At 2,000 annual operating hours, a $40 per two-lamp troffer LED system consuming 38 W is cost-effective versus the alternative of a new high-efficiency fluorescent system at all electric rates. AIRR exceeds 3%, and the simple payback occurs in years 1 through 9, depending on the electric rate. At $80 per linear LED system, high electric rates of $0.18 to $0.24 per kWh are needed to achieve an AIRR above 3% and a simple payback period within the 10-year study period. At $120 per linear LED system, the life-cycle cost analysis does not show economic benefit. Even at the highest rate of $0.24/kWh, only the lower installation time achieved payback in 9 years. The LED system saved at most 22% in present-value total life-cycle cost, compared to the benchmark T8 fluorescent system, and increased the system cost by a maximum of 45%.