Commercial Lighting Rebates — Utility Rebates, IRA Incentives & PACE Financing

EnergyStackHub Team

Lighting Rebates — Incentive Finder

Capture $50K–$500K in Commercial Lighting Rebates

Utility rebates, IRA 179D deductions, and PACE financing can cover 30–100% of your LED retrofit cost. EnergyStackHub identifies every available incentive for your facilities and manages the applications.

Check Your Eligibility Free Rebate Assessment →

$0.50–$3/sqft

avg utility rebate range

Up to $5/sqft

IRA 179D deduction

30–50%

of project cost covered

Typical Rebate Stack — 50,000 sqft Facility

Utility Rebate $75K

179D Deduction $125K

PACE Financing Remaining cost

Total Coverage 80%

Rebate Range by Fixture Type

High-Bay LED $60–$180/fixture

Linear T8 LED $5–$40/fixture

Controls/Sensors $20–$80/fixture

Exterior LED $50–$200/fixture

Three Ways to Stack Incentives

Utility Rebates, Federal Deductions, and PACE — Combined

Commercial lighting upgrades unlock three separate incentive streams. Most facilities capture only one. EnergyStackHub finds and stacks all three.

Utility Rebate Programs

Most investor-owned utilities (IOUs) offer prescriptive rebates for commercial LED retrofits — no negotiation required. Standard fixture replacements on the utility's DLC product list pay within 4–8 weeks of application. Larger projects qualify for custom incentives that can exceed $500,000.

$0.50/kWh average rebate value for qualifying LED projects

IRA Section 179D Deduction

The Inflation Reduction Act expanded the 179D deduction to $5.00 per square foot for commercial buildings meeting ASHRAE 90.1 efficiency standards with prevailing wage compliance. Lighting is one of the fastest paths to the maximum deduction. Unlike a tax credit, 179D reduces taxable income dollar-for-dollar.

$5/sqft max IRA 179D deduction for qualifying lighting projects

C-PACE Financing

Commercial PACE lets you fund 100% of a lighting retrofit with no upfront capital. Repaid over 5–25 years via property tax assessment — and positive cash flow from day one is typical since energy savings usually exceed the annual PACE payment.

$0 down PACE covers full project cost in 37+ states

Qualification Checklist

Does Your Project Qualify for Lighting Rebates?

Check each item that applies to your facility. The eligibility panel updates as you work through the list.

Building is 5,000+ sq ft commercial or industrial space — utility programs and 179D are both size-gated; most require minimum square footage for standard rebate tracks.

Existing fixtures are fluorescent (T8/T12), metal halide, or high-pressure sodium — replacement of inefficient baseline technology qualifies for the largest rebate tiers.

Building is served by an investor-owned utility (IOU) — IOUs (SCE, ConEd, ComEd, PG&E, BGE, PECO, etc.) run rebate programs; municipal utilities and co-ops vary significantly.

No LED lighting retrofit completed in the last 5 years — most programs require replacing conventional technology; LED-to-LED upgrades rarely qualify unless controls are added.

Project value is $10,000 or more — smaller projects are eligible but rebate applications under this threshold may not justify the coordination effort vs. savings.

Not Yet Ready

Check each item above that applies to your facility. Meeting all five indicates strong eligibility for utility rebates, 179D, and PACE financing.

Checklist progress — 0/5 items

Start Free Rebate Assessment →

Major Utility Rebate Programs

Top Commercial Lighting Incentive Programs by Region

Rebate amounts and program details change frequently. EnergyStackHub tracks current program rules and submits applications on your behalf.

Utility / Region	Rebate Type	Typical Range	Max Per Project	Notes
SCE (CA)	Prescriptive + Custom	$0.08–$0.18/kWh	$500,000	DLC Premium required; pre-approval for custom
ConEd (NY)	Prescriptive + Custom	$0.10–$0.25/kWh	$1,000,000	Custom incentives for 50kW+ projects
ComEd (IL)	Prescriptive	$0.05–$0.15/kWh	$250,000	Standard lighting kit program; 8-week turnaround
PG&E (CA)	Prescriptive + Custom	$0.10–$0.20/kWh	$500,000	LED and controls both incentivized
BGE (MD)	Prescriptive	$0.06–$0.12/kWh	$150,000	Business Energy Efficiency program
PECO (PA)	Prescriptive	$0.05–$0.10/kWh	$200,000	Smart Ideas program; fixtures + controls

Common Questions

Everything You Need to Know About Commercial Lighting Rebates

Commercial lighting rebates from investor-owned utilities typically range $0.05–$0.50 per kWh saved or $20–$100 per fixture replaced, which translates to $0.50–$3.00 per square foot of retrofit space. On a 50,000-square-foot facility, that can mean $25,000–$150,000 in utility rebates alone. Federal IRA Section 179D deductions stack on top — up to $5.00 per square foot for projects meeting ASHRAE 90.1 standards. PACE financing can cover the remaining project cost with no upfront capital required.

A utility rebate is a direct cash payment from your electric utility for installing energy-efficient lighting, paid after project completion and inspection. The IRA Section 179D deduction is a federal tax deduction (not a credit) that reduces your taxable income by up to $5.00 per square foot for qualifying commercial building efficiency improvements, including lighting. They are not mutually exclusive — you can typically claim both. The 179D deduction was expanded and made permanent by the Inflation Reduction Act of 2022; the bonus deduction tier ($2.50–$5.00/sqft) applies to projects meeting prevailing wage and apprenticeship requirements.

Most utility rebate programs require DLC (DesignLights Consortium) Premium-listed LED products for linear fixtures (T8 troffers, strip lights, high-bays) and ENERGY STAR certified fixtures for downlights and decorative applications. Lighting controls — occupancy sensors, daylight sensors, and networked lighting controls — qualify for separate rebate tiers at many utilities, often adding $0.10–$0.25 per square foot on top of fixture rebates. Replacing T12 fluorescent, metal halide, or high-pressure sodium fixtures with LEDs delivers the largest savings and highest rebate amounts. Some utilities also offer custom incentives for projects not covered by standard catalogues.

Commercial PACE (Property Assessed Clean Energy) financing lets property owners fund 100% of a lighting retrofit upfront with no cash out of pocket. The loan is repaid as an assessment on the property tax bill over 5–25 years, and typically transfers with the property at sale. PACE eliminates the capital barrier to lighting upgrades — the energy savings from the retrofit often exceed the annual PACE payment from day one, resulting in immediate positive cash flow. PACE is available in 37+ states and Washington DC. EnergyStackHub screens your property for PACE eligibility and connects you with approved PACE providers in your jurisdiction.

Utility lighting rebate timelines vary by program type. Prescriptive rebates (standard fixture replacements on the utility's approved product list) typically pay within 4–8 weeks after submitting a completed application with invoice and installation photos. Custom incentive rebates — for projects with non-standard measures or large commercial and industrial facilities — require a pre-approval application before the project starts and final inspection after, extending the process to 12–20 weeks. Pre-approvals are critical: most utilities will not pay rebates for projects that begin before receiving a pre-approval letter. EnergyStackHub manages the application process and timeline so nothing slips through.