LED Troffer Retrofit Kit vs New Fixture: Cost, Labor and Payback
Updated: 13 hours ago
An LED troffer retrofit kit keeps the existing housing and replaces the specified components inside it. A new LED troffer replaces the whole fixture. Check the housing, lighting requirements and installed cost before choosing.
Use a compatible kit where the housing is sound and can be retained. Quote complete replacement where the housing is damaged or the kit cannot deliver the required light distribution, controls or layout.
The worked example below compares 100 troffers. Prices, labor times, wattages and pricing percentages are assumed inputs in USD.
Retrofit kit vs complete troffer replacement
Factor | LED retrofit kit | New LED fixture |
|---|---|---|
Existing housing | Retained where suitable and compatible | Removed and replaced |
Product selection | Match the kit to the permitted host conditions | Match the luminaire to the ceiling, supply and application |
Installation scope | Remove specified components and fit the kit | Remove the old luminaire and install the new one |
Lighting performance | Depends on the kit and completed assembly | Depends on the selected complete luminaire |
Controls and emergency provision | Verify the exact approved arrangement | Verify the selected options and system integration |
Final decision | Compare complete installed cost and performance | Compare complete installed cost and performance |
DOE’s 2024 fluorescent-upgrade guide covers lamps, kits and new luminaires. For tube options, see the four-route conversion guide.
Start with the housing and the task
Record the fixture size, manufacturer or identifying label, interior dimensions, ceiling arrangement and condition. Photograph anything that could affect the kit fit, support, wiring access or removal.
Agree on light distribution, glare, task visibility and controls before choosing the replacement.
Test a small mock-up if the customer needs to compare appearance or dimming. Put the chosen configuration in the product schedule.
Check kit compatibility
Check the kit’s markings and instructions for host dimensions, mounting, wiring, labels and retained parts.
A kit may be certified for specific host models or for housings that meet stated mechanical and electrical conditions. UL’s retrofit-kit FAQ explains how to check the match and installation requirements.
For a new fixture, check ceiling fit, supports, electrical supply, controls and emergency options. Add any changes to the quote.
Compare the same scope
Both options in this office example cover 100 accessible 2×4 troffers and assume the same lighting and controls requirements. Check that with the selected products before quoting.
Existing input power is assumed to be 90 watts per fixture, including the ballast.
The retrofit-kit option is assumed to draw 34 watts per fixture.
The complete replacement option is assumed to draw 32 watts per fixture.
Both operate for 3,000 hours per year at US$0.15/kWh.
Neither option receives an assumed rebate.
Additional controls, emergency-system changes and ceiling repairs are outside this base example.
Sales tax, financing and maintenance savings are excluded.
Worked cost comparison: 100 troffers
Allow 30 minutes per kit and 45 minutes per new fixture, at US$75 per technician-hour. The table adds mobilization, staging and closeout separately.
Cost line | Retrofit kits | New fixtures |
|---|---|---|
Main products | 100 × US$70 = US$7,000 | 100 × US$100 = US$10,000 |
Accessories | US$500 | US$600 |
Direct installation labor | 50 hours = US$3,750 | 75 hours = US$5,625 |
Project labor: 12 hours | US$900 | US$900 |
Disposal allowance | US$400 | US$600 |
Access equipment allowance | US$300 | US$300 |
Direct job cost | US$12,850 | US$18,025 |
Illustrative contingency: 5% | US$642.50 | US$901.25 |
Estimated cost base | US$13,492.50 | US$18,926.25 |
Selling price at 25% pricing margin | US$17,990 | US$25,235 |
Selling price = estimated cost base ÷ 0.75 for a 25% pricing margin. That allowance covers company overhead and profit.
Use supplier quotes and your own crew times for a real bid. See the labor allowances and full project-cost breakdown.
Compare energy savings and simple payback
Annual energy use is quantity × input watts × operating hours ÷ 1,000.
At 100 × 90 × 3,000 ÷ 1,000, the existing fixtures use 27,000 kWh a year. Both options use the same schedule and electricity rate.
Energy result | Retrofit kits | New fixtures |
|---|---|---|
Proposed annual electricity | 10,200 kWh | 9,600 kWh |
Annual electricity reduction | 16,800 kWh | 17,400 kWh |
Annual energy-cost saving | US$2,520 | US$2,610 |
Installed selling price, before tax | US$17,990 | US$25,235 |
Simple payback, before rebates | About 7.14 years | About 9.67 years |
New fixtures add US$7,245 to the price and reduce electricity cost by another US$90 a year in this example.
That extra cost may still be justified by damaged housings, appearance, light distribution or product support. Explain those reasons alongside the energy figures.
Check your project with the savings calculator and ROI guide. Simple payback excludes financing, discount rates and cash-flow timing.
Include controls, maintenance and warranty questions
Check existing controls, dimming compatibility, sensor coverage, emergency operation and commissioning. Price the same controls scope for both options, or show the differences.
Compare the actual warranty terms: coverage, exclusions, labor, claims and spare parts. Check what remains covered in the existing housing.
Check incentives without changing the base comparison
Check the exact kit and new fixture against the utility’s measure, including the model, configuration and listing version.
See DLC Premium vs Standard for the listing and version requirements.
Show each option’s installed price and incentive separately, with the expected payment timing.
Present two options the customer can evaluate
Put both options in the same proposal, using the same headings: product, quantity, watts, installation, controls, exclusions, price and savings.
Build the comparison from your audit quantities in LumaQuote. Here’s a sample retrofit proposal.
Frequently asked questions
Is an LED troffer retrofit kit cheaper than a new fixture?
It can be. Include labor, access, disposal and repairs when comparing the installed price.
Can any 2×4 retrofit kit fit any 2×4 troffer?
No. The housing must meet the kit’s markings, instructions and certification requirements.
Does replacing the whole fixture always save more energy?
Compare actual input watts at the light output the job needs. The products selected determine which option uses less power.
What is the payback in the worked example?
About 7.14 years for kits and 9.67 years for new fixtures, using the example inputs. Rebates, maintenance, financing and tax are excluded.
When should I quote complete replacement?
Quote replacement when the housing is unsuitable, a compatible kit is unavailable, or the job needs a different lighting result or equipment arrangement.
