To growers considering purchasing LEDs in Colorado – don’t forget to ask your lighting vendor about rebates; there’s a high chance you’ll qualify. Commercial rebates are available throughout Colorado, generally offering 10-60% cash-back from the initial purchase price.
Colorado was the first US State to legalize cannabis, way back in 2014. This introduced an influx of new businesses, investments and tax dollars. Since the beginning, Colorado utilities have been supportive of rebates for efficient indoor equipment. Utilities continue to assist cannabis businesses with equipment for retrofitting an existing facility, or building a new one.
The City of Denver even created a Cannabis Sustainability Work Group who produced a Cannabis Environmental Best Management Practices Guide with the help of a variety of private and public sector stakeholders.
In general, most locations in Colorado qualify for $150-500 back per LED fixture, and additional incentives are available for DEHU and HVAC units. Seinergy estimates that 90% of the state (by population) has access to commercial rebates. Rebates vary by equipment, building type, project details, and also by utility. For example:
Most Widespread, 30-35% cash-back: The largest Colorado utility is Public Service Co (Xcel), which covers 60% of the state’s electric meters including the Denver area. Xcel offers commercial rebates up to $1 Million per customer at about 35% cash-back on LEDs. The next largest, and also privately-owned, utility company is Blackhills Electric, servicing most of Pueblo, Colorado. Blackhills offers rebates of around 30% cash-back. While these two larger utilities have more mature, existing program offering, the program details are ever changing and can be complicated.
Small but mighty, 20-40% cash-back: A variety of smaller Colorado utilities have robust commercial rebates, despite their size. These utilities offer 20-40% cash-back for efficient equipment upgrades. Utilities here include Intermountain Rural, United Power, Fort Collins, Colorado Springs, Gunnison and more.
Fixed Dollar $60-$250-back per fixture: Some utilities offer a flat dollar-back per fixture rebate. These utilities include San Isabel Electric, Southeastern, Mountain Parks and San Miguel Power (retrofit only).
Cultivators looking to expand or upgrade to LEDs should first consult with Seinergy to see what type of rebate they qualify for, and how much. For example, some programs which may look good on a $ per-fixture basis, limit total incentives per customer to $11k – $20k per year. Thus, if you are retrofitting or building out a larger facility you may be disappointed if you don’t verify program details prior to processing. Having an experienced rebate consultant to advocate for your best interest and the largest rebate outcome can yield positive returns.
Remember also to start the rebate process before purchasing lights. Colorado utilities require pre-approval for commercial rebates. Failure to do so might disqualify your project. Find out more and start early here.
