As 2025 comes to an end, growers across the United States are preparing for an important transition in horticultural incentive programs. The focus of the upcoming year is clear: Grow Lights 2026 Rebates will play an increasingly influential role in how cultivators plan expansions, retrofit existing facilities, and invest in modern LED grow-lighting systems.
LED technology is evolving rapidly, and rebate programs are evolving with it. Whether you are upgrading top-lighting, expanding into multi-tier vertical farming, or strategizing under-canopy illumination, understanding the shifting 2026 rebate landscape is essential. More growers are turning toward high-efficiency indoor grow lights and supplemental under canopy grow lights to meet both regulatory expectations and energy-efficiency goals.
Below is a comprehensive, 800+ word breakdown of what cultivators should expect in 2026, what is changing at the utility level, and how LED grow lights—particularly high-efficacy top lighting and under-canopy systems—fit into the new rebate environment.
Grow Lights 2026 Rebates Landscape
A New Era of Efficiency Requirements
Utilities across the country are updating horticultural lighting programs to match the improved performance of modern LEDs. As a result, 2026 will introduce higher efficacy thresholds, closer scrutiny of PPFD distribution, and increased documentation requirements. Many of these updates align with statewide and regional changes such as the updated horticultural lighting measure SWLG019-01, which is reshaping what qualifies for rebates in California.
Utility programs increasingly reward fixtures with strong photon efficiency, better distribution uniformity, and lower wattage per square foot. This affects every category of lighting—top lighting, inter-canopy bars, and under-canopy systems. Growers using outdated HPS or early-generation LEDs will find 2026 to be a prime year for upgrading.
Why LED Grow Lights Are the Centerpiece of 2026 Incentives
LED horticultural lighting continues to be one of the most cost-effective ways to reduce operational energy consumption inside a cultivation facility. When paired with modern dimming control, zoning, and spectrum management, they deliver superior uniformity, reduced heat load, and peak photon efficiency. These benefits translate directly into measurable kWh savings—exactly what utility companies incentivize through utility rebates.
2026 programs also recognize that LED grow lights significantly reduce HVAC demand compared to HPS systems, enabling utilities to quantify savings beyond lighting alone. As more states adopt carbon-reduction policies, LED horticultural lighting rebates are expected to remain strong even as other programs shrink.
State and Utility-Level Expectations for 2026
LADWP (Los Angeles Department of Water and Power)
LADWP surprised the industry in 2025 by pausing the horticultural lighting portion of the BOSS rebate program. Although no official explanation has been provided, the pause remains in effect. For 2026, growers should expect uncertainty. While no new LED grow light applications are being accepted, existing Notice to Proceed (NTP) recipients still have a full 12 months to finish their projects.
For growers in Los Angeles, 2026 may be a year of strategizing around alternative incentive pathways or planning for future opportunities once LADWP reinstates the lighting program.
SCE (Southern California Edison)
SCE will experience one of the most significant updates due to revisions to statewide guidelines such as SWLG019-01. The 2026 version of SCE’s horticultural program is expected to include:
- Higher PPE thresholds for LED grow lights
- Stricter eligibility verification for DLC-listed fixtures
- More documentation for vertical-farming and multi-canopy applications
- Rebate differentiation between top lighting and under-canopy lighting
Not all fixtures will qualify under the new rules. Cultivators should verify that their indoor grow lights meet 2026 eligibility levels before committing to procurement.
PG&E (Pacific Gas & Electric)
PG&E’s 2025 LED grow light program is already oversold, with rebate funds fully allocated. Because of this, PG&E is prioritizing the development of a tighter, more selective 2026 program. Growers should anticipate:
- Even higher efficiency minimums for qualifying fixtures
- Early budget exhaustion due to strong demand
- More emphasis on documented light-planning layouts (PPFD mapping)
Those who plan to apply for LED grow light rebates in PG&E territory should begin paperwork early in Q1 2026, as funds are likely to run out quickly.
New York State Utilities
All New York utilities—including Con Edison, NYSEG, RG&E, National Grid, and PSEG Long Island—will completely end horticultural lighting incentives after December 31, 2025. That means no LED grow light rebates will exist in New York in 2026.
However, non-lighting incentives such as HVAC, VFDs, or dehumidification may remain in place. Growers in New York should focus on energy-efficiency upgrades outside of horticultural lighting or optimize LED layouts without relying on rebate funding.
NV Energy
NV Energy is temporarily pausing new horticultural incentive applications as it completes 2025 project payouts. Fortunately, the program is expected to restart on January 1, 2026, offering a clean slate for LED grow light rebate applications.
Growers in Nevada using high-efficiency top lights or supplemental under canopy grow lights should watch for updated program requirements at the start of the year.
Mississippi Power
Mississippi Power remains one of the most stable horticultural lighting incentive providers in the country. A notable advantage is its allowance for projects starting December 1, 2025, to count toward 2026 incentive caps—giving growers an early start on planning.
This stability makes Mississippi an excellent region for 2026 LED grow-light retrofits and expansions.
How Growers Should Prepare for 2026
Verify Your Fixture Eligibility Now
With efficiency thresholds rising, growers should confirm that their LED fixtures—including top lighting and under-canopy lighting—meet all upcoming 2026 requirements.
Secure Quotes Before Rule Changes
Many utilities honor the qualification rules at the time of quoting or pre-approval. Locking in LED fixture lists early helps preserve eligibility.
Prepare Documentation Ahead of Time
Most utilities will require detailed documentation in 2026:
- DLC listings and spec sheets
- PPFD lighting layouts
- Photos and installation evidence
- Invoices and cost breakdowns
Working with a specialized utility rebate partner can make this process faster and more accurate.
Start Projects Early in the Calendar Year
Because many utility programs will be oversubscribed, growers should plan to apply early—ideally in Q1—to secure available rebate dollars before budgets run out.
Conclusion
The Grow Lights 2026 Rebates environment is rapidly shifting, but opportunities remain strong for growers who plan ahead. With new efficiency standards, increased documentation requirements, and differing state-by-state rules, cultivators need to prepare early and choose LEDs that exceed qualifying thresholds.
By investing in efficient indoor grow lights, integrating high-impact under canopy grow lights, and working with experienced rebate specialists, growers can unlock substantial financial savings while improving yield, quality, and facility efficiency in 2026.
