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Most States Offer Commercial LED Lighting Rebate Programs

For the past 15 years, commercial LED lighting rebate programs have been accessible across the United States, though their availability has fluctuated. Coverage by these incentive programs has ranged from 42% to 79% of the country. However, recent trends indicate a shift towards a more consistent availability of LED rebates.

Currently, 78% of the U.S. population has access to commercial LED lighting rebate programs, maintaining this level of coverage for the fourth consecutive year. This stability benefits distributors and contractors who rely on these rebates to support their business activities. The Northeast and Northwest regions continue to offer the most robust incentives and broadest coverage. However, even in regions with strong LED rebate support, some populous states have limited rebates due to expensive infrastructure replacement, complex political dynamics, and more.

Commercial LED Lighting Rebates

Strong Commercial LED Lighting Rebates Nationwide

The average rebate across the United States is currently near its highest recorded levels. This wasn’t always the case. Initially, LED rebate programs matured and experienced significant decreases in rebate amounts. However, from 2021 to 2024, a new landscape emerged with growing interest in LED retrofits as the need for renewable energy sources increased. Consequently, LED rebate rewards also increased during this period. In 2024:

  • LED rebate amounts increased by an average of 2%
  • Control systems rebates increased by 5%
  • The average rebate for most LED products in the USA reached its highest level ever.
LED Retrofits vs Fixtures

Due to their higher costs and greater energy savings potential, the most attractive rebates remain for LED fixtures that replace HID fixtures, such as high bays and pole lights. Despite expectations of reduced rebate amounts for A19s, PARs, and downlights following the EISA regulations in July 2023, these items surprisingly saw an increase in rebate values. While some programs, like Duke Energy’s Smart Saver Program, Energizing Connecticut’s Instant Lighting Program, and the MassSave program, have phased out rebates for these lamp types, many others have maintained them and increased the average rebate amount offered.

Average LED Rebate Amounts

Washington LED Lighting Rebates

Washington state offers substantial lighting rebate incentives for commercial properties aiming to enhance their energy efficiency. These incentives are designed to offset the costs of upgrading to LED lighting, making energy-efficient projects more accessible and affordable.

Key Points of Washington Lighting Rebate Incentives:

Rebate Coverage: Depending on your location, building size, and burn hours, local utilities can cover up to 70% of the net project costs. This substantial financial support helps reduce the initial investment required for energy-efficient lighting upgrades.

Eligibility Factors:

  • Location: The availability and amount of rebates can vary based on the specific utility company serving your area. Each utility has its own program and criteria.
  • Building Size: Larger buildings often qualify for higher rebate amounts due to their significant energy-saving potential.
  • Burn Hours: Buildings with longer operating hours can achieve more considerable energy savings, making them eligible for higher rebates.
Application Process:

  • Initial Assessment: Conduct an assessment to determine potential energy savings and rebate eligibility.
  • Proposal Submission: Submit a detailed proposal to the utility company outlining the scope of the project, expected energy savings, and cost estimates.
  • Approval and Installation: Upon approval, proceed with the installation of the LED lighting systems.
  • Rebate Processing: After project completion, submit the necessary documentation to receive the rebate.

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