By Jenn Loukotka
Utility energy efficiency incentives can make all the difference in making an expensive Capital Expenditure (CapEx) project feasible at your facility. These programs will improve your project’s Return on Investment (ROI) by offering financial incentives to increase energy efficiency. But how do you navigate the process? How do you set yourself and your project up for success?
There are a few tips to consider when it comes to optimizing your customer journey with energy incentive programs. Below, we’ll cover everything you need to know, from where to find incentives to how to ensure you’re maximizing your ROI.
But first - what are energy efficiency programs and how do they work?
Many states in the U.S. have utilities that offer incentives and rebates for projects that save energy and money. Utilities build these programs for a variety of reasons – to support their customers, to reduce peak load and improve grid reliability, and to boost their sustainability initiatives.
To ensure your project gets the green light, here are some essential tips and tricks for applying to these programs.
1. Start with a Plan, and Collect Basic Information
Before you investigate programs or start an application, take the time to outline the scope of your energy-saving project. Identify the areas where you want to improve efficiency, such as lighting, HVAC systems, insulation, or appliances. Gather the necessary information you’ll need, including timeline, the scope of work, and the expected outcome. It’s also helpful to know your team’s internal approval process for projects up front, as well as the best point of contact for the project. This will help your team find the best available incentive.
Pro tip: if you’re not sure where to start, many utility energy efficiency programs offer a no-cost Facility Assessment that can help outline some of the opportunities at your building. Most of the time, these reports include information on financial incentives your projects would be eligible for, and instructions on how to apply.
2. Understand Program Requirements & Project Eligibility
Every utility's energy efficiency program has different specific eligibility criteria and requirements. These may include the type of project, the size of your property, or a required payback period. Ultimately, utilities are interested in increasing efficiency of projects beyond code and demonstrating that they incentivized greater efficiency. Often there are utility representatives that are familiar with the program and can help you navigate these questions easily. Sometimes utilities will even have account representatives that are dedicated to helping you quickly identify the best energy-saving opportunities.
Pro tip: Beware of phishing and other fraud attempts. Be cautious with including your utility account number or billing information in any written communications.
3. Understand the Application Process
Most importantly, understand at what point you need to apply for the incentive or rebate. Some utilities need to ensure that they are actually incentivizing increased efficiency with their offerings, so they will require that the application be completed prior to the equipment even being purchased (regardless of when you learned about the available incentives). Some utilities offer rebates for equipment purchases that you can only submit AFTER you’ve made the purchase – it’s best to check the fine print or risk losing the incentive.
The application process varies from utility to utility, but generally the steps are as follows:
Identify the project and associated incentive.
Gather required paperwork and determine timeline.
Apply for the “pre-application” or initial application letting the utility know you’re planning to make improvements.
Complete the installation, documenting the process.
Complete the “final application” or otherwise inform the utility that you’ve successfully completed the project.
Occasionally, you’ll be asked for a site check to ensure the project has been installed as indicated (measurement and verification). Otherwise, your project is complete and you will receive a financial incentive for your project!
4. Leverage Available Resources
Utilities often provide a wealth of resources to help applicants succeed. From online calculators and energy assessments to program webinars, take advantage of these tools to refine your project. Utilities are often looking to help you achieve the highest efficiency possible for your project – so considering suggestions they have for implementation could end up saving you a lot more in the long run.
Pro tip: still having trouble getting approval for the ROI you’ve developed for your project? Ask your utility program representative if they have any tips on additional incentive or financing options. In some areas, there are other programs that help with financing for energy-saving projects (like C-PACE, a green loan financing service).
5. Get Professional Assistance
In addition to hiring program professionals like Waypoint to help promote their initiatives and provide free assistance to customers, most utilities have developed a network of Trade Allies who are very familiar with program offerings and best practices. These professionals can help you design an effective project, gather necessary documentation, and submit a compelling application. Their expertise can be invaluable, particularly for complex or large-scale projects. Most utilities are not allowed to suggest specific Trade Allies to avoid favoritism, but often you can find a list of approved Trade Allies on the utility website.
Pro tip: best practice standards for bids still hold true – it’s always a good idea to get 3+ bids to determine the best service provider for your project.
6. Document Everything
This is perhaps the most important consideration when it comes to applying for incentives. Proper documentation is crucial to avoid issues with your application. Keep detailed records of your current energy use, project estimates, and expected savings. Make sure all required forms, permits, and contracts are completed accurately and submitted on time. This will help avoid delays and ensure your application is processed smoothly.
Pro tip: Take more photos than you think you need – of the existing equipment, of the new equipment, the installation process, and anything else that might be relevant when demonstrating that the project was installed correctly and according to your application.
7. Be Prepared for a Possible Inspection
Once your application is submitted, the utility may require an inspection of your property to verify the proposed project – especially for larger or custom projects. Be ready to provide access and answer any questions the inspector might have. A successful inspection is often the final step before your incentive is approved.
8. Follow Up and Stay Informed
After submitting your application, it’s best to stay in touch with the program throughout the installation process. Follow up with the utility to check the status of your application and address any additional requests for information promptly. Most programs will “lock in” your estimated savings when you apply, but keep the program representatives updated with significant changes to the anticipated installation timeline.
Pro tip: Occasionally, utilities offer additional or bonus incentives for projects that follow a specific installation timeline, or those that are completed during certain times of the year. So just because you’ve already been approved for an incentive doesn’t mean there won’t be additional financial incentives to take advantage of!
9. Plan for Long-Term Savings
Remember, the goal of an energy efficiency project is not just to secure a one-time incentive but to achieve long-term energy savings (and hopefully improve the comfort of your building tenants). Track your energy usage after the project is complete and compare it to your initial estimates. This will help you measure the effectiveness of your project and identify further opportunities for improvement.
Pro tip: when you’re done with your project, check in with your program representative to see if there any additional programs your team could qualify for. You’re never under any obligation to pursue these programs, but it’s helpful to know what opportunities there are!
Conclusion
Applying for utility energy efficiency program incentives can be a profitable and straightforward process if you're prepared. By following these tips, you'll increase your chances of approval and be well on your way to enjoying the financial and environmental benefits of energy efficiency. So, take the first step today, and start planning your next energy-saving project!
If you have any questions or want to learn more, email the Waypoint Energy team at info@waypoint-energy.com.
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