What an LED Utility Rebate Is & How It Works
Introduction
Switching to LED lighting is one of the fastest and most effective ways to cut energy costs. But did you know that many utility companies will actually pay you to make the switch? That’s where LED utility rebates come in.
What Is an LED Utility Rebate?
An LED utility rebate is a financial incentive offered by utility companies, state programs, to encourage multifamily, shopping malls, industrial buildings, & commercial buildings to replace old, inefficient lighting (like fluorescent, incandescent, or HID fixtures) with energy-saving LEDs.
These rebates reduce your upfront cost of upgrading, making LED fixtures more affordable. In short: you save money immediately on the purchase, and you keep saving every month on your electric bill.
Why Do Utilities Offer Rebates?
Utilities provide rebates because:
Lower energy demand → LEDs use far less electricity, reducing strain on the grid.
Sustainability goals → Rebates help cities and states meet efficiency targets.
Customer savings → Everyone benefits from lower energy costs.
Types of LED Rebates
- Prescriptive Rebates – Pre-set dollar amounts for specific LED products (e.g., $15 back per fixture).
- Custom Rebates – Tailored to large projects; incentive is based on total energy saved.
- Instant/Midstream Rebates – Discounts applied directly at the distributor or retailer, so you don’t wait for paperwork.
A onbulb rebates specialist is available to walk you through the process. from the start all the way to final approval
Who Qualifies?
- Multi-family properties upgrading entire buildings.
- Commercial spaces like offices, retail, or warehouses.
- Residential customers replacing outdated bulbs or fixtures.
Most programs require LEDs to meet quality certifications (like ENERGY STAR or DLC listed) to qualify.
The Process
- Gray Stage-Rebate Info Intake
- Blue Stage-Pre-Approval
- Yellow Stage-Installation
- Green Stage-Final Approval
for more detailed information, check out our color coded step by step page