Projects  /  Northwest Promenade Shopping Center
Case study · LED Lighting

Northwest Promenade Shopping Center

NRG Incentives partnered with Northwest Promenade Shopping Center in Bakersfield, CA on a high-efficiency LED retrofit — brighter, safer light with meaningful energy savings and secured utility rebate support.

Northwest Promenade Shopping Center
Northwest Promenade Shopping CenterLED retrofit · Bakersfield, CA
$131,289
annual energy savings
$48,643
utility rebate secured
3.38 yrs
payback period
$492,544
total project investment
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The challenge

Northwest Promenade is a large open-air retail center in Bakersfield where parking-lot, storefront, and common-area lighting run long hours every day. The aging fixtures were expensive to power and maintain, and inconsistent light levels affected both tenant appeal and shopper safety after dark.

The solution

NRG Incentives packaged a center-wide LED retrofit — exterior, parking, and common areas — and secured a $48,643 utility rebate to offset the investment, delivering brighter, more uniform light with dramatically lower energy and maintenance costs.

Testimonial to come — a sentence from Northwest Promenade Shopping Center on the results and working with NRG Incentives.
Name, Title
Northwest Promenade Shopping Center

The results

The upgrade delivers $131,289 in annual energy savings against a $492,544 project investment — net $443,901 after the $48,643 utility rebate — recovering the net investment in roughly 3.38 yrs, then compounding into net savings while the new lighting keeps working.

Return on investment — net cash position over 10 years
Break-even 3.38 yrs
+$868,989
$1000k$500k$0-$500k
Yr 0Yr 2Yr 4Yr 6Yr 8Yr 10
Additional financial impact

What the upgrade is worth to the asset

Two of the levers an upgrade like this moves — value created and interest avoided. Adjust the rates to match your underwriting.

Added property value
$2,387,073$2,188,150$2,019,831$1,875,557$1,750,520$1,641,112
a one-time lift to the property’s value at a 5.5%6%6.5%7%7.5%8% cap rate — capitalizing $131,289/yr in energy savings.
Cap rate
0% financing — interest you avoid
$39,404$44,329$48,269$49,254$54,180$59,105
in interest avoided each year at 8%9%9.8%10%11%12% — on the $492,544 project cost, financed at 0%.
Interest rate