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Our annual rebate analysis remains one of our most popular reports. In the past, we have reviewed rebate changes across multiple technology types like LED, Controls, EV, and HVAC in a single study, with the most emphasis on LEDs. For 2025, we are trying something new, focusing on a single technology at a time to deliver deeper insights that are the most impactful for you. We are kicking it off with our LED Utility Trend Analysis, reviewing rebate changes by state, program, and product category, along with trends for Luminaire Level Lighting Controls (LLLC) and Networked Lighting Controls (NLC).
View the video below and keep reading for a summary of this year’s analysis. (If videos aren’t your thing, download slides here). Keep an eye out in the coming weeks as we release our HVAC and EV Charging trends, you won't want to miss it!
LED Program Changes
Downstream/Prescriptive
Map showing downstream LED rebate program changes by state, on a scale of +5 to -5%.
Downstream, or prescriptive, rebates are applied for and received by the end customer after purchasing eligible equipment. These involve an application process that the end user must complete, which might include pre-approval and/or post-inspection, depending on the program. These rebates have traditionally been the most common way for utilities to distribute rebate dollars.
We’re seeing a positive trend in downstream programs across North America in 2025, with a 5% average change amongst states (better than inflation increase). In the graph above, changes have been normalized from +5 to -5%, with darker greens indicating a more positive percent change and those shown in light green a negative percent change. Most notably, there was a 15% incentive increase in Outdoor Lighting incentives across many programs, including TVA, Baltimore Gas & Electric, and Duke North Carolina. Downlight incentives were skewed by the Bright Energy Program but overall are still trending upward in programs like Oregon Trust and Nevada Energy. Nevada and Midwest utilities are also a driver of Horticultural Grow Light incentives.
Individual program changes, from left to right: Baltimore Gas & Electric, Nevada Energy, TVA, PECO, First Energy (PA)
To break down some notable individual programs, we’ve pulled five that have caught our attention this year. PECO and First Energy PA are both in the fourth year of a 5-year program and have decreased their prescriptive rates to account for budget limitations.
On the flip side, we’re seeing some huge increases in programs like BGE, Nevada Energy, and TVA. BGE is prioritizing fixtures with incentive increases, while TVA is increasing Outdoor Lighting incentives to match their indoor incentives. We're seeing a jump in rebates across just about every measure in Nevada Energy.
Downstream program percent changes by product category.
At the product level, we’re seeing increases in a variety of categories, with particular emphasis on outdoor lighting across downstream programs. After years of increases, High Bay incentives are pretty flat.
Midstream/Instant
Map showing midstream LED rebate program changes by state, on a scale of +5 to -5%.
Midstream, or instant, rebates are paid out at the distributor level, with savings typically passed onto contractors and/or end users at the point of purchase. These can be accessed through a physical retail experience or ecommerce options through the distributor. Because of how much easier they are to take advantage of, midstream rebates have been increasing in popularity over the last few years.
The above graph, similar to the downstream version, shows programs from +4% to -4%, with greens representing positive percent changes and yellows representing negative. States shown in gray do not currently have active midstream programs. ComEd and MidAmerican led Illinois increases, with ComEd being the primary driver. Maryland is also on the rise due to BGE, PEPCO, SMECO, and Potomac Edison increasing their instant discount program incentive rates. Massachusetts had the greatest average decrease, down 45%. Mass Save is prioritizing funding for other energy efficiency measures and has also discontinued non-controlled lighting incentives to align with Massachusetts’ climate policy and goals.
Individual program changes, from left to right: ComEd, Hawaii Energy, PECO, Mass Save
Some of the notable categories seeing a midstream decrease in Mass Save are High Bays, 2x4s, and Outdoor Lighting. Not as significant as the downstream program, PECO is decreasing midstream incentives as part of budget reallocation as they enter year 4 of their 5-year program. Hawaii Energy saw increases in 2x4 Linear Replacements and Retrofit Kits, and High Bay Replacement lamps, while ComEd had large increases in fixture incentives.
Midstream program percent changes by product category.
Many of the trends from downstream programs have logical counterparts in midstream programs. Programs are putting an emphasis on fixtures and outdoor lighting. The Screw-in use case is the only category decreasing, seeing reductions across 18 midstream rebate programs, this is consistent with the changes in the market for screw-in lamps.
Luminaire Level Lighting and Networked Lighting Controls
While we’ve covered broad lighting trends, there are two particular areas of focus within lighting to draw attention to. Luminaire Level Lighting Controls (LLLC) give capability to have a networked occupancy sensor and ambient light sensor installed for each luminaire or kit, and directly integrated or embedded into the form factor during the luminaire or kit manufacturing process. Networked Lighting Controls (NLC) can improve the efficiency of your fixtures by giving you more control over conditions, such as when lights are on or the brightness of them.
LLLC
The way that programs incentivize LLLC varies widely. Some programs have LLLC requirements to receive incentives, while others may offer additional incentives if technology is paired with LLLC. This may be applicable for LED or Networked Lighting Control (NLC) incentives. States indicated in green have programs with LLLC requirements and/or additional incentives.
NLC
NLC rebate incentives have stayed relatively stable this year, while program saturation across the country has increased with programs in almost every state. Calculations for NLC incentives vary widely between programs, though one similarity many have is the DLC listing requirement for these products. Be sure to check programs in your state for specifics on completing a qualifying NLC installation.
Key Takeaways
There’s a lot of rebate information to sort through at the beginning of every year; we’re here to help. Below is a summary of our key takeaways to keep in mind in 2025:
- Downstream (prescriptive) and midstream (instant) incentive programs have seen increases in all lighting categories, with the exception of midstream screw-ins.
- Of all lighting categories, outdoor fixtures seem to be a priority for incentive programs this year.
- As LED technology continues to improve, higher rebates help push business customers toward the latest, most efficient lighting and controls, helping utilities maintain kWh savings.
Whether you’re a distributor, a manufacturer, or a contractor, we have more solutions to help you utilize rebates in 2025. Reach out to us at hello@encentivenergy.com with questions!
Special thanks to Steve Bolibruck and Mike Cham for their analysis contribution.
