) the saving is less.


Carbon Footprint - (emission of CO2 gas)

1kW (electricity produced) = 0.43kg CO2 (Defra 2007)

CO2 emissions must be in metric tonnes
1 metric tonne = 1000 kg

Total output of CO2 for 1 year = (annual kilowatt hours x 0.00043)

Annual kilowatt hours = wattage (kW) x average yearly run time
e.g. 60watt Lamp (0.06 x 3000 = 180kW)

(180 x 0.00043 = 0.0774 tonnes / year)