When someone mentions utility lighting rebates, most people assume they are referring to prescriptive ones, where the utility provides a cash reward for installing an energy-efficient lighting product. There is another type of rebate available called a custom rebate, which is an incentive that the project team proposes the utility provide.

What are these rebates?

Custom rebates are typically offered for projects that do not fit prescriptive rebates: new construction that stretches beyond energy code, lighting upgrades with difficult-to-predict energy savings, projects that combine building systems or use novel approaches, redesign projects and others that do not fit the one-for-one replacement mold. For the utility, these rebates can capture more accurate energy savings. For the owner, they offer a path to more comprehensive solutions. For the lighting practitioner, they incentivize out-of-the-box, design-oriented projects.

“The value of custom rebates lies in their flexibility, allowing businesses to implement energy-saving projects tailored to their specific needs and receive a valuable incentive,” said Leendert Jan Enthoven, president and owner of BriteSwitch, Kingston, N.J. “For contractors, it provides an option. Some assume the prescriptive program is the only rebate available. While this may be true for one-for-one upgrades, if a contractor is changing the lighting plan and adding advanced controls for a project, a custom rebate may provide a larger incentive than if the contractor used the standard prescriptive rebate.”

“I would encourage lighting professionals to seek out these incentives for redesign because the work they put into creating a more energy-efficient and effective design really doesn’t show up in prescriptive rebate offers based on simple one-for-one lighting replacement,” said Liesel Whitney-Schulte, program director at the DesignLights Consortium, Medford, Mass.

Instead of a cash amount per installed qualifying product, the owner receives what can be a more lucrative payout based on another metric, most commonly dollars per kilowatt-hour savings. This may involve measurement and verification, which can be achieved with metering or by an installed networked lighting control system.

A variety of custom rebates are available. Unlike prescriptive rebates oriented to lighting upgrades, custom rebates may apply to new and existing buildings. In existing buildings, the program often requires a form or spreadsheet following an audit of existing lighting equipment, hours of operation and energy consumption. Then the proposed system is presented for pre-approval. In a new building, the baseline is typically the local commercial building energy code. A lighting and control system is presented that demonstrates energy savings based on lighting power density or modeling. A similar approach may be used for an existing building undergoing a major redesign involving new luminaires and lighting controls.

Some custom incentive programs are specifically geared toward lighting. Advanced lighting control systems, such as networked lighting, are suited to these programs because the energy savings may be highly variable. When they integrate with other building systems such as HVAC, the solution is even more suitable for a custom incentive. Otherwise, technologies favored in custom incentives sometimes transition toward prescriptive rebates, with LED and, more recently, horticultural LED lighting being notable examples. 

Other custom incentives cover lighting installed as part of a more comprehensive upgrade involving multiple building systems such as HVAC and the building envelope. This approach is more common in areas where there is already significant LED saturation.

Like prescriptive rebates, custom incentives evolve with the marketplace as reflected in the program’s territory. Some programs have discontinued new construction incentives due to the local energy code becoming very strict, while others require a comprehensive approach with a combination of technologies where lighting is just one.

Meanwhile, some prescriptive rebate programs have begun to experiment with basing incentives on wattage saved instead of a per-installed-product basis.

With the nation continuing to realize potential savings in lighting, custom rebates will evolve toward more comprehensive instead of lighting-only solutions. 

Custom rebates take some work

Supporting a project acquiring a custom rebate takes some work. The first step is to familiarize oneself with available local programs and their eligibility and other requirements. Custom rebates generally require application and pre-approval, with the process expedited by diligently completing all paperwork and submitting documentation. Apply early, and build in a wait time while the program reviews the application. If there are changes to the project, communicate this to the rebate program as soon as possible, as these changes may affect the incentive and eligibility. Upon installation, the rebate program may require measurement and verification.

Overall, custom rebates provide an option for energy-efficiency projects—a path to an incentive for projects that don’t fit the standard mold.

stock.adobe.com / Francois Poirier