Commercial Rebate Program
Please note that PEC's Comprehensive Commercial Rebate Program is subject to change without notice.
Pedernales Electric Cooperative offers rebate incentives to commercial members for the installation of energy-efficient lighting technologies, HVAC equipment and variable frequency drives (VFDs) for motor speed adjustment. Installations in existing and new-construction commercial facilities may qualify for rebate incentives through PEC’s Comprehensive Commercial Rebate Program. To qualify for incentives, participants must meet all program eligibility criteria and satisfy all installation requirements.
For complete details, download the Comprehensive Commercial Rebate Program Manual or explore the sections below.
Program Purpose and Information
According to the Department of Energy, lighting and space heating/cooling account for the majority of commercial-sector electricity consumption in the United States. Businesses have a great opportunity to reduce overhead costs by upgrading their lighting technologies and HVAC equipment and by installing VFDs to control motor loads. With modern technology advancements, businesses can save energy and money without sacrificing comfort or lighting quality. Most lighting, HVAC and VFD upgrade projects can have relatively quick payback.
The purpose of PEC’s Comprehensive Commercial Rebate Program is to assist businesses through the process of upgrading their lighting technologies, HVAC equipment or motor load controls. PEC offers incentives to commercial members to accelerate the project payback for upgrades.
The types of lighting technologies that are eligible for incentives through this program include the following:
- Light-emitting diode (LED) fixtures
- Linear fluorescents (example: T-8 or T-5 lamps)
- Hardwired compact fluorescent lamps (CFL)
- Metal halides
- High-intensity discharge (HIDs) Lamps
The types of HVAC equipment eligible for incentives through this program include the following:
- Direct expansion unitary HVAC systems
- Split or packaged air conditioners and heat pumps
- Packaged terminal air conditioners and heat pumps
- Room air conditioners and heat pumps
- Air- and water-cooled chilling equipment (chillers)
Variable frequency drive installations on pump and fan motors are eligible for incentives through this program.
Rebate incentives are based on kilowatts (kW) of reduced summer peak electricity demand. For new construction lighting projects, the summer peak kW reduction will be calculated based on a code-allowed Lighting Power Density (W/ft2) for the specified type of building. For all other projects, the summer peak kW reduction will be calculated based on an estimated coincidence with the system peak by building type.
Specific incentive amounts are outlined in the Rebate Levels section.
Program Eligibility Criteria
A participant in PEC’s Comprehensive Commercial Rebate Program must meet all of the following eligibility criteria to qualify for incentives:
- Project site must be located within PEC’s service area and receive electricity from PEC.
- Project must have been completed.
- Participant must submit a completed Comprehensive Commercial Rebate Program application for each type of rebate requested.
- Proposed project must receive a preliminary approval prior to work beginning.
- Final application must be received within 60 days of the work completion date.
- Proposed project must achieve a minimum demand reduction of 5 kilowatts (kW).
An eligible participant must ensure that all of the following installation requirements are satisfied to receive incentives through PEC’s Comprehensive Commercial Rebate Program:
- Installation must be overseen by a licensed professional or a Certified Energy Manager.
- Projects must satisfy all applicable local code requirements.
Lighting-Specific Installation Requirements:
- New T-8 linear fluorescent lighting equipment must meet Consortium For Energy Efficiency’s (CEE) High Performance and Reduced Wattage lamp and ballast efficiency specifications.
- New LED products must be listed on the ENERGY STAR® or DesignLights™ Consortium Qualified Products lists.
- Exterior lighting products and fixtures must meet the International Dark-Sky Association (IDA) rating criteria.
- Projects should follow Illuminating Engineering Society of North America (IESNA) recommendations for levels of lighting.
- Ninety percent or more of the lighting fixtures being replaced must be operational (retrofit projects only).
- The following project and measure types are not eligible for incentives:
- De-lamping on existing fixtures
If an existing fixture is replaced with an entirely new one that requires less lamps to produce an appropriate level of light, the total reduction of summer peak kW demand will be eligible for incentives.
- CFLs without hardwired ballasts or permanent disks
HVAC-Specific Installation Requirements:
- All components of the HVAC system must be new; no incentive will be paid for systems utilizing existing components.
- HVAC system must be AHRI certified. For more information about AHRI, visit www.ahrinet.org. For more information on how to determine the AHRI reference number of an installed system, visit www.ahridirectory.org or consult with your contractor.
VFD-Specific Installation Requirements:
- VFD must be appropriately sized for the motor it is installed on; if the VFD is oversized, the incentive will be calculated based on the motor size.
- No incentive will be paid for VFDs installed on motors operating continuously at 100 percent motor loading.
- N+1 redundancy motors (also referred to as active/passive or standby motors) are not eligible for an incentive; N+1 redundancy refers to backup motors that are available in the event of primary motor failure and do not actively participate within the system during normal operation.
Participating in PEC’s Comprehensive Commercial Rebate Program is simple. The steps that are required to participate are outlined below.
Step 1: Participant submits preliminary application
Prior to installing any equipment, the participant must complete and submit a Preliminary Application. The Preliminary Application informs PEC on the estimated demand reduction and incentives that the proposed project will achieve. To complete and submit the Preliminary Application, a participant will perform the following actions:
- Fill out Commercial Workbook(s)
The participant can start by downloading the Commercial Workbook for the measure(s) they will be completing. This workbook will require the participant to use Microsoft Excel. Instructions for filling out the workbook(s) are included in the first worksheet within each workbook.
Participants may also contact PEC for assistance filling out the workbook(s). For help send an email request to email@example.com or call (512) 372-8778, ext. 119.
The workbooks automatically calculate the estimated demand reduction and incentives based on preliminary equipment information. The participant will be required to provide the following types of information within the Commercial Application Workbooks:
- Participant information (including PEC account number)
- Building information
- Installer information (if available)
- Existing equipment information (for retrofit only)
- Proposed equipment information (retrofit and new construction)
- Proposed work completion date
- Sign-off from licensed professional or Certified Energy Manager (CEM)
Note that the licensed professional or CEM will need to provide some of the required information.
- Submit preliminary application
The participant will submit the Commercial Workbook(s) to PEC for review. The workbook can be updated during the Final Application stage.
The participant may submit their Commercial Workbook(s) as attachments via e-mail to firstname.lastname@example.org.
Step 2: PEC approves preliminary application
If PEC determines that the proposed project meets all program requirements, then PEC will approve the preliminary application. This acts as an approval for the participant to move forward with the proposed installation.
Step 3: PEC conducts preliminary site survey
Upon receiving the preliminary application, PEC will contact the participant to schedule a preliminary site survey. The purpose of the survey will be to verify that the proposed lighting measures and project size are reasonable.
For retrofit projects, PEC may conduct an on-site pre-inspection to verify the equipment information that was proposed in the preliminary application.
Step 4: Participant installs equipment
Participant may move forward with the installation. It is necessary for the licensed professional or CEM to be aware of all program and installation requirements prior to performing the installation.
Step 5: Participant submits final application
When the installation is complete, the participant will complete and submit their final application. To complete and submit the final application, a participant will perform the following actions:
- Update Commercial Workbook(s)
The participant will update the Commercial Workbook(s) from their preliminary application. Any information that was unavailable during the preliminary application stage should be provided. Any installation information that has changed from what was proposed should be updated. The participant should be sure to include the following information in their updated workbook:
- Installer information
- Payee information
- Actual work completion date
- Updated equipment inventory
- Gather required documentation
The participant will gather the following required documents to submit with their final application:
- Updated Commercial Workbook(s)
- Copy of dated contractor invoice or equipment purchase receipt
- Form W-9 for payee (should match information on federal tax return)
- Submit Final Application
The participant will submit the final application with all required documentation to PEC for review. The participant may submit the application via e-mail to email@example.com.
The completed final application must be received within 60 days of the work completion date.
Final applications will not be processed without all required documents.
Step 6: PEC conducts final inspection
Upon receiving the final application, PEC will contact the participant to schedule a final inspection. The purpose of the inspection will be to verify the installation and inventory information reported within the final application. PEC will verify the type, number and operational status of the lighting fixtures that were reported within the final application.
Step 7: PEC approves final application
If PEC determines that the completed project meets all program requirements, then PEC will approve the final application.
Step 8: PEC issues rebate incentives
If the final application is approved, then PEC will issue an incentive check to the PEC member within three to five weeks.
Note: The work completion date will determine which rebate structure will be applied to the approved final application.
All required documents must be received within 60 days of the installation date. All required documents can be downloaded from the PEC website. Participants may also call PEC to request a copy of the required documents. Participants must submit the following documents to PEC:
- Initial Commercial Workbook(s) (preliminary application stage)
Licensed professional or CEM may need to provide information.
- Updated Commercial Workbook(s) (final application stage)
Licensed professional or CEM may need to provide information.
- Copy of dated contractor invoice (final application stage)
Licensed professional or CEM should provide this document.
- Form W-9 for payee (final application stage)
- Copy of PEC bill for existing accounts
The current Comprehensive Commercial Rebate Program incentive levels are as follows:
| ||Lighting ||HVAC ||VFDs |
|$/kW ||$300 ||$270 ||$230 |
Commercial installations completed within a given calendar year that meet that year's Comprehensive Commercial Rebate Program installation requirements will be paid under that calendar year’s incentive structure. Applications for the previous calendar year will be accepted through the end of February for the following year.
A commercial site may only receive a maximum incentive of $17,500 per measure type (up to $35,000 per project site). If the $35,000 project cap is not reached, PEC may choose to waive the $17,500 per measure type cap on a case-by-case basis. All rebate incentives are provided on a first-come, first-served basis and are only available while funds last. Incentives will only be paid up to the amount of the customer investment. Rebate levels are subject to change at any time without prior notice.