Compressed Air Ticker:

Understanding Energy Rebates

Air compressor rebates

Making your compressed air system more efficient makes economical sense for many reasons. Reduction in operating costs, minimizing unnecessary wear and tear on your system, rebates, etc. For the purpose of this article, we will only focus on rebates.

Energy companies have answered the call of addressing energy waste, and for that reason they offer great incentives to those aiding in reducing the waste.

1)      Purchasing a VSD Air Compressor – Replacing a fixed-speed compressor with a variable-speed compressor is one of the most commonly utilized way of getting energy rebates. Different energy companies have different incentive plans, but for the purpose of this section, we will look at Consumers Energy.

  • VSD Air Compressor, 50 HP to 500 HP (minimum 6,000 hrs/year operation) – $150.00 per HP
  • VSD Air Compressor, 50 HP to 500 HP (minimum 2,000 hrs/year operation) – $100.00 per HP

2)      Other Efficiency Equipment –  In addition to bringing in a new VSD Air Compressor, there are other ways rebates may be available to you. Different energy companies have different incentive plans, but for the purpose of this section, we will look at Consumers Energy.

  • Correct Sizing Air Compressor – $95 per HP reduced
  • Compressed Air Pressure Flow Controller – $10 per HP
  • Air Recycling Pneumatic Valve – $20-$35 per valve
  • Efficient Dryers – $3-$8 per CFM
  • Compressed Air Storage Tank – $30-$70 per HP, depending on size
  • Custom incentives/projects pay per KW reduced up to 50% of total project cost

3)      Repairing Leaks –  With repairing leaks, the rebate incentive is based on the CFM waste reduced by repairing said leaks. For that reason, when the leaks are detected you will want to make sure the leak is properly measured, marked and recorded. Then you will want to make sure all repairs are also recorded. The exact amount available varies by territory, however DTE Energy will pay you $35 for every CFM leak detected and fixed, associated with a Variable Speed compressor, and $20 for every CFM leak detected and fixed, associated with a Fixed Speed compressor.

By way of example, most recently we completed a leak audit in South Bend, IN where we were able to detect 118.2 CFM worth of leaks, which made them eligible for a rebate incentive of $4,138.75 … and on top of that it is estimated they will save $14,857.58 annually in energy costs!