Commercial LED lighting 2026

Commercial LED lighting for offices, warehouses and factories

If your office, warehouse or factory still runs on fluorescent tubes, the clock has already run out on them. Most 2ft, 4ft and 5ft T8 tubes failed Great Britain's lighting efficiency rules from 1 September 2023, and the mercury exemptions that let T5 and T8 tubes be sold here ended on 1 February 2024. Your fittings still work, but every replacement tube comes out of a shrinking stock. Here's what the ban means, LED retrofit versus new fittings, the controls the building regulations expect, how lighting is treated for tax, the loans that cover it, and how to get a site quoted.

Updated 29 October 2026 · Independent guide, not the government's Great British Energy (gbe.gov.uk) · Checked against GOV.UK, Ofgem and scheme sources

1 Sep 2023T8 tubes (2ft, 4ft, 5ft) must hit 120 lumens per watt in GB
1 Feb 2024Mercury exemptions for T5 and T8 tubes expired in GB
£1mAnnual Investment Allowance: lighting is special-rate plant
75%Cashback, up to £20,000, on Scotland's SME Loan for efficiency work
95Luminaire lumens per circuit-watt for new general lighting (England)
Office, warehouse, factory or shop? You're in the right place. Looking for grants for your home instead? Homeowner energy grants →

Commercial LED lighting: key facts

The T8 banFrom 1 September 2023, 2ft, 4ft and 5ft T8 fluorescent tubes had to reach 120 lumens per watt to be sold in Great Britain, up from 89.7. That's the ecodesign rule that took most of them off the market.
The T5 and T8 mercury ruleThe RoHS exemptions that allowed mercury in T5 and T8 linear fluorescent tubes expired in England, Scotland and Wales on 1 February 2024.
Existing fittingsNeither rule makes you remove fluorescent lighting that's already installed. They stop new tubes being placed on the GB market.
TaxHMRC treats a lighting system as an integral feature, which is special-rate plant. The £1 million Annual Investment Allowance can cover it; companies can claim the 50% first-year allowance above that. Full expensing doesn't apply.
LoansBusiness Energy Scotland's SME Loan covers lighting systems, fittings and controls, interest-free, with 75% cashback up to £20,000. The Development Bank of Wales lists LED lighting under its Green Business Loan Scheme.
ControlsEngland's building regulations guidance says unoccupied spaces should have automatic presence controls, and daylight controls where spaces get plenty of natural light.

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.

DateRuleWhat it did
1 September 2023Ecodesign (Lighting Products) Regulations 2021The 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 2024RoHS (hazardous substances) exemptionsThe 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:

AreaTypical old lightingLED approach
High-bay storage and productionMetal halide, sodium or fluorescent high-baysLED high-bays with optics matched to rack heights or open floors
Racking aislesLit all shift, whether anyone's in the aisle or notNarrow-beam fittings with presence sensors per aisle, dimming down when empty
Loading bays and yardsFloodlights on timersLED floods with photocells and presence control
Offices, welfare and canteensFluorescent panels and battensLED panels and battens with presence detection
Emergency lightingSelf-contained fluorescent unitsLED 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 happensLED tubes go into the existing fittings, sometimes with the ballast bypassed or removedThe whole fitting is replaced with an integrated LED luminaire
Upfront costLowerHigher
ControlsLimited: the old fitting usually can't dim or take sensorsPresence, daylight dimming and addressable control built in
Light qualityLimited by the old reflector and diffuserOptics designed for the LED source
Safety and warrantyModifying the old fitting should be done by a competent electrician, and can affect the original fitting's warrantyOne manufacturer's warranty for the whole fitting
Best forFittings in good condition, short leases, low-use areasMost 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

InputIllustration onlyWhere to get your real figure
Old circuit watts per fitting100WLamp wattage plus control gear losses, from a lighting survey or fitting labels
New circuit watts per fitting40WThe LED datasheet in your quote
Number of fittings200The installer's survey
Hours on per year4,000Your opening and shift hours; controls cut this further
Electricity unit rate25p per kWhYour latest business electricity bill
Result48,000kWh 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

AllowanceFor commercial lightingWho can use it
Annual Investment AllowanceDeduct 100% of qualifying spend up to £1 million a year. HMRC confirms the AIA can be used on integral featuresMost businesses
50% first-year allowanceHalf the cost in year one for new, unused special-rate assets; the rest into the special-rate poolCompanies
Special-rate poolWriting-down allowance of 6% a year on the balanceAll businesses
Full expensingNot available. Full expensing is for main-rate plant, and a lighting system is an integral feature, which is special rateCompanies
  • 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 / whoWhat's available for lightingStatus
Scotland: SMEsBusiness 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 offerOpen on a rolling basis, subject to funds
Wales: businessesDevelopment 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
EnglandNo national lighting grant. Use the tax allowances, and check local schemes on GOV.UK's Find a grant serviceLocal 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

  1. Tell us about the building: type, floor area, what lighting you have now and your operating hours.
  2. Lighting survey: fittings counted and measured area by area, with light levels and how each space is used.
  3. Design and quote: new fittings or retrofit per area, controls, emergency lighting, and old and new circuit watts so you can check the savings.
  4. Phasing: work planned around shifts, deliveries and occupied floors.
  5. 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

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.

Commercial LED lighting questions

Are fluorescent tubes banned in the UK?

In Great Britain, new fluorescent tubes have largely been taken off the market. From 1 September 2023, 2ft, 4ft and 5ft T8 tubes had to meet a 120 lumens per watt efficiency rule, and on 1 February 2024 the exemptions allowing mercury in T5 and T8 tubes expired. You don't have to remove fittings that are already installed. Northern Ireland has its own rules.

Can I claim LED lighting against tax?

Usually, yes. HMRC treats a lighting system as an integral feature, which is special-rate plant. The Annual Investment Allowance can deduct up to £1 million of qualifying spend a year, and companies can claim the 50% first-year allowance above that. Full expensing doesn't apply to special-rate assets. Check with your accountant.

Are there LED lighting grants for business?

There's no national LED grant in England. In Scotland, Business Energy Scotland's SME Loan covers lighting systems, fittings and controls interest-free, with 75% cashback up to £20,000 on energy-efficiency work. In Wales, the Development Bank of Wales lists LED lighting under its Green Business Loan Scheme.

Should I retrofit LED tubes or replace the fittings?

Retrofit tubes cost less upfront but keep the old fitting, which usually can't take dimming or sensors. New LED luminaires cost more but come with controls, better optics and one warranty. Most commercial relights use new fittings in long-hours areas and retrofit only where a fitting is in good condition and rarely used.

How much will LED lighting save my business?

It depends on your current fittings, hours and electricity price. Work it out as: (old watts minus new watts) times number of fittings times hours a year, divided by 1,000, gives kWh saved. Multiply by your unit rate. Your installer's quote should give the old and new circuit watts for every area so you can check it.

Do commercial buildings need lighting sensors?

In England, Approved Document L says unoccupied spaces should have automatic controls that switch lighting off when the space isn't in use, occupied spaces should have them where suitable, and areas with plenty of daylight should have daylight controls. That's the guidance for lighting work covered by England's building regulations.

Does LED lighting improve a commercial EPC?

It can. Lighting is one of the energy uses a non-domestic EPC models, so more efficient lighting and controls can lift the rating. Ask an EPC assessor to model the change before you commit, especially if you let the building and need to meet the minimum energy efficiency standard.

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