🇨🇦 CanadaCADv1.0Active

Canada Lighting Retrofit ROI Calculator

Commercial lighting retrofit ROI calculator for Canadian businesses. Enter your fixture count, old and new wattages, daily hours, and electricity rate to see annual savings, payback period in months, and 10-year return on investment.

Regional Rule Context

JurisdictionCanada
CurrencyCA$ (CAD)
Effective fromJan 1, 2025
Version1.0
Last reviewedApr 1, 2026
Next reviewOct 1, 2026
Source: NRCan Commercial Building Energy

Canada Rates and Rules

Enter Values

Total light fixtures to retrofit

Wattage of existing fluorescent or HID fixtures

Wattage of replacement LED fixtures

Hours fixtures are on per day

Your commercial electricity rate per kWh

Result

Enter values above and click Calculate to see your result.

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Canadian commercial lighting retrofit ROI calculator. Calculates energy savings, utility incentive rebates, and payback period for upgrading fluorescent or HID fixtures to LED. Average commercial building has lighting density of 15 to 25 W/m2. LED retrofit reduces lighting energy consumption by 40% to 70%. LED fixtures last 50,000 to 100,000 hours vs 20,000 for fluorescent. Utility incentive programs: Ontario Save on Energy $5 to $20 per fixture, BC Hydro $10 to $25, Efficiency Nova Scotia $5 to $15. Typical payback period 1 to 3 years for commercial retrofit projects.

Disclaimer: This calculator uses publicly available rules effective as of Jan 1, 2025 (version 1.0). Results are for informational purposes only. Always verify with official sources or a qualified professional. Last reviewed: Apr 1, 2026.

Formula

Savings/yr=N×(WoldWnew)×Hrs×3651,000×Rate  Payback (mo)=Retrofit CostAnnual Savings×12\text{Savings/yr} = \frac{N \times (W_{old} - W_{new}) \times \text{Hrs} \times 365}{1{,}000} \times \text{Rate} \\ \; \text{Payback (mo)} = \frac{\text{Retrofit Cost}}{\text{Annual Savings}} \times 12

Calculates the wattage reduction per fixture, multiplies by the number of fixtures and daily operating hours, then converts to annual kWh savings. The payback period is the total retrofit cost divided by annual savings, expressed in months.

Canada FAQs

How much does a commercial LED retrofit save in Canada?

A typical 10,000 sq ft office building in Ontario using fluorescent lighting spends approximately $8,000 to $12,000 per year on lighting electricity. An LED retrofit reduces this by 50% to 65%, saving $4,000 to $7,800 per year. With fixture costs of $8,000 to $15,000 and utility rebates of $2,000 to $5,000, the net investment pays back in 1 to 2.5 years.

What utility rebates are available for LED retrofits in Canada?

Most Canadian utilities offer incentives for commercial LED upgrades. Ontario Save on Energy provides $5 to $20 per fixture depending on type. BC Hydro offers $10 to $25 per fixture through its Commercial Lighting program. Efficiency Nova Scotia provides $5 to $15 per fixture. Manitoba Hydro, SaskPower, and Efficiency New Brunswick also offer commercial lighting incentives.

How long do commercial LED fixtures last?

Commercial LED fixtures are rated for 50,000 to 100,000 hours. At 12 hours per day operation, a 50,000-hour fixture lasts approximately 11 years. A 100,000-hour fixture lasts over 22 years. This is 2.5 to 5 times longer than fluorescent tubes (20,000 hours). Reduced maintenance and lamp replacement adds $1 to $2 per fixture per year in additional savings.

Is it worth retrofitting a warehouse to LED in Canada?

Warehouses are among the best candidates for LED retrofits because they often use high-bay HID fixtures that consume 400 to 1,000 watts each. Replacing a 400W metal halide with a 150W LED high bay saves 250W per fixture. A 50,000 sq ft warehouse with 80 fixtures saves $15,000 to $25,000 per year in electricity. Payback is typically under 2 years even without rebates.

Do LED retrofits affect commercial building certification?

Yes. LED upgrades contribute to LEED, BOMA BEST, and other green building certifications popular in Canada. Reducing lighting power density below ASHRAE 90.1 standards earns credits. LED retrofit projects also improve the EnerGuide rating for commercial buildings, which may be required for certain municipal benchmarking programs in Toronto, Vancouver, and other cities.

Can I claim LED retrofits on my business taxes in Canada?

LED fixtures are eligible for Capital Cost Allowance (CCA) Class 43.1 or 43.2, which allows accelerated depreciation. Under the Accelerated Investment Incentive, businesses can claim a first-year deduction of up to 100% of the net cost. Combined with utility rebates, the effective cost of an LED retrofit can be reduced by 50% to 70% when tax savings are included.

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