January 13, 2026
LED retrofits are a straightforward way for Texas businesses to cut energy costs, reduce maintenance, and improve lighting quality. By upgrading existing fixtures with energy-efficient LEDs, businesses can lower electricity usage by 75%–90% and reduce cooling costs, especially during Texas's hot summers. Utility rebates from providers like Oncor and Austin Energy can further lower upfront costs, making retrofits a practical investment with payback periods often between 1–3 years.
Key Highlights:
To get started, assess your current lighting system, identify inefficiencies, and choose the right retrofit type (Type A, B, or C) based on your goals and budget. Partnering with experts can simplify installation and ensure you maximize savings.
Taking a close look at your lighting setup helps you identify energy waste and prioritize upgrades that offer quick returns. A thorough assessment highlights areas where your facility is losing money and pinpoints retrofits that can deliver the most immediate benefits.
Begin by establishing an energy baseline for your facility. Gather details about each fixture, including its type, wattage, mounting height, and daily operating hours. This inventory provides a clear snapshot of your overall energy use. Measure light levels (foot-candles) in key areas to spot over-lit zones. You might find opportunities to replace high-wattage fixtures with more efficient LEDs, reducing energy consumption even further.
Document the operating hours and control systems in place. Look for areas where automation could make a difference - this alone could save up to 28%. Check for existing occupancy sensors, timers, or dimming systems, and note where they’re missing. Spaces with long operating hours but no automated controls are ideal candidates for upgrades that include integrated sensors.
Don’t overlook environmental factors and fixture condition. Note ceiling structures, airflow, dust levels, and moisture, as these can impact LED performance and lifespan. Inspect fixtures for damage, such as yellowed lenses, peeling reflectors, or rust, which can undermine efficiency. If ballasts are over five years old, they’re likely nearing the end of their life. In such cases, a complete retrofit or new fixture may be more cost-effective than just replacing bulbs.
"When auditing a project, the PEC Project Management Team measures past & present energy levels, confirms foot candles, fixture counts, mounting types, powering, and controls to ensure that the tailored lighting solution we propose improves the aesthetics, efficiency, and safety standards of your business." - Jake Gillan, Assistant Project Manager, Pacific Energy Concepts
A detailed audit like this lays the groundwork for fixing inefficiencies and optimizing your lighting system.
Audits often reveal common issues like outdated technology and high maintenance demands. If your energy bills are unusually high, inefficient lighting may be the culprit - especially if you’re still using T12 fluorescents, metal halide, or incandescent bulbs. These older technologies waste 80% to 90% of their energy as heat. Frequent bulb replacements also add to costs, particularly in facilities where replacing lamps in high ceilings requires lifts or scaffolding.
Light quality issues are another red flag. Flickering lights, uneven brightness across work areas, harsh glare, or dim spots often indicate aging components that need attention. Fixtures with yellowed lenses or peeling reflectors won’t perform well, as fluorescent troffers can absorb 25% to 35% of the light before it even exits the fixture. Cracked housings or exposed wiring are not just inefficient - they’re safety hazards that call for immediate upgrades.
LED Retrofit Types Comparison: Type A vs Type B vs Type C
Once you've identified inefficiencies in your lighting system, the next step is to choose a retrofit option that aligns with your facility's needs and budget. The three primary approaches - Type A, Type B, and Type C - differ mainly in how they interact with the existing fluorescent ballast, and each comes with its own pros and cons.
Type A (Plug-and-Play) retrofits are the simplest option. These LED tubes are designed to work with your existing fluorescent ballast, making installation quick - usually under five minutes - and not requiring a licensed electrician. However, the downside is that the ballast remains in the system, which can become a future failure point. If your ballasts are more than five years old, they are likely to fail before the new LED lamp, making Type A better suited for short-term upgrades. This option typically offers energy savings of about 20%.
With Type B (Ballast Bypass) retrofits, the ballast is removed entirely, and the LED is wired directly to line voltage (120–277V). This process takes around 15 minutes per fixture and must be performed by a licensed electrician due to the high-voltage work involved. By eliminating the ballast, you remove a common failure point and can achieve energy savings between 30% and 50%. As noted by CLS Facility Services, "The elimination of ballasts creates one point of failure in each fixture and saves thousands of dollars in the future". It's crucial to label these fixtures properly to ensure safety during future maintenance.
Type C (External Driver) retrofits take efficiency a step further by replacing the ballast with an external LED driver. This setup allows for better thermal management and compatibility with advanced features like dimming and occupancy sensors. Like Type B, energy savings range from 30% to 50%, and installation complexity is similar. This option is ideal for those seeking maximum performance and long-term reliability.
A Hybrid option (Type A/B) provides flexibility by initially using the existing ballast and switching to direct line voltage once the ballast fails.
| Feature | Type A (Plug-and-Play) | Type B (Ballast Bypass) | Type C (External Driver) |
|---|---|---|---|
| Installation Time | Less than 5 minutes | Approximately 15 minutes | Approximately 15 minutes |
| Energy Savings | Around 20% | 30%–50% | 30%–50% |
| Upfront Cost | Lowest | Low | Moderate |
| Electrician Required | No | Yes | Yes |
| Maintenance | Higher (ballast remains) | Lower (ballast removed) | Lower (external driver) |
| Efficiency | Least efficient | High | Most efficient |
This table can help you weigh the options and select the retrofit type that best suits your facility's needs and budget.
In Texas, utility rebates can significantly reduce the payback period for LED retrofits - sometimes to less than one year. Utilities like Oncor (Dallas/Fort Worth), CenterPoint (Houston), Austin Energy, CPS Energy (San Antonio), and Entergy Texas offer rebate programs that fall into two main categories: prescriptive rebates (fixed amounts per unit) and custom incentives based on actual energy savings.
Midstream programs provide immediate discounts at the point of purchase, lowering upfront costs. For example, Entergy Texas offers incentives such as $3.00 per 4-foot LED tube, $8.50 per 8-foot linear LED, $20.00 per LED troffer (producing over 6,000 lumens), and up to $115.00 for LED HID retrofit kits in the 20,000–54,999 lumen range.
To qualify for most Texas utility rebates, LED products must be listed on either the DesignLights Consortium (DLC) or ENERGY STAR qualified product lists. Pre-approval is often required - installing equipment before receiving an approval letter or signing a Letter of Intent can disqualify your project from funding. Many utilities, such as Entergy, also offer free energy assessments to help identify upgrades that will maximize your rebates. Working with consultants familiar with Texas utility programs can ensure you take full advantage of all available incentives.
Start by identifying your primary objectives - whether it's cutting energy expenses, meeting sustainability targets, or improving lighting quality. These goals will guide every decision throughout the project.
Next, gather baseline energy data. This includes your current monthly kilowatt-hour (kWh) usage and the operating hours for each area. Since lighting is often a significant contributor to energy use, it presents a prime opportunity for savings. With this data, you can create realistic ROI projections. In Texas, most commercial LED retrofits pay for themselves within one to five years. Utility rebates can make the payback period even shorter.
Then, determine how you'll fund the project. If you can pay upfront, cash purchases typically deliver the fastest return on investment. However, if upfront capital is tight, explore financing options like 0% interest programs, capital leases, or Energy-as-a-Service (EaaS) models. These alternatives allow you to fund the retrofit through predictable energy savings and can provide immediate cash-flow benefits.
Once your goals and budget are set, you’re ready to move forward with a safe and efficient retrofit plan.
Safety should always come first. For Type B and Type C retrofits, which involve direct line voltage connections, hire licensed electricians. The U.S. Department of Energy emphasizes that improper handling can result in serious injury or even death. Be sure to label modified fixtures clearly, indicating that fluorescent lamps should no longer be used.
Before working in ceiling or plenum spaces, check for hazardous materials like asbestos or PCB-containing components. Inspect the existing sockets and wiring carefully - if you find cracks, rust, or discoloration, it’s better to replace the entire fixture.
To minimize disruptions, schedule the installation during off-hours. Consider starting with a small mock-up section to test light distribution, glare, and color quality. Also, confirm that LED drivers are compatible with your dimming systems or emergency lighting. Ensure all products are UL-listed or carry equivalent safety certifications to maintain insurance coverage and comply with local regulations.
With safety measures and installation best practices in place, collaborating with experts can simplify the process.
Once your audit and retrofit plan are complete, Texas Lighting Consultants can help you execute the project seamlessly. Handling utility paperwork, permitting, and scheduling can be overwhelming, but their team offers end-to-end support - from the initial lighting audit and custom design to final installation and rebate processing. They navigate the complex requirements of utilities like Oncor, CenterPoint, and Austin Energy, ensuring you capture all available incentives.
Texas Lighting Consultants also coordinates installations during your preferred downtime, so your team can stay focused on daily operations. As a HUB-certified, woman-owned business, they bring in-depth knowledge of Texas building codes, utility programs, and local requirements. Whether you’re retrofitting a small retail space in Austin or a sprawling warehouse in Houston, their team structures projects to maximize energy savings while minimizing disruption.
After completing a lighting retrofit, it’s vital to confirm that your energy bills align with the projected savings. Start by comparing your kilowatt-hour (kWh) usage for the same billing periods before and after the installation. To get an accurate picture, gather data from at least two comparable billing cycles to account for normal business fluctuations.
You can estimate annual energy savings using this formula:
(Original wattage – New wattage) × Number of fixtures × Annual operating hours × Electricity rate.
Electricity rates in Texas typically range between $0.06/kWh and $0.24/kWh. Don’t forget to factor in maintenance savings, which are often estimated at around $50 per fixture annually.
For precise tracking, consider the Total Circuit Measurement Method. This involves metering the electrical circuits dedicated to your lighting system, offering real-time energy data with an accuracy of ±1%. Additionally, Texas businesses can refer to the Texas Technical Reference Manual (TRM), which provides "Deemed Savings." These are pre-validated estimates of energy and peak demand savings, widely accepted by utilities as an alternative to active measurement and verification.
"Deemed Savings are pre-determined, validated estimates of energy and peak demand savings attributable to energy efficiency measures in a particular type of application. An electric utility may use these estimates instead of energy and peak demand savings estimated through measurement and verification (M&V) activities." - Texas Efficiency
Once you’ve determined your total annual savings, calculate your simple payback period by dividing your initial investment (after subtracting any rebates) by the annual savings. Many LED retrofits in Texas businesses recover their costs within one to five years. For example, the GSA's New Carrollton Federal Building in Lanham, Maryland, cut its annual lighting bill from $291,000 to $53,500 - a staggering 82% reduction - after replacing 11,800 fluorescent troffers with LED fixtures and controls.
After determining your payback period, it’s important to keep tracking performance to ensure your savings remain consistent.
While initial ROI is crucial, monitoring performance over time ensures your energy efficiency gains are sustained. LED lighting systems are built for longevity, often lasting up to 15 times longer than traditional lighting. Use energy and on/off data loggers to track runtime and consumption. These devices are highly reliable, with an uncertainty of just ±1 minute per week.
Keep an eye on maintenance costs as well. The extended lifespan of LED systems reduces service calls, minimizes downtime, and lowers labor expenses. Track metrics like fixture failures, cleaning schedules, and relamping needs to quantify ongoing savings.
Adding occupancy sensors or daylight controls can further boost savings - by as much as 28%. For daylighting systems, you can use solar radiation ratios to estimate annual savings based on shorter measurement periods, which helps account for seasonal changes without requiring year-round monitoring.
To take a more comprehensive approach, consider using a Life Cycle Cost/Benefit Analysis (LCCBA) tool, such as the DOE's Retrofit Financial Analysis Tool. This can help you calculate annualized savings, greenhouse gas reductions, net present value, and payback. These methods not only validate your financial returns but also demonstrate your commitment to energy efficiency and sustainability.
LED retrofits offer a practical way to slash energy bills and cut down on maintenance costs. These lighting solutions use 25%–80% less energy and can last up to 15 times longer than traditional options. For example, the Epiroc manufacturing plant in Garland, Texas, achieved an impressive 71% energy reduction - saving nearly 1 million kWh annually - after completing an LED retrofit project. Such results are within reach for commercial facilities across the state.
Beyond cost savings, LED upgrades contribute to a greener footprint. They help lower carbon emissions, eliminate hazardous mercury waste, and even reduce HVAC cooling demands. Considering that lighting typically accounts for 20% to 40% of a commercial building's electricity usage, switching to LEDs can make a notable difference across the board.
Texas Lighting Consultants simplifies the retrofit process with turnkey solutions, handling everything from audits to installations and rebate processing. They work with providers like Oncor, CenterPoint, and Austin Energy to ensure a seamless experience. As Bill Stoots, Director of Operations at Exal Corporation, shared after upgrading his 484,000 sq. ft. facility:
"The improvement to our quality and level of light was phenomenal. The improved lighting will benefit our productivity, quality control and employee morale".
With expert guidance, your retrofit project can align with both financial goals and operational needs.
For Texas businesses, LED retrofits are an opportunity to lower operating costs while boosting efficiency and performance. These upgrades often pay for themselves in just one to five years and can qualify for rebates as high as $249 per fixture. Partnering with experienced lighting professionals ensures you capture both immediate savings and long-term benefits.
Type A retrofits involve replacing the entire fixture with a new LED-specific luminaire. While this approach comes with the highest initial cost, it delivers top-tier performance, a longer lifespan, and the most design flexibility since the fixture is specifically designed for LED technology.
Type B retrofits use tubular LED lamps (TLEDs) installed into existing fixtures. This is the most budget-conscious option, offering minimal installation hassle, making it perfect for quick upgrades. However, compared to replacing the entire fixture, this method typically results in lower energy savings and performance.
Type C retrofits combine LED upgrades with integrated lighting controls, such as dimming features or occupancy sensors. Although it costs more than Type B, this option provides added energy savings and enhances occupant comfort through advanced control features. Selecting the right retrofit involves balancing costs, energy efficiency goals, and installation requirements. For projects in Texas, seeking expert advice can help achieve optimal energy efficiency and sustainability outcomes.
To make the most of utility rebates for LED retrofits in Texas, businesses should begin with pre-approval from their utility provider - whether that’s Austin Energy, Oncor, or CenterPoint. This step involves submitting essential details like the project scope, fixture specifications, and certifications such as ENERGY STAR® or DesignLights Consortium (DLC) to confirm eligibility and understand program guidelines. Selecting the right rebate approach is equally important. Prescriptive rebates provide fixed amounts per fixture, while performance-based rebates focus on actual energy savings, often resulting in higher payouts for larger projects.
Adding smart lighting controls - like occupancy sensors or daylight harvesting systems - can often lead to bonus incentives. Many programs offer extra rebates when these controls are installed alongside LED upgrades. Throughout the process, it’s crucial to keep thorough records, including invoices and before-and-after lighting audits, to ensure a seamless submission. Once the installation is complete, make sure to file all required paperwork promptly and arrange any necessary inspections to verify energy savings.
For a smoother experience, consider working with a local, HUB-certified, woman-owned company like Texas Lighting Consultants. Their expertise in lighting design, product selection, and rebate management can help businesses maximize every eligible rebate dollar while creating an energy-efficient, sustainable lighting system. By following these steps, Texas businesses can cut upfront costs significantly and see a faster return on their LED retrofit investment.
When upgrading commercial spaces with LED lighting, safety should always come first. Begin by de-energizing the circuit and using a lock-out/tag-out procedure to prevent accidental electrical shocks during the process. Carefully inspect all wiring for signs of damage, such as wear, fraying, or corrosion, and ensure that any necessary repairs comply with the National Electrical Code (NEC). If you're replacing fluorescent tubes, handle them with care and dispose of them properly to avoid mercury contamination, which poses environmental and health risks. Also, make sure the ceiling plenum’s fire rating remains intact, and check that the new LED fixtures operate within the plenum’s temperature limits to avoid potential fire hazards.
When selecting an LED retrofit - whether tubular LEDs, retrofit kits, or fully integrated luminaires - compatibility with the existing ballast or wiring is crucial. Mismatched components can result in overheating, electrical arcing, or even premature system failure. If a ballast bypass is part of the plan, ensure it’s done correctly to prevent voltage spikes or other electrical issues. Secure all new fixtures using the appropriate mounting hardware to keep them firmly in place and reduce the risk of them becoming dislodged.
Finally, don’t overlook worker safety during the installation process. Exposure to high-intensity blue light from LEDs can lead to eye strain, so consider using diffusers or lenses that meet photobiological safety standards. Provide protective equipment, such as safety glasses, to workers handling LEDs or removing older fixtures. By taking these precautions, you can ensure a safe and efficient LED retrofit that not only improves lighting quality but also delivers energy savings.
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