City of Houston Receives $810k Cash Rebate from Siemens Traffic Signal Lamp Efficiency Upgrade

As a result of a city-wide traffic signal energy efficiency upgrade program, Siemens Industry, Inc. presented Houston Mayor Annise Parker with a rebate check for more than $810,000 today.

The rebate, a result of Siemens participation in CenterPoint Energy’s Standard Offer Program, exemplifies one of many benefits relating to a $12.3 million Energy Savings Performance Contract Siemens executed with the City of Houston’s traffic department to retrofit traffic signal bulbs with efficient light-emitting diode (LED) lamps. Over the 10-year term of the contract, Siemens guarantees the amount of annual energy savings or pays the city for any shortfall.

“Today we are seeing the actual cost savings that can be generated by making simple changes to help improve energy efficiency, like changing traffic lights,” said Mayor Parker.

Siemens provided turnkey design, engineering and construction services to help the City of Houston address critical infrastructure and energy efficiency improvements and to renew traffic and pedestrian signals at a majority of intersections within city limits. Through the guaranteed performance-solution, Siemens implemented a phased, comprehensive lamp replacement program that covered some 1,400 intersections and more than 40,000 red, yellow and green traffic signals. Another 7,700 pedestrian signals were also retrofitted. Signal housing unit heads were upgraded from 8 – inch to 12 –inch heads, thereby improving visibility and safety for all citizens. The LED retrofits, completed in 2009, are guaranteed to save nearly 10 million KWh of electricity annually, or approximately $1.3 million in equivalent dollar savings at prevailing utility rates.

Aside from generating utility savings and rebates, the project will also create significant operational savings (projected at more than $5 million over 10 years). Because LED lamps last as much as 5 times longer and are more durable than the incandescent bulbs they replaced, the frequency of signal lamp maintenance is greatly reduced. According to the City of Houston’s Traffic Department, the 1-year bulb replacement cycle has now been extended to 6 years. Less frequent bulb changes mean far fewer maintenance crew dispatches, and considering all the costs associated with new lamps, deploying trucks and crews, operational savings are ongoing and significant.