As we reach the midpoint of 2024, it’s an opportune time to evaluate the landscape of commercial lighting rebates. This year has continued the trend of increasing stability in rebate programs, while also showcasing evolving trends and opportunities. Here’s a comprehensive look at the current state of commercial lighting rebates and what’s on the horizon for the rest of the year.

Widespread Availability of Commercial Lighting Rebates

The availability of commercial lighting rebate programs across the United States has experienced fluctuations over the past 15 years, with coverage varying between 42% to 79%. However, a significant positive trend has emerged recently. In 2024, 78% of the country is covered by such programs, maintaining a consistent level for the fourth consecutive year. This stability is promising for distributors and contractors who rely on these incentives to drive business.

Noteworthy developments include the introduction of new programs in Ohio mid-2023, following a hiatus since 2020 due to legislative changes. The Northeast and Northwest regions continue to lead with robust incentives and comprehensive coverage. Conversely, states like North Dakota and Kansas remain exceptions with no commercial lighting programs. Major states such as California, Florida, and Texas still face complex and limited rebate opportunities.

Robust Rebates for LEDs Continue

The early days of LED rebate programs saw substantial incentives, but a concerning trend emerged with annual declines of 10-20%. Fortunately, this trend reversed in 2021. The stability that followed has persisted, with 2024 showing a 2% increase in average LED rebates and a 5% rise in rebates for lighting controls. Notably, LED rebates are at some of the highest levels ever recorded, particularly for fixtures replacing HID systems like high bays and pole lights, which offer significant energy savings.

Efficiency Maine’s Enhanced Incentives for Small Businesses is a program tailored to encourage small enterprises to switch to energy-efficient lighting. By providing increased rebates, the program aims to make the transition to LED lighting and other energy-saving measures more financially feasible for small businesses. This initiative helps lower energy consumption and utility costs, enabling small businesses to operate more sustainably while reducing their environmental impact.

Program Funding: A Positive Shift

Historically, commercial lighting rebate programs faced issues with funding depletion before the end of the year, with 10-25% of programs running out of funds prematurely. However, recent trends indicate a significant improvement. In 2023, less than 5% of programs experienced funding shortfalls. Instead, many programs introduced bonus incentives in late Fall, offering up to 100% increases for common upgrades.

The Seattle City Light Rebate Program offers financial incentives for upgrading to energy-efficient LED lighting. Rebates vary from $0.10 to $0.50 per watt saved, depending on the type and application of the lighting. This program is designed to help reduce energy consumption and lower utility bills by encouraging the installation of high-efficiency lighting solutions in both residential and commercial settings.

Strengthening of Networked Lighting Control Rebates

Networked Lighting Controls (NLC) have gained attention for their potential to enhance energy savings by offering precise control over lighting use. This year, the number of utilities offering specific rebates for NLCs has increased by 8%. Additionally, standardization has improved, with 70% of NLC rebates now paid per fixture rather than through complex calculations. The average rebate amount for NLCs has also risen by 4% compared to 2023.

Maximize Your Savings with Commercial Lighting Rebates

With the commercial lighting retrofit market experiencing a shift and rebates becoming increasingly crucial, 2024 presents a valuable opportunity. The stability and enhanced dollar amount of rebate programs make it imperative to explore potential rebates for each project. Millions in incentives are available to support your lighting upgrades, making it essential to factor in these rebates to maximize your project’s payback and overall financial benefits.

Our rebate experts at Incentive Rebate360 assist with managing financial rebate applications to maximize your financial and energy savings. Through our programs, experts can help find rebates in any state for a variety of upgrades, from LED lighting to HVAC and electric vehicles. Contact us today by calling 480-653-8180, emailing [email protected], or schedule a call that fits your needs by clicking the button below!