Currently, 78% of the US is covered by an active commercial lighting rebate program. The rebates come from multiple sources such as utility companies, municipalities, states, and non-profit organizations and can help offset the initial cost of installing energy-saving LED lighting. Taking advantage of these programs will save you money on initial project costs and all future electric bills. Whether you are installing lights in a new construction project or an existing facility, you may be eligible for rebates on LED replacements including replacement LED lamps (PAR, MR, A shaped standard bulbs), high bay fixtures, street and parking lot lights, troffers, LED panels, downlights, fluorescent tube replacements, and more!
Read more on LED Rebates and how they work below.
Product Eligibility
To maximize savings through LED rebates, a great starting point is the Database of State Incentives for Renewables & Efficiency (DSIRE). This platform provides a comprehensive, state-specific directory of energy incentives, including rebates for LED lighting. Visit DSIRE’s website, select your state from the interactive map, and use filters to narrow your search to programs focused on lighting upgrades. The site provides detailed program descriptions, eligibility criteria, and links to application forms or further instructions, making it an essential tool for uncovering local rebate opportunities.
Your local utility provider is another valuable resource for LED rebates. Most utilities offer programs that encourage energy-efficient upgrades by providing financial incentives. These rebates are often applied directly at the point of purchase or require you to submit proof of purchase, product specifications, and sometimes installation details. Check your utility provider’s website or contact their customer service to find information on available programs, deadlines, and application procedures.
Nonprofit organizations such as the DesignLights Consortium (DLC) further enhance your ability to capitalize on rebate programs. The DLC maintains a database of energy-efficient products, including qualifying LEDs, that meet stringent performance standards. Many rebate programs require that the products you purchase are listed in the DLC’s Qualified Products List (QPL). By referencing this list, you can ensure the products you buy will meet the requirements for rebates in your area. This step not only simplifies the process but also ensures that you invest in high-quality, energy-efficient lighting solutions.
The ENERGY STAR Rebate Finder is a powerful tool for discovering rebates and special offers on energy-efficient products, including LED lighting. By visiting the ENERGY STAR Rebate Finder, users can easily search for available rebates by entering their ZIP code. The tool provides a detailed list of offers from utility companies and other program sponsors, including information on eligibility, rebate amounts, and how to apply. Many rebates listed are instant discounts at the point of purchase, while others require submission of an online or mailed application. With its user-friendly interface and up-to-date information, the ENERGY STAR Rebate Finder makes it simple to find savings on high-performance, energy-efficient products.
How much is the rebate on LEDs installed in businesses?
The rebate amount for an LED varies depending on the project's location, type of LED, and project type. The average amounts for rebates in 2024 issued in the US and Canada are:
- LED Tube - $4
- 2x4 Troffer - $33
- Parking Garage Fixture - $94
- HID Screw-in Bulbs / Corncobs - $53
- Pole Lights - $98
- Highbay Fixtures - $121
Please Note: Prescriptive rebates have requirements that the LED installation must meet in order to qualify for the rebate. Your utility provider may also provide custom rebate options reliant solely on the energy saved by your planned LED installation.
The Rebate Process
The process for claiming rebates can be arduous and time consuming. There are 12 steps in the rebate process:
Pre-Approval (4-5 Weeks)
Acquiring pre-approval from rebate programs can take 22 days, on average, in North America. Starting the process early means you're more likely to get the highest rebate available. It is best to seek approval during the planning stages of your LED installation project, before any LEDs are purchased, so you can get the best ones. The tasks you need to do for pre-approval are as follows:
- Gather technical documents
- Run energy savings calculations
- Prepare and submit rebate paperwork
- Schedule pre-inspection where required
Installation (8-13 Weeks)
Once you have completed the pre-approval process, all applicable rebate paperwork is submitted, and your pre-inspection is completed where necessary, you are able to move onto the installation phase of the rebate process. This part is straightforward where you install the product adhering to specific installation requirements and ensure project is completed within the stated timeline. If needed, extensions can be filed. Any changes to the program must be reported in a timely manner.
- Notify program of any changes
- Adhere to specific installation requirements where required
- Ensure project is completed by deadline
- File extension request if required
Final Rebate Submission (10-12 Weeks)
Now that product is installed per the plan, you will need to gather all invoices and documents required per each program and prepare and submit final rebate paperwork. Some places will require you to schedule a post-inspection to ensure it was completed to plan. Once everything is submitted and checks out, the rebate check will be issued.
- Gather invoices and required documents
- Prepare & submit final rebate paperwork
- Schedule post-inspection where required
- Ensure check is issued
Cost Caps
Some programs are capped at a certain percentage of the cost of the project, though the program may advertise an offer of a flat rate. Other programs might offer a "up to" a specific percentage of project cost back in rebate, but that can be limited by the payback timeframe of the project.
Important Note - These rebate programs typically have a specific amount of funds to work with and can run out with little to no notice. LED lighting installation must be planned and scheduled in time to allow for inspections and pre-approvals, which vary from one program to the next.
Information for this article was provided by BriteSwitch. BriteSwitch works hard to capture all eligible rebates and incentives available. They take care of the entire rebate process from analyzing and optimizing the rebate potential to making sure the final checks are issued. Visit them at briteswitch.com