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SRP Rebates: How to save your business money

SRP Rebates: How to save your business money

By Danny Kasalek

UPDATE: Salt River Project (SRP) is nearly out of rebate funds. As of January 14, 2021, SRP announced that they have given out 90% of their rebates for the year. You will want to act fast if you are planning on implementing any energy efficiency upgrades. Contact us today.

Introduction to Salt River Project SRP Rebate Program Webinar

This webinar will provide you with some high-level details about SRP rebates and the process for accessing them. Out of respect for your time, this webinar will remain under 15 minutes.

PLAY

Watch the webinar here

 

SRP offers rebates to reduce the cost and payback period for your energy efficiency projects, which makes them more affordable. SRP schedules their rebate program to run on a fiscal year from May 1 – April 30th annually, so this is a great time to consider making some upgrades to your facility, as there is still time to take advantage of the 2020 program. However, there are specific funds allotted for each program, so if they run out, we’ll need to wait until the next program is released to find out what new rebates are available.

 

Does my business qualify for SRP rebates?

Rebates for energy efficiency upgrades are available to all SRP commercial electric customers. Unsure if you are in SRP territory or not, check out this map to check and also look at your monthly electrical utility bill.

 

Why does SRP provide rebates to its commercial customers?

One of the bigger mysteries about utilities offering rebates to reduce energy use is – why do they do it?

There are multiple factors that play into their reasoning, but one of the main drivers is that they set annual energy reduction goals, sometimes required by regulators, that they have to meet. All public utilities are overseen by a regulating authority, and are required to submit energy plans for approval.

In Arizona, the Arizona Corporation Commission oversees the public utilities: APS, TEP, and UniSource. However, SRP is a private company, with oversight from its board of directors.

Reducing energy demand decreases the need to build additional infrastructure and reduces the costs of maintenance on existing infrastructure, saving the customers and utility companies money. This leaves room for additional customers or new technologies, such as electric vehicles, to utilize the grid
without adding additional infrastructure. Also, more recently, reductions in demand have helped consumers and utility companies meet renewable energy goals as well, as it costs less to reduce demand than it does to produce additional electricity.

To meet these goals, utility companies partner with private contractors to implement energy reduction projects, and then provide rebates for the equipment installed. Examples of energy reduction projects include replacing old lighting with LEDs or adding variable speed drivers to motors, and battery
storage can be used to shift the load.

 

How does the rebate program work?

SRP offers rebates for many different types of energy reduction projects. Sometimes the rates are prescriptive, meaning you’ll receive a pre-set amount per piece of equipment installed.

For example, you can receive up to $210 for a new LED high bay fixture, or up to $75 on a variable frequency drive for a fan or pump through SRP. Sometimes the incentives are rate-based, meaning you’ll receive an amount per kW or kWh of demand reduction. For example, some utilities will pay $.50/W reduced on a lighting project.

I’ve listed just a few of the rebates available within different technologies here, but this list is not comprehensive, so our team will be happy to work with you to maximize your rebates for your project. Also, please keep in mind that the program will change year to year, and the trend we’re seeing is toward a reduction in lighting incentives, with an increased focus on incentives for HVAC, variable speed drives or variable frequency drives, and data centers.

 

Details on SRP LED Lighting Rebate Program

Because most of you watching the webinar have an interest in LED lighting projects and the rebates associated, we’ll dive a little deeper into SRP’s lighting incentives.

SRP has rebates available for both small and large commercial and industrial businesses. The small business program can cover up to 75% of the project costs through rebates, while the standard business program pays $0.30 per W reduced, plus $0.15 per W controlled by adding sensors to your project.

For the standard program, SRP will conduct a pre-inspection prior to beginning the project. Once the project is completed they will conduct a
post-inspection. U.S. Energy Recovery will meet the inspector at your site to walk them through the project and ensure all existing energy usage is accounted for, providing a greater rebate.

For the standard program, there is a customer cap of $300,000/year. The program runs from May 1st to April 30th each year. However, funds do run low as we get closer to the program closure date. The funds are allotted per program, so the small business and standard programs each have their own funding.

Here are some examples of common fixtures found in large C&I buildings, and the rebates they can receive, depending on what fixture exists in the space:

  • A new high bay can get up to $210
  • You can get up to $160 for an LED retrofit kit
  • You can get up to $6 per tube
  • You can get up to $40 for an LED exterior fixture, and up to $13 for advanced lighting control.

 

How to apply for energy rebates?

The submission process to access the rebates can be quite intensive, which is why US Energy Recovery includes this service as part of our turn-key projects. Our staff works with utility companies every day, and our Incentive Specialists attend several trainings a year for the SRP Small and Large Business Rebate programs, so we’re able to get you the highest rebate possible for your project.

We’ll fill out all the paperwork and gather all supporting documentation required to submit the project, and as mentioned earlier, will be available to walk SRP’s inspector through the project during both the pre and post inspection to help them understand the entire project.

SRP will distribute the rebate check to either the SRP customer or a 3 rd party (which, in this case, would be US Energy Recovery) :

If the customer receives the payment, we’ll invoice you for the entire project, and then you receive the payment from SRP. It can take up to 2 months for SRP to cut the check after the project is complete.

If we, the 3rd Party, receives the incentive check, we would invoice you for the difference between the project and the estimated rebate amount, and then we receive the rebate once they approve the final project. This method allows us to hold some of the project costs for our customers.

 

How might we be able to help with your next energy solutions project?

U.S. Energy Recovery is a lighting and technology company that focuses on helping your business save money through technological efficiencies. We work throughout North America to provide turnkey solutions that will help your business complete projects quickly and start saving money. You can see some of the energy reduction technologies we can help you with here, including:

How do I get started?

If you have follow-up questions regarding the rebates, please contact us. If you have questions regarding a potential project at your facility, we can direct you to our account managers who can provide more information about our processes, and help you understand the specifics of what can be done in your facility.

Thank you for watching and we look forward to helping you through your next project!

Curious to find out what rebates you qualify for?