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How Lighting Retrofits Improve Industrial Building Performance
- LumaEnergy
- Jul 2
- 7 min read
Updated: Jul 23
Across Ontario and Canada, industrial buildings face growing pressure to cut energy costs, meet sustainability goals, and create safer work environments. From aging warehouses in Hamilton to modern manufacturing facilities in the GTA, outdated lighting systems are often a hidden source of inefficiency.
A professional lighting retrofit is one of the most effective ways to improve building performance—boosting energy savings, productivity, and even employee satisfaction. If you're a facility manager or property owner, here's why u.upgrading your lighting should be at the top of your priority list.
What Is a Lighting Retrofit?
Definition and Relevance in 2025
A lighting retrofit is the process of replacing outdated or inefficient lighting systems—such as fluorescent, metal halide, or high-pressure sodium—with modern, energy-efficient alternatives. In 2025, lighting retrofits in industrial buildings across Ontario and Canada are no longer optional upgrades—they’re part of essential building performance and sustainability strategies.
The shift is being driven by stricter energy codes, increasing electricity rates, and government programs pushing for net-zero buildings. With electricity prices in Ontario among the highest in North America, lighting retrofits provide one of the fastest ways to reduce overhead without sacrificing safety or productivity.
You can learn more about how energy-efficient lighting supports Canada’s climate objectives from Natural Resources Canada.
What’s Included in a Retrofit?
A professional retrofit project often includes more than just replacing fixtures. It typically involves:
High-efficiency LED luminaires tailored to industrial needs (high bays, wet locations, extreme temperatures)
Occupancy and motion sensors that adjust lighting based on activity levels in different areas
Daylight harvesting systems that automatically dim or turn off lights when natural light is sufficient
Smart lighting controls that allow scheduling, zoning, and remote access
Many of these technologies qualify for rebates through Save on Energy in Ontario. For example, facilities can receive thousands in incentives just by upgrading to networked lighting controls. Read our 2025 guide to Save on Energy rebates in Ontario to understand how to maximize your incentives.
Why LEDs Dominate in Industrial Spaces
LEDs are the foundation of most retrofit projects. Compared to traditional lighting, they:
Use up to 80 percent less energy
Last 5 to 10 times longer
Deliver better light quality with less glare
Operate more reliably in cold storage or dusty environments
For industrial buildings with large square footage and high ceilings, these advantages quickly translate into thousands of dollars in annual savings.
One of the most common upgrades is replacing old recessed fixtures with efficient pot light retrofits. 👉 Learn more in our post: What Are Retrofit LED Pot Lights and Where Should You Use Them?
Energy and Cost Savings in Industrial Buildings
Typical ROI from Lighting Retrofits
Lighting retrofits deliver a compelling return on investment, especially in large-scale facilities with long operating hours. Industrial property managers across Canada often report a full payback within 12 to 24 months, depending on the size of the facility and existing lighting system.
A well-executed retrofit can reduce lighting electricity use by 40 to 70 percent. Add in the maintenance savings and government rebates, and you are looking at a significant boost to your bottom line. Use our Lighting Retrofit Savings Calculator to estimate your own payback period and ROI instantly.
Ontario Rebates and Incentives
Ontario’s Save on Energy Retrofit Program, funded by the Independent Electricity System Operator (IESO), offers substantial financial support for lighting upgrades. Industrial buildings can receive incentives for:
Replacing inefficient fixtures with qualified LED products
Installing advanced controls like occupancy sensors or scheduling systems
Implementing networked lighting systems for whole-building efficiency
More details on eligibility and how to apply can be found on the official Save on Energy Retrofit Program page.
Example: 50,000 sq ft Warehouse Before and After
Here’s a simplified example of what a lighting retrofit could look like in a 50,000 sq ft warehouse in Ontario:
Category | Before Retrofit (HID Fixtures) | After Retrofit (LED + Controls) |
Monthly Lighting Cost | $4,200 | $1,300 |
Annual Maintenance | $2,000 | $400 |
Estimated Rebate | $0 | $18,000 |
1st Year Savings | — | $35,000+ |
The savings go straight to your bottom line—and the improved lighting quality brings additional benefits beyond cost.
Operational Benefits Beyond Savings
Lighting retrofits in industrial buildings deliver more than just energy savings. They enhance day-to-day operations, improve worker satisfaction, and reduce risk. In busy facilities across Ontario and Canada—where safety, uptime, and efficiency are non-negotiable—better lighting supports real business performance.
Improved Visibility and Workplace Safety
Poor lighting is a major contributor to workplace accidents in industrial settings. Dim areas, flickering lights, and uneven coverage make it harder for workers to operate machinery, navigate high-traffic zones, or spot hazards in time.
Upgrading to LED lighting provides:
Uniform light distribution with fewer shadows
Higher color rendering index (CRI) for better visual clarity
Instant-on illumination, with no warm-up time like traditional HID or fluorescent systems
In environments like warehouses, logistics hubs, and manufacturing floors, these improvements directly impact safety outcomes. See how outdoor lighting upgrades can also improve safety on your property, especially in loading bays and parking areas.
For more on the link between lighting and workplace safety, see Canadian Centre for Occupational Health and Safety.
Lower Maintenance, Less Downtime
Traditional lighting systems require constant maintenance: bulb changes, ballast replacements, and troubleshooting. Each incident adds to your labor costs and causes disruptions—especially if lighting fails during active production hours.
LEDs dramatically reduce this burden:
Rated for 50,000 to 100,000 hours of use
No ballasts or starters to replace
Better performance in cold or dusty environments common in industrial settings
This means fewer service calls, fewer outages, and less time spent on ladders—keeping your operations moving and your maintenance team focused on higher-value tasks.
Enhanced Productivity and Employee Morale
Lighting doesn’t just help people see—it influences how they feel and perform. Multiple studies have shown that high-quality lighting improves worker alertness, reduces fatigue, and even boosts mood. Discover how lighting design can impact productivity in office and industrial environments.
In facilities where workers are on their feet for long shifts or operating precision machinery, lighting can directly impact:
Accuracy and output
Reduced error rates
Overall job satisfaction
A well-lit environment also reinforces your company’s commitment to employee wellbeing, which is increasingly important for attracting and retaining skilled labor in Ontario’s competitive industrial job market.
For further research, review this Canadian study on lighting and productivity from the National Research Council of Canada.
Why Industrial Lighting Retrofits Are a Smart Long-Term Strategy
Meeting Efficiency Targets and Sustainability Goals
Across Ontario and Canada, more industrial property owners are adopting ESG (Environmental, Social, and Governance) frameworks and net-zero commitments. Lighting retrofits are one of the quickest wins in reducing your facility’s carbon footprint—without compromising performance.
By cutting lighting energy use by up to 70 percent, you move closer to provincial and federal benchmarks for energy efficiency and emissions reduction. This also strengthens your position when bidding on contracts that require sustainability credentials.
Future-Proofing Your Facility
Lighting technology continues to evolve, and outdated systems can limit your ability to scale or automate. Retrofitting with smart lighting controls allows you to integrate with building automation systems, monitor usage in real time, and adapt settings remotely.
That kind of flexibility isn’t just convenient—it’s becoming a competitive advantage for industrial businesses in Ontario facing rising utility rates and stricter efficiency standards.
Navigating Ontario’s Changing Energy Landscape
Ontario’s industrial electricity costs remain among the highest in Canada, and the pressure to manage load is growing. Retrofitting your lighting is one of the few upgrades that delivers immediate savings while protecting your operation from future rate increases.
With grid demands rising and incentive programs becoming more targeted, early adopters benefit most—especially when rebates are still available.
How to Get Started with an Industrial Lighting Audit
Your First Step Toward Better Building Performance
If you’re managing an industrial facility in Ontario, the easiest way to get started is by booking a free industrial lighting audit with LumaEnergy.
Our audit process includes:
A walk-through of your current lighting system
Energy usage analysis and savings projections
A detailed retrofit proposal tailored to your space
Rebate support for Ontario’s Save on Energy or other applicable programs
We handle everything from initial assessment to post-installation support. Whether you’re operating a factory in Brantford or a warehouse in Vaughan, we’ll help you cut energy waste and unlock the full performance of your building.
Book your free lighting audit today and start seeing the benefits within weeks. Schedule Now
Frequently Asked Questions
What qualifies as an industrial lighting retrofit?
An industrial lighting retrofit involves upgrading older lighting systems (such as fluorescent or metal halide) with energy-efficient LED fixtures and smart controls. It may also include occupancy sensors, daylight harvesting, and centralized control systems tailored to the building’s use.
How long does a typical retrofit take?
Most projects take 1 to 3 weeks, depending on the size of your facility and complexity of the installation. LumaEnergy works around your production schedule to minimize downtime.
Are there rebates available in Ontario?
Yes. Ontario’s Save on Energy Retrofit Program offers financial incentives for energy-efficient lighting upgrades. We handle the rebate application process for you. Learn more on SaveOnEnergy.ca.
What’s the expected ROI for industrial lighting retrofits?
Most industrial clients see a payback period of 12 to 24 months, thanks to lower energy bills, reduced maintenance costs, and available rebates. After that, the savings continue year after year.
Will LED lighting work in cold or dusty environments?
Yes. Industrial-grade LED fixtures are built for harsh environments including cold storage, dusty warehouses, and wet or high-humidity zones. They're more reliable than traditional fixtures in extreme conditions.
Can retrofits improve employee safety?
Absolutely. Better lighting reduces glare, shadows, and dark spots—key contributors to slips, trips, and machinery-related incidents. It also improves visibility for tasks requiring precision and concentration.
How do I start the process with LumaEnergy?
It begins with a free lighting audit. Our team will assess your existing system, identify savings opportunities, and provide a customized proposal—along with support for rebate applications. Book your audit here.
