Energy Savings Analysis: Switching to LED Wall Pack Lights

For commercial property managers, facility owners, and homeowners, outdoor lighting is a necessary expense—but it doesn’t have to be a costly one. Traditional outdoor wall lighting (HPS, metal halide, fluorescent) is inefficient, short-lived, and drains budgets with high energy bills and frequent maintenance. Switching to LED wall pack lights is one of the most impactful ways to cut costs—delivering 50–70% energy savings, plus long-term reductions in maintenance and replacement expenses.

In this guide, we’ll conduct a comprehensive energy savings analysis of switching to LED wall pack lights, including: direct energy cost comparisons, maintenance savings, utility penalty avoidance, rebate opportunities, and ROI calculations. Whether you’re lighting a commercial parking lot, building perimeter, or residential driveway, this data-driven breakdown will show you exactly how much you can save—and how quickly you’ll recoup your investment—while boosting your search visibility for queries like “LED wall pack energy savings,” “switch to LED wall packs cost,” and “LED wall pack ROI analysis.”

Before diving into the numbers, let’s recap the core reasons LED wall packs outperform traditional fixtures in efficiency:

Higher Luminous Efficacy: LED wall packs produce 100–150 lumens per watt (lm/W), compared to 50–80 lm/W for HPS and 60–90 lm/W for metal halide. This means they deliver the same brightness with far less energy.

Lower Wattage Requirements: A 30W LED wall pack matches the brightness of a 100W HPS fixture; a 60W LED equals a 150W metal halide. This translates to 50–70% lower energy consumption per fixture.

No Warm-Up Energy Waste: Unlike HPS (which takes 5–10 minutes to reach full brightness) or fluorescent (which flickers and wastes energy on startup), LEDs turn on instantly at full brightness—no wasted energy.

Better Power Factor: Premium LED wall packs have power factor (PF) ≥ 0.95, compared to 0.6–0.8 for traditional fixtures. This eliminates utility “reactive power” penalties (common for commercial/industrial users).

Controllability: Compatibility with dusk-to-dawn photocells, motion sensors, and dimming systems cuts energy use by an additional 30–50% (vs. constant-on traditional lighting).

The biggest savings come from reduced electricity use. Let’s break down the numbers using real-world wattage comparisons and average electricity rates ($0.15/kWh, the U.S. commercial average in 2024):

A. Per Fixture Energy Savings

Fixture Type	Wattage	Lumens (Approx.)	Daily Energy Use (kWh) (12hrs/day)	Monthly Energy Use (kWh)	Annual Energy Cost ($0.15/kWh)
100W HPS Wall Pack	100W	8,000	1.2	36	$6.48
30W LED Wall Pack	30W	8,000	0.36	10.8	$1.94
Savings Per Fixture	-70W	Same	-0.84 kWh/day	-25.2 kWh/month	$4.54/year

Fixture Type	Wattage	Lumens (Approx.)	Daily Energy Use (kWh) (12hrs/day)	Monthly Energy Use (kWh)	Annual Energy Cost ($0.15/kWh)
150W Metal Halide Wall Pack	150W	13,500	1.8	54	$9.72
60W LED Wall Pack	60W	13,500	0.72	21.6	$3.89
Savings Per Fixture	-90W	Same	-1.08 kWh/day	-32.4 kWh/month	$5.83/year

4.50- 5.80 annually compared to traditional fixtures. For systems with 50+ fixtures, these savings add up quickly.

Key Takeaway: A single LED wall pack saves

B. System-Wide Energy Savings (Commercial/Industrial Example)

Let’s analyze a 100-fixture system (common for commercial parking lots or industrial perimeters):

System Type	Fixtures (Qty)	Total Wattage	Daily Energy Use (kWh)	Annual Energy Use (kWh)	Annual Energy Cost ($0.15/kWh)	Annual Savings vs. Traditional
100x 100W HPS	100	10,000W	120	43,800	$6,570	-
100x 30W LED	100	3,000W	36	13,140	$1,971	$4,599/year (70% savings)

System Type	Fixtures (Qty)	Total Wattage	Daily Energy Use (kWh)	Annual Energy Use (kWh)	Annual Energy Cost ($0.15/kWh)	Annual Savings vs. Traditional
100x 150W Metal Halide	100	15,000W	180	65,700	$9,855	-
100x 60W LED	100	6,000W	72	26,280	$3,942	$5,913/year (60% savings)

Pro Tip: For 24/7 operations (e.g., hospital parking lots, industrial perimeters), savings double. A 100-fixture LED system operating 24hrs/day saves

9, 198/ ye a r v s . H PS an d

11,826/year vs. metal halide.

Traditional fixtures require frequent bulb/ballast replacements—costly in labor (especially for high-mounted fixtures) and parts. LED wall packs eliminate this expense:

A. Lifespan Comparison

HPS Wall Packs: 10,000–20,000 hours (1–2 years of 12hr/day use).

Metal Halide Wall Packs: 8,000–15,000 hours (0.8–1.7 years of 12hr/day use).

LED Wall Packs: 50,000–100,000 hours (5–10 years of 12hr/day use).

B. Maintenance Cost Calculation (100-Fixture System)

Cost Component	HPS System (10-Year Lifespan)	LED System (10-Year Lifespan)	Savings
Bulb Replacements	5 replacements × 100 bulbs × $15 =$ 7,500	0 replacements (10-year lifespan) = $0	$7,500
Ballast Replacements	3 replacements × 100 ballasts × $30 =$ 9,000	0 replacements (LED drivers last 50,000+ hours) = $0	$9,000
Labor Costs (Boom Truck/Scaffolding)	8 replacements × $500 (p erser v i cec a ll) =$ 4,000	0 service calls = $0	$4,000
Total Maintenance Savings	-	-	$20,500 over 10 years

Key Takeaway: Maintenance savings alone cover the upfront cost of LED fixtures for many systems. For the 100-fixture example above,

20, 500 in 10 - ye a r main t e nan ces a v in g s a dd s t o t h e

45,990 in energy savings—total 10-year savings of $66,490.

Commercial and industrial utilities penalize users with low power factor (typically below 0.9). Traditional fixtures have PF = 0.6–0.8, while premium LEDs have PF ≥ 0.95—eliminating these penalties.

Penalty Savings Example (100-Fixture Metal Halide vs. LED System)

Metal Halide System: Total load = 15,000W (15kW), PF = 0.7. Apparent Power (kVA) = 15kW / 0.7 = 21.43 kVA.

Utility Penalty:

$0.10/ kV A f orre a c t i v e p o w er (co mm o n r a t e) . M o n t h l y p e na lt y = (21.43 kV A -15 kW) \times$

0.10 × 720hrs =

$464. M o n t h l y p e na lt y =$

464 / 12 ≈

$38.67. A nn u a lp e na lt y =$

464.

LED System: Total load = 6,000W (6kW), PF = 0.95. Apparent Power (kVA) = 6kW / 0.95 ≈ 6.32 kVA. No penalty (kVA ≈ kW).

Annual Penalty Savings: $464/year.

For larger systems (e.g., 500-fixture industrial perimeter), penalty savings can reach $2,320/year.

Most utilities and government programs offer rebates for switching to LED lighting—further boosting savings and shortening ROI:

DLC/ENERGY STAR Rebates: Utilities typically offer

$5-$

20 per fixture for DLC (DesignLights Consortium) or ENERGY STAR-certified LED wall packs. A 100-fixture project qualifies for

$500-$

2,000 in rebates.

State/Local Incentives: Programs like California’s SGIP (Self-Generation Incentive Program) or New York’s NYSERDA offer additional rebates (up to $30 per fixture) for energy-efficient lighting.

Federal Tax Credits: Commercial users can claim a 179D tax deduction for energy-efficient building improvements, including LED lighting (up to $1.80 per sq. ft.).

Example: A 100-fixture LED system (

200/ f i x t u re =

20,000 upfront cost) with a 15% utility rebate (

3, 000) an d

1,000 state incentive reduces upfront cost to $16,000.

Step 5: Full ROI Calculation (Energy + Maintenance + Rebates)

Let’s calculate ROI for the 100-fixture commercial parking lot example (12hr/day operation,

0.15/ kWh,

200/fixture LED cost):

Cost/Savings Category	HPS System (10 Years)	LED System (10 Years)	Net Difference
Upfront Cost	$5, 000 (100 x$ 50 HPS fixtures)	$20, 000 (100 x$ 200 LED fixtures) – $3, 000 re ba t e =$ 17,000	+$12,000
Annual Energy Cost	$6, 570 \times 10 =$ 65,700	$1, 971 \times 10 =$ 19,710	-$45,990
Annual Maintenance Cost	$2, 050 \times 10 =$ 20,500	$0 \times 10 =$ 0	-$20,500
Annual Penalty Cost	$464 \times 10 =$ 4,640	$0 \times 10 =$ 0	-$4,640
10-Year Total Cost	$95,840	$19,710	-$76,130 (79% savings)
ROI Timeline	-	-	12,000 ÷ (45,990 + 2,050 + 464) ≈ 0.24 years (3 months)

Key Takeaway: Even with higher upfront costs, LED wall packs deliver ROI in 3–18 months for most commercial projects. For 24/7 operations, ROI is as fast as 1–2 months.

While not a direct financial benefit, LED wall packs reduce carbon footprint—aligning with corporate sustainability goals:

Carbon Emission Reduction: A 100-fixture LED system (12hr/day) reduces annual CO2 emissions by ~30 tons (equivalent to planting 794 trees or driving 65,000 fewer miles).

No Toxic Materials: Unlike HPS (lead) or fluorescent (mercury), LEDs are toxin-free—reducing disposal costs and environmental impact.

Real-World Case Study: Industrial Perimeter Lighting Upgrade

A 500-fixture industrial perimeter lighting system (24hr/day operation) switched from 150W metal halide to 60W LED wall packs:

Old System: 500 × 150W = 75,000W. Annual energy cost: 75,000W × 24hrs × 365 ÷ 1000 ×

$0.15 =$

98,550. Annual maintenance:

$20, 500. A nn u a lp e na lt i es :$

2,320. 10-year total: $1,213,700.

New LED System: 500 × 60W = 30,000W. Annual energy cost: 30,000W × 24 × 365 ÷ 1000 ×

$0.15 =$

39,420. Annual maintenance:

$0. A nn u a lp e na lt i es :$

0. Upfront cost: 500 ×

$200 =$

100,000 –

$15, 000 re ba t e =$

85,000. 10-year total:

$39, 420 \times 10 +$

85,000 = $479,200.

10-Year Savings:

$1, 213, 700-$

479,200 = $734,500 (61% savings). ROI: 85,000 ÷ (98,550 – 39,420 + 20,500 + 2,320) ≈ 0.82 years (10 months).

Common Myths About LED Wall Pack Energy Savings

Myth 1: “LEDs are too expensive—savings don’t justify upfront cost.”

Reality: ROI is typically 3–18 months for commercial projects. The 10-year net savings are 3–5x the upfront cost.

Myth 2: “LEDs save energy but dim over time—losing brightness.”

Reality: LEDs dim gradually (L70 lifespan = 50,000+ hours), but this is offset by their initial high efficacy. A 50,000-hour LED is still brighter than a new HPS fixture.

Myth 3: “Controls don’t add significant savings.”

Reality: Dusk-to-dawn photocells + motion sensors cut energy use by 30–50%—adding

1, 380-

2,295/year in savings for a 100-fixture system.

Choose High-Efficacy Fixtures: Opt for LED wall packs with ≥ 120 lumens/W (higher efficacy = more savings).

Integrate Controls: Pair with dusk-to-dawn photocells, motion sensors, and dimming systems (0–10V or DALI).

Select the Right Wattage: Avoid overlighting—use the lumen calculation (Total Lumens = Area × Target Lux × 10.76) to match brightness to needs.

Invest in Quality: Choose fixtures with PF ≥ 0.95, aluminum heat sinks, and reputable drivers (Mean Well, Inventronics) to avoid penalties and ensure long lifespan.

Claim Rebates: Work with your utility to maximize rebates—ask for DLC/ENERGY STAR-qualified fixture lists.

Switching to LED wall pack lights delivers unparalleled energy savings, plus reductions in maintenance, penalties, and environmental impact. For commercial and industrial users, the numbers speak for themselves: 50–70% lower energy bills, 100% maintenance savings, and ROI in as little as 3 months. Even for residential users, a 10-fixture LED system saves

45-58/year in energy costs and $2,050 over 10 years in maintenance.

Key takeaways for maximum savings:

Prioritize high-efficacy (≥ 120 lm/W) LED wall packs with PF ≥ 0.95.

Integrate controls (photocells, motion sensors) to cut energy use by an additional 30–50%.

Claim all available rebates and incentives to reduce upfront costs.

Avoid overlighting—match wattage/lumens to your space’s needs.

If you need help calculating energy savings for your specific project, comparing LED wall pack models, or accessing rebates, leave a comment below or contact our lighting experts for a free, personalized savings analysis!