Business & Finance

Help Members with Fluorescent Costs

By Michael W. Kahn | ECT Staff Writer Published: February 21st, 2012

Add fluorescent lights to the list of items with higher prices. And it’s all because of something called REM.

Co-ops can help business members cope with rising fluorescent prices. (Photo By: stocksnapper)

Co-ops can help business members cope with rising fluorescent prices. (Photo By: stocksnapper)

No, in this case, REM is not the rock group that sang “It’s the End of the World as We Know It.” But few electric cooperative business members will be feeling fine when they see the cost of fluorescents.

REM stands for “rare-earth metals.” The balanced white light put out by fluorescents is created by REM phosphors.

“They’re everywhere. So they’re technically not ‘rare.’ But there are only a few places where it makes economic sense to mine them,” explained Brian Sloboda, senior program manager at NRECA’s Cooperative Research Network.

“Right now, pretty much all of the mines are in China,” Sloboda said, noting that the mining process uses a lot of water and can be toxic. And the Chinese have cut back on production, citing environmental and other issues.

“We’ve seen significant price increases in fluorescent lights over the past year,” Sloboda said. While manufacturers have largely held the line on the price of compact fluorescents for home use, “The commercial fluorescent tubes—some of those have gone up 25 percent in price and some people are predicting even steeper price increases in the future.”

REMs also turn up in batteries, televisions and other electronics. “It’s basic supply and demand,” Sloboda said.

So what can co-ops do to help commercial members? Sloboda said the first thing is to check the lighting in use.

“The old-fashioned T12 lamps are still very common,” he said. “They’re very inefficient and tend to burn out quickly. It would be a very good idea to replace those with a T5 or a T8, and at the same time replace the magnetic ballast with an electronic ballast.”

Commercial members should also be encouraged to use automation or wireless controls to turn off lights when no one is around. Sloboda said warehouses are ripe for this technology because lights tend to be left on even when large areas are empty.

And CRN recommends using fewer lamps. “Instead of having five light bulbs, use four, when and where it makes sense,” Sloboda said.

LEDs continue to show promise, but based on its tests, CRN remains cautious on using them in large commercial applications.

“There are some where they work really, really well,” Sloboda said. “For example: a refrigerated warehouse. LEDs are very good there, especially if you marry it to a wireless control.”

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