Capture All Available Rebates & Incentives
This is one of the “steps’ of energy management that really should be done out of sequence. To properly start this process you should start long before any construction is started. The reason for this is to guarantee that you properly capture any incentives that may be available. However, this is the 6th step in the process because it is important to make sure you capture your incentives and tax deductions at this stage of the retrofit.
Most utilities that provide rebates or incentives for upgrading to LED light fixtures but some of these utilities require a pre-inspection to be done before any construction or retrofitting is done. This is to insure that a proper retrofit was done. However, it is critical to make sure that you capture all available rebates and incentives to you at this stage.
Pacific Corp’s Rocky Mountain Power has created a program to help manage and promote the installation and adaption of LED in the market place. Their Watt Smart program offers rebates for any kWh reduction. Other utilities across the nation have also implemented rebate or incentive programs. It is important to hire a proper electrician that can help you capture these rebates. Some utilities require a utility approved contractor to do installs for all rebates.
For details on what rebates may be available in your area, check out the DSIRE website for more information.
As important as utility rebates are, tax incentives are just as important. It is important to consult with your CPA or tax professional to verify if there are any tax incentives you could qualify for.
For example, some businesses could qualify for a special tax deduction know as the 179D deduction for LED lighting. This particular tax deduction could help businesses deduct up to $1.80 per square foot of their energy conservation measures and as much as $0.60 per square foot for upgrading to LED.
Other tax deductions may be available. Sometimes, when installed properly, LED lighting upgrades can also qualify for an accelerated depreciation schedule. These tax deductions help reduce the overall cost of the LED lighting retrofit as well as increase the return on investment of your upgrade.
Having properly captured all available incentives and researched any available tax deductions that may important it is very important to get a proper calculation of your final net cost for install. This number will be the starting point of the next and final step in the process, performing proper measurement and verification.
The last step: Perform Proper Measurement & Verification.
Review of the 7 steps to a successful LED so far.
- Identify high wattage fixtures and lamps.
- Investigate the possibility of removing fixtures and/or lamps.
- Consider all types of LED lamps and fixtures
- Create a proper baseline.
- Install New LED Lighting and Controls.