US Utility Rebates & Incentives Update: March 2018

March 27, 2018 Chad Holder

U.S. Rebates and Incentives Update: March 2018

Schneider Electric helps organizations identify, qualify, pursue and obtain dollars the utilities set aside for energy efficiency projects. Each month our experts compile important news and notes on rebates and incentives from around the U.S.

Renewed Tax Incentive for Energy Savings

Recently, a retroactive extension of the Energy Policy Act, section 179D, was approved for commercial or government buildings completed in 2017. The tax deduction provides $1.80/sq. ft. for building owners who institute energy efficient systems and buildings. Examples include new or existing buildings that reduce power cost by 50% or more though installation of energy efficient interior lighting, building envelope, HVAC or hot water systems. (Minimum requirements are set by ASHRAE Standards for the corresponding year.)

If full conditions cannot be met for the tax deduction, a lesser credit is available. Building owners may qualify for a partial credit of $0.60/sq. ft. by meeting determined target levels or by adhering to the “Interim Lighting Rule” (lowering lighting power density by 25%-40%, 50% for warehouses).

The tax deduction could entail extensive savings for your business – but is not likely up for another extension – so take advantage now.

SOUTHEAST REGION Light bulb concept. 3D render.

First Energy – MonPower and Potomac Edison

The Commercial & Industrial lighting program year will end May 31, 2018 for MonPower and Potomac Edison. Final applications must be received by May 10, 2018 with measures installed and operable by April 30, 2018. We recommend you submit pre-approval applications by March 1, 2018 to safeguard adherence with program deadlines. Be sure to plan ahead and submit projects with these dates in mind.

National Grid

National Grid released their updated 2018 lighting rebate application mid-February for commercial customers consuming over 110 kW demand. The application contains revised prescriptive lighting incentives. National grid will continue to credit previously higher incentive amounts until April 13 for measures with reduced rebates.

Tennessee Valley Authority

Beginning July 1st, 2018 TVA will no longer offer retrofit rebates. New construction rebates are now available. To acquire new construction incentives, project details must be submitted before the construction permit date. Projects will not be accepted if the project is submitted after the construction permit has been issued.

MIDWEST REGION

Consumers Energy

In Mid-February, Consumers Energy released updated incentive amounts. These three measures seem to be the biggest changes:

  • Refrigeration Waste Heat Recovery Decreasing Domestic Water Heating Load increased from $100/ton to $150/ton.
  • Refrigeration Waste Heat Recovery Decreasing HVAC Heating Load increased from $60/ton to $100/ton.
  • Interior LED Lighting (Low Bay < 15 ft.) decreased; however $5/lamp incentive is still available as an alternative option. Exterior LED Lighting is unchanged.

Numerous other changes were instated that prompted increased incentives for 16 measures and lowered incentives for 12 measures. The new incentive amounts will be applied to any projects submitted after February 13 and are found on the utility website. Incentives reserved prior to the change will be honored.

Commonwealth Edison (ComEd)

20% bonus incentive is available for submission of three qualified energy efficiency projects. This bonus is in addition to the original rebate amount.Electricity_Meter_Medium

Eligible measures include:

  • Electrical equipment/lighting
  • HVAC
  • Refrigeration
  • Compressed air for prescriptive or custom projects

Pre-approval is required but, once the funds are reserved, they are available for two years, providing ample time to complete all three projects. The bonus incentive is paid after all measures are installed and is calculated by multiplying the total final incentive of the three projects by 20%.

A 20% bonus incentive is available for submission of three qualified energy efficiency projects. This bonus is in addition to the original rebate amount.

NIPSCO

NIPSCO has released new, increased incentives for custom, new construction, and retrofit projects in 2018. The custom program elevated non-lighting incentives from $0.09 to $0.10 per kWh and the program cap from 50% to 75%.

Electric rebates are also raised from $0.09 to $0.10 per kWh in the New Construction Program for non-lighting measures and from $0.08 to $0.09 per kWh in the Retro-Commissioning Program. Custom projects and new construction projects require pre-approval.

QUICK UPDATES

  • In 2018, Santee Cooper will only offer LED lighting upgrade rebates.
  • CoServ of Texas has discontinued its rebate program.
  • SDE&G added ultra-low temperature freezers to their business rebates. Food service and refrigeration products are being considered for incentives in the 2nd quarter.

The post U.S. Rebates and Incentives Update: March 2018 appeared first on Schneider Electric.

 

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