When considering an LED lighting retrofit, one of the first questions that comes to mind is, “How much will it cost?” The expense of a lighting upgrade can vary significantly based on the size and scope of the project. However, commercial lighting rebates can help offset a portion of the investment, making it easier for organizations to achieve their energy efficiency goals. These rebates play a vital role in improving the return on investment (ROI) for lighting upgrades, and businesses that take advantage of them can see significant savings in both upfront costs and long-term energy consumption.

In this guide, we will break down the different types of lighting rebates available, how to maximize their potential, and key considerations to keep in mind when planning your next lighting project.

What Are Commercial Lighting Rebates?

Commercial lighting rebates are often offered through utility companies, local government, state or federal grants. This is to encourage businesses to be environmentally friendly and lower their energy consumption. This can be done through switching lighting systems to LEDs. Rebates can cover a portion of the initial costs and installments of qualifying products to reduce the overall expense and increase ROI.

While rebate programs and their qualifications vary, common requirements include:

• Lighting fixtures must be DLC-listed.
• Lamps are ENERGY STAR-certified or DLC-listed.
• A utility program manager may need to inspect performance-based rebates.
• Pre-approval is often necessary for custom and prescriptive programs.
• Rebate funds are typically finite and awarded on a first-come, first-served basis.

Given these variations, it is important to understand which rebates are available and how they can benefit your project.

Types of Lighting Rebates

Utility providers generally offer three types of lighting rebates: prescriptive, custom, and point-of-sale rebates. Each has its advantages and potential hurdles, so knowing the differences is crucial to maximize savings.

1. Prescriptive Lighting Rebates

Prescriptive lighting rebates are one of the most popular rebate options for commercial lighting projects. These rebates are often offered for a specific product with a set amount of money for each fixture installed. Some rebate programs may include labor costs, further reducing the cost of installations. These rebates can be easy to apply for but are on a first-come first-serve basis, so it’s important to apply before funds run out or product eligibility changes.  

2. Custom Lighting Rebates

Custom lighting rebates are offered to businesses that will be installing more complex lighting projects that do not fit other categories. While they may have higher payout than prescriptive rebates, they also tend to have more rules and requirements than other rebate options. Some requirements can include energy audits and detailed application processes. Custom rebates are ideal for large-scale projects.

3. Point-of-Sale Lighting Rebates

Point-of-sale (POS) rebates are most commonly used for consumer purchases but can occasionally apply to smaller commercial projects. These rebates are applied directly at the time of purchase, reducing the price you pay upfront. While not typically used for large commercial installations, they are worth noting for smaller businesses or retail settings.

Maximizing Your Lighting Rebates

To get the most out of commercial lighting rebates, it’s essential to plan ahead and understand the rebate process. Here are some tips to make the most of your lighting rebate opportunities:

1. Ask Your Utility Provider About Available Rebates

Utility companies offer a variety of rebates to help their clients conserve energy and money. Reaching out to your local utility provider is a vital resource to finding lighting rebates that suit your needs that your project.

2. Ensure Your Lighting Products Qualify

Many rebates require the products to meet specifications to receive the rebate. Common certifications include Design Lights Consortium or Energy Star. Always check the fine print or speak with rebate management experts to ensure the products meet the rebate requirements. Pay attention to where and how the fixtures will be installed, as this can also affect eligibility.

3. Know Who is Responsible for Submitting the Rebates

The rebate application process can be very daunting. Between ensuring you meet eligibility requirements to ensuring the applications meet deadlines, the process can be complex. Rebate management experts, like Incentive Rebate360, have years of experience researching rebates and managing the complex documentation processes that come along with financial incentive applications.

4. Pre-approval and Inspections

Following all of the steps required to secure financial rebates can make or break your application. Some rebates require pre-approval, energy audits and follow-up inspections before reimbursement is completed.

5. Estimate Your ROI Using Rebates

Before starting a lighting project, it’s important to include rebates in your ROI calculations. Financial rebates can have a long-term effect on the benefits of a lighting upgrade by reducing the project costs.

Lighting Upgrades with Action Services Group

Commercial lighting rebates are a vital resource to affording a new retrofit or lighting upgrade. By taking advantage of these resources, commercial properties can improve the environment of their business for their customers and employees. Plus gaining potential cost and energy savings. By understanding the types of rebates, you gain insight on what rebates you need depending on the prospective project.

Action Services Group can guide you through any lighting project in order to suit your business’ needs. Through our partnership with incentive Rebate360, you can gain financial savings on your project while ensuring the project is managed successfully. To speak with one of our specialists, call 610-558-9773, email [email protected], or schedule a call that fits your needs by clicking the button below.