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What are Utility Incentives?

In order to meet energy savings goals, utilities offer their commercial customers a financial incentive to upgrade their facility with energy-efficient products. Utility LED lighting incentives offset the upfront costs associated with installing new energy-efficient lighting.

Interior and Exterior luminaires by Cree are eligible for retrofit and new construction incentives under utility programs throughout the United States.

How to Capture Incentives

While each utility program is unique, the majority adhere to a similar set of steps:

  1. Check with your electric utility provider to determine if there are LED lighting programs available.
  2. After determining your projects eligibility, submit the program’s lighting application.
  3. The utility program will review your project scope and in most cases provide you with a pre-approval noting your potential incentive.
  4. Complete your project installation according to your pre-approved products.
  5. The utility will verify the installation and finalize the pre-approved amount by processing the incentive check.
Utility Programs are governed fully by the utilities and are subject to change without notice. Contact individual utilities for updates and or changes to their programs.

What is a prescriptive incentive versus a custom incentive?

A prescriptive incentive is a predetermined dollar amount per luminaire (i.e. $10/LED A Lamp). A custom incentive is determined based on the demand and/or energy saved by installing the new LED luminaire in terms of kW or kWh.

Example of an actual incentive an automotive dealership customer received through their local utility by switching to Cree Edge™ High Output luminaires:

Utility LED Program Incentive Offering: $0.08/kWh Saved
Annual Luminaire Operating Hours: 4,368

Interior and Exterior luminaires by Cree are eligible for retrofit and new construction incentives under utility programs throughout the United States.

QtyWattsTotal WattsIncumbent LightingQtyWattsTotal WattsIncentive
70 557 38,990 1000W Metal Halide 126 1080 136,090 $33,927

What products qualify?

Every utility program provides their own set of requirements and product criteria. In general, utilities usually require LED products to be listed under the qualification bodies of either Energy Star or DesignLights Consortium (DLC). In order to qualify under one of these organizations, the product must meet high efficiency, quality and lifetime criteria standards.

Potential product disqualifications.

The customer generally needs to be granted pre-approval for an incentive amount before starting a project. The project may become ineligible if products are installed before receiving a pre-approval from the utility program.

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