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What is the payback period for a commercial LED lighting retrofit in Ontario?

With saveONenergy Retrofit Incentive Program funding, commercial LED retrofits in Ontario typically achieve payback in one to three years. Without incentives, payback is typically two to five years. LED retrofits consistently deliver the shortest payback of any commercial energy measure.

UpdatedJune 2026
Read time4 min read
CategoryCommercial LED Lighting
Reviewed byGI Engineering
Clear answer

Clear answer, explained.

Without incentives, payback is typically two to five years depending on current fixture type, operating hours, and local electricity rates. The fastest payback is in facilities with the oldest, highest-wattage legacy fixtures running the longest hours — which describes most large manufacturing and warehouse environments.

LED retrofits consistently deliver the shortest payback of any commercial energy measure.


Key points

What this means in practice.

  • With saveONenergy Retrofit Incentive Program funding, payback in Ontario is typically one to three years
  • Without incentives, payback is typically two to five years depending on fixture type, hours, and electricity rates
  • The fastest payback is in facilities with the oldest, highest-wattage legacy fixtures running the longest hours
  • Manufacturing and warehouse environments typically see the fastest LED retrofit payback
  • LED retrofits consistently deliver the shortest payback of any commercial energy measure
  • saveONenergy incentives are managed as part of the project scope — eligibility review through to final payout

When this applies

Best-fit environments.

  • You are evaluating commercial LED lighting as a capital investment and need to understand the payback range
  • Your facility has older high-wattage fluorescent or HID fixtures and you want to quantify the savings opportunity
  • Your CFO needs a payback range before approving a lighting retrofit project
  • You want to understand whether saveONenergy incentives apply to your facility before engaging

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