A locally-based commercial bank has partnered with a lighting supplier to help Barbadian consumers save hundreds of thousands of dollars on their electricity bills per year.
Republic Bank (Barbados) Limited has concluded a contract with Caribbean LED Lighting Incorporated, located here, with the aim of making loan funding easily available, so businesses and individuals could invest in energy-saving bulbs and lamps.
Chief Executive Officer of Caribbean LED Lighting Inc., Jim Reid, said that, for example, a company buying 849 lamps would require an investment of $148,575, with a payback period of 1.8 years. However, Reid noted that the annual savings would be $44,670 in the first five years — the warranty period — then $81,894.
“The total savings over the expected life of the lamps are $1.3 million,” reported the CEO.
He said the payback period could be reduced through decreased consumption. The entrepreneur pointed out that these savings did not include the reduced cost of air conditioning.
“LED lights can reduce A/C loads by one kilowatt for every three kilowatts of lighting energy saved,” assured the business executive.
He added too the savings did not include the reduced replacement/maintenance costs of existing lighting.
Reid also gave a practical instance where a local business was able to record big savings immediately after installing these energy-efficient lamps. He identified Hanshell Inniss as that company which recently saved $10,000 per month, after retrofitting its cold storage, offices and supermarket with LED lights.
He argued that this amounted to $120,000 per year. Reid disclosed that about one million dollars worth of lamps will be exported this month alone, adding that unlike some Miami-based businesses which fly into Barbados, sell their products and go back out, his firm brings in foreign exchange.
The CEO also assured Barbadians that the cost of the lamps was continuing to drop as technology improved. He explained that the lights manufactured by his company were less expensive than some of those made in the United States.
“We’re selling for prices that you can buy for retail prices in the US. There is a company called LED Liquidators Online: a four-foot LED tube would sell for US$64; we sell a four foot LED tube for just over $60, actually cheaper than you can buy online in the US,” the business leader reasoned.
He noted, too, that two years ago, a five watt LED lamp cost $55; now, that same light was being retailed at $34.
General Manager of Republic Bank, Sean Husain said that in addition to saving on the direct cost of the lights, the loan is structured for repayment from three years to five years.
“So, if you have a payback period on your investment of 18 months, for example, it means that if you have a three-year loan, the savings that you will get, you will be paying less towards the loan. So that your actual monthly cash flow is more,” Husain pointed out.
“If you invest, let’s say $240,000 Jim gives you a payback period of 24 months, it means that you would actually be savings $10,000 a month on your bill,” added the Republic Bank boss. (EJ)