Rebates and ROI, oh MY!
Do you love saving money? Yes, that’s a rhetorical question. We all love saving money. And there’s nothing better than saving money on an already good deal. Think about an item that you need at the grocery store. It’s on sale, so it’s already a no-brainer. But imagine you have a coupon too! What a deal! There are even whole reality shows based around this premise.
Did you know that there are similar savings available when you decide to pursue energy-saving lighting options? Not rhetorical, and I bet the answer is no. So, let’s take a few minutes to get you up to light-speed on the savings you could be reaping. Whether you’re a homeowner retrofitting to LED or a distributor selling lighting products to your community, there are a number of opportunities to maximize your return on investment (ROI). The federal government and local municipalities fund rebate programs throughout the country to incentivize people and businesses to install energy-saving lighting products to, well, save energy.
If you’re a consumer, you’re probably most familiar with traditional mail-in rebates or downstream rebate programs. After you purchase or install qualifying equipment, you send via snail mail (or in this day and age, submit via an online portal) proof of purchase and assorted other product and installation details. Once verified, the manufacturer sends you a check or an electronic deposit. And that’s it! In addition to the savings you are already realizing due to your newly installed energy-efficient products, you now have even more cash in hand!
In states with a greater focus on energy conservation like Connecticut, Pennsylvania, and especially California, rebates and incentives are strong at the distributor level. These types of rebates are referred to as midstream rebate programs. In this type of program, incentives are paid at the distributor level and then the discounts are passed along to a contractor or a customer by the distributor at point of purchase.
Changes in rebate programs are happening all the time. Currently, the highest average rebates are available on LED high-bay fixtures, LED pole lights, LED canopy lights, and LED wall packs. Because these are traditionally HID lamps, retrofitting to LED saves an enormous amount of energy and thereby earns the highest ROI when combining reduced operating costs with the high-dollar rebates. These categories favor commercial properties, but homeowners don’t despair! Approximately 77% of the nation is eligible for lighting incentives. Be sure to explore the federal government’s database for your state’s tax credits, rebates, and savings.
Find policies & incentives by sate @ DESIRE
Also check with your local utility company because they also may offer incentives. Consider how much easier and cheaper it is for the utility company to reduce the draw on its existing power plants instead of building a new one! They want you to install energy-efficient lighting almost as much as you do. For more in-depth information on the trends in energy rebates, check out this article posted on ElectricalTrends.com.
This post started with one question and may be ending with you having more questions of your own. Rebates can get confusing, but hang in there and call for help! Our 1000Bulbs.com lighting specialists are available by phone at 1-800-624-4488 or by our convenient pop-up chat at the bottom right corner of our web pages.
