This is the second blog in our series looking at the different commercial rebates by region. For a review of what commercial rebates are available in the West, click here, for commercial rebates in the Northeast, click here, for commercial rebates in the Southeast, click here, and for commercial rebates in the Southwest, click here.

Navigating the landscape of commercial rebates in the Midwest can significantly enhance your business’s bottom line by reducing energy consumption and operational costs. From Ohio’s multifaceted energy efficiency programs to Michigan’s comprehensive support for sustainable practices, Midwestern states offer a variety of incentives to promote energy conservation and environmental stewardship.

Ohio

Energy Efficiency Program

The Energy Efficiency Program from the Ohio Department of Development is a robust initiative designed to help businesses, manufacturers, nonprofits, schools, and local governments enhance their energy performance. This program involves two main phases: identifying energy consumption and costs, followed by developing tailored energy plans. Eligible entities, including small businesses and manufacturers, can leverage this program to reduce energy expenditure significantly. Additionally, the program supports the next generation of energy efficiency experts through training opportunities for engineering students in Ohio.

Green Schools Initiative

Ohio’s Green Schools Initiative encourages K-12 schools to adopt sustainable and energy-efficient practices. Utilizing the U.S. Green Building Council’s LEED for Schools Rating System, the initiative sets rigorous standards for school construction projects, focusing on sustainability and environmental stewardship. Schools meeting these standards can achieve various recognition levels, from Certified to Platinum.

Air Quality Improvement Tax Credit

Businesses in Ohio can benefit from the Air Quality Improvement Tax Incentives offered by the Ohio Air Quality Development Authority (OAQDA). This initiative provides tax exemptions for projects enhancing air quality, including tangible personal property tax, real property tax, and a portion of the corporate franchise tax. Eligible projects range from air pollution control to energy efficiency and renewable energy utilization, making it an great opportunity for businesses committed to environmental sustainability.

Indiana

Duke Energy offers a range of rebates to support the agriculture sector and other commercial enterprises in Indiana. These incentives include rebates for energy-efficient equipment, such as dairy heat reclaimers, engine block heater timers, and LED poultry lamps. By investing in these technologies, agricultural operations can significantly reduce energy consumption and operational costs.

Commercial Equipment Rebates

Duke Energy also provides rebates for various commercial equipment, including:

• Clothes washers and dryers
• Cooking equipment like combination ovens and fryers
• Dishwashing equipment
• Refrigeration solutions
• Heating and cooling systems
• Lighting fixtures and controls

These rebates make energy-efficient upgrades more accessible and affordable, helping businesses lower their energy bills and enhance operational efficiency.

Michigan

Michigan’s incentive programs cover a broad spectrum of energy efficiency and sustainability initiatives. Some key programs include:

Michigan Energy Codes Compliance Program

This program funds the creation of documents to improve energy code compliance rates for commercial and residential customers.

Building Operator Training Program

Funding is provided to train public and non-profit building managers in energy efficiency practices.

Community Energy Management Program

This program supports community organizations in improving their buildings’ energy efficiency through audits and the installation of renewable energy sources.

Agri Energy and Sustainable Farming

Rural and agricultural businesses can receive funding to implement energy efficiency and renewable energy sources on-site.

Charge Up Michigan

This program supports the placement of EV chargers across the state, aligning with the EV Charger Placement Optimization Plan.

By taking advantage of these commercial rebates in the Midwest, businesses can not only reduce their operational costs but also contribute to a more sustainable and energy-efficient future. Whether you are in Ohio, Indiana, or Michigan, exploring these incentives can provide significant financial and environmental benefits for your organization.

Wisconsin

Wisconsin’s Focus on Energy programs cater to businesses of various sizes, offering tailored incentives to promote energy efficiency:

Business Incentive Program

Designed for businesses with up to 1,000 kW demand per month, this program offers incentives for lighting, HVAC systems, compressed air, and refrigeration.

Large Energy Users Program

For businesses with energy usage over 1,000 kW per month, this program provides personalized support and coordination with WPS account managers.

Small Business Program

For businesses consuming 40,000 kWh or less monthly during peak periods, this program offers enhanced incentives for compressed air, refrigeration, HVAC, and lighting upgrades, with many low- or no-cost options.

Multifamily Program

Targeting properties with four or more units, this program offers building assessments, direct-install services, and incentives for new construction projects.

Agriculture, Schools, and Governments

This program offers incentives for energy-efficient equipment, such as lighting, heating and cooling systems, variable speed drives, and commercial refrigeration.

Focus on Energy also provides comprehensive incentives for new construction, renovation projects, and specific equipment upgrades, supporting businesses in making sustainable choices from the ground up.

Iowa

Iowa businesses can access a range of financial support through the IADG Energy Bank and Iowa Energy Center Grants:

IADG Energy Bank

This low-interest revolving loan fund supports energy efficiency and renewable energy projects. With loans ranging from $50,000 to $300,000 at a 1% interest rate, businesses can finance projects without additional capital.

Energy Infrastructure Revolving Loan Program (EIRLP)

Effective from July 2021, this program offers low-interest loans for projects that modernize energy infrastructure, support workforce development, and enhance emergency preparedness, especially in rural and underserved areas.

Iowa Energy Center Grant Program

Funded by gas and electric utilities, this program provides grants for technology-based energy research, workforce development, and projects benefiting Iowa ratepayers. Focus areas include biomass conversion, natural gas expansion, electric grid modernization, and alternative fuel vehicles.

These financial incentives in Illinois, Iowa, and Wisconsin empower businesses to invest in energy-efficient technologies and practices, leading to significant cost savings and promoting environmental sustainability.

Illinois

ComEd Energy Efficiency Program

Businesses can benefit from rebates on various energy-saving upgrades, including $0.75 per watt reduced for LED lighting retrofits and $0.25 per watt controlled for indoor occupancy sensors. ComEd also provides $90 per motor for EC motors in refrigeration systems, $62.50 per door for anti-sweat heater controls, and $60 per door for LED case lighting. For HVAC systems, rebates start at $5 per IPLV improvement per ton for chillers and $40 per 1,000 sq. ft. for demand-controlled ventilation. These incentives help businesses lower upfront costs and achieve substantial energy savings, making it easier to invest in energy-efficient solutions.

North Dakota

The State Energy Program (SEP) and the Energy Conservation Grant

SEP offers funding for energy efficiency improvements, including building audits, lighting retrofits, and HVAC upgrades, with awards ranging from $5,000 to $50,000.

The Energy Conservation Grant

Aids political subdivisions in enhancing public buildings with projects such as insulation installation and HVAC upgrades, offering up to $100,000 with a 50% cash match requirement. Both programs support initiatives that achieve a payback period of 10 years or less, promoting long-term energy savings across the state.

South Dakota

The Reinvestment Payment Program

Part of the “Building South Dakota” legislation, offers reinvestment payments for large projects exceeding $20 million or equipment upgrades over $2 million.

The South Dakota Jobs Program

This program helps offset costs related to relocating or expanding operations, granting South Dakota Jobs Grants for facilities and equipment projects. Additionally, the Clean Diesel Grant Program supports replacing old diesel buses with new, low-emission models, aiming to improve air quality and reduce pollution. These programs collectively enhance energy efficiency and environmental sustainability in the state.

Nebraska

Nebraska’s Omaha Public Power District (OPPD)

OPPD offers incentives for upgrading HVAC systems and lighting. The HVAC Equipment Rebate program helps reduce the cost of installing energy-efficient systems, including rooftop units, heat pumps, and chillers. Businesses can also benefit from rebates on LED lighting and controls through OPPD’s Lighting Program. LEDs not only reduce energy consumption by up to 90% compared to traditional bulbs but also decrease maintenance costs due to their longer lifespan. This initiative supports significant operational cost savings and environmental benefits for commercial entities.

Kansas

Renewable Energy Property Tax Exemption Statute

This benefit applies to wind, solar, biomass, and other renewable energy technologies used for electricity generation or landfill gas management. Property tax exemptions are available for up to 10 years, beginning the year after construction or installation is completed. This incentive encourages businesses to invest in renewable energy systems, supporting long-term sustainability and cost savings.

Minnesota

Minnesota Energy Resources

Several natural gas equipment rebates are available, including those for high-efficiency forced-air heating systems, low-intensity infrared heating systems, condensing furnaces, and energy recovery ventilators (ERVs). High-performance rooftop units (RTUs) and advanced thermostats with integrated occupancy-sensing capabilities also qualify for rebates up to $750. Regular furnace maintenance is incentivized with rebates up to $1,000 per unit, while water heating rebates of up to $1,000 per unit are available for installing ENERGY STAR® certified and commercial condensing water heaters. Insulation rebates up to $0.30 per square foot help reduce heating and cooling costs, and grain dryer replacements can receive rebates covering 50% of costs up to $15,000. Boiler systems can qualify for rebates up to $3,000 for hot boilers and $800 per 1,000,000 Btu/hr input for steam systems. High-efficiency food service equipment and steam trap replacements are also eligible for rebates. Additionally, multifamily energy solutions and the Energy Design Assistance and Modeling Program offer financial incentives and support for energy-efficient new construction and major renovation projects.

Navigating Commercial Rebates in the Midwest

Navigating the landscape of commercial financial incentives can be complex, but it’s essential for maximizing energy efficiency and cost savings. Incentive Rebate360 simplifies this process with their comprehensive rebate management program. By leveraging their expertise, businesses can efficiently identify, apply for, and secure rebates across North and South Dakota, Kansas, and Nebraska. Incentive Rebate360 ensures that you make the most of available incentives, enhancing your financial savings and supporting your sustainability goals.

Reference: American Council for an Energy-Efficient Economy (2023). State and Local Policy Database. ACEEE. https://database.aceee.org/state/financial-incentives

Reference: DSIRE and NC Clean Energy Technology Center. Database of State Incentives for Renewables & Efficiency. https://database.aceee.org/state/financial-incentives