Rebates are an important part of any LED Lighting project.  They help encourage the building owner take on the project by lowering the upfront costs of the project and shortening the payback period.  But navigating the process can be difficult for those who haven’t applied for a rebate before.

Why do utility companies have rebate programs?  Isn’t it counter intuitive that they’re paying us to use less electricity?  Actually no—with the population and demand on the grid growing, utility companies have to invest into increase power plant capacity.  Instead, with energy savings programs and rebates that encourage businesses to become more energy efficient, utility companies actually save money by not expanding capacity.

Utilities have an annual budget for rebates.  To reserve a rebate for your business, you must apply for it before commencing the project.  You’d need to provide details about current consumption, fixtures in use, and state what LED products you will install.  You may need to provide specification sheets for the LED products and/or allow a representative from the utility visit the business to confirm the details.  Upon approving the project, you have a set period to complete the work and send a confirmation form to the utility so they can issue the rebate.

Utility rebates can lower the up-front cost of new energy-efficient lighting. Rebates are offered by utilities in response to individual state public utilities commission (PUC) established energy savings goals as an alternative to new power plant expansion. Utilities in nearly every state offer rebates for LED lighting. The programs are aggregated in the federal DSIRE (database of state incentives for renewable and efficiency) and local utility sites.