scope:

This Recommended Practice (RP) will help answer many types of lighting economic questions. It provides a framework for selecting from a group of competing lighting designs. It gives insight into the question of when a system under consideration will "pay off." It can help the lighting professional make energy conservation decisions. Most importantly, it provides methods for gauging the profitability of a capital investment in a lighting system, which can be objectively compared to other competing capital investments.

This RP begins with a discussion of the second-level methods, concentrating on LCCBA. This is followed by sections on sensitivity analysis and benefit analysis. Finally, because the lighting practitioner is likely to encounter the firstlevel methods in practice, these are also covered. In discussing the first-level methods, emphasis is placed on their shortcomings so that the lighting professional can understand why their use is not encouraged.