Planning A Lighting Upgrade? Here are Two Types of Utility Rebate Programs To Consider
Lighting rebates are a challenge for many facility executives — especially those who oversee portfolios that span multiple states. Each utility typically has slightly different eligibility requirements.
The good news is that despite the variations from utility to utility, most utility rebate programs can be broken down into two types of programs: prescriptive rebates and the more involved custom-rebate programs.
Prescriptive rebate programs are pretty easy to understand. A fixed amount is given per fixture on a pre-approved list. "These are generally the lowest dollars you will get," says Lindsay Audin, president of EnergyWiz, a consulting firm.
Custom rebate programs on the other hand, allow much more generous rebates, Audin says.
One recent lighting upgrade in a 1.5 million square foot facility shows the difference between the two types of programs.
The facility executives had been pursuing a custom rebate program and were expecting a rebate of around $250,000. Unfortunately, the facility executives launched the project and didn't keep any of the old fixtures, nor even photos of the old fixtures. There was no way to prove kilowatt hour reductions claimed on the application.
That left the facility to claim a prescriptive rebate, which would reduce the rebate to $35,000 from $250,000.
So the biggest bang for the buck comes from custom rebate programs. They require more work though to document the savings.
"You really want to get everything laid out ahead of time," says Audin. "Lack of planning at the beginning is what will undo people at the end."
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