LED lighting has recently been recognized as the premier lighting source for homes and businesses. This is because they provide a highly efficient and effective lighting source that cuts down on the dangers of traditional lighting methods. However, many people are unaware of the major financial benefits LED lights can provide—namely, the fact that installing LEDs may make you eligible for tax credits. In case you’re interested in cutting down your electric bill while getting money back for your efforts, here is what you need to know about LED lighting rebates.
What Is Governmental Lighting Rebate?
A government lighting rebate is a type of incentive typically offered to home and business owners that help defray the cost of new lighting. These rebates are typically managed on a local, state, and federal level. Even utility companies may offer incentives to switch to LED lighting. The best part is that most states and local governments will offer incentives for switching, which means everyone can participate.
Prescriptive Rebates Vs. Performance Rebates
When you look at the rebates available to you, you’ll see two different types: prescriptive and performance-based rebates. These terms can be confusing, so here are their definitions:
- Prescriptive rebates are rebates that payout a percentage of the cost of the LEDs. They aren’t based on power usage and are simply used as a reward for installing these types of lights.
- Performance rebates are rebates that payout based on the total energy savings resulting from the installation. The rebate can be computed by determining the before and after wattages of each light replaced multiplied by the savings produced by the switch. This total saving is then calculated by the rebate rate in order to get the final amount. When it comes to performance rebates, the following criteria must be met:
- All fixtures must be listed on the DLC.
- An inspection by a state office or utility company must be made.
- The appliances used must be energy star certified.
How To Obtain LED Lights Rebate and Tax Credit
Luckily, applying for LED tax credits is relative. All that’s required from you is a bit of research into the programs and offers available in your state. Once you have this information, you’ll be able to apply for the credit and have all of the state-mandated checkups. After this, you are free to install any LED lighting that you have planned and receive your rebates.
We hope this article has been helpful in telling you what you need to know about LED lighting rebates. If you are looking to purchase LED commercial light fixtures, check out Eco LED Mart. We have an amazing selection of everything you need to ensure that your lighting projects go as smoothly as possible!