What Energy Efficiency Options Are Available for California Commercial and Industrial Facilities?
California commercial and industrial facility owners can access SCE, PG&E, SoCalGas, and LADWP rebate programs, amongst many others, including TECH Clean California incentives for HVAC electrification, and federal Inflation Reduction Act (IRA) tax incentives like the 179D commercial buildings deduction.
Program by Program Guide
SCE and PG&E Rebates for Commercial Lighting
Southern California Edison (SCE) and Pacific Gas and Electric (PG&E) offer energy efficiency rebates for commercial and industrial customers. SCE provides rebates through its Business Energy Efficiency Program. PG&E rebates are administered through third-party aggregators who manage the application and verification process on behalf of PG&E. Available rebates for lighting include per-fixture rebates for LED lamp and fixture replacements, lighting controls (occupancy sensors, daylight sensors, networked controls), and exterior LED upgrades. Rebate amounts vary based on energy savings achieved and are calculated per kWh of annual savings. Utility rebates can typically be combined with SoCalGas rebates for projects that address both electricity and gas consumption.
TECH Clean California - HVAC Electrification
TECH Clean California provides rebates of $1,000–$3,000 per unit for heat pump water heater installations at commercial facilities replacing gas-fired water heaters with qualifying heat pump units. Commercial kitchens, gyms, hotels, and multi-tenant buildings are common candidates. Enlighting is a TECH Clean California participating contractor and manages rebate applications for all qualifying installations.
Federal 179D Tax Deduction
Section 179D of the Internal Revenue Code provides a tax deduction for energy-efficient commercial building improvements, including LED lighting, HVAC, and building envelope upgrades. For private commercial buildings, deductions of up to $5.00 per square foot are available for projects meeting specified energy reduction thresholds. For government-owned buildings, the deduction can be allocated to the contractor who designed or installed the qualifying systems. Enlighting works with qualified tax advisors to maximize 179D benefit for applicable projects.
SoCalGas Rebates
SoCalGas offers rebates for commercial gas efficiency improvements including high-efficiency boilers, commercial water heaters, and HVAC equipment. These rebates can be stacked with SCE electric-side rebates and TECH Clean California incentives on projects that address both gas and electric consumption. Enlighting identifies all applicable gas-side incentives during the initial facility assessment.
LADWP Commercial Lighting Incentive Program (CLIP)
The Los Angeles Department of Water and Power (LADWP) offers the Commercial Lighting Incentive Program (CLIP) for commercial and industrial customers in LADWP territory. CLIP provides rebates for LED lighting upgrades in offices, warehouses, retail spaces, parking structures, and other commercial facilities. Incentives are calculated based on wattage reduction and energy savings achieved. LADWP customers are not eligible for SCE rebates but can combine CLIP with federal 179D and TECH Clean California incentives. Enlighting manages the full CLIP application process for qualifying facilities.
Enlighting Energy also serves K-12 schools and colleges, public agencies, and affordable and multifamily housing.
View our full range of services or contact us for a free facility assessment.
Enlighting Energy also serves public agencies, commercial and industrial facilities, and affordable and multifamily housing. View our full range of services or contact us for a free facility assessment.