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Funding the Future: Supplementing LED Investment with Financial Incentives and Third-Party Guidance

supplementing led investment

Looking to install LED lighting in your greenhouse? Use this guide to learn more about funding opportunities that can reduce costs before you begin.

Funding the Future: Supplementing LED Investment with Financial Incentives and Third-Party Guidance

Cultivators recognize the ever-increasing importance of using LEDs to grow healthier, more flavorful, and more consistent crops while lowering energy use. Yet, the journey from evaluation to implementation to payback and, finally, to profitability brings its own challenges in the form of timelines and upfront costs. Luckily, cultivators and operational directors are not alone when seeking sensible solutions. Utilities, manufacturers, and cultivators are more entwined than ever, creating novel pathways for LED adoption. This collective resource of professionals can help mitigate the headaches of adaptation, can streamline the process and information finding, and most of all can generate opportunities for savings and efficiency gains along the way.

Rebate incentives through local utilities

LEDs reduce the environmental impact of conventional electricity production and place less strain on the electrical grid. These tangible benefits have compelled governments and private organizations to offer financial assistance to those making the switch to LED lighting. Combined with Fluence’s ability to expertly navigate regulatory considerations and rebate opportunities around the world, there’s never been a better time for cultivators to start their LED transformation.

NOTE: “As of spring 2021, the Fluence rebate program has saved customers over $15 million on their LED fixtures. With our close collaboration with customers and their local utility providers, we are able to facilitate rebate applications to make the most of the local incentives.” – Brady Nameth, Fluence utility rebate coordinator

In the U.S. and Canada, utility companies often assist with 25 to 30 percent of capital expenses (and, in some cases, 50 percent or more) due to the clear benefits of LED lighting on energy infrastructure.

We work directly with you to take advantage of these local programs and help you fund projects by:

  • Confirming the availability of funding and customer eligibility.
  • Working with utility representatives to establish expectations and meet deadlines.
  • Assisting energy reduction analysis and documentation.
  • Negotiating custom incentives with utility companies if programs are not available (in some circumstances).

Most utility companies will offer programs based on either prescriptive rebates or custom incentives, although some will offer a mixture of the two.

With prescriptive rebates, you are paid a predetermined sum to help you purchase qualified LED fixtures to replace HPS systems (fixtures that are approved by the DLC Qualified Product List).

In the case of custom incentive programs, an assessment of current energy use and lighting systems will need to be conducted to provide an accurate refund based on the savings in energy use, demand, or both.

In the European Union, the common agricultural policy (CAP) will expand environmental initiatives in the coming decade to meet European Green Deal benchmarks. Between 2021 and 2027, we should see new streams of direct payments created by the CAP for “eco-schemes”—strategic plans to meet Green Deal targets.

You can get a head start on finding assistance by contacting your local authorities to learn more about current funding opportunities.

Start the process early!

Cultivators should contact Fluence early in their planning—even if the specifications of a retrofit design are likely to change. Ultimately, a design change later won’t impact an existing application, which can maximize growers’ opportunities to secure rebates or subsidies. Annual funding from utility companies may become exhausted before the project’s completion.

If you need support, begin today.

Financial support is available for those who want to make the switch to LED systems. If you’re ready to change your lighting but need help accessing funding opportunities, contact us so we can help you get started!