The Sustainable Energy Program provides financial incentives to encourage residential and business customers to make energy-efficiency improvements. By taking advantage of the Sustainable Energy Program, you can save money, help reduce the need for energy during expensive peak periods and help delay the necessity to build additional high-cost power plants to serve our community.
How it works
- Funds are available on a first-come, first-served basis beginning Jan. 1 of each year.
- Take a look at our list of participating contractors.
- Contact one or more of the SEP participating contractors for a bid and available incentives.
- Ask your tax advisor if the project qualifies for a federal tax credit.
Scroll below to see the qualifying equipment and incentives.
Live webinar: Sustainability + Tax Credits // March 30, 12-1 p.m.
LES' Marc will discuss our residential Sustainable Energy Program incentives and federal tax credits available, touch briefly on EV and solar credits, and fill us in on other future federal tax incentives and rebates.
The Inflation Reduction Act of 2022 provides new federal tax credits through 2032, lowering the cost of energy-efficient home upgrades by up to 30%. Home improvements such as installing heat pumps, heat pump water heaters, insulation, doors and windows, as well as electrical panel upgrades, home energy audits and more, are covered by the tax credits and can help customers save money on their energy bills.
In addition to the energy-efficiency credits, homeowners can also take advantage of the modified and extended Residential Clean Energy credit, providing 30% income tax credits for clean energy equipment, such as rooftop solar, wind energy, geothermal heat pumps and battery storage through 2032.
Access the webinar using the Microsoft Teams link or phone number below. Click here if you need help with Microsoft Teams.
Click to join the webinar March 30 at noon
Phone number: +1 402-979-7656 United States, Omaha (Toll)
Conference ID: 925 077 128#
SEP FUNDS REMAINING
As of 3/24/2023
$
979108
Residential
Qualifying equipment & incentives
Download a snapshot of the residential incentives & tax credits
Whole-house and facility sealing and insulation
Customers in existing homes and commercial buildings with no wall or minimal attic insulation (R-19 or less) can qualify for up to $1,000 to seal penetrations and upgrade insulation levels to current energy code standards. Incentives are available at $0.80/square foot for wall insulation and $0.50/square foot for attic insulation. A pre and post blower door test also is required. Talk to one of the Sustainable Energy Program participating contractors for further details.
- Tax credits available: Insulation // 30% up to $1,200. Visit EnergyStar.gov for further information. LES recommends consulting with a tax professional on qualifying equipment and tax deduction details.
High-efficiency heat pumps and air conditioners
Customers could receive $600 per system for qualifying central air conditioners and $800 per system for qualifying air source heat pumps. Geothermal heat pumps can qualify for up to $1,500 per system. Incentives for central air conditioners and air source heat pumps are determined by both EER2 (Energy Efficiency Ratio 2) and SEER2 (Seasonal Energy Efficiency Ratio 2). Geothermal incentives are determined by the EER. All are compared to existing energy code minimums.
- Tax credits available: Heat pumps // 30% up to $2,000. Air conditioners // 30% up to $600. Visit EnergyStar.gov for further information. LES recommends consulting with a tax professional on qualifying equipment and tax deduction details.
Heat pump water heaters
Customers could receive $500 per qualifying heat pump water heater that is 40 gallons or larger. Heaters with a tank size of 40 to 55 gallons must have a UEF (efficiency rating) of at least 2.0. Heaters above 55 gallons must have a UEF of at least 2.2. The unit must be listed by ENERGY STAR®. It can be installed in an existing or new home or commercial building. It must be installed in an unconditioned or partially conditioned room that provides at least 1,000 cubic feet of the surrounding air.
- Tax credits available: Heat pump water heaters // 30% up to $2,000. Visit EnergyStar.gov for further information. LES recommends consulting with a tax professional on qualifying equipment and tax deduction details.
Commercial & Industrial
Qualifying equipment & incentives
Download a snapshot of the commercial & industrial incentives & tax credits
Whole-house and facility sealing and insulation
Customers in existing homes and commercial buildings with no wall or minimal attic insulation (R-19 or less) can qualify for up to $1,000 to seal penetrations and upgrade insulation levels to current energy code standards. Incentives are available at $0.80/square foot for wall insulation and $0.50/square foot for attic insulation. A pre and post blower door test also is required. Talk to one of the Sustainable Energy Program participating contractors for further details.
High-efficiency heat pumps and air conditioners
Customers could receive $600 per system for qualifying central air conditioners and $800 per system for qualifying air source heat pumps. Geothermal heat pumps can qualify for up to $1,500 per system. Incentives for central air conditioners and air source heat pumps are determined by both EER2 (Energy Efficiency Ratio 2) and SEER2 (Seasonal Energy Efficiency Ratio 2). Geothermal incentives are determined by the EER. All are compared to existing energy code minimums.
Heat pump water heaters
Customers could receive $500 per qualifying heat pump water heater that is 40 gallons or larger. Heaters with a tank size of 40 to 55 gallons must have a UEF (efficiency rating) of at least 2.0. Heaters above 55 gallons must have a UEF of at least 2.2. The unit must be listed by ENERGY STAR®. It can be installed in an existing or new home or commercial building. It must be installed in an unconditioned or partially conditioned room that provides at least 1,000 cubic feet of the surrounding air.
Commercial and industrial lighting
Incentive payments are available for customers reducing electrical demand and costs associated with lighting (within existing commercial buildings). Lighting in new facilities does not qualify. Screw-in bulbs, CFL bulbs, GU base bulbs, track lights and can lights do not qualify. All new lighting products must be LED. LED lighting replacing LED lighting does not qualify.
Commercial and industrial energy efficiency
This program is designed to help commercial and industrial customers achieve peak-demand savings through one or more efficiency measures. Components of the program include air conditioner/heat pump, variable frequency drives, compressed air systems upgrade, energy management systems installation, optimization or upgrade, and refrigeration system. In addition, customers can work with their assigned LES account executive to tailor a program that results in reduced system peak demand.
Tax deductions available
The Inflation Reduction Act extended and expanded these tax deductions. We will have updated information on this page as soon as guidance becomes available from the IRS.
A tax deduction of up to $1.80 per square foot is available to owners or designers of commercial buildings or systems that demonstrate a 50% reduction in energy usage accomplished solely through improvements to the heating, cooling, ventilation, hot water, and interior lighting systems. Partial deductions of up to $.60 per square foot can be taken for qualifying measures.
LES recommends consulting with a tax professional on qualifying equipment and tax deduction details.
Terms and conditions
Contractors
Are you a contractor/self-installer already registered to participate in the Sustainable Energy Program? If yes, click the link below to access the 2023 program details.
Are you a contractor/self-installer interested in participating in the Sustainable Energy Program?
Email an Energy Services Representative
Call 402.475.4211
View the video below for an overview of LES' 2023 program orientation for contractors/self-installers.
Contractor orientation meeting highlights
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