So, what does installing LED Lighting really mean to you? It means putting more money in your pocket from Day 1. REAL money.
How much money? According to the Department of Energy, LED lighting alone has the potential save about 348 TWh of electricity by the year 2027. This is the equivalent annual electrical output of 44 large electric power plants, and a savings of more than $30 billion.
ENERGY STAR-rated products use anywhere from 75-90% less energy than their standard counterparts, and last 25 times longer. For you, the average business owner, that means energy savings of thousands of dollars each year, even more when you figure in maintenance costs. Over the lifetime of your business, that can easily come to $250,000, even half a million dollars.
So what are you waiting for? Every day you put off upgrading to energy-efficient products for your business, like LED Lighting, HVAC, Boilers, and Furnaces, is another day your business loses money. And with all these great programs (in some cases paying for 100% of your upgrade costs) there really is no reason you shouldn’t Get started today.
Energy Efficiency Programs by State
Gulf Coast Programs
The Public Utility Commission of Texas oversees a set of statewide “standard offer” and market transformation programs that are available to customers in each of the investor-owned utilities’ service territories.
The programs are funded through a systems benefits charge on transmission and distribution services and are administered by the utilities. In 2014 almost $240 million was budgeted for energy efficiency and load management across all program types (including residential and low-income).
The state of Texas offers incentives for HVAC, lighting, refrigeration, roofing, and custom projects.
Commercial programs offer incentives for the installation of energy-efficient lighting, HVAC equipment, and variable frequency drives (VFDs). Existing buildings and new construction are eligible for incentives of up to $17,500 per measure type (up to $35,000 per project site). Get started today.
Louisiana and the New Orleans Energy Smart program provides financial incentives for small (demand less than 100 kW) and large (100 kW or greater) non-residential customers to install qualifying energy-efficient equipment such as lighting, air conditioning, heat pumps, electric chillers, motors, window film and other measures that reduce electricity use.
Incentive levels are based on first-year savings; small customers earn $0.125 per kWh for all upgrades and large customers receive $0.10 per kWh for lighting upgrades and $0.12/ kWh for other measures.
The Small Business Energy Solutions program provides an incentive of $0.16/kWh of first-year savings for lighting, lighting controls, refrigeration, and HVAC measures for customers with a peak demand of less than 100 kW.
The Large Commercial & Industrial program is for customers with a peak demand greater than 100 kW and offers an incentive of $0.09/kWh of first-year savings for lighting measures, $0.15 for HVAC/non-lighting prescriptive measures, and $0.06 for custom projects. Maximum incentive amount per project is $25,000. Get started today.
In July 2013, the Mississippi Public Service Commission issued energy-efficiency rules requiring investor-owned utilities to implement energy efficiency programs. Mississippi utilities collectively budgeted over $7 million for energy efficiency and load management programs in 2014.
Incentives provide two different options for offsetting the costs of energy efficiency projects. Standard cash incentives are available for replacing specific types of equipment (lighting, motors, HVAC, and food service equipment) with more efficient versions.
Programs offer $0.12/kWh for savings from chiller, HVAC controls, envelope improvements, and food service equipment. In addition, their custom program pays 0.07/kWh for other qualifying efficiency upgrades. Get started today.
Florida offers incentives for a wide array of projects including insulation, direct expansion air conditioning, heat recovery units, heat pump water heaters, demand controlled ventilation, refrigeration, energy recovery ventilation units, chillers, thermal energy storage systems, and lighting. Custom incentives and solutions that include on-site evaluations and tailored recommendations are also available.
Incentives are offered of up to $275 per average kW reduction for equipment that shifts or reduces energy use during summer and/or winter peak periods. Measures providing as little as 5 kW are eligible. Incentives include $2 per watt for solar PV installations (up to $10,000) and $1,000 cash back for installing a qualifying solar thermal water heating system. Get started today.
Alabama utilities collectively budget $40 million for energy efficiency and load management programs. Programs provide two different options for offsetting the costs of energy efficiency projects.
Standard cash rebates are available for replacing specific types of equipment (lighting, motors, HVAC, and food service equipment) with more efficient versions.
Other programs provide power purchase plans of up to 20 years to developers of renewable projects (biomass combustion, biomass gasification, methane recovery, wind and solar) greater than 50 kW and up to 20 MW in size. Rates paid are based on seasonal time-of-day averages. Get started today.
West Coast Programs
California energy-efficiency programs offer building owners incentives (up to $0.40 per annualized kWh and $1.00 per annualized therm savings). Owner Incentives include a separate 20% bonus for incorporating end-use monitoring and a 10% bonus for enhanced commissioning. The maximum total incentive per project is $150,000.
California also provides incentives of up to $1 million for large gas efficiency projects not covered by the basic program (including new or replacement equipment, as well as for process improvements or new processes). The payment is $1.00 per annualized therm savings or 50% of project cost, whichever is less.
While California is leading the way, incentives are available in most all 50 states. Get started today.
Oregon‘s electricity restructuring law established a public purpose fund for conservation, energy efficiency, and renewable energy programs. The programs are funded through a non-bypassable 3% “public purposes charge” on total revenues collected by the utilities.
Customers with average demand greater than 1 MW may be eligible to self-direct some portion of their public purpose charges. In 2013, the state’s utilities budgeted over $150 million to promote increased energy efficiency in the state.
Programs provide prescriptive rebates (up to 50% of measure cost) to commercial customers (420 and 424 rates) towards the installation of natural gas efficiency measures. Covered products include commercial kitchen equipment, insulation (limited to gas-heated buildings up to three floors and 5,000 square feet), refrigeration night curtains, and forced air furnaces. Get started today.
Washington budgets over $215 million to promote increased energy efficiency in the state. Energy assessments are available to medium and large commercial customers to manage operating costs and identify energy saving opportunities.
Industrial customers can receive technical assistance and financial incentives to pay for an energy analysis/study, and up to 70% of efficiency project costs (based on electricity savings) including lighting upgrades, compressed air system upgrades, variable speed drives, heat recovery, electric furnace upgrades, controls, premium efficiency motors and most other measures that can save electricity.
Commercial customers also receive financial incentives, based on annual kWh savings (up to 70% of project costs) for installing energy-efficient equipment, including lighting, HVAC, controls, glazing, insulation and custom measures, as well as industrial process improvements. These incentives are available for both retrofit and new construction projects. Get started today.
East Coast Programs
New York provides both pre-qualified and performance-based incentives. Pre-qualified incentives are tailored for smaller projects. Applicants can receive per-unit incentives up to $60,000 ($30,000 for electric and $30,000 for gas) for a variety of pre-qualified energy conservation measures such as lighting, HVAC, motors, furnaces, boilers, and interval meters.
Performance-based incentives are available for more involved projects that produce verifiable electricity or gas savings. Incentives for electric efficiency are $0.12 per kWh of first-year savings in upstate locations, and $0.16 per kWh downstate. Gas incentives are $15/MMBtu upstate and $20/MMBtu downstate.
There are also incentives for investments in energy storage, demand response, industrial and process efficiency, and monitoring-based commissioning. Get started today.
Massachusetts budgets over $680 million to promote energy efficiency in the state. Comprehensive legislation on electricity restructuring includes a non-bypassable systems benefit charge of roughly 2.5 mills/kWh for energy efficiency programs.
Programs include prescriptive incentives for efficient furnaces, boilers, and heaters (condensing or infrared). A variety of water heating systems, prescriptive controls, and kitchen equipment are also covered. Pre-approved custom projects receive an incentive based on the estimated first-year therm savings.
However, incentives for custom projects are capped at 75% of the incremental project cost for new construction and 50% for retrofits. 50% of an approved energy efficiency engineering study is also covered up to $10,000. Get started today.
North Carolina budgets over $130 million for energy efficiency and load management programs. Program provide incentives for high efficiency lighting, VFDs, pumps, HVAC equipment (including chillers), IT, industrial processes, and food service equipment.
Custom options provide incentives of $0.08/kWh for first-year savings (up to 75% of the incremental measure cost) for measures and equipment not on the prescriptive list. For whole-building new construction applications, the incentive is either $0.09/kWh or $0.14/kWh (for projects showing at least 10% and 20% savings relative to code, respectively).
In addition, financial incentives are available for energy-efficient design or building simulation modeling in new construction projects. Feasibility studies for existing facilities are subsidized at up to 50% of cost. Get started today.
Ohio offers incentives for high-efficiency lighting, VFDs, pumps, HVAC equipment (including chillers), IT, industrial processes, and food service equipment. Incentives are as much as 50% of the project’s incremental cost. On-line, off-site, and on-site energy assessments are also available for large businesses.
Ohio also offers incentives for lighting, HVAC, motors and drives, and compressed air systems. Incentives are available of between $0.05 and $0.10 (depending on the measure type) per first-year kWh saved, as well as $50 (for lighting) to $100 (for all other measure types) per kW reduced for energy-saving initiatives.
incentives for HVAC, lighting and controls, motors and variable frequency drives, compressed air, refrigeration, and food service equipment. Annual electric usage must be between 20,000 kWh and 500,000 kWh to be eligible. Get started today.
Illinois provides financial incentives specifically for qualified public sector projects in the Commonwealth Edison, Ameren Illinois, Nicor Gas, Peoples Gas, and North Shore Gas service areas. Check the site for coverage and funding availability, but programs offered include:
- Programs cover energy-efficient lighting, HVAC, gas, variable speed drives, and kitchen equipment. Custom incentives are also available at $0.12/kWh of first-year savings or $3.00/therm.
- Programs provide grants for new buildings that achieve energy efficiency beyond code-required thresholds. Programs pursuing LEED certification will also qualify. Incentives are in dollars per square foot and rise with increasing percentage savings over code.
- Incentives provide funding for identifying and implementing low-cost adjustments to systems (especially HVAC) in existing buildings that improve energy efficiency and use.
- Incentives are intended for applicants who wish to combine multiple electric and natural gas energy efficiency measures. The intent is to reach public-sector entities that may not apply for stand-alone projects.
As part of a 1999 restructuring settlement approved by the state legislature, $225 million has been allocated to a Clean Energy Trust Fund in order to support environmental initiatives, energy efficiency programs, and renewable energy projects. Get started today.
Indiana utilities budget over $200 million across their various programs to promote customer energy efficiency. Programs provide incentives for high efficiency lighting, VFDs, pumps, HVAC equipment (including chillers), IT, industrial processes, and kitchen equipment.
There are programs for both natural gas and electric customers, including boilers, lighting, motors, VFDs, food service equipment, and more. Custom incentives are also available with pre-approval. Payments for custom projects are either $0.08/kWh for first-year savings (electric projects) or $0.80/therm (gas projects). A small business direct-install program is also available.
Programs offer incentives for efficient lighting, sensors, pumps and motor controls, and commercial kitchen equipment. Annual incentives are capped at $150,000 per site and $300,000 per company across all programs. A small business direct-install program is also available. Get started today.
In 2008, the Michigan legislature passed Act 295 requiring all Michigan gas and electric utilities to offer energy-saving programs to their customers and to set increasing energy saving goals via energy efficiency resource standards.
Energy efficiency programs are available for almost twenty of Michigan’s gas and electric utilities. There are both prescriptive and custom incentive programs available to commercial/industrial customers of the participating utilities, though the programs differ based on the specific serving company.
Remuneration levels for the 2016-17 PJM year (which begins June 1, 2016) are in the $22,000 per MW range for Michigan customers. Participants are also eligible to receive energy payments for actual reductions, if and when the program is called.
These are just a few examples. No matter where you live, chances are there is an incentive program for you.