As utilities refine their energy efficiency strategies, rebate programs naturally evolve to reflect shifting market conditions, updated energy codes, and measured program performance. Avista has completed its annual review of its Commercial Energy Efficiency programs, and several updates will take effect beginning January 1, 2026. These changes include the discontinuation of certain prescriptive rebates, while many core programs and incentive structures remain firmly in place.

For commercial property owners, facility managers, and energy project planners, understanding what is changing, and what is staying the same, is critical for budgeting, project timing, and maximizing incentive recovery. Below is a breakdown of Avista’s 2026 commercial rebate updates, with a clear look at discontinued measures and ongoing opportunities.

What’s Changing or Being Discontinued in 2026

Following Avista’s program review, several prescriptive measures will no longer be eligible for incentives starting in 2026. Projects installed and fully documented by December 31, 2025, may still qualify under 2025 program rules, but applications submitted after that date will be evaluated under the revised 2026 offerings.

Discontinued Commercial Grocer Measures

Avista has discontinued multiple gasket-related incentives for grocery and food service facilities. These include:

• Walk-in cooler main door gaskets
• Walk-in freezer main door gaskets
• Reach-in glass door gaskets for both medium- and low-temperature applications

These measures previously offered a per-unit incentive but will no longer be available as prescriptive rebates in 2026. Facilities planning refrigeration upgrades may need to explore custom or site-specific incentives if measurable energy savings can be demonstrated.

Discontinued Commercial Lighting Measure

The prescriptive incentive for replacing higher-wattage MR16 lamps has been discontinued for 2026. While this removes a specific lamp category from the rebate schedule, the broader commercial lighting program, including LED fixture upgrades, HID replacements, and lighting controls, continues to offer substantial incentives.

This shift reinforces Avista’s focus on deeper energy savings through comprehensive lighting retrofits rather than smaller, lamp-only upgrades.

Discontinued Commercial Clothes Washer Rebate

The Energy Star commercial clothes washer incentive has also been removed from the 2026 program. Laundry facilities evaluating equipment replacements may need to pursue alternative efficiency measures or consider whole-building or custom incentive pathways, depending on the scope of their projects.

What’s Staying in the Avista Commercial Rebate Program

While a small number of prescriptive measures are being phased out, Avista’s core commercial efficiency programs remain strong in 2026. These programs continue to support long-term energy savings, building performance improvements, and strategic capital planning.

Commercial Insulation Rebates

Avista continues to offer incentives for insulation retrofits in existing commercial buildings with at least one year of heating history. These rebates reward deeper insulation upgrades that significantly improve thermal performance.

Available insulation incentives include:

• Wall insulation at $1.00 per square foot when existing insulation is R4 or less and upgraded to R11–R18
• Wall insulation at $1.25 per square foot when upgrading from R4 or less to R19 or greater
• Attic insulation at $1.25 per square foot when upgrading from R11 or less to R45 or greater
• Roof insulation at $1.00 per square foot when upgrading from R11 or less to R30 or greater

Insulation must be contractor-installed, and incentive payments are capped at invoiced project costs. These measures remain one of the most cost-effective ways to reduce heating and cooling loads while improving occupant comfort.

Green Motors Initiative

The Green Motors Initiative remains unchanged for 2026 and continues to provide a streamlined incentive option for motor efficiency improvements. Instead of replacing motors outright, this program restores a motor’s original efficiency through a certified green rewind process.

Key program features include:

• Eligible motors range from 15 horsepower to 5,000 horsepower.
• Motors must be NEMA-rated
• Participating service centers apply a quality-controlled rewind process.
• Customers receive an instant discount of $1 per horsepower directly on their invoice.
• No rebate paperwork is required beyond participation.

This program is especially valuable for industrial and large commercial facilities seeking to extend equipment life while reducing downtime and capital costs.

Pay for Performance Program

Avista’s Pay for Performance program remains a cornerstone offering for customers pursuing comprehensive, whole-building energy savings. Rather than paying incentives per installed measure, this program compensates customers based on actual, metered energy savings.

Program highlights include:

• Incentives of $0.08 per kilowatt-hour saved
• Incentives of $1.25 per therm saved
• Annual incentive payments over a three-year performance period
• Eligibility for building retrofits, equipment upgrades, retro-commissioning, and operational improvements

This approach is well-suited for facilities implementing multi-measure projects where interactive effects between systems can generate greater overall savings.

Site-Specific (Custom) Incentives

Avista continues to offer site-specific incentives for projects that fall outside prescriptive program requirements. These incentives are based on first-year energy savings and apply to projects with a minimum measure life of ten years.

Incentive levels are determined by simple payback:

• Electric projects with a payback under 15 years may qualify for up to $0.26 per first-year kilowatt-hour saved.
• Natural gas projects with a payback under 15 years may qualify for up to $3.50 per first-year therm saved.
• Incentives are capped at 70 percent of the incremental project cost.

This pathway provides flexibility for custom lighting designs, process improvements, and emerging technologies.

Final Takeaway

Avista’s 2026 commercial rebate updates represent a targeted refinement rather than a broad reduction in available incentives. While select prescriptive measures are being discontinued, the programs that deliver the greatest energy savings, such as insulation, lighting upgrades, motor efficiency, and performance-based incentives, remain firmly in place.

For commercial customers, the key is early planning. Projects completed before the end of 2025 may still qualify under current rules, while 2026 planning should prioritize measures aligned with Avista’s long-term efficiency goals. Early engagement, careful documentation, and strategic use of site-specific incentives will continue to play a major role in maximizing rebate recovery and overall project ROI.

To see if you qualify for any of these rebates, contact Incentive Rebate360 today. Contact us by calling 480-653-8180, emailing [email protected], or scheduling a call that fits your needs by clicking the button below!