Reducing initial cost by an estimated 20-25 percent, rebates remain a strong incentive for investing in energy-efficient lighting and controls. In 2020, significant rebate opportunities are widely available for LED lighting and controls, including growing availability of rebates for networked controls.
Rebates are offered by utilities seeking to avoid the cost of building new power plants by reducing demand. While custom rebates are available, the majority of rebates are prescriptive, with a cash amount awarded per installed qualifying product, and with the rebate capped at a maximum percentage of its cost. Typically, the rebate is given to the customer, though some rebates for very common luminaires and lamps are “midstream,” realized at the point of sale. About three-quarters of the United States is covered by some 380 commercial lighting rebate programs, according to rebate fulfillment firm BriteSwitch.
LED product rebates
The most popular commercial lighting rebates are shown in the below table, along with average rebates per installed product. According to BriteSwitch, average rebates declined 12 percent across all product categories in 2020 compared to 2019, reflecting falling product costs, particularly among lamps.
Source: BriteSwitch
A more detailed picture of long-term trends is shown in the following graphic.
About 80 percent of rebate programs qualify products as being eligible for rebate by requiring listing with the DesignLights Consortium (DLC) on its Qualified Products List, while some require listing with ENERGY STAR. In 2020, Version 5.0 of the DLC’s technical requirements will go into effect, which may result in products being delisted by the end of the year and thereby affect rebate eligibility.
In 2017, the DLC unveiled the DLC Premium classification to recognize products that operate at a higher level of energy efficiency. Premium products must operate at least 15 lumens/W more efficaciously than products in the standard listing. DLC Premium is currently promoted in a minority of programs. Some require it across the board, while others recognize it with a bonus rebate, typically $10-25.
Lighting control rebates
The most popular lighting control rebates are shown in the below table. Networked lighting control rebates are not shown, as approaches vary.
Data shared by BriteSwitch reveals average rebate amounts have remained substantial and relatively stable over time. These rebates can make adding sensors a very attractive add-on upgrade. DLC 5.0 and 5.1 require all lighting be capable of continuous dimming, ensuring installed lighting is controllable. Otherwise, DLC listing is not required for the below lighting control systems and devices.
Source: BriteSwitch
A more detailed picture of long-term trends is shown in the following graphic.
Networked lighting control rebates
In 2016, the DLC launched a Qualified Products List for Networked Lighting Controls based on interest by utilities in maximizing energy savings with lighting controls. In DLC research of more than 100 applications, these systems generated an average 47 percent energy cost savings.
In 2020, the number of programs promoting networked lighting controls grew 15 percent to 95 programs (about 25 percent of total programs), according to BriteSwitch. These programs vary in approach, with roughly 70 percent offering a rebate adder for each luminaire connected to a qualifying networked control system, and others basing it instead on energy reductions (kWh) or power savings (W). According to BriteSwitch, for the first approach, the rebate for a new LED luminaire with networked lighting controls is on average about 30 percent higher than installing a luminaire without the controls. Eighty percent of programs require DLC listing. Rebate program managers are continuing to experiment with approaches.
Get the rebate
Incorporating rebates into lighting upgrade proposals can increase projected return on investment and thereby increase the likelihood of approval, so be sure to research available rebates as a first step. Robust lighting control rebates incentivize including either control devices such as sensors or networked lighting control systems as an attractive upfront add-on to an LED upgrade.
According to BriteSwitch, the process of gaining a rebate from application to payment can take an average of 22 to 30 weeks. Rebate programs are not standardized, vary widely, and may change, so it pays to learn the requirements.
Pre-approval is often required before installation begins. All forms must be properly completed. In some regions, participation may drain funds early, making it worthwhile to check on rebate availability. If DLC listing is required for an LED product, ensure the exact model number for a selected product is listed. Onsite inspection may be required to verify installation of the products.
Visit the website of your local utility or click here to determine rebate availability in your area.
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