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Incentives/Policies for Renewables & Efficiency

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Energy Optimization (Electric) - Commercial Efficiency Program   

Last DSIRE Review: 12/15/2014
Program Overview:
State: Michigan
Incentive Type: Utility Rebate Program
Eligible Efficiency Technologies: Refrigerators, Equipment Insulation, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers , Heat pumps, Central Air conditioners, Compressed air, Energy Mgmt. Systems/Building Controls, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Motors, Motor VFDs, Processing and Manufacturing Equipment, Agricultural Equipment, Custom/Others pending approval, Led Exit Signs, Vending Machine Controls, Commercial Refrigeration Equipment, Food Service Equipment, LED Lighting, Anti-Sweat Heater Controls, Intelligent Power Strip Plug Outlet, Low-Energy Livestock Waterer, Barn Circulation Fan and Exhaust Fan, Barrel Wraps
Applicable Sectors: Commercial, Industrial, Small Agricultural
Amount:Custom: $0.06/kWh/yr saved
CFL Bulbs: $1 - $5
CFL Fixtures: $22/fixture
High Performance T8 Lighting Retrofit: $4-$20/fixture retrofit
Standard T8 Lighting Retrofit: $0.75/fixture
T5/T8 High Bay Fluorescent Fixtures: $25-$60/fixture
LED/Other Fluorescent High Bay: $0.25/watt reduced
CFL/LED/Induction Dusk-to-Dawn Lighting: $20 - $50/fixture
Occupancy Sensors: $20 - $50/sensor
LED Traffic Signal: $15/lamp
LED Lamps: $4 - $15/unit
LED/Induction Garage Fixture: $40 - $100/unit
LED Exit Sign: $12.50 per sign Central A/C and Heat Pumps: $10/ton
HVAC Chillers: $20/ton
Chiller Tune-Up: $6 - $12/ton
Variable Frequency Drives: $40 - $60/HP
Vending Machine Controllers: $50
Commercial Refrigeration Equipment: Varies
Commercial Cooking Equipment: Varies
Compressed Air Nozzles: $100/unit
Variable Speed Air Compressor: $90/HP
Refrigerated Compressed Air Dryer: $0.40 - $1/SCFM
Compressed Air Leak Audit/Reduction: $10/HP ECM Motor on Furnace Fan:$150 per fan motor
Maximum Incentive:General: See program web site
Custom:75% of the project cost
Equipment Requirements:High Performance T8 Lighting Retrofits must have CEE approved lamp and ballast specifications for Commercial Lighting systems.
Installation Requirements:All custom projects must receive written pre-approval before purchases or installations. Custom projects must have a payback period of 1-7 years, and pre-approval is required.
Expiration Date:12/31/2014 (current program year)
Web Site:

The Energy Optimization Programs, administered by WECC, provides commercial electric incentives for the following Michigan utilities:

Energy Optimization

Alger-Delta Electric Cooperative
Cloverland Electric Cooperative
City of Escanaba
Marquette Board of Light and Power
City of Stephenson
Great Lakes Energy Cooperative
Midwest Energy Cooperative
Newberry Water and Light Board
Ontonagon County Rural Electrification Association
Presque Isle Electric and Gas Cooperative
Thumb Electric Cooperative
HomeWorks Tri-County Electric Cooperative

The "Michigan Public Clean, Renewable, and Efficient Energy Act" (Public Act 295 passed in 2008) provided original authorization to create utility energy efficiency programs across the state. Commercial and industrial (C&I) members/customers can participate in prescriptive programs that provide incentives for the installation of energy efficient products and equipment. Prescriptive programs provide a incentive for the replacement or retrofit of high efficiency equipment. Reduced electric use resulting from peak shaving, demand limiting, fuel switching, power generation, or operating schedule changes does not qualify. To qualify, lighting must be used a minimum of 1800 hours per year and other equipment must operate a minimum of 1,500 hours per year. In order to qualify for incentives within the C&I Programs, applicants must obtain written approval prior to any installations.

The C&I Custom Program allows measures and systems to be installed for situations unique to that member’s/customer's processes. Incentives are offered on a per kilowatt (kW) and kilowatt hour (kWh) schedule, based on projected savings. Applicants can complete online forms with attachments of invoices and all project costs and then contact their local power company for more information or an application. Incentive dollar amounts are based upon the annual forecasted reduction at the time of project pre-approval.


  Energy Optimization
431 Charmany Drive
Madison, WI 53719
Phone: (877) 296-4319
Fax: (608) 249-0339
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.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.