Unlock Big Savings: Year-End Lighting Rebates

Summary: As 2024 comes to a close, businesses can take advantage of limited-time bonus rebate programs for lighting upgrades across the U.S. Utilities are offering significant incentives—sometimes doubling existing rebates—to encourage commercial projects before year-end. With 77% of the country covered by active rebate programs, and 22% specifically offering bonuses, now is an ideal time for businesses to upgrade their lighting. Various bonus programs cater to specific products, customer segments, or provide across-the-board incentives. Staying informed about these opportunities is crucial to maximizing savings. See the article below.

Lighting Rebates: Bonus Programs Present Big Opportunity

As we approach the end of 2024, businesses have a prime opportunity to save on lighting upgrades through limited-time bonus rebate programs. Across the US, a record number of utilities are boosting their incentives, offering special year-end bonuses for commercial lighting projects. These programs are designed to push facilities to upgrade before the year ends, making now the perfect time to lock in increased savings for a wide range of lighting improvements.lighting rebate bonus programs

What Are Bonus Rebates?

Bonus programs offer additional financial incentives on top of existing rebate measures, but only for a limited time. The bonus amount varies by program and utility, with some offering an extra 10% – 20%, while others can double the original rebate amount.

Interestingly, 2024 saw rebate programs introduce bonus rebates earlier than in past years—some as early as March. This shift reflects utilities’ challenges in meeting their energy savings goals, especially with much of the low-hanging fruit, like T12 or metal halide upgrades, already addressed. To target the remaining customers who have not yet upgraded, many programs are finding it necessary to offer these increased rebate amounts.

Record Number of Bonus Rebates in 2024

Typically, bonus rebates are offered when programs are at risk of missing their annual energy-saving targets. Around this time of year, it’s common for 10-20% of programs to run out of funding, but in 2024, only 4% have exhausted their budgets. As a result, 77% of the US is currently covered by an active commercial lighting rebate program—just shy of the 79% record set in 2017.

2024 Commercial Lighting Rebate Coverage in the US

Of those areas, 22% are offering bonus incentives this year, tying the highest percentage recorded in the past 16 years. With nearly 40 rebate programs providing bonuses, now is the perfect time for businesses to capitalize on energy-saving projects.

Types of Lighting Rebate Bonus Programs

Bonus rebate programs can vary significantly by utility, but they typically fall into one of four categories:

Bonus on Specific Products

In this type of bonus program, specific product categories receive additional rebates to encourage participation. The bonus may be for a single product, such as a 4′ LED tube, or an entire category, like outdoor lighting. For example, Xcel Energy in Minnesota is offering double the rebates for TLEDs and a 25% bonus on grow lighting.

Bonus on Customer Categories

Some programs offer bonuses targeted at specific customer segments that have been slower to adopt lighting upgrades. For instance, a program may provide additional incentives to schools, healthcare facilities, or warehouses. In 2024, several programs are focusing their bonuses on underserved segments. For example, PSE&G Long Island currently has a program awarding an additional 25% to projects in Disadvantaged Communities.

Across-the-Board Bonuses

These programs apply a percentage bonus to any qualifying lighting project, regardless of product type or customer category. One example is PEPCO in Maryland, which has an additional 20% for any lighting rebate submitted through the end of November.

Trade Ally Bonuses

In some cases, rebate programs incentivize trade allies who sell lighting upgrades (distributors, contractors, or ESCOs) rather than the end user. These bonuses can boost a vendor’s margins and drive more sales by encouraging trade allies to promote eligible products more heavily. An example is Focus on Energy in Wisconsin, which is offering 15% bonuses to the trade ally for the remainder of the year.

How to Maximize These End-of-Year Opportunities

With these bonus programs often appearing suddenly and expiring quickly, staying informed is critical. Signing up for email updates from rebate programs and utilities can help ensure you don’t miss out. Each bonus comes with specific rules, such as deadlines for pre-approvals or special codes that need to be entered during the rebate application process.

While these bonuses can dramatically increase the rebate amount, remember that most programs still cap the incentive at a percentage of the project cost. The most common cap is 75% of material and labor cost, but it can vary greatly depending on the specific program. It’s essential to review the fine print carefully to ensure you fully understand the rebate’s limitations.

Closing the Deal with Bonus Rebates

End-of-year bonus rebate programs are an excellent way to create urgency and motivate customers to move forward with a project. These limited-time bonuses won’t last long, so reconnect with customers who’ve considered upgrades in the past and highlight the increased rebates. With deadlines fast approaching, now is the perfect time to help them lock in greater savings before these opportunities disappear.


Stay Up-to-date on Bonus Programs with RebatePro for Lighting

RebatePro for Lighting is the industry-leading tool that equips you with everything you need to maximize these valuable incentives. Subscribers can easily access the Bonus Program Report to view all current bonus programs across North America. Plus, they can mark important programs as “Favorites” to receive instant notifications about any changes.Learn more about RebatePro for Lighting

Source: Lighting Rebates: Bonus Programs Present Big Opportunity (briteswitch.com)

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