As 2025 draws to a close, growers and controlled-environment agriculture (CEA) operators across the U.S. are preparing for major incentive changes in the year ahead. The forecast for 2026 energy rebates points to tighter efficiency rules, changing budgets, and several program pauses. Whether you’re planning upgrades to your indoor grow lights or exploring facility improvements, understanding these updates early helps maximize savings and project success.
National Overview: The 2026 Energy Rebates Landscape
A Transition Year for Horticulture Lighting Incentives
Utilities across the U.S. are adjusting programs to reflect higher LED performance and statewide decarbonization goals. This shift affects both top-lighting and under canopy grow lights, with many rebate programs tightening efficiency thresholds.
Key Trends Emerging for 2026
- Higher PPE (efficacy) requirements for qualifying lighting fixtures
- Reduced budgets in oversubscribed markets
- Growth of midstream/instant-discount utility rebates
- More rigorous documentation requirements
- Shorter installation deadlines and more aggressive project timelines
Why Incentives Are Changing
States such as California are updating horticulture lighting standards following the expiration and revision of statewide measures such as SWLG019-01. As LED technology evolves, utilities are raising their efficiency baselines to match.
State & Utility-Specific 2026 Rebate Forecast
LADWP (Los Angeles Department of Water and Power)
2025 Program Pause
LADWP paused the horticulture lighting portion of the BOSS commercial rebate program without explanation. No updates have been provided on its return.
Outlook for 2026
- The future of LADWP horticultural lighting incentives is still uncertain.
- No timeline has been announced for reinstatement.
- Existing Notice to Proceed (NTP) approvals remain valid for 12 months.
SCE (Southern California Edison)
Changes Influenced by SWLG019-01
SCE is preparing new efficiency requirements driven by revised statewide horticultural lighting guidelines such as SWLG019-01. These changes will reshape fixture eligibility in 2026.
What to Expect in 2026
- Higher minimum PPE values for qualifying LEDs
- Some existing grow-light SKUs may no longer qualify
- Updated rebate values and pre-approval procedures
Growers upgrading indoor grow lights in SCE territory should verify 2026 qualification criteria before purchasing fixtures.
PG&E (Pacific Gas & Electric)
2025 Budget Status
PG&E’s 2025 horticulture incentive budget is fully exhausted, and the program is now oversold.
What to Expect in 2026
- New efficiency requirements similar to SCE’s updates
- More stringent evaluation of fixture specs and DLC listings
- Projects should be submitted early in 2026 to avoid budget depletion
Working with a dedicated utility rebate partner can significantly improve approval odds in PG&E territory.
New York State Utilities
End of Lighting Incentives
All major New York utilities—Con Edison, National Grid, NYSEG, RG&E, and PSEG Long Island—will permanently end horticultural lighting incentives after December 31, 2025.
Impact on Growers in 2026
- No horticulture lighting incentives will exist statewide in 2026.
- Some HVAC, dehumidification, or VFD incentives may continue.
- Lighting upgrades must be planned without rebate support.
NV Energy (Nevada Energy)
Temporary Pause to Close Out 2025
NV Energy temporarily paused new horticulture applications to finalize all 2025 incentive payments.
2026 Program Restart
- New project processing resumes January 1, 2026.
- No major rule changes have been announced yet.
- Growers should still verify efficiency requirements at the start of 2026.
Mississippi Power
A Stable and Grower-Friendly Incentive Program
Mississippi Power remains one of the most consistent horticulture rebate providers in the country.
What’s Changing for 2026
- Projects starting December 1, 2025, count toward 2026 caps.
- An early-start option helps growers secure funding before the year begins.
- Ideal for facilities planning major indoor grow light retrofits.
How Growers Can Prepare for 2026
Verify Fixture Eligibility Early
With rising minimum PPE requirements, growers should confirm that both top-lighting and under canopy grow lights meet 2026 qualification standards before purchasing.
Secure Quotes Before Rule Changes
Many utilities honor rule sets based on quote or pre-approval dates. Finalizing your equipment list early can lock in eligibility under current rules.
Organize Required Documentation
Expect utilities to request:
- DLC listing documentation
- Lighting layout files and PPFD maps
- Project photos and installation verification
- Invoices and itemized equipment lists
Partnering with a utility rebate specialist reduces administrative delays and helps ensure compliance.
Start Projects Early
Oversubscribed markets may exhaust funding quickly in 2026. Early submission increases the odds of securing available incentives.
Combine Top Lighting and Under-Canopy Strategies
Enhancing canopy penetration with under canopy grow lights supports higher yields and greater efficiency—often improving rebate eligibility and ROI simultaneously.
Conclusion: 2026 Will Reshape Incentive Programs Nationwide
The forecast for 2026 energy rebates confirms major transitions across the country. With some utilities pausing incentives, others updating efficiency thresholds, and a few maintaining stable programs, growers must plan strategically to secure maximum savings.
By choosing efficient indoor grow light solutions, integrating under canopy grow lights, and leveraging expert utility rebate support, cultivators can still capture strong financial advantages in 2026 despite a more competitive incentive landscape.