Intro to LED Lighting – AEF | Australian Energy Foundation

Intro to LED Lighting

LED lighting is by far the most energy efficient type of lighting available.

Changing over your old lighting for LEDs can save hundreds of dollars on energy bills per year, so it’s a smart business decision. Although they can cost more to install, the savings stack up in a very short time frame and there are several mechanisms in place to help businesses with the initial upfront cost.

LEDs last longer than incandescent lights

LED lights can last up to 50,000 hours of illumination, compared to a maximum of just 2,000 hours for older lights. For a business that means they not only save on energy usage but on maintenance and replacement costs too.

LEDs can reduce greenhouse gas emissions

LEDs use less electricity, so if your power still comes from fossil fuels then using LEDs is better for the environment.

LEDs can provide a more appealing light and increase productivity

Studies show that ensuring your business has adequate and pleasant light levels can improve concentration and productivity from your team. You can read more about how lighting affects productivity in this article.

Help with the upfront cost of replacing lighting

Under state government schemes in both New South Wales and Victoria certain businesses qualify for varying levels of rebates on lighting replacements.

The following categories of businesses that qualify are:

  • Education
  • Industrial
  • Healthcare
  • Hospitality
  • Offices
  • Retail
  • Showrooms
  • Supermarkets

You may also be eligible for funding through Environmental Upgrade Agreements (EUAs). EUAs are a council based funding mechanism in Victoria and NSW. EUAs are set up to help building owners, tenants and investors finance environmental upgrades such as LED lighting, insulation and solar energy.

The basics

  • Building owner agrees to upgrades
  • Building owner, council and finance provider enter into an EUA
  • Finance provider advances funds for the upgrade
  • Council collects repayments through a rates based system and then passes the repayments through to the finance provider
  • The building owner can ask the tenants to contribute or cover the cost of the upgrades through the savings made on their energy bills and running costs

EUAs can offer excellent ways for businesses to:

  • Reduce running costs
  • Install renewable energy systems, such as solar
  • Reduce greenhouse gas emissions
  • Improve working conditions

At present, council areas offering EUAs include:


  • City of Melbourne
  • City of Greater Bendigo
  • Hobsons Bay City Council
  • Wyndham City Council
  • Greater Shepparton City Council
  • City of Greater Geelong
  • Macedon Ranges Shire Council
  • Mount Alexander Shire Council
  • Wyndham City Council
  • Central Goldfields Shire
  • Cardinia Shire
  • Horsham Rural City Council
  • Maribyrnong City Council
  • City of Moreland
  • City of Monash
  • Mornington Peninsula Shire
  • South Gippsland Shire Council
  • City of Greater Dandenong
  • Brimbank City Council
  • Mildura Rural City Council
  • Moira Shire Council
  • Yarra Ranges Council
  • Baw Baw Shire
  • Darebin City Council
  • Moonee Valley Council
  • City of Kingston

New South Wales

  • Blacktown City
  • Lake Macquarie City
  • City of Newcastle
  • North Sydney
  • Parramatta City
  • City of Sydney

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