Commercial LED retrofit: 18-36 month payback.
Switching commercial fluorescent or HID lighting to LED delivers measurable energy savings, maintenance reduction, and rebate recovery.
By Steven Lockhart · Reviewed by Alex Towery, C-10 #989290
Updated 2026-06-16
Commercial LED retrofit ROI for typical Marin spaces: energy savings 50-70% reduction in lighting load; PG&E rebates 15-25% of project cost on prescriptive replacements; maintenance savings 30-50% of initial investment over 10 years (LEDs last 50,000+ hours vs fluorescent ballasts failing every 3-5 years). Total payback typically 18-36 months from energy savings alone; faster with rebates and maintenance factored in. For a 5,000 sq ft Marin office: project cost $8,000-$18,000 net of rebates, annual savings $1,200-$2,400, payback under 36 months.
01How the math works in practice.
Energy savings: typical fluorescent T8 retrofit replaces 32W lamps with 15W LED tubes — 53% reduction per lamp. For a 5,000 sq ft space with 80 fluorescent fixtures running 12 hours per business day, that's roughly 1,200 kWh/month savings, or $1,200-$2,400/year at current PG&E commercial rates. Older HID-to-LED retrofits (parking lots, warehouses) deliver 60-75% energy reduction and even faster payback.
PG&E rebates cover meaningful portions of qualifying retrofit projects. Prescriptive rebates (fixed $/fixture for qualifying replacements) typically 15-25% of LED tube retrofit cost, 20-30% of full fixture replacement cost. BayREN adds incremental Bay Area incentives. We process rebate applications as part of retrofit scope; documented application increases approval rate vs DIY applications.
02What drives retrofit cost.
Like-for-like LED tube retrofit
Replace fluorescent tubes with LED tubes in existing fixtures. Lowest cost option, $4-$8 per fixture installed. Works in fixtures designed for LED replacement; some require ballast bypass.
Full fixture replacement
Replace entire fixture with new LED fixture. $180-$320 per standard 2x4 troffer installed. Higher cost but better light quality, longer lifespan, qualifies for higher rebates.
Control integration
Adding occupancy sensors, daylight harvesting, networked controls increases scope and savings. $0.30-$0.80 per sq ft for standalone control; $1.50-$3.50 per sq ft for networked. Title 24 may require controls regardless of preference.
03When retrofit makes most sense.
Strong case for retrofit: existing fluorescent or HID lighting older than 10 years, business operating 8+ hours/day, PG&E commercial rate schedule benefiting from energy reduction, planned space remodel or improvement that includes lighting. Combine retrofit with TI work for maximum efficiency.
Weaker case: very small commercial spaces under 1,000 sq ft (rebate application overhead high vs savings), spaces already LED (modest savings from newer LED-to-LED upgrades), spaces with minimal operating hours (energy savings inadequate vs install cost).
Common questions.
How long does retrofit take?
For typical 5,000 sq ft Marin office or retail: 1-3 weeks total project including permit (where applicable), material lead time, and 3-5 working days of on-site install. Larger projects scale proportionally. Install typically scheduled overnight or weekend to avoid operational disruption.
Will the retrofit affect inspection?
Title 24 requires acceptance testing for new and substantially-retrofitted commercial lighting. Acceptance testing verifies controls function as designed. We coordinate acceptance testing as part of project scope. First-pass acceptance test passage 90%+ in our project history.
What about light quality vs old fluorescent?
Modern LED quality (CRI 80-90, color temperatures 3000K-4000K) is meaningfully better than older fluorescent (CRI 60-75, often greenish 4100K). Light distribution from LED fixtures with proper photometric analysis is more uniform. Retrofits look better, not worse, when designed properly. Drop-in tube replacements in old fixture optics can produce uneven light — full fixture replacement delivers better light quality.
How do you handle pricing — flat fee or hourly?
Both, depending on scope. Routine service calls and predictable scope (panel replacement, EV charger install, transfer switch install, fixture replacement) are flat-fee quoted up front. Diagnostic visits and emergency scope are hourly because we don't know what we'll find. Either way, you get a written quote before work starts on anything significant, and we don't proceed beyond the quote without your sign-off.
How quickly can you schedule?
Depends on scope and season. Emergency dispatch: same-day across Marin County (1-3 hours business hours, 1-4 hours after-hours). Same-day standard service: 3-6 hours from call when capacity allows; otherwise next business day. Scheduled service work: 1-3 weeks typical. Larger projects requiring permits and PG&E coordination: 4-12 weeks depending on scope. We're upfront about timeline at the quote stage.
What warranty do you offer on work?
Our standard residential warranty: 2 years on labor, manufacturer warranty on parts (varies by product — typically 1-10 years). Major installs (panels, generators, EV chargers) often have longer manufacturer warranties (5-10 years). If there's an issue with our work in the warranty period, we come back and fix it at no cost. We also stand behind work past warranty — repeat customers and referrals matter more than a transactional fix.
Are you licensed and insured?
Yes. California State License Board C-10 Electrical Contractor #989290, in good standing. Carry general liability insurance and workers' compensation insurance as required by California law. Bondable on projects requiring it. Happy to provide proof of insurance to clients or property managers on request. License lookup: cslb.ca.gov.
Talk to a licensed electrician in Marin.
Family-run, C-10 #989290, 20+ years in the trade. Honest scoping, fair pricing, work that lasts.