Entrepreneurship Participating

EventMonta Vista DECA21840 McClellan Road, Cupertino,

CA 95014January 4, 2013

Eva Spitzen

GreenHouse

TM

A supplier of commercial energy conservation equipment

Table of ContentsI. Executive Summary ……………………………………………………………1

II. Introduction ….2

II. Analysis of the Business Situation…………………………………………………………………………………….……………..…5A. Self-analysis…………………………………………………………………………………………………….………….……….…5B. Trading Area Analysis……………………………………………………………………………………………………………..6C. Market Segment Analysis……………………………………………………………………………………………………..10D. Analysis of Potential Location……………………………………………………………………………………………....13

IV. Planned Operation………………………………………………………………………………………………………………………..…13A. Proposed Organization……………………………………………………………………………………………………….…13B. Proposed Product …………………………………………………………………………………………………………………17C. Proposed Marketing Strategies…………………..…………………………………………………………………………20

V. Planned Financing……………………………………………………………………………….……………………………………………22A. Projected Income and Expenses…………………………………………………….……………………………………..22

1. Projected 12 month income statement……………………………………….…………………………….222. 12 Month Cash Flow……………………………………………………………………………….………………..233. First Year Balance Sheet……………………………………………………………………………..………….…24

B. Plan to Meet Capital Needs…………………………………………………………………………………………………..25VI. Conclusion……………………………………………………………………………………………………………………………………….28VII. Bibliography……………………………………………………………………………………………………………………………………29VIII. Appendix……………………………………………………………………………………………………………………………………….30

I. EXECUTIVE SUMMARYMission Statement: GreenHouse™ will provide commercial buildings with advanced energy-efficient, cost-effective and convenient lighting. We will provide adaptable lighting systems utilizing the latest in LED technology, minimizing environmental impact and optimize convenience and efficiency.

Problem: Currently, approximately $40 billion dollars a year in energy and expense is wasted in commercial buildings due to inefficient lighting methods such as incandescent bulbs and CFLs (Compact Fluorescent Lighting). In addition, typical lighting methods used in commercial buildings are incompatible with dimmers and timers and release excessive heat. Although Congress passed a law in 2007 essentially phasing out incandescent bulbs between 2012 and 2014, with further restrictions coming into effect in 2020, 48% of commercial buildings still currently use incandescent bulbs as their main form of lighting.

Solution: The GreenHouse™ solution cuts energy costs by up to 50% through a retrofitted system which couples LED lighting with four distinctive strategies (natural light sensors, time scheduling, monitoring of light levels, and occupancy sensors). The GreenHouse™ solution enables buildings to minimize environmental and financial impact by optimizing the amount of lighting produced, while simultaneously improving workplace ergonomics and increasing convenience for building inhabitants.

Industry: Annual LED sales are currently approximately $11 billion and are expected to grow 19% annually. Annual revenues of the lighting systems control components market are estimated to be $2.6 billion, a figure predicted to double by 2016, and triple by 2020.

Target Market: GreenHouse™ will sell its lighting systems for use in commercial buildings in concentrated urban settings across the country. The primary and secondary markets are office buildings and hospitals. Facilities in these markets are heavy users of lighting and incur correspondingly high financial and environmental costs.

Marketing: GreenHouse™ will position itself as the most convenient way to achieve energy and cost efficiency in their lighting. To ensure market presence is achieved, GreenHouse™ will employ an aggressive marketing plan funded by 15% of revenues, including direct marketing, advertising, media and trade shows, and print advertising. The focus of the GreenHouse™ marketing plan will be to inform customers of the benefits available from installing a GreenHouse™ system on a personal basis, conveying that the GreenHouse™ system is a customizable system that can be best suited to tailor to a particular building’s needs.

Management Team: GreenHouse™ has an experienced, passionate, and well-connected group of executives and advisors. Founder and CEO Eva Spitzen will lead the effort to bring GreenHouse™ to success, along with CFO Nobanari Oda as well as a VP of Marketing, VP of Sales, and VP of Technology.

The Board of Directors includes:

Howard E. Janzen, Janzen Ventures Robert Zollars, Vocera Communications Greg Gallo, DLA Piper Jeffery Hillebrand, Northshore University HealthSystem Glenn Schwaber, Israel Cleantech Ventures Merrill Newman, Convergent Technologies

Financial Data: GreenHouse™ requires $2 million to achieve a successful startup. Of this amount, $500,000 has been secured through a combination of personal investment and angel investors, and a further $1,500,000 investment is now required.

Exit Strategies: An exit strategy for early investors in GreenHouse™ is projected to be available after five years of operation, through a sale of a controlling interest, a merger, or an initial public offering. Potential return on investment in these scenarios is 10 to 30 times the original investment.

II. DESCRIPTION AND ANALYSIS OF THE BUSINESS SITUATION

A. RATIONALE AND MARKETING RESEARCHProblem

In the U.S., about 20% of all energy consumed in commercial buildings is wasted.1 Although energy is

always lost when fuels are burned, inefficient technology and design are the main culprits. According to the

Continental Automated Buildings Association, buildings can reduce energy consumption by up to 70% with

updated energy systems.2 Many of these problems are due to the fact that 80% of commercial buildings use either

CFLs or Incandescent bulbs, the drawbacks of which are outlined in the table below.

Table 1 Comparative analysis of LEDs, incandescent bulbs, and CFLs (annual figures reflect use of 30 bulbs)Source: Verdia Technologies 2007

Life Span

Watts used

Annual operating cost

Carbon dioxide emissions

Turns on instantly

Durability Heat emitted

Contains toxic mercury

LED 50,000 hours

6-8 $32.85 451 pounds

√ √ 3.4 btu's/hour

X

Incandescent 1,200 hours

60 $328.59 4500 pounds

√ X 85 btu's/hour

X

CFL 8,000 hours

13-15 watts

$76.65 1051 pounds

X X 30 btu's/hour

√

Interviews and ResearchGreenHouse™ conducted extensive research to determine the market demand for eco-conscious lighting

systems in buildings. Vocera Communications™, a

prominent healthcare communications company,

and El Camino Hospital were surveyed. It was from

these contacts that we determined the average

sales a day, data on the behavior and tendencies

on the average customers, and probable costs of the manufacturing of our products.

B. INTRODUCTIONGreenHouse™ Solution

GreenHouse™ will achieve integrate lighting management solutions in order to retrofit buildings to

become more eco-friendly and save money simultaneously, using LED bulbs.

1 Revkin, Andrew C. "A Shift in the Debate Over Global Warming." Article. The New York Times 6 Apr. 2010: WK3. The New York Times. 06 Apr. 2010. Web. 31 Sept. 2011.

<http://www.nytimes.com/2008/04/06/weekinreview/06revkin.html?ref=weekinreview>.2

"Bright Green Buildings: Convergence of Green and Intelligent Buildings." CABA - Continental Automated Buildings Association - Home. Web. 31 Sept. 2011. <http://www.caba.org/brightgreen>.

Primary Research

Online/telephone surveys Focus Groups with commercial building operations managers Beta Testing of GreenHouse™ Software

Secondary Research

Internet Research Informative interviews with empolyees that work in commercial buildings Competitive analysis

The LED lamp is an ultra-compact lighting source that uses a semiconductor chip. LEDs come in varieties

as low as 2W, and deliver advantages over more traditional lighting such as longer lifetime, improved robustness,

smaller size, faster switching, greater durability and reliability, and lower energy consumption. These bulbs are

85% more efficient than those of an incandescent variety and last 25 times longer.3 LEDs will be used in

conjunction with four unique energy-saving strategies which consist of natural light sensors, maximum lighting

levels, occupancy sensors, and time scheduling. These strategies can be customized to suit a building’s needs.

C. SELF ANALYSIS Personal Business Experience in the Proposed Field

Eva Spitzen possesses unique characteristics and skill that along with her personality and experience

enable her to undertake the role of Chief Executive Officer of GreenHouse™. She has taken college-level courses in

both finance and international business. In 2010, Eva spent a year as an intern at the finance department of

Vocera™, a company that deals with communications in the healthcare industry. Through this position, she gained

experience in operations and finance in both for-profit companies and healthcare buildings. In addition, Eva is a

regular volunteer at the Veterans Affair Hospital in Palo Alto, California, mainly aiding with daily operations of the

hospital. As an aide in their operations department, she acquired valuable experience and knowledge concerning

conducting daily operations in commercial buildings.

D. ANALYSIS OF THE BUSINESS OPPORTUNITY, CUSTOMER, AND LOCATIONGreenHouse™ will be headquartered in San Jose, California, located in Silicon Valley, in proximity to many

of the world's cutting edge technology

businesses. Silicon Valley is ground zero for a

host of sophisticated and passionate engineers

and business leaders, comprising an excellent

and highly-qualified workforce. In its first year of

operation, GreenHouse™ will target commercial

buildings in the surrounding area of its Silicon

Valley headquarters and the greater Bay Area. This area has a high concentration of commercial buildings,

specifically office buildings and hospitals. In the second year, after GreenHouse™ has implemented processes that

3 Bounds, Gwendolyn. "Stores Stock New Bulbs for the Light Switch." The Wall Street Journal. Dow Jones & Company, 1 June 2011. Web. 3 June 2011.

<http://online.wsj.com/article/SB10001424052702303745304576357320903322848.html>.

Figure 1 Geographic locations for GreenHouse™ to expandSource: NYC Maps 2006

make it ready to scale operations, GreenHouse™ will expand into other areas of high urban concentration

surrounding large cities. Potential areas surroundings large cities in which to expand can be found in Figure 1. Office

buildings account for 19% of all commercial energy consumption4, making them the highest energy-consuming

buildings in the United States. Of this figure, 39% of electricity costs of office buildings are from lighting.5 Health care

buildings, including hospitals, account for 11% of all commercial energy consumption, and are the fourth highest

energy-consuming buildings in America. Lighting accounts for about 18% of total energy use in health care buildings.6

Market Segment Analysis: Primary and Secondary MarketsGreenHouse’s™ primary market is office

buildings. Offices consume the most energy among

commercial buildings, accounting for 19% of all energy

consumption. Lighting accounts for the majority of

electricity use in office buildings, using a combined

figure of 86 billion kilowatt-hours per year. On

average, 43% of an office building's energy usage is on

lighting.7 GreenHouse’s™ secondary market will be health care

buildings. Of all commercial buildings, health care buildings have the third highest energy consumption rate and

the fourth highest energy costs. On average the combined cost of energy usage of health care buildings is $5.3

billion per year.8

Analysis of Potential Locations

GreenHouse™ will be located in San Jose, California, in the heart of Silicon Valley, which presents many

benefits, including being in the vicinity of our first year target market. We will lease 3,500 square feet of office

space located at 224 Airport Pkwy, San Jose, CA 95110 for $1.25/sq. ft. a month9. The building contains 120,000

square feet, providing ample room for future expansion.

4 "Commercial Buildings." Center for Sustainable Systems. Web. 31 Sept. 2011. <http://css.snre.umich.edu/css_doc/CSS05-05.pdf>.

5 "Managing Energy Costs in Office Buildings." Energy Source. Web. 22 Oct. 2011. <http://www.esource.com/BEA/demo/PDF/CEA_offices.pdf>.

6 "Commercial Building Performance - Healthcare Facilities." Consortium for Energy Efficiency. Web. 31 Sept. 2011. <http://www.cee1.org/com/bldgs/hc-fs.pdf>.

7 "Commercial Buildings." Center for Sustainable Systems. Web. 31 Sept. 2011. <http://css.snre.umich.edu/css_doc/CSS05-05.pdf>.

8 “Commercial Building Performance - Healthcare Facilities." Consortium for Energy Efficiency. Web. 31 Sept. 2011. <http://www.cee1.org/com/bldgs/hc-fs.pdf>.

9 224 Airport Pkwy, San Jose, CA 95110." LoopNet. Web. 10 Dec. 2011. <http://www.loopnet.com/Listing/17295777/224-Airport-Pkwy-San-Jose-CA/>.

Office Equipment

24%

Ventilation 8%

Cooling14%

Space Heating3%

Other8%

Lighting44%

Figure 2 Site electricity use in office buildingsSource: US Energy Information Administration

E. PROPOSED ORGANIZATION Type of ownership

GreenHouse™ will be a Delaware C Corporation, the most common type of corporation in the United

States. The advantages of a C Corporation are listed in the following table.

Table 2 Advantages of a C Corp.Limited Liability- Because investors and shareholders are legally protected from iabilities, investment has lower risk.Investment- Unlike LLCs, Partnerships, and Sole-Proprietorships, almost all publicly traded entities are C Corporations.Corpus Diem- Because C Corporations are independent of any individual's status of life or legal situation, a single person's misfortunes cannot have a significant effect on the corporations.

Steps to incorporation Table 3 Steps to Incorporation

Proposed staffingManagement team

Table 4 Proposed Organization Chart for GreenHouse™

Reserve corporate identity through

Delaware Divsion of Corporations

Choose registered agent to receive service of

process

Complete Certification of Incorporation Draft corporate bylaws

Apply for EIN through IRS

Draft owner buyout agreements Issue stock Obtain business licenses

and permits

Board of Directors

CEO Eva Spitzen

VP of Engineering

VP of Marketing

CFONobanari

Oda

VP of Sales

1. Natural Light Sensors

Sensors will discern the amount of natural sunlight entering a room at any given time, and adjust the amount of artificial light provided accordingly to provide the

adequate amount of light for a given room.

2.Time schedulingTime scheduling will be employed in rooms where sensor controls are not

appropriate. For example, open office space, hallways, and storage room lighting will be controlled automatically.

3. Maximum lighting levels

Maximum levels of artificial lighting depending on the type of activities conducted in different rooms can be controlled to ensure that excess lighting is not wasted.

4. Occupancy Sensors

Occupancy sensors will be installed to detect activity in rooms. This will prevent energy waste by people that forget to turn off lights, and also provide a more

convenient method of turning lights on and off.

II. Proposed Marketing/Promotion Plan

A. PROPOSED PRODUCT/SERVICE Product Details/Plans for Installation

GreenHouse™ systems will be installed by licensed contractors throughout the country, whom

GreenHouse™ will contract as providers of outside services.

Potential Supplier/Manufacturing Plans and Inventory PoliciesAll GreenHouse™ hardware will be manufactured by Chicony Electronics Co., Ltd., a Taiwan-based

multinational electronics manufacturer, in production facilities located in mainland China. Chicony will supply LED

light bulbs for $6 apiece, natural light sensors for $0.30 apiece, and occupancy sensors for $0.35 apiece. Included

in these prices are the costs of wiring and shipping to the GreenHouse™ Silicon Valley warehouse.10 GreenHouse™

will rent a 8,736 square foot warehouse for $5,600 monthly. The warehouse will be located near company

headquarters, in Silicon Valley. In it, GreenHouse™ will keep in stock 90 days of inventory at any given time.

B. PROPOSED PRICING POLICYPricing

One lighting unit will consist of one LED light bulb, one sensor, and one light switch. Therefore,

considering the average size of office buildings in the US is approximately 15,000 square feet, approximately 500

units will be needed, in addition to about 20 hours of a contractor's installation, at about $45 an hour. Therefore

the installation of one GreenHouse™ system in an office building will be priced at about $12,000. Equivalently, the

10 Prices Obtained through a call to Chicony.

average size of hospitals in the US is 120,000 square feet, hence the average price of installation of a GreenHouse™

system in a hospital will be about $60,000.

C. PERSONAL PROMOTIONPersonal promotion will consist of three components: social media, telemarketing, and onsite

presentations, outlined in the table below:

Direct marketing (onsite presentations) Direct marketing will consist of onsite presentations and customer relations. These meetings will be geared towards setting up a plan to satisfy and individualize a particular commercial building’s needs, and establishing plans for future lighting renovations.

Social media GreenHouse™ will create social media pages on websites such as Facebook. These pages will be designed and maintained with the purpose of giving customers an easy means of acquiring information on GreenHouse™ and hearing the latest product news.

Telemarketing In addition to onsite presentations, sales people will acquire lists of local commercial buildings and conduct phone calls in order to spread the word about GreenHouse™ and garner local interest from commercial buildings.

D. NONPERSONAL PROMOTIONGreenHouse™ will employ media promotion as follows:

Advertising Advertising will entail ads in specialty trade journals such as business and healthcare periodicals. Examples include American Medical News, the American Journal of Nursing, and the Wall Street Journal.

Media and trade shows Media and trade shows will consist of paid media attention, media convention spots, and trade show booths in expos. GreenHouse™ will have booths at both green expos and commercial construction conventions, such as the GreenTech Expo and the Commercial Construction Show. This will allow the demonstration of GreenHouse™ products to potential customers.

MARKETING BUDGETGreenHouse™ will allot 15% of total

revenues to marketing. Following extensive

market research, it was determined that this

budget will be most effectively allocated as

follows: 50% direct marketing, 30% print

advertising, and 20% media and trade shows.

Marketing in both target markets, office

buildings and healthcare buildings, will be

effectively reached through this allocation. 50% of the total marketing budget will be allocated to office buildings

and 50% to healthcare buildings.

E. PLACE

Depicted above is the basic business model for GreenHouse™, which will be utilized to generate revenue

as the business grows. It includes expenses on the left, value proposition in the middle, and revenue on the right.

This business model is easily scalable and will allow GreenHouse™ to reduce production costs as it begins to

expand operations.

The GreenHouse™ Distribution model consists of GreenHouse™ purchasing lighting system components

from its manufacturer, Chicony Electronics™, and directly installing them into customers’ buildings through

partnerships with outside contractors.

Direct Marketing

50%Advertising30%

Media and Trade Shows20%

Figure 3 Allocation of Marketing Budget

GreenHouse™ Strategies

Marketing and Research

Production and Development

GreenHouse™ Solution

Customer Relations

Distribution

Customer Segment

ExpensesValue Proposition

Revenues

IV. PLANNED FINANCINGA. Projected income and expensesYear 1 Income Statement

jasdfasdf

12-Quarter Cash Flow Statement

B. PROJECTED THREE YEAR PLAN

Proposed plan to meet capital needsEva Spitzen has invested $400,000 collectively out of the $2 million required for startup.

Having acquired $400,000 of the $2 million needed for startup, GreenHouse™ necessitates $1,500,000

from venture capital firms and an additional $100,000 from Angel Investors.

In return, GreenHouse™ will offer investors equity of proportional value to the amount invested.

GreenHouse™ does not require short-term or long-term borrowing.

C. CAPITAL AND REPAYMENT PLANSCapital startup investments will be repaid in proportion to the holding of GreenHouse™ equity at the end

of its investment period. There are three profitable ways GreenHouse™ can exit the market:

Sale of controlling interest (51%) Sale of 100% of company (e.g. merger)

Initial Public Offering

Desc

riptio

n

In this transaction, the buyer acquires a majority, but not all, of the company. Examples of potential buyers include Sobrato.

The buyer acquires 100% of the company, through a merger or an acquisition of assets.

In an IPO, a portion of the company, typically 10-20%, is sold directly to public investors.

RO I $15,029,637 $30,059,275 $45,088,912

Retu

rn

Ratio

10.1 20.2 30.1

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VII. BIBLIOGRAPHY"Annual Energy Outlook 2011." U.S. Energy Information Administration (EIA). Web. 31 Dec. 2011. <http://www.eia.gov/forecasts/aeo/>.Bounds, Gwendolyn. "Stores Stock New Bulbs for the Light Switch - Yahoo! Finance." The Wall Street Journal. Dow Jones & Company, 1 June 2011. Web. 3 June 2011. <http://online.wsj.com/article/SB10001424052702303745304576357320903322848.html>."Bright Green Buildings: Convergence of Green and Intelligent Buildings." CABA - Continental Automated Buildings Association - Home. Web. 31 Sept. 2011. <http://www.caba.org/brightgreen>."Commercial Building Performance - Healthcare Facilities." Consortium for Energy Efficiency. Web. 31 Sept. 2011. <http://www.cee1.org/com/bldgs/hc-fs.pdf>."Commercial Buildings." Center for Sustainable Systems. Web. 31 Sept. 2011. <http://css.snre.umich.edu/css_doc/CSS05-05.pdf>."Commercial Buildings Energy Consumption Survey Letter Report." The National Academies Press. Web. 31 Sept. 2011. <http://www.nap.edu/catalog.php?record_id=12922>."Comparing Light Bulb Brands." Guide 2 Light Bulbs. Web. 02 Jan. 2012. <http://www.guide2lightbulbs.com/light-bulb-brands/>."Energy-Efficient Lighting: LED and CFL Information." Eartheasy. Web. 12 Oct. 2011. <http://eartheasy.com/live_energyeff_lighting.htm>."GE Lighting Predicts LEDs Will Share 80% of Market by 2020." LED Industry. Web. 5 Aug. 2011. <http://www.ledindustry.com/>.Green buildings. Digital image. Continental Automated Buildings Association. Web. 2 Jan. 2012. <http://www.caba.org/resources/Documents/CABA_2_degrees_Webinar.pdf>."Growth of LED Market." SEMI. Web. 9 Sept. 2011. <http://www.semi.org/en/IndustrySegments/EmergingMarkets/ssLINK/CTR_028782>."Learn About LEDs." Energy Star. Web. 12 Dec. 2011. <http://www.energystar.gov/index.cfm?c=lighting.pr_what_are#what_are>."LED Benefits." OSRAM. Web. 22 Oct. 2011. <http://www.osram-os.com/osram_os/EN/About_Us/We_shape_the_future_of_light/Our_obligation/LED_life-cycle_assessment/LED_Benefits/index.html>."LED Market." Editorial. LEDs Magazine Apr. 2011. LEDs Magazine. PenWell Technologies Group. Web. 9 Sept. 2011.

VIII. APPENDIX

Appendix 1. One-year End Balance Sheet

13 | G r e e n H o u s e ™ 2 0 1 3

The tables below depict the applications of the four GreenHouse™ strategies in both office buildings and health care buildings. Office buildings Natural light sensors Time scheduling Maximum lighting

levelsOccupancy sensors

Private offices (no windows)

√ √

Private offices (with windows)

√ √ √ √

Open office (cubicles) √ √ √ √Hallways/lobbies √Washrooms √ √Meeting rooms √ √ √ √Storage √ √

Healthcare buildings Natural light sensors

Time scheduling Maximum lighting levels

Occupancy sensors

Patient care areasPatient wards/rooms √ √ √ √Diagnostic, Therapeutic treatment and laboratory areas

√ √ √

Administrative areasPrivate offices (no windows) √ √ √Private offices (with windows) √ √ √ √Open office (cubicles) √ √ √ √Meeting rooms √ √ √ √Support areasStoarge/supply/maintenance √ √

14 | G r e e n H o u s e ™ 2 0 1 3

Kitchen √ √ √Private offices (no windows) √ √ √Public areasBathrooms √ √Cafeterias √ √ √ √Hallways/lobbies √ √ √ √

Listed below are the competitive advantages and disadvantages of GreenHouse™.

Table 2 Competitive AnalysisAdvantages Disadvantages

Growing Industry- As more commercial businesses attempt to balance energy efficiency and cost effectiveness, a booming growth in the LED industry has occurred, growing 388% in just six years and reaching $12.8 billion in 2010. It is expected that this industry will continue to grow throughout the following years, presenting the perfect opportunity for GreenHouse™ to provide companies with a convenient way to save money and energy.

Problem: Lack of position- As a new start-up company, GreenHouse™ has yet to develop brand awareness as the addressable market is currently unaware of our abilities. We plan to sell an innovative method of energy conservation which our target market does not fully appreciate.Solution- Aggressive marketing strategies will ensure our company becomes known to the target market for its money and energy-conserving strategies.

Government incentives- Using GreenHouse™ systems provides companies the opportunity to apply for certification from government agencies such as Leadership in Energy and Environmental Design, or LEED, which include payback in some areas in the form of tax benefits.

Problem: Start up costs- GreenHouse™ anticipates $1 million in start-up capital, but further analysis is needed to anticipate other possible obstacles.Solution- GreenHouse™ will secure liberal start-up funds to account for unanticipated hurdles. An experienced Board of Advisors and Executive Team will ensure uncertainties can be addressed in an efficient manner.

High profit margins- As one of the first emerging companies in the industry, GreenHouse™ will be able to set the price for system installation, leading to high profit margins.Innovative application of technology- Although LEDs are gaining popularity in recent years as alternative home lighting systems, LED lighting is not yet common in commercial buildings. Thus, GreenHouse™ will have a first mover advantage.

Table 3 Electric Load of Office BuildingsBuilding Type Electric Load (MW)

Large High-Rise Office Building > 1 MW

Large Office Building (200,000 sq ft) 200 kW to 1 MW

Small Office Building (50,000 sq ft) 50 to 200 kW

15 | G r e e n H o u s e ™ 2 0 1 3

Current Lighting SolutionsIn 2007, Congress passed a law requiring all light bulbs to be at least 25% more efficient than

incandescent bulbs. Although most have turned to CFLs (Compact fluorescent lighting), CFLs have many

drawbacks as opposed to LEDs (Light emitting diodes), as shown in the table below.

Table 4 Comparative analysis of LEDs, incandescent bulbs, and CFLs (annual figures reflect use of 30 bulbs)Source: Verdia Technologies 2007

Life Span

Watts used

Annual operating cost

Annual CO2 emissions

Turns on instantly

Durability Heat emitted

Contains toxic mercury

LED 50,000 hours

6-8 $32.85 451 pounds √ √ 3.4 btu's/hour

X

Incandescent 1,200 hours

60 $328.59 4500 pounds

√ X 85 btu's/hour

X

CFL 8,000 hours

13-15 watts

$76.65 1051 pounds

X X 30 btu's/hour

√

Bulb Type Lumens Watts Investment Consumption Energy Cost Total CostIncandescent 1600 100 $100.00 10000kWh $1,000.00 $1,100.00CFL 1600 20 $100.00 2500kWh $250.00 $350.00LED 1600 11 $100.00 1500kWh $150.00 $250.00Bulb Type Lumens Watts Investment Consumption Energy Cost Total CostIncandescent 1600 100 $100.00 10000kWh $1,000.00 $1,100.00CFL 1600 20 $100.00 2500kWh $250.00 $350.00LED 1600 11 $100.00 1500kWh $150.00 $250.00

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Average spending on energy usage (percentage of overall operating costs)

Use mostly incandescent bulbs

Use mostly CFLs

Use mostly LEDs

Percentage willing to retrofit building with efficient/cost-effective lighting system

0% 20% 40% 60% 80% 100%

HospitalsOffice Buildings