Commercial LED Lighting Retrofit in Orange County: Real ROI, Real Numbers
A distribution warehouse in Brea had 400-watt metal halide high bays, 180 of them, running 16 hours a day, six days a week. The facility manager had been looking at LED for three years but could not get through the project. The lighting worked; it was not urgent. Then the SCE bill hit $24,000 in a single month during a summer heat event, and the calculation changed. The LED retrofit quoted at $85,000 installed was approved within a week. With SCE rebates of $22,000 and annual energy savings of $31,000, payback came in 2.03 years.
Why Metal Halide and T8 Fluorescent Systems Are Increasingly Uneconomical
Metal halide and high-pressure sodium fixtures still common in warehouses and industrial facilities built before 2010 operate at 40 to 50% efficiency compared to modern LED. They also require 15 to 20 minutes to warm up to full output after a cold start or power interruption.
A 2023 study published in Energy and Buildings evaluated 142 commercial lighting retrofit projects and found that facilities replacing metal halide with LED reported an average 68% reduction in lighting-related energy consumption, with a mean simple payback period of 2.7 years when utility incentives were captured. For California facilities operating under SCE’s commercial rate schedules, the energy cost per kilowatt-hour is among the highest in the continental United States, which accelerates payback compared to national averages.
T8 fluorescent degrades meaningfully over time. Output drops to roughly 70% of initial lumens by the end of a rated 30,000-hour life. LED sources maintain 90%+ of initial lumens to 50,000 hours or beyond in commercial-grade fixtures.
SCE Rebates and Incentive Programs for Orange County Businesses
According to SCE’s Business Energy Solutions program documentation current as of Q1 2026, commercial customers replacing qualifying lighting fixtures can receive rebates of $20 to $100 per fixture. Warehouses replacing 400W metal halide high bays with 150 to 200W LED equivalents typically qualify for $80 to $100 per fixture.
For a warehouse with 150 high bays, SCE rebates can total $12,000 to $15,000. SCE also offers on-bill financing for qualifying projects. Brea Electric handles SCE rebate paperwork as part of the project scope for all commercial LED lighting retrofits.
What a Quality Commercial LED Retrofit Looks Like
Photometric design. A photometric layout confirms that specified fixtures deliver required foot-candle levels at the work plane before anything is ordered.
Controls integration. Commercial LED lighting design pairs with occupancy sensors, daylight harvesting controls, and dimming systems. A warehouse with motion-sensing high bays running at 30% in unoccupied aisles can cut energy use by an additional 20 to 35%.
Fixture-grade specification. Brea Electric specifies fixtures from DLC-listed manufacturers with published L70 and L90 lumen maintenance data, 5 to 10 year warranties, and field-replaceable drivers.
Branch circuit review. Replacing 400W metal halide with 150W LED changes the load on existing branch circuits. Circuits near capacity under metal halide loads often have capacity for additional fixtures or outlets after LED conversion.
Frequently Asked Questions
How much does a commercial LED lighting retrofit cost in Orange County?
Commercial LED lighting retrofits in Orange County typically cost $50 to $150 per fixture installed. A 150-fixture warehouse retrofit runs $60,000 to $120,000 before SCE rebates. After rebates of $12,000 to $15,000, net project cost drops to $45,000 to $105,000, with simple payback of 2 to 4 years.
How does the SCE Business Energy Solutions rebate program work?
SCE’s Business Energy Solutions program pays commercial customers for replacing inefficient fixtures with qualifying LED equivalents. High-bay replacements in the 400W metal halide class typically qualify for $80 to $100 per fixture. SCE processes rebates within 60 to 90 days after project completion and inspection.
Do LED retrofits require a permit in Orange County?
It depends on scope. A direct fixture-for-fixture replacement often qualifies as a like-for-like replacement and may not require a permit. Projects that involve new wiring, added circuits, or controls system installation always require permits.
What is the difference between a lighting retrofit and a relamp?
A relamp replaces only the bulb or tube, leaving the existing fixture housing, ballast, and optics in place. A retrofit replaces the fixture entirely or installs a kit that replaces the light engine and driver while reusing the housing. For metal halide applications, relamp options are limited and typically less efficient than full fixture replacement.
Does Brea Electric handle the SCE rebate paperwork?
Yes. Brea Electric manages SCE rebate documentation, pre-installation fixture inventory, post-installation verification, and rebate submission for all commercial LED retrofit projects. Contact us at breaelectric.com for a free lighting assessment and ROI estimate.
Key Takeaways
- Commercial LED retrofits deliver an average 68% reduction in lighting energy consumption, with a mean 2.7-year simple payback when utility rebates are captured, per a 2023 study in Energy and Buildings.
- SCE’s Business Energy Solutions program pays $80 to $100 per qualifying high-bay fixture replacement, a $12,000 to $15,000 offset on a typical 150-fixture warehouse project.
- Occupancy sensors and dimming controls add 20 to 35% additional energy savings on top of base LED efficiency gains. Include them in the retrofit scope.
- DLC-listed fixtures with published lumen maintenance data and field-replaceable drivers are the correct specification for commercial and industrial applications.
- Brea Electric handles full-scope commercial LED lighting retrofits including photometric design, SCE rebate documentation, and permit management for Orange County facilities.
From the desk of Brea Electric. Orange County’s oldest electrical contractor, serving commercial and industrial customers since 1932. License C10. breaelectric.com