Commercial LED lighting: key facts
The fluorescent tube ban: T8 and T5 dates in Great Britain
Two separate sets of rules have taken fluorescent tubes off the GB market. Both apply to England, Scotland and Wales. Northern Ireland has its own rules.
| Date | Rule | What it did |
|---|---|---|
| 1 September 2023 | Ecodesign (Lighting Products) Regulations 2021 | The minimum efficacy for 2ft, 4ft and 5ft T8 tubes rose from 89.7 to 120 lumens per watt, the most common office and warehouse tubes |
| 1 February 2024 | RoHS (hazardous substances) exemptions | The exemptions allowing mercury in T5 and T8 linear fluorescent tubes expired, along with most compact fluorescent lamp exemptions |
What it means for your building
- You don't have to rip anything out. The rules control what can be placed on the market, not what's already on your ceiling.
- But maintenance gets harder. Every replacement tube now comes from stock that was already in the supply chain. When it runs out, a failed tube means a failed fitting.
- Old control gear ages too. Fluorescent fittings rely on ballasts. An LED project replaces those along with the tubes.
- Plan it, don't react to it. A planned relight lets you phase work around operations, add controls and claim the tax allowances in the right year. Replacing fittings one by one as they fail does none of that.
LED lighting for offices
Offices are where most fluorescent lighting still sits, typically in recessed ceiling grids. An office LED project usually means:
- LED panels in the ceiling grid, replacing fluorescent modular fittings like for like, often without touching the ceiling.
- Presence detection in meeting rooms, toilets, stores and corridors, so lights switch off when nobody's there.
- Daylight dimming in zones by the windows, so fittings turn down on bright days.
- Dimmable, addressable control (for example DALI) where you want to change layouts or scenes without rewiring.
- Glare and comfort: screen-heavy workspaces need fittings chosen for glare control and the right light level, not just the cheapest panel.
For a let office, better lighting can also help the EPC. Since 1 April 2023 you can't keep letting a commercial property in England or Wales rated below EPC E unless you register an exemption. In June 2026 the government dropped the planned EPC C by 2027 step. It now proposes EPC B from 2031 for buildings over 1,000 square metres, where cost-effective. Ask an EPC assessor to model it: see MEES and commercial EPCs. With lower lighting load, a solar roof covers more of the daytime demand: see office solar panels.
Warehouse and factory LED lighting
Warehouses and factories have the longest lighting hours and the highest ceilings, which is why they're where LED projects usually make the most difference. What changes:
| Area | Typical old lighting | LED approach |
|---|---|---|
| High-bay storage and production | Metal halide, sodium or fluorescent high-bays | LED high-bays with optics matched to rack heights or open floors |
| Racking aisles | Lit all shift, whether anyone's in the aisle or not | Narrow-beam fittings with presence sensors per aisle, dimming down when empty |
| Loading bays and yards | Floodlights on timers | LED floods with photocells and presence control |
| Offices, welfare and canteens | Fluorescent panels and battens | LED panels and battens with presence detection |
| Emergency lighting | Self-contained fluorescent units | LED emergency fittings with self-test, replaced as part of the project |
Factory-specific points
- Flicker and rotating machinery: ask the installer how the fittings avoid stroboscopic effects near lathes, saws and other rotating plant.
- Harsh environments: dust, moisture, heat and food production all need fittings with the right ingress protection and materials.
- Working at height: lifts, access equipment and out-of-hours working are a big part of the cost on a high-bay job, so plan the relight in as few visits as possible.
Big warehouse and factory roofs also suit solar: see warehouse solar panels and factory solar panels.
LED retrofit tubes or new LED fittings?
| LED retrofit (tubes or lamps) | New LED luminaires | |
|---|---|---|
| What happens | LED tubes go into the existing fittings, sometimes with the ballast bypassed or removed | The whole fitting is replaced with an integrated LED luminaire |
| Upfront cost | Lower | Higher |
| Controls | Limited: the old fitting usually can't dim or take sensors | Presence, daylight dimming and addressable control built in |
| Light quality | Limited by the old reflector and diffuser | Optics designed for the LED source |
| Safety and warranty | Modifying the old fitting should be done by a competent electrician, and can affect the original fitting's warranty | One manufacturer's warranty for the whole fitting |
| Best for | Fittings in good condition, short leases, low-use areas | Most commercial relights, especially long-hours areas and anywhere you want controls |
A good installer will mix the two: new luminaires with controls in the long-hours areas, retrofit where a fitting is in good order and rarely used.
Lighting controls and sensors: what the building regulations expect
In England, Approved Document L Volume 2 is the building regulations guidance for fixed lighting in non-domestic buildings. The current edition (2021, with 2023 amendments) says:
- Efficiency: general lighting should average 95 luminaire lumens per circuit-watt (or meet the LENI calculation method). Display lighting should reach 80 light source lumens per circuit-watt, or stay within 0.3W per square metre.
- Presence controls: unoccupied spaces should have automatic controls that turn general lighting off when the space isn't in use, and occupied spaces should have them where suitable.
- Daylight controls: general lighting in parts of occupied spaces likely to get high levels of natural light should have photo-switching or dimming.
- Metering: general and display lighting should be metered, by dedicated circuits with kWh meters or through a lighting management system.
- Design: lighting should suit the activity in the space and spaces shouldn't be over-lit.
The bar rises in 2027. The 2026 edition of Approved Document L Volume 2 takes effect on 24 March 2027 for most building work in England, and raises the general lighting figure to more than 105 luminaire lumens per circuit-watt. Ask your installer which edition your project will be designed to.
Scotland, Wales and Northern Ireland have their own building standards. Your installer should design to the rules where the building is.
How much can LED save? Work it out from your own numbers
We won't quote a savings percentage, because it depends entirely on what you have now, how long the lights are on and what you pay for power. You can estimate it yourself with one sum:
Annual kWh saved = (old watts per fitting − new watts per fitting) × number of fittings × hours on per year ÷ 1,000
| Input | Illustration only | Where to get your real figure |
|---|---|---|
| Old circuit watts per fitting | 100W | Lamp wattage plus control gear losses, from a lighting survey or fitting labels |
| New circuit watts per fitting | 40W | The LED datasheet in your quote |
| Number of fittings | 200 | The installer's survey |
| Hours on per year | 4,000 | Your opening and shift hours; controls cut this further |
| Electricity unit rate | 25p per kWh | Your latest business electricity bill |
| Result | 48,000kWh a year, about £12,000 | (100 − 40) × 200 × 4,000 ÷ 1,000 = 48,000kWh; × £0.25 |
This is an illustration, not a prediction. The inputs are made up to show the method. Your installer's quote should give the old and new circuit watts for every area and the hours assumed, so you can check the sum yourself. Add presence and daylight controls and the hours fall, which is often where the bigger saving is.
Tax relief on LED lighting: AIA, 50% FYA and full expensing
| Allowance | For commercial lighting | Who can use it |
|---|---|---|
| Annual Investment Allowance | Deduct 100% of qualifying spend up to £1 million a year. HMRC confirms the AIA can be used on integral features | Most businesses |
| 50% first-year allowance | Half the cost in year one for new, unused special-rate assets; the rest into the special-rate pool | Companies |
| Special-rate pool | Writing-down allowance of 6% a year on the balance | All businesses |
| Full expensing | Not available. Full expensing is for main-rate plant, and a lighting system is an integral feature, which is special rate | Companies |
- Why lighting is special rate: HMRC's manual lists "an electrical system (including a lighting system)" as an integral feature (CA22320), and integral features are special-rate expenditure.
- Repair or capital? If you spend the whole, or more than 50%, of the cost of replacing an integral feature, at once or within any 12 months, HMRC treats it as capital spending on a replacement (CA22340). So a full relight is usually claimed through capital allowances, not written off as a repair.
- Landlords: GOV.UK's guidance says plant bought to lease out is excluded from the first-year allowances, unless it's background plant in a leased building, and it gives lighting as an example.
Your accountant should confirm the split for your project, especially where lighting is done alongside rewiring or a wider refit. For solar alongside, see solar capital allowances.
LED lighting grants for business, loans and ESOS
There is no single national grant that pays for business solar, batteries or efficiency upgrades in England. The money comes from tax allowances, the business rates exemption, export payments, the Boiler Upgrade Scheme, the Workplace Charging Scheme and local or sector funds. For lighting specifically:
| Where / who | What's available for lighting | Status |
|---|---|---|
| Scotland: SMEs | Business Energy Scotland SME Loan: £1,000 to £130,000 interest-free over up to 8 years. "Lighting systems, fitting and controls" are eligible, with 75% cashback on energy-efficiency work up to £20,000. Don't start work before you get a written loan offer | Open on a rolling basis, subject to funds |
| Wales: businesses | Development Bank of Wales Green Business Loan Scheme lists LED lighting among eligible building improvements. The Development Bank of Wales Green Business Loan Scheme lends £1,000 to £1.5 million over up to 15 years, at a discounted rate and with no arrangement fee, for projects including solar PV and heat pumps. It also offers an energy audit grant of up to £10,000. | Open |
| England | No national lighting grant. Use the tax allowances, and check local schemes on GOV.UK's Find a grant service | Local only |
Large businesses: if your organisation is in ESOS, lighting is often one of the measures an energy audit flags. An installer quote gives you the firm cost for your action plan: see ESOS Phase 4. For the wider funding picture, see business energy grants.
How to get commercial LED lighting quoted
- Tell us about the building: type, floor area, what lighting you have now and your operating hours.
- Lighting survey: fittings counted and measured area by area, with light levels and how each space is used.
- Design and quote: new fittings or retrofit per area, controls, emergency lighting, and old and new circuit watts so you can check the savings.
- Phasing: work planned around shifts, deliveries and occupied floors.
- Install, commission the controls and dispose of the old tubes properly: fluorescent tubes contain mercury.
What to ask lighting installers
- What light levels have you designed to, and to which guide?
- What are the old and new circuit watts per area, and what hours have you assumed?
- Which areas get presence and daylight controls, and how are they commissioned?
- What warranty covers the fittings and the drivers, and for how long?
- How will you dispose of the old fluorescent tubes?
We pass your enquiry to one suitable installer that does commercial lighting work.
Sources checked 29 October 2026
- Ecodesign for Energy-Related Products and Energy Information (Lighting Products) Regulations 2021 (SI 2021/1095): T8 efficacy from 1 Sep 2023
- GOV.UK news (9 Jun 2021): legislation to remove fluorescent lights from shelves from September 2023
- GOV.UK: RoHS exemption determinations (T5 and T8 fluorescent mercury exemptions expired 1 Feb 2024 in GB)
- HMRC Capital Allowances Manual CA22320: an electrical system (including a lighting system) is an integral feature
- HMRC Capital Allowances Manual CA22340: replacing more than 50% of an integral feature within 12 months is capital
- GOV.UK: full expensing and the 50% first-year allowance
- GOV.UK: Annual Investment Allowance (£1 million)
- GOV.UK: Approved Document L, Volume 2 (buildings other than dwellings), 2021 edition with 2023 amendments and 2026 edition
- Business Energy Scotland: SME Loan
- Development Bank of Wales: Green Business Loan Scheme
- GOV.UK: Find a grant service
- GOV.UK: Non-domestic MEES landlord guidance (updated 5 May 2026)
- GOV.UK: Non-domestic MEES, EPC B implementation: interim response (18 Jun 2026)
- Energy Efficiency (Private Rented Property) Regulations 2015, reg. 41 (penalties)
- GOV.UK: EPCs for commercial property
Great British Energy is an independent guide. We are not affiliated with Great British Energy, the publicly owned energy company (gbe.gov.uk), HM Government, Ofgem or OZEV. Scheme rules and budgets change, so confirm the current position with the scheme administrator before you commit spend. We may receive a fee from the installer we introduce you to.