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How to reduce electricity cost in your warehouse with smart lighting


In factory warehouses, and large retail stores, large 200-watt lights are used to illuminate the corridors between shelves 24/7. This constant illumination not only leads to the early failure of the lights but also results in a very high electricity consumption and therefore a staggering electricity bill.

For example, if you own a warehouse with 10 corridors and 10 200-watt bulbs installed in each corridor, and these bulbs are on 24/7, then you would consume 480,000 watt-hours of electricity per day, which would result in 14,400 kilowatt-hours per month. Considering the price rate of 0.405 AED per kilowatt-hour, such a warehouse would have to pay an electricity bill of 5,832 AED per month.

To reduce these high costs and prevent the bulbs from burning out due to long-term illumination, it is necessary to turn off the lights when full illumination of a corridor is not needed. However, operators may forget to do this or find it time-consuming to carry out.



A suitable solution to this challenge is to make the lighting and warehouse environment smart. Using sensors installed at the base of the shelves to detect only when lift trucks or people enter the vicinity of the corridors, a signal is sent to timers to turn on or increase the light level  and keep the lights on for a specified period of time and then turn them off or dim the lights at a specified level. This process can also be controlled through a mobile phone application.



Based on experience and the smart lighting pattern, the table for the reduction in power usage and electricity bill for the warehouse in the question will be like below:


Lighting Option Electricity Usage (kWh) Monthly Cost (AED)
24/7 14,400 5,832
Smart Lighting 2,880 1,166


As shown in the table, using smart lighting could potentially reduce electricity usage by 80% and monthly cost by 80%. However, it is important to note that the actual reduction may vary depending on the specific warehouse and lighting system used.



Implementing such smart lighting solutions for warehouses and large retail stores can significantly reduce electricity consumption and costs. While the project cost is around 20,000 AED, depending on the specific components used and installation complexity, the ROI for this project would be 1.7 years. After that, the smart lighting system would continue to provide ongoing cost savings for the warehouse.


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