London – With the recent change in price cap introduced in April 2022, millions of households have been pushed into fuel poverty and several businesses are now facing added volatility due to its impact. In light of this, Signify (Euronext: LIGHT), the world leader in lighting, advocates an accelerated transition to energy-efficient connected LED lighting to help households and businesses while positively impacting the UK’s Race to Zero. With energy prices around the globe reaching all-time highs and global emissions rising at unprecedented levels, it is now more urgent than ever that businesses in UK&I lead by example and take quick action to tackle climate change.
More than a decade after Signify’s call to phase out the incandescent light bulb worldwide, it now calls for the transition to energy-efficient connected LED lighting as the new standard of ‘general lighting’1. The move will help meet the goals the UK’s ten point plan and other commitments that nations have made around the world in line with the Paris Agreement.
Impact for Businesses
According to Signify’s findings, switching to LED lighting in the professional lighting market could reduce CO2 emissions by 3.9 million tonnes in the UK&I region, the same amount of CO2 that 175 million trees could sequester in a year. Making the switch would also save 16.1 TWh of electricity, which is equivalent to the annual electricity consumption of more than 4.3 million households. This would result in a saving of EUR 3.8 billion on electricity costs2. Upgrading to connected LED lighting3 can offer enhanced controls for better energy consumption management.
Impact for households
Research from the Energy Saving Trust4 indicates that lighting takes up about 11% of the average UK household electricity consumption. Our data5 suggests that after the change in the energy price cap introduced in April, switching to energy-efficient LED lighting can help the average British household save £15-£18 per light bulb, which equates to a saving of £2506 per year. Given that there are likely more lamps to replace in homes hit by fuel poverty, the positive impact would be more significant there. The switch to smart LED lighting will also pay a huge role in reducing CO2 emissions, furthering the UK&I’s progress to a greener future.
The International Energy Agency (IEA) echoes Signify’s call to action.
Nicholas Howarth, Senior Analyst at the International Energy Agency said “The world is facing the most significant energy crisis in recent history and energy efficiency is a solution to many of its most urgent challenges. Highlighting its importance, in June at the IEA Global Conference on Energy Efficiency, 27 governments from around the world issued the Sønderburg Action Plan calling for energy efficiency and demand side action to play a much greater role protecting households, businesses and the economy from high energy prices. This is vital for addressing the energy crisis, rising inflation and greenhouse gas emissions.”
Stronger policy packages covering regulations, information and incentives will play a key role accelerating energy efficiency and related measures. This includes the deployment of smart, efficient lighting, upgrading homes with better insulation, improving the fuel efficiency of cars, as well fostering investment in new industrial machinery. Efficient lighting is a proven technology to reduce electricity demand, fast. This will also help create extra electricity capacity needed for electric heat pumps and vehicles which put upwards pressure on power demand”
Senior Analyst at the International Energy Agency
Climate Group, an international non-profit working with businesses and governments around the world to drive climate action, also aligns with Signify’s ambition. Morgan, Senior Manager, Built Environment, Climate Group, said “Climate Group is proud to work in partnership with Signify to raise awareness of the multiple benefits of energy efficient LED lighting for businesses and cities. LEDs play a key role in decarbonisation as we strive to halve emissions by 2030 and achieve net zero carbon buildings by 2050.”
“The unprecedented energy savings from LEDs compared to traditional lighting presents compelling urgency to raise the priority of global LED adoption. The drive towards smart, connected LEDs can also serve as a digital platform for smart building and Internet of Things (IoT) solutions, opening up a myriad of options for businesses.”
Senior Manager, Built Environment, Climate Group
CEO, Signify UK&I
1‘General lighting’ is defined as everyday lighting: bulbs and luminaires for home and professional settings (e.g. offices, commercial buildings, retail, stadiums, road and street, bridge, park and tunnel lighting, etc). It is acknowledged that there will be some non-LED conventional lighting still sold and used for specialist applications, where there is no LED alternative.
2UK&I data presented here is a simulation within the framework of the Green Switch conventional light point conversion model, which is a program run by Signify to help its customers accelerate the switch to energy-efficient lighting products, systems and services. All figures and data presented here are illustrative and based on forecasts and assumptions
3Connected LED lighting’ is defined as LED lighting that is connected to software controls or is connectable
4Energy Savings Trust data: Guide to energy efficient lighting - Energy Saving Trust
5Source: Signify UK data suggests that an average, a UK home has 15 incandescent bulbs on for 3 hours a day.
6Energy saving at 3 hours per day, 365 days, at 28p per kWh. Based on replacing 60W incandescent bulb with 60W equivalent (7w) LED bulb.
About The Climate Group
Climate Group is an international non-profit working with businesses and governments around the world to drive climate action, fast. Our goal is a world of net zero carbon emissions by 2050, with greater prosperity for all. Signify and Climate Group have partnered for over 10 years to accelerate the rollout of LED lighting worldwide.
Signify Corporate Communications
Tel: + 44 (0) 7459751618
Signify (Euronext: LIGHT) is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Our Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. In 2022, we had sales of EUR 7.5 billion, approximately 35,000 employees and a presence in over 70 countries. We unlock the extraordinary potential of light for brighter lives and a better world. We achieved carbon neutrality in 2020, have been in the Dow Jones Sustainability World Index since our IPO for six consecutive years and were named Industry Leader in 2017, 2018 and 2019. News from Signify is located at the Newsroom, Twitter, LinkedIn and Instagram. Information for investors can be found on the Investor Relations page.