| Features:
Editorial: It's an investment, not an LED lightbulb sale!
... Our guest editorial this week from Nikitas Nicolakis, president of New York-based Greenlight Initiative, submits a strong case that a new approach to the sales process is needed when it comes to LED lighting solutions. A full talk on this topic, aimed at decision makers and LED luminaire manufacturers...
View the full story at the bottom of the current news page, or if it is a back issue, go here...
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The
2010-2011 Summit Series is ready to succeed... are you?
After the successful 2008 launch and 2009/2010
expansion of Solid State Lighting Design's
SSL Summit in New Jersey and LA, the feedback remains consistent: Just what
we needed, do it again soon. The Summit brings together lighting decision makers
with industry thought leaders, pioneers, and innovators from the across the
solid state lighting eco-system. Read
the 2009 conference report...
Following our changes in 2009, 2010-2011 will
continue to be all about quality, quality, quality. Showcase
participants and sponsors are vetted to separate the wheat from the chaff
(have your IES LM-79 test reports ready!). The 2010-2011 Summit includes NY/NJ
in September and LA/Long Beach next January. Look into the series information
at www.SSLsummit.com for the details.
Sponsorships are available for the full series.
Solid State Lighting Design
is here to serve the information needs of lighting designers, specifiers, and
decision makers, along with luminaire designers, lighting system integrators
and lighting subsystem developers with application, product and market news
updates for this rapidly evolving technology. Our readership also includes LED
packagers, technology enablers and service companies seeking the answers to
how best to meet their customers' needs.
Solid
state lighting promises to create unprecedented changes in what we can do with
light. Simultaneously, it will deliver on a promise of massive global energy savings
and access to useful nighttime lighting that has not been conveniently available
to nearly 2 billion people around the world. We're glad to have you join us in
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LEDtronics Shoebox and Cobrahead LED Luminaires Help Light the Bolling Air Force Base in D.C. SSLighting Design News StaffOctober 27, 2009...Bolling Air Force Base in Washington, D.C. has harnessed the light from LEDtronics LED fixtures.
In use since it was founded in 1918 on the east side of the Potomac River, Bolling AF Base is home of the USAF 11th Wing, "The Chief's Own." Once an important airfield in the Air Force's inventory,
About 200 LEDtronics LED30MH-600-XPW-001 high-power, acorn-style street lamps light up the Bolling AF base’s Angell Street. Several different LED lighting products from LEDtronics are used in the project. A set of SLL003PC-400-XPW-005 ceiling/wall Slim Line Shoebox luminaires illuminate the pedestrian tunnel; another set of SLL003P-400-XPW-004 pole-mount Slim Line Shoebox luminaires, 27 watts each, lights the walkway leading into and out of the tunnel (they usually replace 70-watt HPS or Metal Halide lamps), and in the SLL002P-3D60W-XPW-004 M400 Cobrahead-style streetlight luminaires replaces 200-250-watt HPS lamps with an 82-watt LED fixture. LEDtronics News Release,
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October 27, 2009...Greenlight Initiative (GLI), an LED-lighting sales and solutions provider based in New York, New York USA , reports that it has completed the installation of an LED-based lighting system for the first of a number of new Marco's Pizza franchise restaurants across Georgia. Mellina LLC, the design builder for the Georgia projects says that this first installation has been well-received in terms of quality and energy-savings. It is the first of 80 new locations over the next 3 years to be lit entirely with GLI’s qualified LED lighting solutions.
Vipul Patel, President of Mellina LLC, commented, “I was personally very surprised at how well the LED solution worked out for this installation. We began using solid state lighting solutions in our green building projects in 2007, but bringing in the GLI team made the difference. We no longer waste resources wading through confusing claims by SSL manufacturers. Instead, we’ve tapped their expertise and they proved it on this first restaurant.”
With the help of the Greenlight Initiative's approach, Mellina was able to replace the standard linear fluorescent fixtures with approximately one-half the number of Albeo Constellation 8-foot linear luminaires. Also, GLI-qualified Array LED bulbs replaced the front service counter PAR lamps. Overall lighting energy was cut in half and maintenance was virtually eliminated. Greenlight Initiative News Release,
SSL Design PageTwo members login for more. Guests can view membership details.
Lighting decision
makers deserve quality answers, not hype... | |
Lighting
decision makers for 200 million+ square feet
of commercial property will be represented at the SSL industry's quality-focused
"insiders meet", September 14-15 in New York City...
They
are looking for the keys to quality in LED lighting, and you can not
afford to miss it. Just one look at the special
guests and NY
Summit agenda, and you will know why you need to be there in September!
Building on the continuing success of this first-of-its-kind event,
the 2010/2011 Summit series will again deliver the highest quality
agenda and attendees in an unsurpassed networking environment. We
have expanded the Summit to "take it to the facilities decision
makers" in NY, and quality oriented suppliers need to be seen.
See what you need to be part of at
www.SSLsummit.com |
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LSI Introduces New LED Parking Garage Fixture SSLighting Design News StaffOctober 27, 2009...LSI Lighting Solutions of Cincinnati, Ohio USA, has added a high lumen output fixture to its Crossover line of LED parking garage lighting solutions. The new model, called the Crossover XPG HL, is a high lumen fixture that meets the IESNA RP-20 criteria for lighting in most traditional configurations for spacing and mounting height for parking garages. It is an ideal solution for both lighting in retrofit and new construction applications.
The fixture boasts excellent uniformity and full cutoff optics, 50 to 65 percent use reduction, and an expected minimum life of 60,000 to 100,000 hours.
Company News Release Acuity Brands Licenses Philips' Patent Portfolio of LED Systems and Controls SSLighting Design News StaffOctober 22, 2009...Philips (Royal Philips Electronics) of Eindhoven, The Netherlands reports that it has licensed its LED-based patent portfolio to Acuity Brands. Acuity will be given access to Philips' patent portfolio of LED systems and controls. Some important aspects of the Philips' technology including color mixing technology came from previous acquisition Color Kinetics. Additionally another acquisition, TIR, provided light engine technology, which will also be available to Acuity Brands through the license agreement.
This license agreement with Acuity follows earlier agreements of Philips with key lighting players like Zumtobel and Osram.
Royal Philips Electronics News Release
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i-Pix LED Luminaires Light Up London Fashion Week SSLighting Design News StaffOctober 22, 2009...The London Fashion Week included a British Fashion Council (BFC) tent at Somerset House which was the venue for BFC's event during the second week of September. Up to 8 shows were put on at various venues each day, all of which needed to look fabulous and unique.
Nick Gray's design company Renegade was asked to light several venues for London Fashion Week (LFW) ,adding an injection of fresh new style in the visuals department to celebrate the 25th anniversary of LFW. Production company Bacchus contracted Renegade to work at the BFC tent.
The tent was lower than it has been previously, and black throughout for the first time, creating a more intimate and very slick tailored vibe. Gray's lighting rig was designed to dovetail and blend incongruously in with the venue. The 'spine' truss above the 45 metre long white runway was tucked unobtrusively up into the apex of the roof and perfectly followed the contours of the tent.
Nine BB7s were attached to the sides of the spine truss were to cast a gentle glow on the audience for the walk-in states. Their flower-like shape made them an ideal fit for the aesthetics and vibe of the auditorium - whether on or off. Gray noted that the quality of the light output was exactly the right texture for the effect he wanted. iPix News Release,
SSL Design PageTwo members login for more. Guests can view membership details.
Philips Lumileds Publishes Lumen Maintenance--LM-80--Test Report Online LIGHTimes News StaffOctober 22, 2009...Philips Lumileds contends that it is the first power LED manufacturer to publicly publish LM-80 test report data. The company reportedly made the data available for everyone but specifically for use by luminaire manufacturers evaluating the merits of using different LEDs in their solid-state lighting solutions. The company boasts that the data clearly demonstrates that lumen maintenance performance of its white LEDs exceeds Energy Star requirements by a wide margin. Additionally the company says it has documented lumen maintenance performance under various conditions. The test report is posted on the company’s web site www.philipslumileds.com.
Philips Lumileds says its LM-80 test reports adhere to and are published in accordance with the Illuminating Engineering Society (IES) LM-80-08 standard.
Philips Lumileds News Release,
SSL Design PageTwo members login for more. Guests can view membership details.
Cree Releases XLamp MX-6 LED, A Lighting-Class PLCC LED LIGHTimes News StaffOctober 22, 2009...Cree has announced the commercial availability of its new XLamp MX-6, a lighting-class PLCC LED.
Cree says that the MX-6 LED offers the performance and reliability that customers expect from Cree XLamp LEDs with enhanced light uniformity and low power consumption. The XLamp MX-6 LED reportedly offers up to 130 lumens for cool white and 107 lumens for warm white at 350 mA. Cree boasts that the XLamp MX-6 LED can reduce luminaire and lamp manufacturing costs through an increased shelf life with reduced moisture sensitivity, and the smallest warm white bins in the industry, enhancing LED-to-LED color consistency.
“We are impressed with the Cree XLamp MX-6 LED,” said Sunny Tsai, CEO of TESS, an innovative LED light bulb manufacturer. “The LED’s performance is striking, and Cree’s small bins make it easy for us to deliver a consistent product for our customers.”
“With the addition of the XLamp MX-6 LED, we now have the most diverse family of lighting-class LEDs in the industry,” said Paul Thieken, Cree marketing director, LED components. “The XLamp MX-6 LED can provide better design options for indoor applications, including under-cabinet, retail displays, LED light bulbs and fluorescent replacements.”
Company News Release Seven Additional Renaissance Lighting LED Lighting Fixtures Awarded Energy Star Qualification SSLighting Design News StaffOctober 20, 2009...Renaissance Lighting reports that the U.S. Department of Energy (DOE) has awarded the Energy Star qualification to seven more of its newest 4-inch all-white solid-state LED downlight fixtures. Earlier this month, 11 of the company`s all-white 7-inch downlights became the first to receive the Energy Star qualification. Renaissance Lighting boasts that with this announcement, it now has the most Energy Star qualified solid-state downlight models available in the industry.
The Energy Star qualification was designed to help customers identify the most energy efficient products on the market. Renaissance Lighting says it has continued to achieve increased lighting efficiencies in terms of both light output and lower energy consumption. The company says that Energy Star award for its all-white downlights is further validation of its ability to create breakthrough proprietary technologies and luminaire designs.Company News Release
SSL Design PageTwo members login for more. Guests can view membership details.
Philips and AECOM illuminate Natural History Museum with LED ColorReach SSLighting Design News StaffOctober 20, 2009...AECOM and Royal Philips Electronics and have designed a truly unique LED lighting solution for London’s world famous Natural History Museum.
Philips ColorReach™ Powercore technology replaced the aging floodlight system. The Color Reach offers flexibility and what the company says is unprecedented light output of LED exterior floodlighting for signature façades today. The Color Reach also reportedly provides light projection of up to 500 feet.
The grand entrance and rounded arch of one of Britain’s most striking examples of Romanesque architecture impresses all visitors. Named after the architect who designed it, The Waterhouse Building’s rounded arches and grand entrance takes inspiration from the natural beauty of Fingal’s Cave in Scotland.
The Lightng designers with AECOM Lighting felt that the magnificence of the structure at night was not being optimized by the existing lighting solution. The existing solution used inefficient metal halide floodlights. The designers realized that switching to an LED alternative would significantly lower annual running costs while bringing out the aesthetic quality of the building.
Royal Philips Electronics News Release
SSL Design PageTwo members login for more. Guests can view membership details.
DOE Publishes Summary of Solid State Lighting Manufacturing Workshops SSLighting Design News StaffOctober 20, 2009...The U.S. Department of Energy has published its summary report from from the 2009 DOE Solid-State Lighting (SSL) Manufacturing Workshops, held April 21–22 in Fairfax, Virginia, and June 24–25 in Vancouver, Washington.
The DOE reports that more than 350 total participants including: chip makers, fixture and component manufacturers, and others, joined the department at its workshops to discuss issues related to materials, equipment, and other factors that influence SSL product quality and cost. The Fairfax workshop attendees identified key obstacles and made recommendations to achieve lower-cost, higher-quality SSL products. The DOE used this input to develop a “strawman” roadmap for review at the Vancouver workshop. The DOE contends that the final version of the roadmap reviewed and revised during the Vancouver workshop, represents industry consensus on the expected evolution of SSL manufacturing.
The DOE says that the workshops are part of its first steps in the launch of a new DOE SSL research and development (R&D) manufacturing initiative to enhance product consistency and quality and to accelerate cost reductions through manufacturing improvements.
DOE News Release SSL Design Summit Highlighting Prominent Lighting Industry Speakers LIGHTimes/SSL Design StaffOctober 15, 2009...The Solid State Lighting
Design Summit, slated for Nov 3-4 for the New
York/New Jersey region, and then Dec 1-2 for the Los
Angeles area, announced today key additions to its 2009 NY/NJ agenda lineup,
Avriham
Mor, a partner at Lightswitch Architectural and Margaret
Newman, Chief of Staff of the New York City Department of Transportation.
Mor has recently completed a series of new and retrofit LED lighting projects,
including Chicago's new Wit hotel, and the 55 E. Munroe building. Newman is
overseeing current evaluation programs in New York City aimed at eventual deployment
of LED-based solutions for street and pedestrian lighting across the city of
10 million people. According to the conference organizers, the additions are
all designed to align with the "quality-only" theme of the 2009 event,
in which not just speakers, but any companies or products that will receive
audience exposure are thoroughly vetted to assure that the quality commitment
is apparent and that performance matches claims.
Jeffrey I. L. Miller, principal of Pivotal Lighting Design,
and president of the International Association of Lighting Designers (IALD) added,
"I was co-chair of the inaugural Summit in 2008, and liked what I saw coming
together. I have re-joined the team as co-chair for the new Los Angeles event
simply because I don't see anywhere else where this kind of information and education
has been available this broadly to lighting decision makers. Whether one comes
from the design, architecture or facilities side of things, solid state lighting represents
a new world, and no one at the decision maker level can afford to be caught
behind this curve."
"The 2008 SSL Design Summit set the precedent as the first-of-its-kind
networking conference dedicated exclusively to bring together lighting and sustainability
decision makers with LED lighting manufacturers and technology providers,"
commented Tom Griffiths, conference organizer and publisher of Solid State Lighting
Design Online. "For 2009, we've recognized the value to lighting decision
makers to have someone provide not just the education in 'how to', but actual
vetting, so that products they see or hear about are among the top tier and
could reasonably be assumed to deliver success in their projects." (NY/NJ event details at the embedded links, or visit www.SSLsummit.com for series information). Our news features are reported
by the SSL Design staff writers.
For submissions or content suggestions, you can contact us using
editor -at - solidstatelightingdesign.com
For more information and to reserve promotion space contact
Info7 -at - solidstatelightingdesign.com
or call +1 (512) 257-9888
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Commentary
& Perspectives...
It's an investment, not an LED lightbulb sale! Guest Editorial - Nik Nicolakis, Greenlight InitiativeOctober 20, 2009...Our guest editorial this week from Nikitas Nicolakis, president of New York-based Greenlight Initiative, submits a strong case that a new approach to the sales process is needed when it comes to LED lighting solutions. A full talk on this topic, aimed at decision makers and LED luminaire manufacturers alike, is on the agenda for the SSL Design Summit NY/NJ coming up Nov 3-4 at the Hyatt Regency, Jersey City... (www.SSLsummit.com).
Early on in the SSL market, there was a lot of semantic confusion between the
new "semiconductor" lighting crowd and the "standard" lighting
crowd. The same words had different meanings for each, and although everyone
was speaking the same language, an inter-industry pocket translator would have
been quite useful. A lot of that has resolved itself, but there is another "communication
gap" left that is blocking market penetration for quality SSL products
that are ready today, and this one exists on the much coveted end-user side
of the fence.
There really is an abundance of good information for any lighting decision
maker who is looking for information regarding SSL luminaires and technology,
so for much of the time, it is more a question of whether a lighting decision
maker is equipped to ask the proper questions regarding their purchase. Let's
see... LM-79? Check... LM-80? Check... Who makes those LED chips? Check... Is
there a good warranty? Check... Is the driver or transformer covered under the
warranty? Check... How much is it? Ch... This is where things start to get sticky.
Once contact has been established, and the market full of over-hyped and under-performing
SSL products are filtered out, the executive decision makers like the
CEO, CFO, or the B.O.D., are easy to please. They speak the language of numbers-in
and numbers-out, seeing the world in wonderful colors like black and red. They
speak of all the great things that have been missing from our lives as of late;
CASHFLOW! RETURN ON INVESTMENT! INTERNAL RATE OF RETURN! SAVINGS TURNED TO PROFIT!
CAP RATES! OPERATIONAL EXPENSE REDUCTION! They make the best audience, and 100%
of the time they welcome the operating expense-saving ideas that are presented...
pilots ensue... numbers are checked and rechecked... and deals are agreed to!
That was easy (sort of).
Then comes volume-implementation time. Some of the "get it done"
people are now brought into the loop at a more detailed level, and what seemed
to be the "key factors in making a lighting retrofit decision" is
viewed and digested a bit differently at that lower level of the corporate chain.
Let's face the facts; you need to speak a different language to audiences below
the executive level. When the same scenario above applies to the non-executive
decision makers, such as many of the "facilities guys" their response
is simple: "There is no way I am paying $90 for a light bulb! You people
are out of your minds!" What's going on? Generally, facilities personnel
think in a shorter time scale. They are trained to make sure everything works,
and they are buying MRO products correctly and at great prices. Often their
very employment depends on making and presenting the right decisions to further
up the chain, which in itself has become a daunting and quite political undertaking.
There is no doubt they are tasked with tremendous responsibility. When scouring
the country for the pockets of "end user demand" in the SSL market,
you meet very knowledgeable, professional and hard working facilities personnel
that want to do good work for their employer. They have heard of all the great
things that SSL can do for their facility and want to get in on the action.
You can show them where it makes sense, and above all else, you should them
where it does not. You can do a lighting audit and map out pilot areas and discuss
forward motion. Then comes the part they aren't really trained for: You provide
them with an investment grade ROI that confuses many of them. Those kinds
of investments aren't 30% more for "commercial grade". They are 3
to 5 times more for a whole new approach. They get sticker shock... tunnel vision
ensues... they zeroed in on price, and are told from up above that LED lighting
is a good answer, so the only thing they can think to try is to find a lower
priced "energy saving" alternative!
Sometimes, the alternative is an incumbent technology like fluorescent or HID,
but very often it is a lower quality SSL product. They WILL find the SSL solution,
but they will find it cheaper, and the market is willing to oblige by offering
them a "junk grade" investment at 1/2 or 1/3 the price! While lower
initial cost is a key factor that should always be part of the decision process,
does that mean it is okay to make a fiscally irresponsible long term decision
based on short term good intentions? I think not.
While "less initial cost" can translate into a "better initial
business case", the long term financial implications are disturbing. Most
of the industry insiders (OK, some... say, at least about 20%) can tell an end
user that more than 80% of the SSL products available today may not survive
or put out enough light to meet the ROI period that was presented. And while
the incumbent lighting technologies make a great initial case, the ongoing costs
for material, maintenance, recycling, additional HVAC, and energy cost just
do not make sense when something better is available now. Unfortunately,
that temporary ignorance prevails, and much of the revenue in the SSL general
white lighting market is generated with low quality SSL product.
As one small saving grace, the junk SSL doesn't go into to the specification
sales market, where the channels are long and fat. Very little solid state lighting
of any kind goes in there, since it is difficult to even specify the SSL product
for an opportunity that may or may not happen 9 months or a year from now...
things move too fast in the technology; what is spec'd today is likely not even
going to be available tomorrow. There is also little current success for SSL
at the distributor level. After their normal margins of +/-15-35% are added,
the business case to the end user dries up. ESCO's take large risks and the
margins to match, but there is almost never the room for a reasonable ROI with
LED-based lighting when an ESCO can to make +/-30-40% with incumbent T8's and
T5's.
Much of existing sales channel in the lighting industry as well as the electronics
and semiconductor industries are simply not structured at this point to accommodate
quality LED lighting solutions for general lighting market. To get into this
"sweet-spot", a leaner, more direct approach is required in order
to see market penetration. You need to engage the key facilities people differently.
You need to help them understand the language that the executive level decision
makers are speaking (Rosetta Stone has not made DVD's for this yet, I checked!).
The facilities-level personnel are an intelligent group, and if you approach
them with the respect that they deserve they will be open to make the right
decision.
So let's review: More direct approach needed in order to get keep the business
case intact? -Certainly. Will the retrofit market be where the big wins happen
for SSL in the next few years?-Absolutely. Will we need to approach facilities
and maintenance personnel to make this happen? -Definitely. Will they be convinced
that there is long term value in SSL over the incumbents?--Sometimes, but generally
it is not one of the requirements of the position and unless we guide them into
being the heroes and involve the executive team in the process, large volumes
of quality SSL retrofits are unlikely to happen. Concerning SSL for general
lighting, there are valid and vetted (some by CFO's of fortune 1000 companies)
situations that exist today where Internal Rates of Return (IRR) have reached
in the hundreds of percentage points. Those of us (manufacturers and their sales
channel partners alike) on the quality side of the coin can consistently present
SSL-based, application-specific ROI's around and under 3 years, and in some
cases under 1 year (yes 1...) without even counting rebates or incentives.
Real ROI models now show improved cashflow (a great deal) and reduced expenses
on many levels. These facts and figures are important somewhere around 100%
of the time at the executive level; classic tools for which decisions are made
and budgets are built. And given the economic climate of late, these returns
are simply nonexistent in a bank, real estate, or passive investments. Quality,
proven SSL technology with data to back up the claims should be swallowing the
retrofit market whole right now, but much to the chagrin of manufacturers who
made the right choices (and of course their investors) it is not. While the
case for well-engineered SSL products is now clear, and in many cases a no-brainer,
the incumbents are easier to sell with better margins for the existing sales
channel. Or they stumble up on "cheap" SSL products that try to claim
"the same business case, only better, with the lower price presenting seemingly
easier decision for the facilities manger working on a tight budget. Although
the trend is changing, the execs are typically not the ones making facility-wide
lighting retrofit decisions, and reaching them will be key.
Execs say, "Sure, our company would love to see an IRR of 167%! Prove
that it can happen, and the keys to our million square foot castle are yours!"
Facilities folks say, "There is NO WAY I am paying $90 for a light bulb".
Unless you can bring both parties together while making a case for quality SSL,
the gap will remain and quality manufacturers will watch their forecasts keep
pushing out quarter to quarter for the next few years.
Nikitas Nicolakis is President of New York-based Greenlight
Initiative. He can be reached at nikita@lednyc.com
or +1 718/784-4440.
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