Who offers them
In most regions, someone is willing to pay part of the cost of a project that saves energy or modernizes infrastructure. Electric utilities offer rebates because every kilowatt-hour saved is one they do not need to generate or deliver. Governments and their agencies offer grants and subsidies to meet energy, climate and economic goals. Some programs target a sector, such as municipalities, schools or hospitals; others are open to any customer of a utility.
The names vary. A rebate usually pays back part of the cost after installation. A grant usually funds part of a project approved in advance. A subsidy may lower a price, an interest rate or another cost along the way.
What they typically fund
Programs change often. Budgets run out, eligible equipment lists are updated and new programs open, so what applied to last year's project may not apply to this one.
- Efficient lighting that replaces older, higher-wattage equipment
- Lighting controls that cut operating hours or demand
- Clean power such as solar, wind and battery storage
- Infrastructure upgrades that improve efficiency, safety or resilience
Typical requirements
Each program sets its own rules, but most share the same pattern. They want proof that the equipment qualifies, that the project really reduces energy use or demand, and that it was installed as described.
The reduction is usually calculated from the wattage and operating hours of the existing system against the new one. Keep a record of what is being removed: counts, wattages and photos taken before work starts are often required.
- Qualifying equipment, often from a recognized product list
- A calculated energy or demand reduction against the existing system
- Pre-approval before any equipment is ordered
- Invoices, photos and inspection or verification after installation
Stacking incentives with financing
Incentives and financing are not alternatives. A rebate or grant lowers the amount that has to be funded, whether the project is bought outright, leased or delivered through an ESCO. Sometimes it closes the gap so well that no financing is needed at all.
Some programs can also be combined with each other, while others forbid it. Check each program's rules on stacking before counting on more than one. Ask, too, whether the incentive is paid to the owner or can be assigned to the provider delivering the work.
Common pitfalls
Most lost incentives come down to timing and paperwork, not eligibility. CONXCORP checks which incentives a project qualifies for and prepares the applications on the customer's behalf, so the steps happen in the right order.
- Buying equipment before pre-approval, which can void the incentive
- Missing application or completion deadlines
- Substituting equipment that is not on the qualifying list
- Losing the paperwork needed for verification