Early adopters who first transitioned from fluorescent and HID to LED lighting a decade ago are discovering that it's time to replace their early-generation fixtures. Traditionally, rebate programs haven't supported LED-to-LED upgrades, but that's starting to change.

Improvements in LED Efficacy

As LED technology has evolved, both light quality and efficacy have significantly improved. One effective way to measure these advancements is by examining the Design Lights Consortium's (DLC) technical requirements. The DLC is a non-profit organization that sets performance standards for commercial lighting products. A majority of rebate programs require a product to be DLC-listed in order to qualify for incentives, so it's a good metric to look at.

In the 2015 DLC technical requirements (version 3.1), the efficacy measured in lumens per watt (LPW) was 100 for 4-foot tubes, 85 for 2x4 troffers and 80 for high bays. Currently, DLC technical specification (version 5.1) demonstrate considerable improvements:

Fixture Type	DLC v3.1 (2015)	DLC v5.1 (Current)	Improvement
4’ Tube	100 LPW	120 LPW	20%
2x4 Troffer	85 LPW	110 LPW	29%
High Bay	80 LPW	120 LPW	50%

Potential Energy Savings for LED-to-LED Upgrades

Increased efficacy basically means that new LED fixtures have to use fewer watts to get the same light output, providing an opportunity to realize additional energy savings. For example, a decade ago, Lithonia's TZL1N 8’ direct linear fixture consumed 83W to deliver 10,000 lumens. Today, the same lumen output requires only 68W, an 18% savings.

While the energy savings alone might not justify a standard retrofit’s cost, it’s a different story when the lights are approaching end of life. In this case, a group relamp or fixture replacement would avoid maintenance costs as well.

Customers installing new LEDs also have the option to “right size” the lighting for their spaces. With field adjustable fixtures becoming more common, customers can upgrade to a new fixture and experiment with the light output setting to find the right light levels for the space, leading to additional potential savings.

For a real-world example, let’s look at a paint store in Minnesota that upgraded its lighting from fluorescent to LED in 2015. At the time, they installed TCP’s HB Series high bay fixtures, each using 130W. Today, a comparable TCP high bay with similar light output uses only 90W—a 30% energy savings. In this area, they’d qualify for a $75 rebate for upgrading to the newer LEDs. With a fixture cost of $125, the payback for this upgrade would be approximately 2.4 years—and potentially even shorter if they decide to add occupancy sensors during the project.

*Based on 4,000 annual operating hours and $0.13/kWh.

According to a study by DNV, customers can expect a payback period of approximately 0.5 years if replacing old LED lighting at burnout, or between 2-6 years for a full-scale retrofit.

Rebate Programs and LED-to-LED Upgrades

Typically, custom and midstream rebate programs are the most accommodating of LED-to-LED upgrades. Custom rebates, based on calculated energy savings, usually offer incentives as long as the upgrade achieves a reduction in energy use. Midstream programs, or instant rebates offered through distributors at the point of sale, typically do not ask about existing lighting, though participants must ensure compliance with all program rules.

Initially, many prescriptive rebate programs were hesitant to provide incentives for LED-to-LED upgrades. However, this stance is beginning to evolve. For instance, Avista in Idaho and Washington now offers rebates for TLED-to-TLED replacements, varying based on energy reduction: a 3-4W reduction yields a $3 rebate per lamp, and a reduction of 5W or more qualifies for a $5 rebate per lamp.

Xcel Energy in Minnesota is another progressive example, offering the same $3 per lamp rebate for LED tubes regardless of whether customers are upgrading from fluorescent or earlier-generation LEDs. Customers replacing LED high bay fixtures can also receive a rebate of $75 per fixture, compared to $50-$250 for replacing HID fixtures.

Other programs approach LED-to-LED upgrades differently. For example, PSE&G in New Jersey does not permit LED-to-LED upgrades under its prescriptive program but allows customers to apply through custom applications.

Sample LED-to-LED Rebate Programs

Rebate Program	Measure	Rebate
Avista - ID and WA	TLED to TLED – 3–4W reduction	$3
Avista - ID and WA	TLED to TLED – 5W+ reduction	$5
Xcel Energy – MN	TLED to TLED	$3
Xcel Energy – MN	LED to LED Fixtures	$75
PSE&G - NJ	LED to LED	Custom program only

Navigating LED-to-LED Rebates Can Be Tricky

It gets even more difficult if the customer previously received rebates for their initial LED installations, as some programs require existing fixtures to remain installed for a certain period of time.

As overall LED market saturation continues to rise across the U.S. and Canada, rebate programs are expected to increasingly embrace LED-to-LED upgrades. In fact, DNV's recent report on future lighting incentives identified LED-to-high-efficiency LED upgrades as a key recommendation and the best opportunity for future savings, with the next measure being advanced lighting controls.

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