The end of the year is a natural planning point. If you’re managing commercial facilities and considering LED upgrades for 2026, here’s a practical planning guide.

Step 1: Assess Your Current Situation

Inventory Existing Lighting

What do you actually have installed? This sounds basic, but many facility managers don’t have current information.

For each space, document:

• Fitting types (panel, highbay, batten, etc.)
• Lamp types if not LED (T8 fluorescent, metal halide, etc.)
• Wattages
• Quantities
• Operating hours
• Current condition

You don’t need laboratory precision. Reasonable estimates are fine for planning purposes.

Identify Priority Areas

Not all lighting upgrades are equal. Prioritise based on:

Energy impact: High-wattage fittings running long hours save the most. Warehouses and 24/7 operations often rank highest.

Condition: Failing fittings or those requiring frequent maintenance should be prioritised.

Operational importance: Spaces where better lighting improves safety, productivity, or quality.

Rebate eligibility: Areas with old, inefficient lighting generate more certificates than recent installations.

Estimate Current Energy Costs

Calculate lighting energy consumption:

Total kWh = Total watts × Operating hours

Multiply by your electricity rate to get annual cost.

This baseline helps you estimate savings and build business cases.

Step 2: Set Objectives

What are you trying to achieve? Options include:

Energy reduction: Minimise electricity consumption and costs.

Carbon reduction: Meet corporate sustainability targets.

Improved quality: Better light levels, colour rendering, or controls.

Reduced maintenance: Fewer lamp changes, less disruption.

Compliance: Meet updated building standards or Green Star requirements.

Modernisation: Update facilities for tenant attraction or asset value.

Different objectives might prioritise different projects. An energy-focused approach might target high-consumption areas first. A quality-focused approach might prioritise office spaces regardless of consumption.

Clarify your objectives before developing specific plans.

Step 3: Budget Planning

Capital Costs

Estimate project costs based on:

• Fitting costs (indicative: $60-120 for panels, $150-400 for highbays)
• Installation labour ($25-150 per fitting depending on type and access)
• Access equipment if needed
• Controls (add 20-40% if including occupancy/daylight sensing)
• Electrical work (distribution upgrades if needed)
• Project management and design

For rough budgeting, use $200-300 per fitting all-in for standard retrofits. Complex projects will be higher.

Rebate Offsets

Estimate rebate income:

• Contact ACPs for preliminary certificate estimates
• Check current certificate prices
• Calculate net investment after rebates

Rebates typically offset 25-50% of project costs, depending on what you’re replacing and current prices.

Operating Savings

Calculate annual savings from:

• Energy reduction (the main factor)
• Maintenance reduction (fewer lamp changes)

Express as annual savings and simple payback period.

Business Case Structure

Present the business case with:

1. Current situation and costs
2. Proposed improvement
3. Capital required (net of rebates)
4. Annual savings
5. Payback period
6. Non-financial benefits (quality, sustainability, compliance)

Decision-makers need clear information. Make it easy to understand and approve.

Step 4: Timing and Scheduling

Internal Calendars

Consider your organisation’s rhythms:

• Budget cycles (when is capital available?)
• Operational peaks (avoid disrupting busy periods)
• Facilities access (school holidays, plant shutdowns)
• Other projects (coordinate with related works)

Contractor Availability

Electrical contractors have busy and quiet periods. Major projects may need booking months ahead.

Communicate your intentions early. Get quotes and indicative schedules before finalising plans.

Rebate Timing

Rebate scheme parameters can change. Certificate prices fluctuate. Waiting for “better” conditions is risky.

If a project makes sense at current prices, don’t delay indefinitely hoping for improvement.

Step 5: Procurement Preparation

Specifications

Develop specifications before going to market. This ensures:

• Consistent quotes (comparing like with like)
• Quality outcomes (products meet your requirements)
• Reduced disputes (clear expectations)

See my earlier article on writing tender specifications for guidance.

Supplier Engagement

For larger projects, engage the supply chain early:

• Lighting suppliers for product availability and pricing
• Electrical contractors for installation quotes
• ACPs for rebate processing

Market conditions vary. Current lead times and pricing may change by project execution.

Approvals

Identify required approvals:

• Internal capital approval
• Landlord consent (if leased premises)
• Building permits (if required for scope)
• Heritage considerations (if applicable)

Start approval processes early. They often take longer than expected.

Step 6: Documentation Preparation

Set up your documentation systems:

• Project files and folder structure
• Photo protocols for before/during/after
• Template forms for site data collection
• Contact lists for stakeholders

Good documentation from the start prevents problems later, especially for rebate claims.

Step 7: Build Your Team

Internal Resources

Who will manage the project internally?

• Project manager (overall coordination)
• Finance contact (budgets, approvals, payments)
• Operations contacts (site access, scheduling)

External Partners

Who do you need externally?

• Lighting consultant (for design input if needed)
• Electrical contractor (installation)
• ACP (rebate processing)
• Potentially specialist consultants for complex projects

For sophisticated projects involving building automation, energy management, and smart systems integration, you might engage specialists who work across those domains. Companies like AI consultants Melbourne handle intelligent building projects where lighting is part of a broader technology strategy.

Step 8: Risk Consideration

What could go wrong?

Supply chain: Product delays or unavailability. Mitigation: Order early, confirm lead times.

Installation challenges: Site conditions differ from expectations. Mitigation: Site assessments before committing.

Rebate changes: Scheme parameters change. Mitigation: Don’t over-rely on rebate assumptions.

Quality issues: Products don’t perform as expected. Mitigation: Use reputable suppliers, get samples.

Operational disruption: Works affect business operations. Mitigation: Plan carefully, communicate widely.

Identify your key risks and mitigation strategies before starting.

The 2026 Planning Checklist

Use this checklist to track your preparation:

• Completed lighting inventory
• Identified priority areas
• Calculated current energy costs
• Defined project objectives
• Estimated capital costs
• Obtained preliminary rebate estimates
• Calculated savings and payback
• Drafted business case
• Aligned with budget cycles
• Identified timing constraints
• Engaged potential contractors
• Developed specifications
• Started approval processes
• Set up documentation systems
• Assigned internal roles
• Identified external partners
• Considered key risks

Moving Forward

Planning takes effort upfront but pays dividends in smoother execution.

If you’ve been meaning to tackle LED upgrades but haven’t started, use the year-end planning period to get organised. By the time Q1 2026 arrives, you can be ready to move.

And if you’ve already done the easy retrofits, look at what’s next—controls, specialist areas, second-generation upgrades.

There’s always more to improve.

Here’s to a productive 2026.