Green Switch calculation model



    The data presented here is an illustrative forecast representing a possible future outcome based on a proprietary model that Signify has developed to help customers and the public understand the impact that lighting can have on the environment. Signify’s “Green Switch calculation model” applies logic to input from numerous sources, references, and data points (available upon request) to generate a simulated view of a given market’s energy consumption, the accuracy of which cannot be verified. Specifically, the model develops assumptions regarding the number of light points in a given location, the percentage of those light points utilizing various existing technologies, the location of those light points (e.g., residential, commercial, hospitality, industrial), their working hours and overall energy consumption, and the cost of electricity. The model also develops assumptions regarding the electricity use of vehicles and appliances for comparative purposes. Based on these assumptions, Signify calculates the potential energy savings, cost savings, and emission reductions that could take place if all non-LED light points were converted to LED. Actual energy savings, cost savings, and emission reductions will vary depending on the actual values of the above factors and replacement product specifications.  Thousand separator is a comma (,) – Decimal separator is a period (.).

    Green Switch calculation model


    The Green Switch calculation model allows us to estimate the potential energy saving possible by converting all the still conventional light points in a given location to connected LED. The model also helps us to translate energy savings into (i) monetary and (ii) carbon emissions savings data. In addition, it helps illustrate the various equivalents of these savings, such as annual emissions from cars, households, electric vehicles rechanging, etc.

    The goal of the Green Switch calculation model is to advocate at Federal, National or Municipality level for lighting as a quick and easy way to help these jurisdictions accelerate the transition to net zero emissions using technology that is already available.

    Please note that the model refers to the entire lighting sector and not to Signify market share only.

    How it works


    The model is based on several estimations, assumptions, factors, and publicly available data.

    Signify makes estimations and assumptions based on our own assessment of the installed base and lighting segment applications, built upon documents, datasets and publications compiled by industry professionals, competitors, organizations, or analysts.


    We make use of publicly available information from reliable and trustable sources including organizations, institutions, researchers, universities, NGOs, industry associations, or national statistic departments.



    • Installed Power (kW) = Average light point power (W) * Light points to be upgraded to LED / 1,000
    • Actual annual electricity consumption (kWh) = Installed Power (kW) * lighting hours (h)
    • Energy saved (kWh) = Actual annual electricity consumption (kWh) * energy saving of LED solution (%)
    • Value of energy saved (€) = Cost of electricity (€/kWh) * Energy saved (kWh)
    • Carbon footprint reduction (t CO2) = Energy saved (kWh) * Electricity carbon intensity (gCO2/kWh) / 1,000,000

    Example of calculation

    Here is an example of a calculation made using the formulas above. We have used fictional values here for illustrative purposes.


    • Assuming an installed base of 20,000 light points of which 25% already converted to LED, the light points potentially upgradable to LED are 20,000 * (1-0.25) = 15,000 units
    • Assuming an average power of each light point of 175 W, the installed power is 175 * 15,000 = 2,625 kW
    • Assuming an average lighting duration per light point each year is 4,100 hours, the annual electricity consumption of the lights to be upgraded is 2,625 kW * 4,100 = 10,762 MWh
    • Assuming that the average saving generated by upgrading to an equivalent connected LED solution is 70%, the energy saving is = 10,762 * 0.7 = 7,533 MWh
    • Assuming an average cost of electricity is 0.20 €/kWh, the cost of electricity saved is 7,533 * 0.20 = 1,506 k€
    • Assuming an average emission factor for electricity production by a mix of sources is 167 gCO2/kWh, the carbon footprint reduction is 7,533,750 * 0.167 = 1,258,136 kg CO2 = 1,258 t CO2
    • Assuming an average annual emission of a fossil fueled passenger car is 2,600 kg CO2, the emission savings by lighting is equivalent to the annual emission of 1,258,136 / 2,600 = 484 cars
    • Assuming an average annual air-based heat-pump is 4,000 kWh, the electricity savings by lighting enable the annual operation of 7,533,750 / 4,000 = 1,833 heat pumps