Commercial LED Lighting Rebates in Texas and Nearby States
Utilities across Texas pay commercial customers to cut lighting load. Here is how the programs work, which one applies to your property, and how we handle the application so the incentive lands in your project.
Why Texas utilities pay for LED upgrades
Texas requires its transmission and distribution utilities to meet energy-efficiency goals every year, and the cheapest way for a utility to meet them is to pay customers to use less. Oncor, CenterPoint Energy, AEP Texas, Entergy Texas, TNMP, Xcel Energy and El Paso Electric each run commercial programs that pay an incentive for the kilowatt-hours and peak kilowatts a lighting retrofit removes. Municipal utilities such as Austin Energy and CPS Energy, and many electric cooperatives, run programs of their own.
Lighting is the easiest measure to qualify. A parking garage that goes from 8-foot T8 fluorescents running 24 hours a day to motion-controlled linear LED removes a large, predictable load, and that is exactly what these programs are designed to reward. Controls such as occupancy sensors and photocells usually increase the incentive because they cut hours as well as watts.
The catch is timing. Program budgets are set each calendar year and are reserved first come, first served. Most programs require the project to be approved before any fixture is installed, and a retrofit completed without pre-approval is usually not eligible. That is why the rebate application is part of our proposal, not an afterthought.
How a commercial lighting rebate works
- 1
Survey and savings calculation
We inventory every fixture, its wattage and its run hours, then calculate the kilowatt-hours and peak kilowatts the LED design removes. Those two numbers are what most programs pay on.
- 2
Application and pre-approval
Most programs must approve the project before installation starts and reserve funds for it. We file the application with the fixture inventory, the proposed design and the savings math.
- 3
Installation
Once the project is reserved we install in phases so the property keeps operating, keeping the documentation the program needs along the way.
- 4
Verification and payment
The utility or its inspector verifies the installed fixtures and controls. The incentive is paid once verification is complete, and we reflect it in your net project cost and payback.
Texas utility programs by area
Program names, incentive rates and budgets change from year to year. The table shows who serves each area and the kind of program they run; we confirm the current details when we prepare your proposal.
| Utility | Service area | Commercial lighting program |
|---|---|---|
| CenterPoint Energy | Houston and most of the Greater Houston area | Commercial standard offer program for lighting and controls retrofits in existing buildings. |
| Oncor | Dallas–Fort Worth and much of North, Central and West Texas | Commercial standard offer program; projects are reserved with the utility before installation. |
| Austin Energy | City of Austin | Municipal commercial rebate program with incentives for LED fixtures and lighting controls. |
| CPS Energy | San Antonio | Municipal commercial lighting and demand-response incentives. |
| Entergy Texas | Southeast Texas including Beaumont, Port Arthur, Conroe and The Woodlands | Commercial solutions program for lighting retrofits. |
| AEP Texas | Corpus Christi, the Coastal Bend, the Rio Grande Valley and Abilene | Commercial solutions program for lighting and controls. |
| TNMP | Parts of the Gulf Coast, DFW suburbs and West Texas | Commercial standard offer program. |
| Xcel Energy and El Paso Electric | The Panhandle, South Plains and El Paso | Commercial lighting efficiency programs. |
Louisiana, Oklahoma, Arkansas and Kansas City
| Utility | Service area | Commercial lighting program |
|---|---|---|
| Entergy Louisiana, Cleco and SWEPCO | Louisiana | Commercial energy-efficiency programs with prescriptive lighting incentives. |
| OG&E and PSO | Oklahoma City and Tulsa | Commercial lighting rebate programs. |
| Entergy Arkansas and SWEPCO | Arkansas | Commercial energy-efficiency programs with lighting incentives. |
| Evergy | Kansas City, Kansas and Missouri | Business lighting rebate programs. |
What usually qualifies
Parking garage retrofits
Fluorescent or HID garage fixtures replaced with linear LED, with motion sensors adding a controls incentive on top. Garage lighting
Warehouse high bays
Metal halide, T5 or T8 high bays replaced with LED high bays, with occupancy sensors on aisles and docks. Warehouse lighting
Office and retail interiors
Fluorescent troffers replaced with LED troffers or flat panels, plus occupancy and daylight controls. Office lighting
Exterior and site lighting
Metal halide pole lights, wall packs and floods replaced with LED on photocell or motion control. Parking lot lighting
Rebate questions we hear most
Do I have to apply for the rebate before the lights are installed?
In most programs, yes. Pre-approval confirms eligibility and reserves funds for your project, and a retrofit completed without it is usually not eligible. We file the application before installation starts.
How much is a commercial LED lighting rebate in Texas?
It depends on the program, the kilowatts and kilowatt-hours the retrofit removes, and whether controls such as occupancy sensors are included. Rates and budgets change each year, so your proposal shows the current estimate for your utility rather than a generic figure.
Who receives the rebate payment?
It varies by program. Some pay the customer directly after verification; others pay the contractor as the project sponsor and the amount is credited on your invoice. Either way, the proposal shows the incentive and your net cost.
Can rebate funds run out?
Yes. Programs run on calendar-year budgets reserved first come, first served, and funds are often exhausted late in the year. Filing early in the year is the safest way to capture the incentive.
Do you handle rebates outside Texas?
Yes. We prepare applications for Entergy Louisiana, Cleco, SWEPCO, OG&E, PSO, Entergy Arkansas and Evergy programs for projects in Louisiana, Oklahoma, Arkansas and Kansas City.
Find out what your utility will pay
The free energy audit produces the fixture inventory and savings numbers the application needs. We take it from there.
Request Your Free Energy Audit