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Utility Rebates Revealed: Turning Energy Efficiency into Opportunity

By Nicholas Biegel

September 8, 2025
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In today’s fast-paced technological landscape, the emphasis on energy efficiency has never been greater.

As technology continues to advance, there are more options for energy-efficient devices within buildings. To incentivize companies to make the switch to these technologies, utility companies have started offering utility rebates.

What is a utility rebate? Utility rebates are monetary incentives where owners receive funds back by installing energy-efficient products or equipment in their buildings. Utility companies receive a pool of money to distribute to projects that prove they meet specified requirements.

So, how does a building qualify for an energy rebate? It may be confusing to know where to look for information, what questions to ask, or if a building even meets the requirements to get a rebate.
Solar panels on a large roof with a sunset in the background.
Solar panels on a large roof with a sunset in the background.

What Products Have Incentives?

Several different products can be incentivized. When thinking of energy-efficient technologies, things like solar panels or electric chargers come to mind. But there is a plethora of other items eligible for the rebate process. More common items like temperature controls, HVAC equipment, and lighting fixtures may also be eligible for a rebate. To be eligible, items must meet standards set by ENERGY STAR, the government program that sets the energy standards for said products.

Prescriptive vs. Custom Items

When filing a rebate, there are two categories that items in the rebate fall under: prescriptive and custom.

Prescriptive items fall under replacement and controls. These items have a set cost that is received per item.

Custom items are the remainder of the items that do not have a pre-determined cost associated with them. These items consider energy pricing, power consumption, and operating hours to determine the incentive that can be received.

Typically, if the project is a renovation to upgrade controls and devices, most of the rebate would be prescriptive. For new construction, a majority of the items would be custom. However, there are no restrictions to filing completely into one single category. Rebates often have items from both categories.

How and When to Apply

It may not be very clear who to reach out to and when to apply for a rebate. When a project goes public, the local utility company may reach out to the owner or the design team with documents to begin the process.

Being aware that a project may be eligible for rebate funds may enable one to get ahead of the filing process by reaching out to the local utility. Depending on the type and how much work is being done, the amount of work that is needed prior to construction changes.

Pre-approval and Required Information

If any rebate has custom items, many utility companies require a pre-approval process to verify that the calculation process and what is calculated align with what the utility company expects. There are several forms and documents that the utility company may require in order to begin the pre-approval process. The items include:

  • W-9
  • The rebate form with the incentive information filled out
  • A recent utility bill for a renovation project
  • Quotes for equipment and labor
  • The Comcheck to verify the equipment meets energy code
  • A utility account number

All this information is processed prior to the project’s completion. Once the project has been pre-approved and completed, the rebate checks can begin to be filed.
Design Collaborative Co-workers sitting at a booth by a window collaborating on design. A businessman holds a construction supply list for cost estimating. Papers, documents, and a calculator sit in the background.
Design Collaborative Co-workers sitting at a booth by a window collaborating on design. A businessman holds a construction supply list for cost estimating. Papers, documents, and a calculator sit in the background.

Is Filing a Rebate Form the Right Move?

Though all this may seem promising, there is the question of whether or not to file for the rebate. If the project only replaces minimal devices, do not expect to gain a significant incentive. Most large incentives come from ensuring all the items are on the rebate list. Information often quotes up to thousands of dollars in incentives, but expectations can often be dashed when the incentive is not a large amount. Also, depending on the payback period of the incentive, a project may or may not even be eligible. This is not to discourage anyone from filing; it is to encourage a cursory review of the project to ensure eligibility and to see the prospective amount eligible from a rebate before diving into the process and forms.

Overview

Advances in the energy efficiency of building systems are always improving. By investing in these systems, funds may be rewarded based on the type and quantity of the different items. It is an incentive to develop more energy-efficient buildings that save the owner money. By taking a little bit of time to gather the required information on the project’s systems, rebates may be applied and granted to the project.

Looking to maximize the benefits of energy rebates on your next project? Our team can guide you through the process to ensure opportunities aren’t left on the table. Reach out to start the conversation.

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