According to rebate processing firm, BrightSwitch, commercial lighting rebate programs in the United States are experiencing significant changes in 2024, with utilities boosting incentives and offering special year-end bonuses to encourage facility upgrades. Here’s a summary of the key trends and developments:

Widespread Availability and Increased Incentives

Nearly 80% of the United States is currently covered by active commercial lighting rebate programs. This level of coverage has remained stable for the fourth consecutive year, providing a reliable incentive landscape for businesses considering lighting upgrades.

Bonus Programs and Increased Savings

A record number of utilities are offering bonus incentives on top of existing rebates. These bonus programs typically fall into four categories:

1. Bonuses on specific products
2. Bonuses for certain customer categories
3. Across-the-board bonuses
4. Trade ally bonuses

For example, Xcel Energy in Minnesota is offering double rebates for TLEDs and a 25% bonus on grow lighting, while PEPCO in Maryland is providing an additional 20% for any lighting rebate submitted through the end of November.

Early Introduction of Bonus Programs

Interestingly, 2024 saw the introduction of bonus rebates earlier than in previous years, with some programs launching as early as March. This shift reflects utilities’ challenges in meeting their energy savings goals, especially as many of the easier upgrades have already been completed.

Funding Stability

Unlike previous years where 10-25% of programs would run out of funding prematurely, less than 5% of programs experienced funding shortfalls in 2023. This trend has continued into 2024, with only 4% of programs exhausting their budgets so far.

Rebate Amounts and Product Focus

Rebate amounts for LED products have increased by an average of 2% in 2024, while control rebates have seen a 5% increase. The best rebates continue to be for LED fixtures replacing HID fixtures, such as high bays and area lights.

Networked Lighting Control (NLC) Rebates

There has been an 8% increase in utilities offering specific rebates for Networked Lighting Controls. The average rebate for NLCs has risen by 4% compared to 2023, with most programs now offering these rebates on a per-fixture basis.

Capitalizing on Opportunities

With nearly 40 rebate programs providing bonuses, businesses have a unique opportunity to maximize savings on energy-efficient lighting upgrades. However, it’s crucial to act quickly, as these bonus programs often have limited durations and specific requirements.

More information is available here.

Image: BrightSwitch.com

David Shiller

David Shiller is the Publisher of LightNOW, and President of Lighting Solution Development, a North American consulting firm providing business development services to advanced lighting manufacturers. The ALA awarded David the Pillar of the Industry Award. David has co-chaired ALA’s Engineering Committee since 2010. David established MaxLite’s OEM component sales into a multi-million dollar division. He invented GU24 lamps while leading ENERGY STAR lighting programs for the US EPA. David has been published in leading lighting publications, including LD+A, enLIGHTenment Magazine, LEDs Magazine, and more.

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