Organizations considering commercial lighting upgrades in Michigan should be aware of two recent incentive updates that may affect project planning and implementation in 2026. These changes include a new limited-time bonus for qualifying lighting projects and enhancements to the Market Engagement Incentive available to participating Trade Allies.
What Is the New Lighting Project Bonus?
A new limited-time bonus is available for qualifying commercial lighting and lighting controls projects. The bonus equals 20% of the qualifying measure incentive, with a maximum bonus of $10,000 per project, and is paid directly to the participating Trade Ally.
Eligible measures include:
- Interior and exterior LED lighting
- High-bay and low-bay LED fixtures
- TLEDs
- Lamp removal projects
- Occupancy sensors
- Daylight sensors
- Centralized lighting controls
To qualify, projects must achieve at least 5 MWh (5,000 kWh) of energy savings, and each measure must have a minimum 10-year measure life.
What Are the Key Requirements and Deadlines?
One common question is: Can previously submitted projects qualify for the new bonus?
No. The bonus applies only to new 2026 pre-applications submitted on or after June 15, 2026. Previously submitted projects are excluded, even if they are canceled and resubmitted.
Additional requirements include:
- A pre-application must be submitted before installation.
- Final applications must be submitted by November 30, 2026.
- The bonus cannot be combined with other offers.
- Total incentive funding, including the bonus, cannot exceed project costs.
- Funding is limited and available while funds remain.
For facilities evaluating lighting upgrades, these requirements may make project timing an important consideration.
Market Engagement Incentive Expands in 2026
A separate update expands the Market Engagement Incentive available to participating Trade Allies.
Effective May 1, 2026, facilities with annual electric usage up to 750,000 kWh may now qualify. Previously, eligibility was limited to smaller facilities.
| Facility Annual Usage | Incentive Amount |
|---|---|
| ≤ 400,000 kWh | $500 per qualifying project |
| 400,001–750,000 kWh | $250 per qualifying project |
The new mid-sized facility tier creates additional opportunities for Trade Allies serving a broader range of commercial customers.
Additional Program Changes
Several operational updates may also affect project delivery and incentive administration.
To qualify for the Market Engagement Incentive:
- Project incentives must be $500 or greater.
- Trade Allies must submit at least five paid projects annually.
- Projects must be completed and submitted by an eligible Trade Ally in good standing.
- Only projects paid on or after May 1, 2026, qualify under the expanded usage tier.
The program has a total funding cap of $300,000, approximately equivalent to 600 projects, and incentives are available on a first-come, first-served basis.
Another notable change is the move from annual to quarterly incentive payments, intended to accelerate payment timing for participating Trade Allies.
Looking Ahead
For Michigan facilities evaluating LED lighting and controls projects, these updates introduce new considerations around project timing, incentive availability, and implementation planning. Organizations working on 2026 capital improvement and energy efficiency initiatives may benefit from reviewing project schedules early, particularly given funding limitations and application deadlines. As with all incentive programs, terms and funding availability may change over time.
