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.