TVA takes LED incentives up...again!

The Tennessee Valley Authority (TVA) has recently increased its Standard Lighting incentive for businesses upgrading to energy-efficient LED lighting. Previously set at $0.10 per kilowatt-hour (kWh) of energy saved, the incentive has been raised to $0.13/kWh, providing additional financial support for companies seeking to reduce energy consumption and operational costs. 

This 30% increase come on the the heels of the 25% increase in early 2024 for indoor lighting and more than doubling of outdoor LED incentives in fall of 2024.  

Understanding TVA's LED Lighting Incentives

TVA offers a range of incentives tailored to different project types:

1. Standard Lighting Incentive: Aimed at indoor, outdoor, and street lighting upgrades, this incentive now provides $0.13/kWh based on actual energy savings. Pre-approval and Project Proposal Energy Calculation (PPEC) are required before initiating the project. ​

2. Fast Track Lighting Incentive: Designed for quick installations or recent installations of qualified lighting, this option offers fixed incentives (e.g., $4.00 per 4-foot linear LED tube) without the need for pre-approval. Applications must be submitted within six months following installation or invoice date. ​

3. New Construction Lighting Incentive: For new buildings, expansions, or covered parking garages, this incentive provides $0.10/kWh for lighting installations that exceed the 2009 International Energy Conservation Code (IECC) standards. Pre-approval is not required, but applications must be submitted within six months of installation or invoice date.

Benefits of Upgrading to LED Lighting

Transitioning to LED lighting offers multiple advantages for businesses:

• Energy Savings: LEDs consume significantly less energy than traditional incandescent or fluorescent bulbs, leading to lower electricity bills.​

• Reduced Maintenance Costs: With a longer lifespan, LED lights decrease the frequency and expense of replacements.​

• Improved Lighting Quality: LEDs provide better illumination, enhancing workplace visibility and safety.​

• Environmental Impact: Lower energy consumption translates to a reduced carbon footprint, supporting sustainability initiatives.​

How to Apply for TVA's LED Lighting Incentives

To take advantage of these incentives:

1. Select a TVA-Preferred Contractor: Choose a member from TVA's Preferred Partners Network (PPN) to ensure quality installation and compliance with program requirements.

2. Define the Project Scope: Work with your selected contractor to outline the specifics of your lighting upgrade or installation.​

3. Submit the Application: Your PPN contractor will submit the incentive application on your behalf. For Standard Lighting projects, await formal approval before commencing any work.

By increasing the Standard Lighting incentive to $0.13/kWh, TVA demonstrates its commitment to promoting energy efficiency and supporting businesses in their efforts to adopt sustainable practices. Companies in the Tennessee Valley region are encouraged to seize this opportunity to upgrade their lighting systems, reduce operational costs, and contribute to a more sustainable future.