How LED retrofitting your old neon, fluorescent, or incandescent sign cuts energy costs 60-70%, adds 8-10 years of life, and pays for itself faster than most owners realize.
Your sign is still working — but the power bill has been creeping up, the fluorescent tubes are humming louder, and you keep getting reminded that "you should really go LED." If you're running a sign that was installed before 2015, you've probably heard it. The question: is it actually worth the upfront cost?
Short answer: usually yes. Longer answer: it depends on what you've got and how long you plan to keep using it.
What is LED retrofitting (and what does it involve)?
LED retrofitting means replacing the lighting system inside your existing sign with modern LED modules, while keeping the sign's structure, face, and housing intact. It's not a new sign. It's the same sign with much better, much more efficient lights.
The work typically involves:
- Removing the old lighting (fluorescent tubes, neon transformers, incandescent bulbs)
- Installing matching LED modules sized to fit the cabinet/letters
- Wiring in LED drivers (small power supplies) replacing the old ballasts/transformers
- Re-sealing and weatherproofing the sign
- Testing color, brightness, and uniformity
A typical channel letter sign retrofit takes 1-2 days. A monument sign might take 2-4 days depending on size.
How much does LED sign retrofitting cost in Chicago?
For most jobs: $800-$3,500. The range depends on the size of the sign and how many letters or sections need retrofit.
Typical Chicago ranges:
- Single small channel letter sign retrofit: $800-$1,500
- Medium storefront channel letter retrofit (5-10 letters): $1,500-$3,000
- Large channel letter sign retrofit: $3,000-$6,000+
- Cabinet sign LED retrofit: $1,000-$3,500
- Monument sign LED retrofit: $2,500-$6,000+
- Neon-to-LED conversion (visible neon look): $1,200-$4,500
That's significantly less than replacing the sign — and includes new technology that will last 8-10 years.
How much will I actually save on my power bill?
LED retrofit typically cuts energy consumption 60-70%. Concrete numbers:
- Fluorescent storefront sign at $80/month in electric: drops to about $24/month
- Neon sign at $130/month: drops to about $40/month
- Incandescent cabinet sign at $200/month: drops to about $60/month
Over 12 months, those savings are typically $700-$1,800. Add the maintenance savings (LEDs need way less service than fluorescent or neon), and most retrofits pay for themselves in 18-36 months.
Should I convert my neon sign to LED?
It depends on what you value about the neon. If you love the look, you can keep it. If you're tired of paying for repairs, retrofit makes sense.
When LED conversion makes sense:
- The sign is purely functional (you don't care about the aesthetic difference)
- You've been getting frequent neon repair quotes ($300+ at a clip)
- The transformer is dying anyway
- You want the energy savings
When to keep the neon:
- The neon look is part of your brand identity (bar, vintage retail, etc.)
- The sign is vintage or historic and worth preserving
- It's still working well and not costing you much
Modern "LED neon" tubes do a reasonably convincing job of mimicking the glow if you want most of the look at LED efficiency. Worth seeing in person before committing.
What's the payback period on LED retrofit?
Most retrofits pay back in 18-36 months. The math:
- Upfront cost: $1,500 (median for storefront retrofit)
- Monthly energy savings: $50-$80
- Annual energy savings: $600-$960
- Reduced repair costs: $200-$500/year
- Total annual savings: $800-$1,460
- Payback: 18-30 months
After that, you're banking the savings for the next 6-8 years before any meaningful re-service is needed.
Are there rebates or incentives in Chicago?
Yes — and they can knock 10-25% off the upfront cost. Sources to check:
- ComEd commercial energy efficiency programs — varies year to year, but lighting retrofits often qualify
- City of Chicago small business energy programs — periodically available for specific neighborhoods or industries
- EPA ENERGY STAR commercial lighting incentives — federal-level
- Utility-side rebates for replacing inefficient lighting — your account-side might have specific offers
A good sign shop will help you identify which rebates apply to your project — we do this as part of the quote when relevant.
When should I NOT retrofit?
Skip retrofit and replace the sign instead when:
- The cabinet/housing is structurally bad (water damage, rust, sagging)
- You're rebranding and need a new face anyway
- The sign was made cheaply and parts aren't standard
- You're moving locations soon
In those cases, a new sign with LED built-in from the start is the smarter buy.
A word about our shop
Rick Signs and Repairs has been doing LED retrofits across Chicago since the early 2010s, when LED first started making sense for commercial signs. We retrofit channel letter signs, cabinet signs, monuments, and the occasional vintage neon — keeping the sign you have while modernizing what's inside.
If your sign is older than 10 years, neon, or fluorescent — and the power bill is bugging you — we offer LED retrofit services across Chicago and the suburbs.
Bottom line
LED retrofitting cuts your sign's energy use by 60-70%, adds 8-10 years of useful life, costs $800-$3,500 for a typical storefront, and pays for itself in 18-36 months. Most older signs are good retrofit candidates — except when the housing is gone or you're rebranding anyway.
If you're already considering a repair, ask about retrofit at the same visit. The savings start the moment we leave.
Related reading
- Neon Sign Repair in Chicago: Cost, Process, and When It's Worth It (coming soon)
- When to Repair vs. Replace Your Business Sign: A Decision Guide (coming soon)
- Channel Letter Sign Repair: How Channel Letters Work and What Goes Wrong (coming soon)
Want a retrofit quote? Call Rick Signs at (847) 809-7900 or request a quote.