In June 2014 the City of Houston and CenterPoint agreed to switch traditional streetlights in the City of Houston to LED lights. Two years have passed since the agreement was signed, and Houstonians have begun to notice the new LED streetlights. Taxpayers are also seeing savings in the General Fund thanks to this conversion effort.
With approximately half of the streetlights replaced in the last two years, our team was curious what the savings impact had been to date. By our estimates, nearly $900,000 has been saved through the bill period ending June 7, 2016. While the agreement was signed in June 2014, the conversion did not start until January 2015 after all the needed approvals were gathered. The first LED lights appeared on the City’s light bill in March 2015. You can check out the savings over time in the chart below.
How do savings work? The City does not own the streetlights and does not incur the capital cost of replacing the lightbulbs; instead, this duty falls to CenterPoint. The City does, however, pay for most of the operational costs associated with street lighting. The money to pay the electricity bill for streetlights ultimately comes from the General Fund – which is the City’s main governmental fund and is funded by taxpayer dollars.
When traditional streetlights are switched out for LED lightbulbs the number of kilowatts per hour (KWH) consumed decreases substantially. Not pictured on the chart below, the City has also saved approximately 19 million KWHs in the 16 months since the first LED streetlights appeared on our bill. This decrease in KWHs leads to a decrease in the electricity bill for the City. When the conversion is fully completed, the City estimates it will save between $2.5 million to $3.0 million a year compared to traditional lightbulbs (depending upon the price of energy).