Many electric and gas utilities run rebate programs for a set of eligible energy efficiency measures. LED lighting is often one of those measures and utility rebates often offset anywhere from 10 to 50% of an LED project’s cost. Although never guaranteed, utility rebates should be pursued for all LED lighting projects. The following are some general aspects of utility rebate programs to keep in mind when pursuing an LED project. The outline can help anyone pursuing an LED project better understand what to expect in pursuing a utility rebate as well as help know what information is likely to be required and therefore collected as part of the process.
- Most utility rebates are received by the utility customer in the form of a check after the LED project is complete.
- Most utility rebate programs are based on a limited amount of available funds designed to last between 1 and 3 years. Those funds can run out at any point in time. Some utilities published the percentage of funds currently reserved.
- Many utilities will have pre-application process that reserves funds related to a business’s LED project.
- These utilities encourage customers to complete this pre-application projects to better ensure fund availability.
- It generally takes utility rebate programs 2 – 6 weeks to approve pre-applications.
- Most utilities require lights to hold certain certifications in order to be eligible for rebate.
- Energy Star & Design Light Consortium are the two most commonly used certifications.
- Most utility rebate programs require that the final rebate application be submitted and LED lights installed within 90 days of the pre-application. If no pre-application process exists, utilities just require the final application be submitted within a certain amount of time after installation.
- Most utilities require the following information to be submitted at some point in the rebate application process:
- Copy of electric bill(s) for building(s) at which the LED project is occurring
- Some utilities require separate rebate applications for each electric account related to LED project
- Copy of w-9 for customer on electric bill
- Copy of manufacturer’s specification sheets for LED lights
- Copy of final invoice for LED Lights installed
- Letter stating hours of operation of building’s lights
- Copy of electric bill(s) for building(s) at which the LED project is occurring
- Most utilities don’t audit every building applying for a rebate but do so at random for a small percentage of the applied projects.
- All utility rebate programs have an application form that must be completed.
- Application forms vary in length and complexity.
- Some utilities require application forms to be submitted via an online portal.
- Many utility rebate programs allow the LED retailer or installer to complete the application process on behalf of the customer.
- Many utility rebate programs are administered by a 3rd party company and not the utility itself.
- Receiving the rebate check after the final application can take varying amounts of time. Six weeks to three months is usually a good rule of thumb but can take longer and require several follow-ups with the rebate program administer.
- The expected rebated amount can change through the application process based on changes in specified and installed lights and based on interpretations of rebate program rules. Anyone pursuing a utility rebate program should not consider the rebate funds final and exact until the check is received.
- There is no guarantee despite how many steps of the process are completed the utility will approve, and if approved, send the final rebate check. There are many reasons for this and is another discussion altogether.
The following website lists details on many utility rebate programs (and other incentive programs) across the country. Many filters can be applied to find specific programs in defined geographic area (state or zip code).
www.dsireusa.org
Pursuing utility rebates is a skill set in and unto itself. Any company selling and/or installing an LED lighting system should be able to manage the utility rebate process on its customer. Each utility rebate program is different and having an experienced partner can certainly increase the chances of realizing the full potential of available rebates.
