Planning an Energy Upgrade in 2026? Here are 5 Things to Keep in Mind

Energy upgrades help businesses cut operational costs, meet sustainability goals and create more efficient workplaces. Whether replacing outdated HVAC systems, switching to LED lighting or installing solar panels, a well-planned energy upgrade can bring long-term benefits. Before diving in, here are five key factors to consider.

1. Budget

Cost is often a primary concern for business owners, and rightfully so. Energy upgrades can involve significant upfront investments. However, instead of focusing solely on the initial expense, consider the total cost of ownership. Will this upgrade reduce your energy bills over time? How long will it take to break even? Factor in installation costs, potential maintenance and the equipment's expected lifespan. A clear and realistic budget helps you prioritize upgrades and avoid unexpected financial strain.

2. Compatibility with existing equipment and systems

Before purchasing new technology, assess how it will integrate with your current setup. Will the new system work with your existing infrastructure, or will you need to make additional investments to ensure compatibility? For example, upgrading to a high-efficiency HVAC system may require modifications to your ductwork or electrical systems. Consult with a trusted technician or contractor to evaluate the broader implications of any upgrade and avoid costly surprises. Attend our FREE webinar on the Power Service Planning Design Process on 12/11/2025 for more information on:

• Service Planning Process
• Customer Submittals
• Service Methods
• Construction Process
• Permitting and Inspections
• Customer Resources
• Revised Line Extension Rule

Email [email protected] to register.

3. Financial incentives

Don't overlook the substantial savings available through financial incentives. A variety of federal, state and local tax credits, loans or rebates may be available for your project. Search the Database of State Incentives for Renewables and Efficiency (DSIRE) for eligible funding programs in your area. LADWP offers multiple incentives and programs to fit your project needs including the:

• Commercial Direct Install (CDI) Program for free no obligation assessment and free efficiency measure installation.
• Business Offerings for Sustainable Solutions (BOSS) Program offering a variety of customized retrofit incentives based on energy savings.
• Zero By Design (ZBD) Program for new construction projects and deep retrofit projects that exceed Title 24 or industry standards.
• Food Service Program for rebates on efficient equipment upgrades.

Research all available incentives before starting your project. Some programs have limited funding or specific timing requirements, while others require pre-approval, pre-inspection, or certified equipment. Starting this research early ensures you don't miss out on significant cost reductions.

4. Impact on employees

Energy upgrades often create more comfortable and productive work environments, but the installation process can temporarily disrupt your team. Will construction noise affect your office? Will technicians need access to areas your staff use frequently? Communicate your plans clearly with your employees and consider scheduling noisy or intrusive work during off-hours or weekends. Involving staff in the process, such as gathering feedback on comfort or lighting needs, can also lead to better outcomes.

5. Business disruptions

Beyond employee experience, energy upgrades can disrupt core business operations. Power outages during electrical work, blocked entrances during equipment deliveries or system downtime during installation can impact customer service and revenue.

Develop a comprehensive timeline with your contractor that outlines when systems will be offline and for how long. Create contingency plans for maintaining critical operations, communicating with customers about potential service interruptions and implementing backup solutions when necessary. Preparation minimizes operational impact and protects your bottom line.

Moving forward with confidence

Energy upgrades can be a wise investment when planned with care. By thoughtfully considering these five factors, you can make informed decisions that deliver maximum value while minimizing risks and disruptions.