LED Lighting ROI: How Much Can Canadian Businesses Save?

The Business Case for LED Lighting in Canada

For Canadian businesses facing rising electricity rates, upgrading to LED lighting is one of the highest-return infrastructure investments available. Lighting retrofits deliver predictable, measurable savings from day one.

Average Electricity Rates Across Canadian Provinces

Quebec: ~$0.07–0.10/kWh | Manitoba: ~$0.10/kWh | Ontario: ~$0.12–0.18/kWh | British Columbia: ~$0.12/kWh | Alberta: ~$0.14–0.20/kWh | Atlantic provinces: ~$0.16–0.22/kWh

Businesses in Ontario, Alberta and Atlantic Canada see the fastest LED payback periods due to higher electricity rates.

ROI by Industry: Real Savings Examples

Retail Store (1,000 sq ft) — Replacing 40 x 50W halogen track lights with 40 x 15W LED track: $210/year energy savings + $400/year relamping eliminated = ~$610 total annual benefit. Payback: 18–24 months.

Office (5,000 sq ft) — Replacing 80 fluorescent 2x4 troffers (128W) with 80 LED troffers (40W): $4,928/year savings at $0.14/kWh. Payback including rebates: 12–18 months.

Warehouse (20,000 sq ft) — Replacing 60 x 400W metal halide high bays with 60 x 150W LED UFO high bays: $9,000/year energy + $3,000/year maintenance = $12,000 annual benefit. Payback: under 2 years with rebates.

Canadian Utility Rebates Accelerate Payback

Rebates offset 15–40% of total fixture cost. Choose DLC Premium-listed fixtures, submit pre-approval before ordering, and retain all invoices and product cut sheets for submission.

Beyond Energy: The Hidden ROI

Maintenance elimination — LED fixtures last 50,000+ hours vs 2,000–8,000 hours for fluorescent and HID.
Productivity gains — High-CRI LED in offices reduces eye strain with measurable productivity improvements.
HVAC savings — LEDs generate significantly less heat, reducing summer cooling loads.