What is lighting retrofit software?

Lighting retrofit software helps teams document existing fixtures, model LED replacements, calculate savings, account for costs and rebates, and generate a client-ready proposal. The best platforms reduce re-entry between the audit and the proposal.

When do spreadsheets stop being enough?

Spreadsheets usually stop being enough when proposal turnaround is too slow, data gets re-entered into multiple files, controls scenarios need comparison, or revisions become painful. That is the point where a dedicated platform starts saving real time.

What should buyers compare first?

Start with field audit speed, proposal output, rebate and cost handling, controls support, revision workflow, and deployment simplicity. Those are the areas that most directly affect adoption and day-to-day use.

Does every team need controls analysis inside the platform?

Not every team needs it on every project, but buyers should strongly prefer platforms that can support controls when the opportunity is there. Otherwise LED-only and controls scenarios often end up split across separate tools.

Who is this guide for?

This guide is for electrical contractors, energy consultants, and lighting sales teams evaluating software for commercial lighting retrofit work, especially where the proposal is a major part of the sales process.

LumaQuote › Commercial LED Retrofit

For electrical contractors and energy teams

Commercial LED Retrofit: From Audit to Signed Proposal

This guide is for electrical contractors and energy teams that regularly quote commercial LED retrofit projects. It covers project scoping, savings math, rebate qualification, and proposal delivery, written from the contractor's perspective, not the building owner's.

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Five project stages

What a commercial LED retrofit project actually involves.

Most content on this topic is written from a building owner's perspective. This one is written from the contractor's side, because the project stages, the decisions, and the places where scope gets lost are different depending on which side you're on.

Site audit: fixture inventory and baseline data

The audit is the foundation of every number that follows. Before any retrofit can be scoped accurately, you need a complete fixture inventory organized by area: fixture type, existing wattage (measured or confirmed, not assumed), quantity, and operating hours per day and days per year. Controls present (whether there are occupancy sensors, daylight sensors, or scheduled switching already in place) must be documented because they affect both the baseline calculation and the controls opportunity assessment.

The common failure here is using catalog wattage instead of measured wattage for older fluorescent fixtures with aging ballasts. A T8 troffer might be listed at 32W per lamp but drawing 34W at the ballast. Multiply that across 200 fixtures and your baseline is materially wrong before you've written a single line of the proposal.

Retrofit scope development: LED selection and auxiliary costs

A complete retrofit scope is not just a fixture substitution list. It's LED selection per fixture type (with DLC qualification status confirmed if rebates apply), wattage reduction per fixture, controls decisions (occupancy sensors, daylight harvesting, scheduling: which areas warrant them and at what cost), and auxiliary costs that get forgotten until they appear as margin problems on the job: lift equipment for high-bay or exterior work, lamp and ballast disposal fees, permit and inspection fees, and travel for multi-site projects.

The LED selection drives the largest cost and savings variance in the scope. A 200W high bay replacing a 400W metal halide and a 150W high bay replacing the same fixture produce meaningfully different paybacks. Presenting the client with a single fixture choice without explaining the tradeoff is a missed opportunity to sell a better project.

Savings calculation: what the math must include

A credible savings calculation has three core components, and any proposal that presents only the first is incomplete. Energy savings (baseline kWh minus LED kWh at actual utility rates) is the most defensible number and should always be shown from actual fixture data, not a blanket percentage claim. Demand savings (the kW reduction during peak periods multiplied by the demand charge) is often overlooked by contractors working on their first commercial proposal and is a real differentiator when calculated correctly. Maintenance savings (reduced lamp replacement frequency and reduced maintenance labor) are real and defensible but frequently overstated, particularly for fluorescent sources that were not being replaced on schedule. HVAC savings from reduced heat output are sometimes claimed on top (often quoted at 5 to 15% of energy savings), but they depend on the building, the season and the heating system, and LEDs can even raise heating costs in cold climates. LumaQuote leaves them out, and a conservative proposal should too unless they are measured or modeled.

The number that survives a building owner's energy manager is the one that can be traced back to a specific utility rate, a specific fixture, a specific number of operating hours. Generic savings claims get tabled. Specific, traceable math gets signed.

Rebate qualification: what contractors get wrong most often

Utility rebate qualification is a step most contractors understand in principle and underestimate in practice. The DLC (DesignLights Consortium) qualification list is the baseline requirement for most North American utility rebate programs, but DLC qualification alone does not guarantee a rebate in every program. Some utilities have approved product lists that are subsets of DLC. Some programs have minimum wattage reduction requirements per fixture category. Some require pre-approval before installation begins, not just an application after the fact. Missing a pre-approval requirement can mean losing the rebate entirely on an otherwise qualifying project.

The practical rule: verify the current incentive amount, the qualification criteria, and the application timing requirements directly with the utility before those numbers go in a signed proposal. Rebate programs change annually, and a program that paid $30/fixture last year may pay $20 this year. The verification step takes 30 minutes and protects the credibility of every number in the proposal.

Proposal delivery: what separates a proposal that closes

The proposal is the document that a facilities manager takes into an internal meeting to get budget approval. It needs to contain every number that meeting will require: total scope, gross installed cost, rebate deduction, net cost to the client, annual savings in dollars, payback period, and ROI. An executive summary that puts payback and annual savings on the first page is not optional for commercial clients: it's the only page that gets read in the first 30 seconds. The backup (fixture schedule, savings breakdown, assumptions, terms) needs to be there and needs to be organized, but the summary wins or loses the internal meeting.

Project pricing

How to price a commercial LED retrofit.

Three components of a complete retrofit price, and where margin disappears when any of them is handled roughly.

Material cost

LED fixtures and drivers at contractor cost plus margin, or list price minus trade discount. The fixture selection drives the biggest variance in project cost: a commercial-grade high bay and a value-tier high bay can differ by 40 to 60% in unit cost for nominally the same specification. Presenting one option to a client without explaining the quality and warranty differences is leaving the client without information they'll want before approving the project.

Controls hardware (occupancy sensors, daylight sensors, microwave sensors, dimmers) are often priced separately from fixture material. They need to appear as a separate line in the scope, not absorbed into the per-fixture price where they become invisible and eventually become margin erosion.

Labor cost

Hours per fixture type vary significantly: a surface-mounted T8 troffer swap is faster than a recessed 2×4 grid retrofit, which is faster than a high-bay replacement requiring a lift. Build your labor estimate from fixture-type time allowances rather than a single blended rate across the project, particularly on mixed-type jobs where the high-bay fixtures take three times as long per unit as the office troffers.

Disposal and cleanup time (lamp haul-out, ballast collection, packaging removal) is consistently underestimated on projects with older fluorescent fixtures. A 150-fixture building with T8 4-foot 2-lamp fixtures generates a meaningful amount of tube and ballast waste that needs to be handled and disposed correctly, and the time for that needs to be in the labor budget.

Auxiliary costs: where margin disappears

Lift rental for high-bay, exterior, and parking structure work. Lamp and ballast disposal fees, which vary by municipality and waste type. Permit and electrical inspection fees, which vary significantly by jurisdiction. Travel costs for multi-site projects. Rebate application processing time if you're providing that service.

These costs are where margin disappears on retrofit jobs precisely because they're not visible in a fixture substitution spreadsheet. Name them as line items in every proposal, not because clients will push back on them, but because the contractor who itemizes them looks more thorough and credible than the one who buries them in a contingency or misses them entirely and absorbs them against project margin.

On margin: Material and labor margin should be tracked separately because they behave differently: material margins are relatively stable across project sizes, while labor margins shrink fast on complex installations where time estimates were optimistic. Knowing which one is the problem on a job that underperforms requires having separated them from the start.

Savings analysis

What's realistic in a commercial LED retrofit savings projection.

Built specifically to help contractors make a credible savings case, not an inflated one. The number that gets signed is the number the client's energy manager can verify.

Energy savings (kWh)

Most defensible

The fixture wattage reduction multiplied by hours of operation. This is the number with the most directly verifiable inputs: existing wattage (measured), LED wattage (product spec), operating hours (confirmed with facility management). Contractors should never use a generic "50% savings" claim. The math must come from actual fixture data, because a building with 400W metal halides replacing to 150W LEDs at 4,000 hours/year produces a fundamentally different savings number than one with 32W fluorescent troffers replacing to 18W LEDs.

Energy savings in dollars uses the blended utility rate, not the peak rate, not the off-peak rate for facilities on time-of-use pricing unless you've confirmed the operating hours by rate period. Getting the rate wrong is the most common reason a savings projection doesn't hold up in the client's energy manager review.

Demand savings (kW)

Often overlooked

The reduction in peak demand (the difference between existing and proposed peak kW) multiplied by the demand charge in the utility rate schedule. Demand charges in commercial utility rate structures can be $8 to $25/kW/month depending on the region and rate class. On a 100-fixture warehouse project with a 30kW peak reduction at $12/kW/month, that's $4,320/year in demand savings alone: a number that often surprises contractors who haven't included it and surprises clients in a very positive way.

To calculate it correctly: sum the wattage reduction per fixture across the peak demand period. For most commercial buildings, the full connected load during business hours is a reasonable peak assumption. For facilities on demand-ratchet billing, the calculation requires knowing the ratchet percentage and the billing structure.

Maintenance savings

Present carefully

Maintenance savings come from two sources: reduced lamp replacement frequency (LED rated life of 50,000 to 100,000 hours versus 10,000 to 20,000 hours for fluorescent and HID sources) and reduced maintenance labor for lamp changes, particularly for hard-to-reach fixtures that required a lift for relamping.

These are real and defensible, but they're often overstated. The accurate calculation requires knowing the actual lamp replacement frequency for the existing fixtures (which many facilities don't have documented) and the loaded labor rate for maintenance. For proposals where the client has no documented maintenance records, present maintenance savings as an estimate with a clear methodology, not as a precise figure. An honest "we estimate $X based on $Y/hour labor and Z lamp changes per year" is more credible than a number that appears to be exact without any backing calculation.

Utility rebates

Rebate programs for commercial LED retrofits: Canada and US.

🇨🇦 Canada

Save on Energy (Ontario)

Prescriptive rebates per fixture for DLC-qualified LED replacements. Incentive amounts vary by fixture category and wattage reduction. Pre-approval is required for some project sizes. The program is administered through local distribution companies: verify your LDC's current program terms, as they can differ slightly from the provincial baseline.

BC Hydro Power Smart (British Columbia)

Per-fixture incentives for qualifying commercial and industrial projects. DLC qualification is the baseline requirement. BC Hydro has an express program for straightforward LED fixture replacements and a custom program for larger or more complex projects. Application timing rules differ between them.

Efficiency Manitoba

Commercial lighting rebate program with per-fixture incentives for DLC-qualified LEDs. Manitoba has a relatively straightforward prescriptive program structure compared to some other provinces. Verify current incentive amounts before scoping: they are updated annually.

Énergir (Quebec)

Efficiency rebate programs for commercial and industrial customers on natural gas, with some cross-program eligibility for electric lighting. Hydro-Québec also offers efficiency programs in the province. Quebec program administration can require French-language documentation for rebate applications.

🇺🇸 United States

DLC qualification: the baseline

DesignLights Consortium (DLC) qualification is the baseline requirement for virtually every US utility commercial LED rebate program. DLC maintains a qualified products list (QPL): only fixtures on the QPL are eligible. DLC Premium and Standard tiers exist; some utility programs require Premium qualification for higher rebate tiers.

Incentive levels: what to expect

US commercial LED retrofit incentives typically range from $15 to $75 per fixture depending on the utility program, fixture category, and wattage reduction tier. Some programs also offer per-kWh incentives on measured or calculated savings. State-by-state variance is significant: California, New York, Massachusetts, and the Pacific Northwest utilities typically have the most generous programs.

Prescriptive vs custom programs

Prescriptive programs offer a fixed incentive per qualifying fixture: straightforward to apply, appropriate for standard LED fixture replacements. Custom programs offer incentives based on calculated or measured savings: more complex to apply, appropriate for large industrial projects or non-standard applications. Prescriptive programs process faster; custom programs can offer higher incentives on the right project type.

Important: Rebate program details change. Incentive amounts, qualification criteria, and application deadlines are updated annually by most utilities. Always verify current program terms directly with the utility or their approved trade ally before including rebate amounts in a signed proposal.

Common mistakes

Six mistakes that cost contractors money, credibility, or both.

Using generic wattage assumptions instead of measuring

Catalog wattage for a T8 fluorescent troffer with a 15-year-old magnetic ballast may be 25 to 30% lower than actual draw. Using catalog specs inflates the savings claim and produces a proposal that a client's energy manager can invalidate with a clamp meter. Measure or confirm: don't assume.

Ignoring demand savings in the financial analysis

For commercial and industrial facilities on demand-metered rate structures, demand savings can be 15 to 40% of total annual savings. Leaving this out of the proposal means presenting a payback that is longer than the actual payback, and underselling the project to the client who needs to get budget approval.

Overpromising rebate amounts before DLC qualification is confirmed

Committing to a specific rebate amount in a proposal before confirming the fixtures are on the DLC QPL and the utility program has current funding creates a credibility problem when the actual rebate differs. Verify before you commit the number to the document.

Missing auxiliary costs that kill margin

Lift rental, lamp disposal, permit fees, and cleanup time are not optional line items: they're real costs that appear on every job. Missing them in the estimate and absorbing them against project margin is the most common reason a retrofit job that looked profitable isn't. Name them and price them upfront.

Delivering a proposal before confirming rebate program closing dates

Some utility rebate programs have annual funding caps and close mid-year when funding is exhausted. Delivering a proposal with a rebate amount on October 1st without confirming the program has remaining capacity is a risk. The client accepts the proposal, installation happens in November, and the rebate program closed in September. Verify program status before the proposal is signed.

Not separating LED-only savings from controls savings in the proposal

When controls are in scope, mixing LED and controls savings into a single savings number prevents the client from understanding what they're buying and why. A client who wants LED but not controls needs to know what the LED-only payback is. A client evaluating controls separately needs to see the incremental payback for controls on top of the LED baseline. Show both numbers and let the client choose.

The workflow

From site walkthrough to signed proposal.

A professional retrofit team moves from audit to close without losing data, making re-entry errors, or building the proposal from scratch. Here's the workflow, and how LumaQuote automates it.

Setup

Client info, facility details, region selection. Utility rate, CO₂ factor, demand charge, and rebate program name fill automatically from your region. Financial parameters (markup, tax, escalation) set once.

Audit

Fixture inventory by area. One row per fixture type: type, watts, quantity, hours. kWh/yr calculates live. On site, count with the LumaQuote Field app for iPad, iPhone and Android, even with no signal.

Retrofit

LED selection per fixture. Wattage, quantity, material cost, rebate per unit. Per-fixture savings appear instantly. Running material total updates as you work.

Controls

Optional. Model occupancy, daylight, scheduling savings separately from the LED baseline. LED-only and LED+Controls payback shown side by side.

Rebates

Per-fixture rebate tracking. Program name auto-filled from region. Global toggle to include or exclude rebates from net investment.

Installation

Labor rate, hours per fixture, lift, disposal, permits. Full installation cost breakdown that feeds into net project cost and payback.

Summary → Export

Complete financial picture. Export PDF and Word in one click. Cover page, executive summary, savings analysis, cash flow, assumptions, signature block.

This workflow is what LumaQuote automates, not by removing contractor judgment, but by eliminating the manual re-entry, formula errors, and inconsistent math that slow down proposals and create trust problems with buyers. The audit data feeds the retrofit calculation. The retrofit feeds the savings. The savings, rebates, and installation costs feed the Summary. One consistent thread from site walk to signed proposal.

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FAQ

Common questions about commercial LED retrofit projects.

What is a commercial LED retrofit project?

A commercial LED retrofit project replaces existing inefficient lighting (typically fluorescent, metal halide, or HPS) with LED equivalents across a commercial facility. The project includes a fixture audit, LED selection, savings calculation, utility rebate qualification, installation scoping, and proposal delivery. Commercial retrofits range from single-floor offices to large industrial warehouses and multi-site facilities.

How long does a commercial LED retrofit take from audit to installation?

The audit and proposal phase takes 1 to 5 days depending on facility size. Material lead times range from 2 to 6 weeks. Installation ranges from a single day for small projects to several weeks for large industrial retrofits. Utility rebate applications add 4 to 16 weeks for processing after installation. The audit-to-proposal phase is often the fastest part when contractors have the right workflow tools in place.

How do you calculate savings on a commercial LED retrofit?

Commercial LED retrofit savings come from three components: energy savings (fixture wattage reduction × operating hours × utility rate), demand savings (peak kW reduction × demand charge), and maintenance savings (reduced lamp replacement and labor). Controls savings, when offered, are shown separately on top of the LED case. HVAC savings are hard to verify, so a conservative proposal leaves them out. A credible proposal separates these components, shows the math behind each, and states the assumptions clearly so any number can be traced back to its source.

What utility rebates are available for commercial LED retrofits in Canada?

Key programs include Save on Energy (Ontario), BC Hydro Power Smart (British Columbia), Efficiency Manitoba, and Énergir (Quebec). Incentives are typically per-fixture for DLC-qualified LED replacements. Amounts vary by program year, fixture category, and wattage reduction. Always verify current incentive amounts directly with the utility before including them in a signed proposal: rebate programs change annually and some have funding caps.

How do contractors price a commercial LED retrofit?

Commercial LED retrofit pricing has three components: material cost (fixtures and controls hardware at cost plus margin), labor cost (hours per fixture type at loaded labor rate, including lift, disposal, and cleanup), and auxiliary costs (lift rental, permit fees, lamp disposal fees, travel). Net client cost is total material plus labor plus auxiliary costs minus utility rebates. Tracking material and labor margin separately is important: they behave differently across project sizes and types.

What software do contractors use for LED retrofit proposals?

Contractors use spreadsheets, general quoting tools, or purpose-built lighting retrofit proposal software. Dedicated tools like LumaQuote automate the full audit-to-proposal workflow: fixture capture, LED selection, savings calculation, rebate tracking, installation cost, and proposal export as PDF and Word. The advantage over spreadsheets is calculation consistency, professional proposal output, and faster turnaround, typically a finished proposal in under an hour for a commercial building, with all four savings components and assumptions clearly documented.

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