How to Save on Lighting Retrofits Without Sacrificing Quality

Investing in energy efficient lighting is one of the smartest ways to reduce your electricity bill and carbon footprint. However, lighting retrofits can be expensive upfront. Here's how I save on lighting upgrades without sacrificing quality or efficiency.

Research LED Technology

LED bulbs are the most energy efficient lighting option. However, not all LED bulbs are created equal. The light quality, brightness, life span, and efficiency can vary dramatically between LED products. Thorough research is critical to finding cost-effective LED bulbs that don't compromise on quality.

I spend time comparing products and reading reviews. Key factors I consider include:

• Lumens - Lumens indicate brightness. Match lumen output to your existing bulbs.
• Light color - Choose warm white for a soft, inviting ambience. Cool white is crisp and clinical.
• CRI - The Color Rendering Index measures color accuracy. Look for a CRI of 80+ for vibrant, true-to-life colors.
• Efficacy - Measured in lumens per watt, efficacy reflects energy efficiency. Prioritize products with an efficacy of 100+ lumens per watt.

Spending time researching allows me to identify value LED products that provide excellent light quality for the price.

Take Advantage of Rebates and Tax Incentives

There are many rebate and incentive programs available for energy efficient lighting. I take full advantage of these to reduce upfront costs.

• Utility company rebates - My utility company offers rebates of $2-$5 per LED bulb. I calculate savings and submit the rebate paperwork.
• State and federal tax incentives - Tax credits, deductions, and exemptions may be available. I consult an accountant to leverage these at tax time.
• Manufacturer promotions - I watch for seasonal sales, coupons, and special offers from manufacturers. Signing up for newsletters alerts me of promotions.

Depending on the number of bulbs replaced, rebates and incentives can result in several hundred dollars in savings. I factor these in before installing new lighting to lower out-of-pocket costs.

Take a Phased Approach

Rather than upgrading all lighting at once, I take a phased approach. Each year, I budget funds to upgrade one section of lighting. Spreading the retrofit over time allows me to:

• Amortize costs - I distribute expenses over multiple years to conserve capital.
• Take advantage of improving technology - As technology advances, pricing comes down. I lock in savings by upgrading in phases.
• Minimize disruption - Upgrading a portion of lighting each year results in less disruption than a major overhaul.

Starting with high use areas, I work my way through properties updating the most inefficient lighting first. This allows me to realize ongoing energy savings while sticking to my budget.

Consider Third Party Financing

Some lighting retrofit projects are eligible for third party financing, where funding is repaid over time through energy savings. Options include:

• Energy services agreements - An ESCO provides upfront funding and manages install. I repay through a portion of energy savings over a defined term.
• Power purchase agreements - A lightling retrofit is installed at no upfront cost. In exchange, I agree to purchase power produced from the new lighting at a discounted rate.
• On-bill financing - My utility company finances lighting upgrades, which I repay through a charge on my monthly energy bills.

I evaluate these financing options for large-scale retrofit projects. The repayments are structured so my net operating costs decrease from day one.

With smart planning and strategic cost reduction tactics, I'm able to upgrade my properties to energy efficient LED lighting without blowing my budget. The improvements provide better light quality for occupants and deliver significant long-term energy and cost savings.