When renovating the building, is it better to upgrade the lighting system to more efficient lights and ballasts or replace the existing fixtures altogether?
It all depends on your particular situation. As you are well aware, building renovation involves compliance with the current building code which may affect your decision one way or the other. Your design team (architect, engineer or contractor) should be able to advise which scheme is more beneficial to you. Generally, if your renovations are modest and you are not changing your lighting system in any major way, most older systems can be retrofitted to use less energy.
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