by Craig DiLouie, LC, CLCP, Education Director, Lighting Controls Academy
Networked lighting controls have been demonstrated in research to deliver an average 49 percent energy savings in commercial buildings, but as these savings are applied to a smaller load, investment in these systems can be difficult to justify. This is changing for three reasons. Rising energy costs, growing availability of energy efficiency rebates, and non-energy benefits add up to significant value for building owners investing in modernizing their lighting.
What are networked lighting controls? These are simply lighting control systems in which devices are networked for communication, enabling capabilities such as global programming, zoning/rezoning using software, integration with other building systems, and storage and analysis of data for energy and space management. This communication may be wired, wireless, or a combination of the two. The devices may be installed within or remote from luminaires.
This article looks at the three trends making networked lighting controls more financially attractive for both new and existing construction, focusing on an extraordinary DesignLights Consortium (DLC) study that documented significant benefits of advanced controls whose value can far exceed energy savings.
Commercial building energy costs are outpacing inflation. Driven by surging power demands from data centers, extreme weather, and grid updates, electric rates in the United States increased by about 5-7 percent in 2025. As energy costs continue to increase, the value of saving energy increases both for direct cost savings and as a means to manage future risk.
Energy efficiency rebates for networked lighting controls continue to grow in availability. The flexibility of this type of system can produce substantial energy savings, making it attractive for adoption by rebate programs. In 2026, nearly 200 commercial lighting rebate programs are offering dedicated prescriptive rebates for networked lighting controls, a 7 percent increase over 2025, while hundreds more would consider them under their custom incentives. The rebate dollars can be substantial, reducing initial cost and accelerating payback periods.
The value of non-energy benefits can exceed the value of energy savings. A 2023 study conducted by Skumatz Economic Research Associates, Inc. and sponsored by the DLC, recently made available to the public on the DLC website, identified non-energy benefits of networked lighting controls and developed a methodology for quantifying them. The study concluded networked lighting controls can deliver significant non-energy benefits that equal or exceed the value of their energy savings, though value varied by building type.
Traditional financial analyses underestimate the value of networked lighting controls. One of the study’s central findings is financial analyses generally underestimate the value of networked lighting controls because they typically consider only installation costs and energy savings. By ignoring benefits such as improved productivity, lower maintenance costs, enhanced safety, greater operational flexibility, and longer equipment life, these analyses fail to capture the full economic impact of the technology.
The research demonstrates that non-energy benefits can be measured and given monetary values using established methodologies used in energy efficiency research for decades. This makes it possible to include these outcomes in ROI and payback calculations, providing building owners with a more complete picture of the value of investing in networked lighting controls.
Building owners and other decision-makers perceived multiple benefits of quality lighting operated by advanced lighting controls. Equipment longevity topped the list, with reduced maintenance and fewer disruptions for occupants. They also valued measures that improved appearance and ambience as contributing to occupant and customer satisfaction; having greater control over building operations with visibility and control over energy use; reducing carbon emissions in a greener building; control flexibility; and positive impact on property value.
Share of positive and negative non-energy benefits overall by decision-makers in the survey. Image courtesy of the DLC.
Building managers and other decision-makers value non-energy benefits at least as much as the energy savings. Among building managers and other decision-makers familiar with lighting controls, the value assigned to non-energy benefits conservatively averaged 130 percent of the value of the energy savings. In practical terms, for every $1 saved in energy, managers perceived approximately $1.30 in additional operational and workplace benefits. Combined, the total perceived benefit was roughly 2.3 times the energy savings alone.
Building operations staff also recognized meaningful operational benefits. They estimated that the improvements provided by networked lighting controls were equivalent to approximately 11 percent of the work of a full-time maintenance employee, reflecting reduced maintenance effort, fewer operational issues, and more efficient facility management. These savings may come from fewer occupant complaints, reduced manual adjustments, easier facility operation, lower maintenance effort, and improved system automation.
Building occupants likewise reported measurable benefits, possibly the most valuable. Employees working in spaces equipped with networked lighting controls estimated an average increase in productive time equivalent to nearly 8 percent of a full-time employee, compared to similar spaces without controls. Occupants reported substantially greater benefits from more sophisticated lighting control systems compared to basic systems. While self-reported, these findings suggest that improvements in the workplace environment can create value that extends well beyond reduced electricity consumption. Counting only direct productivity improvement, the value was about 2 percent of employee labor costs. Assuming the $3/$30/$300 rule of facility costs (average cost per square foot being $3 utilities, $30 for rent, and $300 for labor), even a 2 percent productivity increase produces a financial benefit that towers above potential energy savings.
Most valued non-energy benefits by stakeholder group in the DLC study.
While non-energy benefits were determined as a net positive, some outcomes produced a negative cost. The researchers collected feedback from study stakeholders on perceived negative effects. These were relatively higher for respondents with basic control systems, such as non-integrated occupancy sensors, and lowest for warehouses. Some negative feedback appeared focused on the lighting, having to do with light intensity, color quality, and flicker. Others regarded the user interface. Among the occupant stakeholder respondent group, complaints focused on occupancy sensors shutting off the lights while the space is occupied, stating this was disruptive and produced eyestrain.
Overall, the study concluded that networked lighting controls should no longer be evaluated solely as an energy conservation measure. They are a building performance technology that delivers value through improved operations, enhanced occupant experience, reduced maintenance, and greater organizational productivity. By quantifying these non-energy benefits and incorporating them into financial analyses, building owners can make more informed investment decisions based on the full value of networked lighting controls.
Download Evaluating the Non-Energy Benefits of Advanced Networked Lighting Controls here. A helpful video summarizes the report here.
