Are you looking into rebate bonus programs? Get ready to learn more about them and what you need to be aware of with COVID-19 bonus programs and standard bonus programs.
To start, what is a bonus program?
Utility programs will offer bonuses (increased rates for a short period of time) for several reasons. As we noticed in 2020 some utilities are offering bonus incentives due to the COVID-19 pandemic. However, not all bonus programs are related to COVID-19. They can be implemented to help utilities reach their goals as an incentive to get more projects submitted or help accelerate the reduction of demand on the grid.
How is bonus program eligibility different?
Bonus programs usually have their own set of requirements separate from the standard utility rebate program.
In a nutshell, you will need to be mindful of dates, fine print, and methods of achieving the rebate – this is really what matters.
With the number of utility rebate programs and bonus programs it is extremely difficult to keep track of every detail.
Here are some requirements that different utility programs have in place for bonus programs:
- Bonus incentives can be paid based on how many projects you have submitted to that utility in the past
- Bonus programs do not always have end dates
- Dates of both the equipment installation and application submission can matter
- Qualified products (different bonus amounts can sometimes apply to different product categories)
- New construction versus retrofit
- Custom rebates can also be included in bonus programs
*this list is not all inclusive
Project pipeline, timelines, and cost.
Having projects in your pipeline versus having to add new projects makes a difference when you’re thinking about submitting for bonus rebates. This is true especially for the bigger projects. Since bonus programs usually have a quick deadline, having projects ready to start will determine if you’re even eligible for the bonus incentives.
With the new normal, construction sites will have to include a lot more health and safety measures so that employees are comfortable returning to work. These extra costs can be offset by utility rebates and bonus programs instead of just increasing labor costs.
Looking for incentives any time you’re doing a project is worth the extra time. It could be the difference between the client saying ‘yes’ immediately or waiting to make a decision.
Here are some bonus program examples:
*if you’re looking to keep up with bonus programs, Encentivizer can do it for you!
The DCSEU is working with DC area distributors (Midstream Program) to provide instant rebates to District businesses on energy-efficient lighting.
Look for the “Updated Rebate Per Bulb” column – these updated rebates end on September 30, 2020.
- Project applications must comply with applicable program guidelines.
- The incentive bonus will be capped at 2 million dollars and available until the bonus End Date (2020 Bonus Incentive “End Date”: The earlier of December 31st, 2021 or the date the incentive budget is consumed.)
- Once all required completion paperwork has been submitted and the 2020 incentive bonus eligibility has been confirmed, the incentive will be increased at the measure level based on the following criteria:
- 10% increase for interior lighting measures
- 15% increase for HVAC (encompasses program end uses HVAC and Cooling) measures
- The total of measure incentive plus bonus, must not exceed total project cost.
- The incentive bonus amount will be included in the final incentive check or bill credit.
Rocky Mountain Power
They temporarily increased their offered incentives to the commercial energy efficiency measures in Wyoming due to COVID-19.
NYSEG and RG&E
Special Bonus and Higher Custom Rate
As restrictions begin to ease and we all take steps to get our business and daily routines back on track, we are offering a special bonus to our commercial and industrial rebate program participants:
- 15% additional rebate for all projects completed and submitted for payment from May 26 through November 30, 2020.
- Custom non-lighting rebate rate has been increased by 54% to $0.20 per kWh saved.
- Project-level screening is now available for custom projects, enabling bundling of passing/failing measures, which can increase total project rebate amounts.
Payment applications must be received complete with all required documentation by November 30 to be eligible for bonus rebate.