The commercial market lighting rebate outlook for 2022 is even stronger than 2021, with relatively stable, substantial rebates promoting adoption of energy-efficient lighting and controls.
Utilities and energy efficiency organizations offer rebates as an investment in reducing electric demand, thereby avoiding the cost of building new power plants. These rebates are primarily targeted to existing buildings. While custom rebates are available, the majority are prescriptive, offering a cash award per installed qualifying product.
In the majority of programs, the cash is given to the owner. Some “midstream” programs, however, realize the financial benefit at the point of sale, typically involving rebates for very common lamps and luminaires.
About three-fourths (77 percent) of the United States is covered by a commercial lighting rebate program in 2022, up from 74 percent last year, according to rebate fulfillment firm BriteSwitch, which recently compiled its 2022 rebate database. And that is with Ohio, which traditionally offered rebates, discontinuing them at the end of 2020 after the passage of a controversial law.
Looking at the data, we see several significant rebate trends. After years of declining rebate amounts per LED product, rebates generally stabilized in 2021, which is continuing in 2022. Horticultural lighting rebates are growing and transitioning from custom to prescriptive. Lighting control rebates continue to be stable and substantial. And networked lighting control rebates continue to expand.
“If you do not include rebates on all your quotes, you’re missing out on a huge opportunity,” said Leendert Jan Enthoven, President, BriteSwitch, LLC. “The rebates allow you to lower the perceived price to your customers without impacting your margin. They also show your customers the value and expertise you add.”
LED product rebates
The most popular commercial lighting rebates are shown in the below table from BriteSwitch’s 2022 database, along with average rebates per installed product for both the United States and Canada. The data is as of February 2022. All products are LED.
| Type of LED Solution | 2022 |
| LED Replacement Lamps (medium base, A19, PAR, BR) | $ 4.49 |
| LED Downlights | $ 28.10 |
| LED Accent Lighting (track heads) | $ 50.99 |
| LED High-Bay Luminaires | $ 122.52 |
| LED Parking Garage Luminaires | $ 96.32 |
| LED Linear Panels (tubular lamp replacement) | $ 33.32 |
| LED Outdoor Pole-Arm Mount | $ 102.32 |
| LED Wall Mount | $ 94.54 |
| LED Linear Tube (4-ft. T8 replacement) | $ 3.77 |
| LED Screw-in HID (mogul replacement lamp, corn cob) | $ 55.42 |
| LED Pin-Based (CFL-ni replacement) | $ 6.91 |
According to BriteSwitch, with the exception of troffers and flat panels, average LED product rebates remained fairly stable in 2021 after annual declines of 10-20 percent due to falling product costs. This was likely the result of the pandemic reducing demand for rebates and also possibly cost stabilization in the market. In 2022, rebates again remained fairly stable, again reflecting the impact of the pandemic and also possibly rising costs due to supply chain disruption.
A more detailed picture of long-term trends is shown in the following graphics.
Another interesting development in 2022 is horticultural lighting, which saw rebates triple.
“The rebates amounts have always been relatively high, but the new programs have brought the average amount down by roughly 25 percent,” said Enthoven. “Still, even with that decrease, it’s the product category with one of the highest rebate amounts at an average of $102 per fixture. We also noticed that in 2022, a lot of the horticulture rebates have switched from custom to prescriptive, making them easier to estimate and file for.”
A majority of rebate programs qualify products as being eligible for rebate by requiring listing with the DesignLights Consortium (DLC) on its Qualified Products List (QPL). In February 2021, Version 5.0 of the DLC’s technical requirements went into effect. The QPL is currently transitioning to Version 5.1, which requires dimming for a broad range of products, with continuous dimming required as a capability for most indoor luminaires and retrofit kits.
Lighting control rebates
The most popular lighting control rebates are shown in the below table from the BriteSwitch 2022 database along with average rebates per installed product for both the United States and Canada. The data is as of February 2022. Networked lighting control rebates are not shown, as approaches remain unstandardized.
| Type of Retrofit Upgrade | 2022 |
| Remote-Mounted Occupancy Sensors | $ 26.58 |
| Wallbox Occupancy Sensors | $ 22.52 |
| Photocells | $ 18.32 |
| Luminaire-Mounted Occupancy Sensors | $ 21.61 |
| Daylight Dimming Systems | $ 25.28 |
A more detailed picture of long-term trends is shown in the following graphic.
Data shared by BriteSwitch reveals that average rebate amounts have remained substantial and relatively stable over the past 14 years. These rebates can make adding controls, particularly standalone sensors, a very attractive add-on upgrade. DLC listing is not required for the below lighting control systems and devices, though it usually is for networked lighting controls.
“Most rebate programs in North America offer an incentive for control solutions, but they’re often tucked away in the back pages of a rebate catalog and not highly emphasized,” Enthoven said. “It’s a shame, because the average rebate amounts for controls are relatively high compared to the cost, making them a relatively inexpensive upsell to most lighting retrofit projects.”
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 2022, the number of programs promoting networked lighting controls grew 16 percent, bringing the total to more than a quarter of all rebate programs, according to BriteSwitch. Overall dollar amounts available have remained essentially the same. The large majority of programs require DLC listing. Where a prescriptive rebate is not available, networked controls may be eligible for a custom rebate.
The prescriptive programs vary in approach, with a majority offering a rebate adder for each luminaire connected to a qualifying networked control system, while some base it instead on energy reductions (kWh) or power savings (W). 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, according to BriteSwitch.
“Most rebate programs seem excited by the opportunity that networked lighting controls present, but the consensus is that the growth of these systems is slower than expected,” said Enthoven. “One of the biggest challenges seems to be educating the marketplace on how to market and sell these solutions effectively.”
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 pre-approval to payment can take around five months. Rebate programs are not standardized, vary widely, and may change, so it pays to learn the requirements. The end-user should understand what to expect, such as it can take an average 38 days to receive a check.
Professionals selling upgrades can include rebates in their proposals, which can help gain approval. However, it’s important to understand the rebate may not be approved or may award a smaller amount than planned, so the proposal should be worded to avoid the risk of eating the difference if the rebate doesn’t pan out.
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, and confirm listing at the source, as a logo on a spec sheet is not sufficient proof. Onsite (or virtual) inspection may be required to verify installation of the products.
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