Where Are the Best Areas for Lighting Rebates?
The number one question we get is, “Where are the best lighting rebates in the country?” This question makes sense. Customers with multiple locations, nationwide distributors and contractors all want to focus on those regions with the highest rebates. Unfortunately, it’s not an easy question to answer because rebates can vary so much. While there’s no clear-cut answer, we can provide some guidance.
5 States With the Most Interest in Rebates
In the past, we’ve investigated where the best areas for lighting rebates are, but now we’ll explore where there is the most customer interest for rebate information. Our RebatePro and RebateDirect tools are used on a variety of manufacturer and distributor websites to help customers find and estimate rebates. Using anonymized data from the thousands of requests we processed in the last year, we can see that the top 5 states where customers were looking for rebates were CA, PA, TX, NY and IL.
Networked Lighting Controls & Rebates
Since the addition of a networked lighting controls category to the Design Lighting Consortium (DLC) list in 2016, it has been a buzzword in what’s next in lighting. Over the past couple of years, rebate programs have been trying to decide how to incorporate Network Lighting Controls into their offerings. It has proven difficult since these projects are usually complex and hard to establish a deemed energy savings for each project.
Rebate Trends for 2019
Over the past few months, rebate organizations across the country have been busy updating their programs for 2019. We've noticed the following trends for this year:
-Higher Rebates for LED Fixtures, Lower Rebates for Replacement Lamps
-Networked Lighting Control Rebates Are More Standardized
-73% of the US Offers Lighting Rebates
-Midstream Programs Still In The Minority
Lighting Rebates: The Past 10 Years And What’s Next
Lighting rebates are a way for electric utilities to reduce electric demand and increase energy efficiency across North America. More generally known as demand side management programs, they have been around for the past 40 years but have really gained more traction over the past 10 - 15 years.
Here, we take a look at the past 10 years in lighting rebates and make predictions on where they will go in the future.
Rebates For Traditional Lighting Are Disappearing
Traditional lighting technologies like pulse start metal halide, T5HO and induction used to receive hefty rebates. At the time, these solutions offered significant energy savings to customers and their rebates could range from $30 to $150 per fixture. Rebate programs have started to move away from these traditional technologies as LEDs prove more energy efficient.
While the dollar amounts of the rebates for these products have stayed relatively consistent, the number of available rebate programs has dropped by 30% in the last year alone.
8’ DLC Tube Category Brings New Rebate Options
While 4’ fixtures represent a large portion of the commercial market, many people don’t realize there are many 8' fixtures out there. In industrial, education and retail applications, 8’ fixtures are fairly common with some of them still being T12. That means they present a huge opportunity for energy savings.
Originally there were few 8' LED tubes on the market, so most customers would have to use a retrofit kit to convert the 8’ fixture to use 4' tubes instead. Eventually 8' LED tubes entered the market, but without a DLC category there were few rebates available. Since the addition of the 8' DLC tube category, there are now more than 5 times the number of utilities with rebates available for 8' tubes and almost double that for 4' tubes and retrofit kits.
Outsourcing Rebate Processing
Most people know that rebates are a very powerful tool to increase sales. What many people don't know is how to effectively handle the rebate process once a job is won. The rebate process takes 5 - 6 months on average and involves countless interactions with rebate program staff, end users, inspectors, etc. It's a cumbersome and daunting process for many companies to undertake on their own. Learn why many people choose to outsource rebate processing.
Rebate Trends for 2018
Over the past few months, rebate organizations across the country have been busy updating their programs for 2018. We've noticed the following trends for this year:
-LED Rebate Amounts Start to Level Out
-Rebates For DLC Standard vs Premium
-Control Rebates Are Still Strong As Ever
-What’s Next? Biax / PL-L Lamps & 8’ tubes
Make Lighting Projects Pay For Themselves Even Faster
Upgrading to LED lighting will save you a significant amount on your electric bill. These energy savings basically pay for the cost of the project over time. The point where you break even is called the payback time. For example, if the payback of a project is 2 years, it means the project basically pays for itself within 2 years and after that all the savings in energy are yours.
Using Rebates To Increase Sales
There’s no doubt that rebates can be a strong tool to help close sales. With over 79% of the US currently covered by an active commercial lighting rebate, it's a tool that every contractor, distributor and manufacturer should be using. There are 5 ways that you can utilize rebates to increase your sales and margin.
How is DLC 4.2 Affecting Rebates?
Earlier this year, Design Lights Consortium (or “DLC”) implemented a new version of their LED specifications. They were meant to further advance LED technology in the marketplace and, for most LED products, it required improved efficacy (increased lumens per watt). On April 1st, products that did not meet this specification were removed from the DLC list. While this specification change was announced 6 months before, it still caused a lot of confusion in the marketplace. For manufacturers, meeting these new requirements was not easy, often requiring a significant redesign to their products in order to achieve the higher targets. It’s been reported that almost 40% of the products were removed from the DLC list during this transition.
Rebate Trends for 2017
Over the past few months, rebate organizations across the country have been busy updating their 2017 programs. After reviewing many of these changes, we've noticed the following trends for this year:
-Rebate Coverage in US Hits Record High
-Ten-Fold Increase for Screw-in HID Rebates
-TLED and Screw-in LED Bulbs Rebates Continue to Drop
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