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LED Retrofit vs. New LED Fixture: When to Retrofit and When to Replace
- LumaEnergy
- Jul 21
- 7 min read
Updated: Jul 30
LED Retrofit vs New LED Fixture isn’t just a technical fork in the road, it’s a financial crossroads that touches your overhead, maintenance schedule, and even employee comfort. In Ontario, today’s Save on Energy Instant Discounts are delivered mid-stream, meaning the rebate is baked into the price you pay at the electrical distributor’s counter. Because those dollars never hit your balance sheet directly, deciding whether to retrofit an existing housing or install an all-new luminaire is what really determines your payback period and long-term ROI.
But cost alone won’t steer the entire decision. The condition of your current fixtures, installation time, and the visual impression you want for your space each play a critical role. This guide breaks down the pros and cons so facility managers and business owners can make a clear, data-driven choice. Need hard numbers for your own building? Run both scenarios through our free Lighting Rebate Estimator before you place the first order.
What Is an LED Retrofit?
Definition & How It Works
An LED retrofit upgrades the inside of an existing light while leaving the housing (the box, trim, or head) in place. Retrofit kits typically include LED boards or tubes plus a new driver; once installed, you get modern efficiency without touching the ceiling grid or wall cut-outs. The DesignLights Consortium (DLC) classifies these kits as integrated systems that “replace all reflectors and optical components” of the original luminaire, essential for rebate eligibility.
Why it matters: Retrofitting lets you capture LED savings with far less disruption than a full fixture swap.
Common Retrofit Applications
Pot lights – swap out hot halogen cans with low-profile LED inserts. See our Pot lights upgrade service.
Troffer lights – 1×4, 2×2, and 2×4 fluorescent grids convert easily to LED boards or TLEDs.
High-bay fixtures – magnetic LED panels drop into warehouse reflectors without new hang-points.
Wall packs – exterior housings stay put while new LED modules and photocells slide in.
Benefits of Retrofitting
Lower material & labour cost – you keep the metal housing and wiring runs.
Faster install – most kits fit through the existing ceiling cut-out; crews finish after hours.
Preserves fixture appearance – ideal when architectural or heritage housings must stay intact.
For more on retrofit paybacks, check our post on how lighting retrofits improve industrial building performance.
Retrofitting a space under 20 ft? It may make more sense to use low-bay pendants instead of true high-bays. See our full pendant vs. high-bay lighting guide to decide based on mounting height and task zones.
When a Full Fixture Replacement Is the Better Option
Retrofitting makes sense most of the time, but not always. Below are the four red-flag scenarios where full fixture replacement delivers a better return for commercial and industrial buildings.
Physical or Electrical Damage to Fixtures
If housings are rusted, cracked, or have heat-stressed wiring, installing a retrofit kit will only mask deeper problems. Replacing the entire luminaire ensures you meet current CSA/UL safety codes and avoid repeat labour costs down the road.
Obsolete or Inefficient Designs
Old parabolic troffers, HID high bays, or fixtures that use magnetic ballasts were never engineered for today’s LED thermals and optics. Studies show that purpose-built LED fixtures can deliver 10–25 % higher efficacy than even high-quality retrofit kits, thanks to improved heat sinking and lens design.
Replacing Fixtures for Modern Aesthetic / Branding
Retail, hospitality, and Class‑A office spaces often need a lighting facelift as part of a broader refresh. Slim, edge‑lit panels and architectural linear pendants modernize the ceiling line in a way retrofits can’t. For a full breakdown of costs, savings, and rebate options, read our guide on 2×4 LED flat‑panel lights, the fastest office lighting upgrade.
Better Light Output & Controls Compatibility
New fixtures offer higher lumen packages, integrated occupancy sensors, and native 0-10 V or DALI drivers, features that are hard or impossible to add to legacy housings. For networked lighting control rebates, the DesignLights Consortium’s full-luminaire categories are a must-have (DLC eligibility list).
Internal tip: See how a full swap can transform warehouse visibility in our High-Bay Upgrade service.
Retrofit vs Replacement: Cost, Efficiency & Lifespan Comparison
Criteria | LED Retrofit | New LED Fixture |
Avg Cost | $ | $$ |
Energy Efficiency | Good (110–140 lm/W) | Best (140–180 lm/W) |
Installation Time | Fast (minutes) | Moderate (ceiling/grid work) |
Lifespan | Moderate (50–75 k hrs) | Long (70–100 k hrs) |
DLC Rebate Eligible | Often (kit listed) | Always (luminaire listed) |
How to read this table
Avg Cost – Retrofits reuse the housing, so material outlay is lower, and labour is quicker—perfect if you’re watching capital budgets.
Energy Efficiency & Lifespan – Purpose-built fixtures squeeze out extra lumens per watt and usually include better thermal management, extending diode life.
Rebate Eligibility – Both paths qualify under Ontario’s Save on Energy Retrofit Program, but fixture replacements often fall into higher $/W incentive tiers. Plug your numbers into our Lighting Load Estimator to see the delta.
Want a deeper dive on payback? Check our 2025 guide to Save on Energy rebates and the Lighting Retrofit Savings Calculator.
Which Option Gets You a Bigger Rebate in Ontario?
Most lighting incentives now flow through Ontario’s Save on Energy Instant Discounts Program, which applies the rebate at the electrical distributor’s counter—no paperwork for you. The older Retrofit Program still covers large custom projects, but everyday troffers, panels and high-bays have moved to the point-of-sale stream.
Fixture Type | **Retrofit Kit Rebate (per unit) | **New LED Fixture Rebate (per unit) | Program Stream |
2 × 4 Troffer / Linear Ambient | Up to $11 | Up to $14 | Instant Discounts |
LED High-Bay (<105 W, ≥10 k lm) | — | Up to $50 | Instant Discounts |
LED High-Bay (≥20 k lm, <305 W) | — | Up to $120 | Instant Discounts |
Takeaway: When rebate dollars are the priority, brand-new fixtures usually win, especially in high-bay spaces where incentives jump from double-digits to triple-digits. Still, retrofit kits can deliver a competitive $/fixture return in offices or schools where troffers dominate. Run both scenarios in seconds with our free Lighting Rebate Estimator.
Real-World Example: Office Lighting Upgrade in Hamilton
Before Upgrade | After LED Retrofit | Result | |
Fixture Type | 2 × 4 CFL troffers (96 W) | 2 × 4 LED retrofit kits (40 W) | — |
Quantity | 120 | 120 | — |
Connected Load | 11.5 kW | 4.8 kW | ↓ 58 % |
Annual Energy (3,000 h) | 34,500 kWh | 14,400 kWh | Saved 20,100 kWh |
Energy Cost (@ $0.13/kWh) | $4,485 | $1,872 | Saved $2,613/yr |
Instant Discount | — | $11 × 120 = $1,320 | — |
Net Project Cost | — | $4,800 | — |
Simple ROI | — | — | ≈ 18 months |
Even without a full fixture swap, the building cut its lighting load by 45 %, captured a $1.3 k rebate, and will recover the remaining cost in a year and a half—while staff immediately praised the brighter, whiter light.
How to Decide What’s Best for Your Building
Question | Lean Toward |
Are your existing housings structurally sound? | Retrofit |
Do you want a modern aesthetic or higher lumen output? | Replace |
Is maximum rebate or 15-year longevity your goal? | Replace |
Do you need after-hours installs with minimal downtime? | Retrofit |
For warehouse, plant, or exterior areas, see our specialized services: Industrial Lighting Upgrade, Office Lighting Upgrade, and Outdoor Lights Upgrade.
Book a Free Lighting Assessment with LumaEnergy
Ready to see real numbers for your facility? Contact us for a no-obligation site walk-through. We’ll:
Verify whether retrofit kits or new fixtures give you the best ROI
Prepare the Save on Energy paperwork on your behalf
Provide a turnkey installation plan that fits your production schedule
Stop guessing! Let the rebates pay for the upgrade while you bank the savings.
Frequently Asked Questions: LED Retrofit vs. New LED Fixture
How do utility demand charges influence the ROI of an LED upgrade?
Demand charges, fees based on your facility’s single highest 15- or 30-minute kW peak each month, can represent 20-60 % of a commercial hydro bill. Because LEDs cut wattage instantly, they also prune that peak. Real-world case studies show facilities trimming demand charges by up to 30 % and hitting sub-two-year paybacks when lighting is part of a broader peak-shaving plan.
Pro tip: Run both energy and demand scenarios in our free Lighting Load Estimator before you choose retrofit vs. replacement. And if you want to see those drivers translated into real dollars on a recent project, read our Ontario pot light cost guide for commercial buildings.
What environmental benefits will I see beyond lower electricity use?
LEDs last 5-10× longer than fluorescents or HID lamps, which means far fewer fixtures in landfill—and zero mercury to handle. Long lifespan alone can cut e-waste volumes by 50-70 % over a 10-year cycle, according to recent industry analyses.
Switching now also positions your business for upcoming Scope 2 emissions reporting requirements. Need a recycling partner? We coordinate zero-landfill disposal as part of every Industrial Lighting Upgrade.
How does lumen depreciation differ between retrofit kits and new fixtures?
All LEDs dim slowly over time, but thermal design matters: purpose-built luminaires typically maintain ≥ 90 % of initial output at 50,000 hours, whereas retrofit kits run hotter and may reach that mark closer to 35-40 k hours. If your process requires strict light levels (e.g., QC inspection lines), the longer L70 life of a new fixture may justify the extra upfront dollars.
What warranties and maintenance savings can I expect?
Quality retrofit kits ship with 5- or 7-year manufacturer warranties; premium commercial fixtures often carry 10-year coverage that includes on-site labour. Because LED luminaires need virtually no re-lamping, facilities that once budgeted quarterly lift-truck service calls can see maintenance OPEX drop 70–90 %. For more on life-cycle savings, plug your inventory into our Lighting Retrofit Savings Calculator.
Can I finance lighting upgrades to keep cash-flow positive?
Yes. Utilities treat on-bill financing and operating leases as energy services, so payments can be offset entirely by monthly hydro savings. Typical terms are 3–5 years at single-digit rates; with LED paybacks often under 24 months, many clients are cash-flow positive from month one. Ask during your free assessment and we’ll model lease vs. cash purchase side by side.
What’s the right way to dispose of old fixtures, lamps, and ballasts?
Ontario’s Regulation 393/21 classifies fluorescent lamps as hazardous due to mercury content. All removed material should go to an approved processor that captures mercury and recycles glass, aluminium, and copper. We include a chain-of-custody certificate and weight ticket with every project—whether you choose a quick retrofit or a full replacement.
For DIY projects, consult the Recycle My Electronics drop-off map (managed by EPRA) for a location near you.
