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Incentives/Policies for Renewables & Efficiency

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Xcel Energy (Electric) - Business Energy Efficiency Rebate Programs   

Last DSIRE Review: 08/16/2012
Program Overview:
State: Colorado
Incentive Type: Utility Rebate Program
Eligible Efficiency Technologies: Refrigerators, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Heat pumps, Central Air conditioners, Compressed air, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Motors, Motor VFDs, Processing and Manufacturing Equipment, Custom/Others pending approval, Led Exit Signs, Evaporative Coolers, Commercial Refrigeration Equipment, Data Center Equipment, Recommissioning, Heat Pump Water Heaters, Energy Audits, LED Lighting, Energy Management Systems
Applicable Sectors: Commercial, Industrial, Schools, Local Government, State Government
Amount:Custom Efficiency: $400/kW saved
Efficiency Study: 75% of cost, up to $25,000
Self-Direct Custom Efficiency: $525/kW or $0.10/kWh conserved
Insulation, Caulking, Weatherstripping: 20%
Self Direct Custom Efficiency: No specified, see web site
Standard Offer Program: 50% of the cost of a technical audit + $250/kW and $0.05/kWh conserved
Recommissioning: $400/kW or $0.08/kWh, whichever is higher
A/C: $65/ton + $5/ton for greater efficiency
Water-Source Heat Pumps: $65/ton + $5/ton for greater efficiency
Improvements to Furnaces and Boilers: $250 - $10,000
Electric Heat Pump Water Heater: $450
Furnaces: $80 - $120/unit
Chillers (Rotary Screw/Rotary Screw/Air Cooled/Water Cooled): $8/ton + $1.50-$2.00/ton FLV + $.75/ton IPLV for greater efficiency
VFD for Chiller: $1.50/ton per IPLV for each $0.01/kW ton below max
Plate and Frame Heat Exchangers: Up to $400/ton
Energy Management System: $600/kW, $4/Dth
Lighting: Varies widely by type
New Construction Lighting: Slightly reduced from retrofit incentives
New Motors: $25 - $2,500, based on HP
Replacing Working Motor: $200 - $13,000, based on HP
EC Motors for Refrigeration: $40 - $70
Motor Controllers: $15/HP
Drives for fans and pumps: $400 - $8,000
VSD Compressor: $1,000 -$4,000 (New/Restored); $4,000 - $7,000 (Early Replacement)
50-99 HP Compressor System Diagnosis: $2500
100+ HP Compressor System Diagnosis: 75% of cost up to $15,000
No-loss Air Drains: $200/unit Integrated VFD Compressor: $4,000 (10 - 24HP); $4,500 (25 - 49HP)
Custom Compressor Rebate: $600/Kwh saved
Maximum Incentive:Custom Redesign: 75% and $25,000
Self-Direct Custom Efficiency: 50%
Data Center Improvements: 70% and $25,000
Lighting Efficiency Study: 75% and $25,000
Cooling Efficiency: 50%
Compressor System Diagnosis: 75%
Recommissioning Study: 75% and $25,000
Evaporative Coolers: $1000
Ground Source Heat Pump: $1500
Insulation: $300
Eligible System Size:Recommissioning: 50,000 sq. ft. or more
Self Direct Custom Efficiency: Must have an aggregate peak load of 2 MW in any single month and an aggregated annual energy usage of 10 GWh
Equipment Requirements:See program website.
Installation Requirements:Air Compressor studies that pinpoint leaks or waste: must fix at least 50% of the air loss caused by the leaks and waste identified in the study.
Refrigeration Recommissioning: based on high and low temperature case design loads for facilities with a combined facilities peak load of at least 2 MW and annual energy usage of at least 10 GWH.
Web Site:
Xcel Energy offers rebate programs for Colorado commercial and industrial customers for a wide range of energy efficiency technologies including heating and cooling, motors, lighting, and refrigeration. In many cases, Xcel energy will cover at least part of the cost of the assessment, in addition to the equipment and installation rebates. If the customer would like to make energy efficiency improvements that are not included in specific rebate programs, they may be eligible for the custom rebate program. Information on incentive amounts and efficiency specifications can be found at the program web site; for more information on the rebate programs, customers should contact business’ account manager.

Energy efficiency measures that exceed standard options but aren’t covered under prescriptive rebate programs fall under the Custom Energy Efficiency Program. Pre-approval is required to be reimbursed for custom measures and energy management automated building controls through rebates up to $400 per kW saved. Xcel also offers data center and engineering assistance efficiency studies and rebates of 75% up to $25,000 that help build a business case for running data centers with the greatest efficiency. For most facilities, on-site energy assessments cost $200 for buildings less than 25,000 sq. ft. and $300 for buildings 25,000 sq. ft. and above.

The Small Business Lighting program offers a free lighting audit and lighting retrofit rebate through Xcel's consultant, Franklin Energy. The program provides special services for small and mid-sized business that have peak demand of 400 kW or less. Customers can call 1-877-287-2250 to verify eligibility and receive assistance with rebate paperwork.


  Business Solutions Center
Xcel Energy
Business Programs
Phone: (800) 481-4700
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

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