April 2007 Rebate Report: Spotlight: Motors and Drives

Products

Rebates Make Energy Efficiency Obtainable

The laws of physics governing centrifugal fans and pumps dictate that the volume of air or water decreases directly with reductions in fan or pump speed. Power consumption, on the other hand, decreases with the cube of speed. That is why even small reductions in speed can produce significant reductions in power consumption. Building operators can save substantial amounts of energy by choosing to control the speed of fans and pumps in their HVAC systems with VFDs instead of mechanical flow control systems. The payback period for installing these drives is usually between one and three years. And as the table suggests, many utilities offer incentives for installing HVAC drives in new or retrofit work. Some programs offer “prescriptive” rebates for variable frequency drives (VFDs); others include VFDs in their “custom measures” program.

Sensible application of VFDs offers benefits beyond energy savings. Drives can reduce fan noise and duct rumble, a frequent source of occupant complaints. VFDs are also less expensive to maintain than mechanical controls. In fact, inherent soft-starting reduces wear and tear on motors and other system components. Finally, VFDs provide accurate and repeatable control of HVAC settings, eliminating the need Note: Variable speed drives

(VSDs) and variable frequency drives (VFDs) are both electronic evices that control the speed of electric motors. The term "VSD" refers to either ac or dc drives, while the term “VFD” applies to ac drives only. e&pm

Spotlight on Motor Controls

Visit our Rebate Report page for access to archived Rebate Reports. Past reports feature a variety of incentive types and programs, and include participation details and eligibility requirements, as well as contact information, links to rebate applications, and more.

Variable Speed Drive Incentive Program.

OWATONNA PUBLIC UTILITIES – MN • AUSTIN UTILITIES – MN • ROCHESTER PUBLIC UTILITIES – MN

CONTACT DATA: Owatonna Public Utilities www.owatonnautilities.com• (507) 451-2480 Austin Utilities • www.austinutilities.com • (507) 433-8886 Rochester Public Utilities • www.rpu.org • (507) 280-1500

ELIGIBILITY DETAILS: Qualifying VSDs must • Be rated for 1 to 200 hp • Vary motor speed automatically • Not be required as a standard mode of operation for the fan or pump • Include a line reactor between the power source and the drive to reduce harmonic current. New Construction or Retrofit VSD installations are eligible; units purchased for inventory earn reduced rebates.

PARTICIPATION DETAILS: Submit completed application for approval before ordering VSD. Utility must inspect old equipment prior to VSD installation. Rebates are limited to fan and pump applications. VSD installations for other motordriven machinery may qualify through custom program. The maximum rebate amount is $25,000 per customer location per technology per year. Rebates range from $150 to $3,600 per unit for new construction or retrofit installations, and range from $60 to $1,800 per unit inventoried, depending on size (lesser of motor size or VSD size).

Custom Heating-System Program.

KANSAS CITY BOARD OF PUBLIC UTILITIES (BPU) – KS

CONTACT DATA: www.bpu.com• (913) 573-9988 • info@bpu.com

PROGRAM OVERVIEW: BPU’s C/I customers are encouraged to install high-efficiency heating-system equipment in new or existing buildings or production processes. Custom program focuses primarily on large-space heating and cooling systems and control systems. Variable Air Volume (VAV) system conversions are noted as an example of energy-efficient equipment that may qualify for rebates.

PARTICIPATION DETAILS: Either submit proposal to BPU for preapproval prior to purchase and installation of equipment or contact the utility for assistance planning energy-efficiency measures for remodeling or expansion projects.

New Equipment and Construction Program - Variable Frequency Drive Rebate.

PUBLIC SERVICE OF NEW HAMPSHIRE – NH

CONTACT DATA: www.psnh.com • (800) 662-7764

PROGRAM DETAILS: Prescriptive rebates ranging from $800 to $1,575 available for VFDs depending on the hp controlled. Technical assistance is also offered, including project evaluation to help facilitate the identification and installation of premium energy efficient equipment.

ELIGIBILITY DETAILS: New construction, major renovation, or replacement of failed equipment eligible. Pre-approval required prior to the purchase and installation of equipment. VFDs must operate a minimum of 2,000 hours per year. Vendor quote or proposal required. Several types of fan or pump VFD applications are eligible, including supply and return fans on VAV packaged HVAC units, cooling tower fans, process heating & cooling circulation pumps, and multiple types of air handler and exhaust fan installations. Forward curve fans with inlet guide vanes are not eligible.

EnergyAdvantage For Your Business - Motors and Variable Speed Drives.

MIDAMERICAN ENERGY – IA

CONTACT DATA: www.midamericanenergy.com/ • (800) 894-9599

PROGRAM DETAILS: Qualifying equipment eligible for financial incentives in the form of cash or below-prime financing (prime rate minus 1%). The prescriptive variable-speed drive incentive is $30 per horsepower of the motor being used.

ELIGIBILITY DETAILS: The motor must be 5 hp or greater to qualify for an incentive. Incentives exceeding $10,000 require pre-approval. Projects must be completed within six months of pre-approval. 3,000 operating hours annually minimum required for incentives.

PARTICIPATION DETAILS: Applications must be submitted within three months of equipment installation in existing buildings and within six months of equipment installation in new construction.

EnergyAdvantage For Your Business - Custom Systems.

PROGRAM OVERVIEW: The program is designed to encourage nonresidential customers to install high efficiency building systems equipment in existing buildings, focusing primarily on large space heating and cooling systems and control systems not addressed in other programs. Specifically noted as potentially eligible are Variable Air Volume (VAV) system conversions and chiller process improvements.

PARTICIPATION DETAILS: To be eligible for an incentive, an application for the custom program must be received and approved prior to the customer’s purchase and installation of equipment or systems.

INCENTIVE DETAILS: Cash rebates will be customized based on qualifying equipment’s higher incremental cost, peak demand reduction, annual energy use reduction and annual energy cost savings.

Business Efficiency Program - Variable Speed Drives.

PUGET SOUND ENERGY – WA

CONTACT DATA: www.pse.com• (800) 562-1482

PROGRAM DETAILS: VSD installations in HVAC systems earn rebates of $50 per hp for VSDs used in HVAC fan applications or $65 per hp for VSDs used in pump applications. ? PARTICIPATION DETAILS: Application must be submitted for pre-approval prior to equipment installation. Installation must be completed within 60 days of pre-authorization. After equipment is installed, return the required documentation to PSE, and allow four to six weeks for processing. Funding availability is subject to annual program budgets, however, payment is guaranteed for pre-authorized projects. Business Efficiency Program - Custom Measures.

PROGRAM DETAILS: Grants for new construction or upgrade projects can provide funding for up to 70% of the installed cost of any project resulting in increased efficiency.

ELEGIBILITY DETAILS: Application and pre-approval are required to qualify for funding. Projects with a simple payback less than one year, or more than ten years are not eligible. Common retrofit projects include adjustable speed drives and industrial process systems & equipment upgrades. New construction custom projects must exceed efficiency levels prescribed in applicable energy codes by at least 10%.

Clean Energy Initiative - Prescriptive Rebates.

LIPA – NY

CONTACT DATA: www.lipower.org• (800) 692-2626

PROGRAM DETAILS: Rebates are available for controls for used with varying load equipment in various heating and cooling applications, including VAV Fans, cooling tower fans, hot water or chilled condenser water pumps, and building exhaust fans. VFD applications not covered prescriptively may be eligible for a custom rebate. Rebates range from $1,000 to $1,600 for VFDs depending on motor size. Annual incentives may reach $100,000 per project or up to $300,000 per customer.

ELIGIBILITY DETAILS: Existing facilities undergoing major renovations or new buildings in the design phase or early stages of construction may apply. Incentives are available only for pre-qualified equipment. VFDs cannot replace existing VFDs. No incentives offered for VFD controlling less than 5 HP; VFDs controlling more than 25 HP may be covered under the custom program. Motors must operate a minimum of 2,000 hours annually. Forward curve fans with inlet guide vanes, variable pitch vanaxial fans, or code-required VFD installations are not eligible.

Rebate Report is generated by the Financial Incentives National Database (F.I.N.D.) exclusively for Energy & Power Management. Copyright 2007 RealWinWin, Inc. The data contained herein are provided for information purposes only. Accuracy is not guaranteed as programs are subject to change. RealWinWin disclaims any liability resulting from discrepancies. Visit www.realwinwin.com for further information. Submit inquiries to info@realwinwin.com or call (866) 799-FIND.