Lightcraft Technology
 
Lightcraft Technology
Lightcraft Technology

Life Cycle Costing (LCC)

Light-emitting diode (LED) products for general illumination help to save energy and improve lighting quality and performance in comparison to many conventional lighting technologies. 

In order to accurately gauge the full energy and environmental impacts of any lighting product, its materials and energy resources must be evaluated over its entire life-cycle through a Life-Cycle Cost Analysis. 

Life-Cycle Costing Analysis (LCCA or LCC for short) is the most accurate way to increase your building’s project savings by comparing different design alternatives. As opposed to more commonly used Return on Investment (ROI) based calculations, LCC is conducted based on long-term costs and savings, keeping in mind the fact that they are interconnected. The “life cycle” part means that LCC assesses all costs that occur over the building’s lifetime including construction costs, maintaining, operating, and end-of-life related costs.  

To be more specific, the lifespan of a building consists of five main stages: concept planning, design, construction, operations, and replacement or disposal so different options can be compared to determine the most cost-effective options.

LCC

What are the main benefits of performing life cycle costing analysis? 

When you perform a LCC analysis, your initial costs might increase however, due to the mechanics of LCC, it is a trade-off for less financial obligations in the future, for example, for reduced maintenance and renovation costs. 

Life Cycle Costing methodology is the tool you can use to increase your returns exponentially as it is an advanced financial forecasting technique that allows you to make an accurate prognosis on the development and the pay-off of your initial investments in LED lighting 

Best long-term value 

This means better durability, higher quality, less maintenance, less risks, and lower operational spending with the same amount of investment.

In some cases, carefully conducted LCC can even result in an increased building lifespan. Better quality materials reduce maintenance costs, and are more resilient, so this potential outcome comes as no surprise. 

Easy Green Building certification credits

LCC credits are included in many Green Building certification schemes, and in some LCC is a mandatory credit. For example, BREEAM includes LCC credits split between sub-credits.

Achieving credits is getting more and more complicated with each certification version released, and LCC can be an easy way to get a few extra points. 

Reliable planning

It is an excellent planning tool that covers long spans of time. With properly conducted LCC you can effectively avoid financial risks and plan for more operating capital funded by the savings you are making on your energy cost reduction with the added benefit of reducing your buildings carbon footprint as we strive and drive towards a carbon neutral future. 

Ready to reduce your building’s carbon footprint? Contact Lightcraft Technology for you free LCC Assessment on 0115 666 8777 or via email sales@lightcrafttechnology.co.uk