Transitioning to LED lighting significantly reduces your energy costs. Over time, these savings pay for the lighting upgrade. When you break even on the project is known as a LED lighting payback. For example, if the payback of the lighting project is two years all of the energy savings are yours after this point.
Lighting rebates can further shorten the LED lighting payback time. Rebates can reduce upfront costs like purchasing bulbs and fixtures, along with installation. By taking advantage of rebates, you can reduce the overall project costs on average by 20% to 25%. It means the project pays for itself in eighteen months, instead of two years.
See the Impact Lighting Rebates Can Make
The below tables cover two types of common LED lighting retrofits. The energy savings displayed in the table show both types of lighting projects make sense. An LED retrofit for T8’s typically pays for itself in two years. It takes a little longer for a high bay retrofit. The LED lighting payback for high bays occurs in 3.7 years.
After factoring in the LED lighting rebates, the payback time significantly decreases. For example, a high-bay LED lighting project can pay for itself in 2 years.
Lighting rebates tend to drop between 20 to 30% each year. Manufacturers and utilities, along with local, state, and federal governments can add new financial incentives, but it is a good idea to get started on your LED lighting project before missing out on some of the incentives.
Did you know you can combine your LED lighting incentives with lighting controls? Take a deep dive into lighting control incentives by reading, Are There Rebates for Networked Lighting Controls? Then reach out and speak with one of our experts to get started on your incentive process.
We Make It Easy To Switch to LED Lighting
We will analyze your project to see which incentives and rebates are available and let you know how it affects the timeline of your LED lighting payback. When you are ready to move forward with your project, we can handle the rebate paperwork.
Contact us with your questions or when you are ready to switch to LED lighting. We can ensure the transition goes smoothly with the most return on your investment.