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

When it comes to improving energy efficiency and reducing operating costs, businesses in the southwestern United States have access to a variety of commercial rebates and financial incentives. These incentives are offered by utilities and state programs across Texas, Oklahoma, New Mexico, and Arizona. Leveraging these commercial rebates can lead to substantial savings on energy-efficient upgrades, making it easier for businesses to enhance their sustainability efforts and bottom line. Here, we provide a comprehensive overview of the available commercial rebates in the Southwest, focusing on each state’s unique offerings.

Oklahoma

Oklahoma businesses can take advantage of numerous energy efficiency incentives provided by the Public Service Company of Oklahoma (PSO). Here is a summary of the available rebates:

PSO Rebates:

Appliances and Equipment: Rebates for various appliances, including heating, cooling, and ventilation systems.

HVAC:

• • HVAC VFD: $300-$70,000
  • Packaged Terminal Units AC/HP: Rebates through participating distributors
  • Dual Enthalpy Economizer Controls: Rebates through participating distributors

Insulation, Windows & Doors:

• • Ceiling Insulation: $0.20 per sqft
  • Door Weather Stripping: $0.50-$20 per ft
  • Duct Insulation: $0.20 per sqft
  • Window Film: $2 per sqft

Lighting and LED Retrofits:

• • Instant Discounts: LED Tube Lamps: $3 per lamp

New Construction:

• • • Interior LED Lighting: $0.20-0.40 per watt reduced
    • Exterior LED Lighting: $6-$130 per fixture
    • Exterior LED Lighting for Areas > 5,000 sqft: $0.30 per watt reduced

Arizona

Arizona businesses can benefit from a range of energy efficiency rebates offered by Salt River Project (SRP). These rebates cover a wide array of equipment and improvements:

SRP Rebates

Compressed Air Equipment:

• • Low-pressure drop filters: $0.80 per scfm
  • Refrigerated cycling dryers: $1.50 per scfm
  • Zero-loss condensate drains: $90 each
  • Variable-frequency drive compressors: $90 per hp, up to 75 hp

Data Center Equipment:

• • Networked PC power management software: $8 per desktop
  • Server virtualization: $300 per server
  • High-efficiency server replacement: $200-$375 per server

HVAC Equipment:

• • Unitary heat pumps: $110–$135 per ton
  • Variable-frequency drives (VFDs) for HVAC pumps: $90 per hp

Kitchen Equipment:

• • ENERGY STAR® griddles: $225 each
  • ENERGY STAR® steam cookers: $250 each
  • Dishwashers: $200–$800 each

Lighting:

• • Interior LEDs: $0.25-$0.35 per watt reduced
  • Exterior LEDs: $0.15 per watt reduced
  • Lighting controls (interior only): up to $0.40 per watt controlled

Refrigeration Equipment:

• • Discus or disc valve compressors: $50 per ton
  • Anti-sweat heater controls: $3 per linear foot
  • Auto door closers: $20–$40 each

These rebates are designed to help businesses reduce energy consumption and operational costs, making energy-efficient upgrades more accessible.

Texas

Texas offers a variety of commercial rebates through different utility programs, such as TNMP and Texas Gas Service.

TNMP Rebates

Energy Assessments: No-cost, no-obligation site assessments to identify energy-saving opportunities.

Available Incentives:

• • LED, HID, and fluorescent lighting
  • Lighting controls
  • HVAC DX
  • Chillers
  • Motors
  • Variable frequency drives (VFDs)
  • Window film
  • Roofing
  • Solar PV
  • Custom projects

Programs:

• CitySmart Program: Focused on government facilities
• SCORE Program: Support for educational facilities
• Small Business Program: Guidance and financial incentives for small businesses

Texas Gas Service Rebates:

Food Service Equipment:

• • $400 for ENERGY STAR® convection ovens, fryers, griddles, and steam cookers

Water Heating:

• • Up to 20% of equipment costs for solar water heaters
  • $600 for tankless natural gas water heaters

Transportation:

• • $2,000 for commercial refueling units
  • $3,000 for newly converted natural gas vehicles

These incentives aim to reduce energy consumption and enhance energy efficiency in various sectors, including government, education, and small businesses.

New Mexico

The New Mexico Energy, Minerals and Natural Resources Department (ENMRD)

This department oversees programs that promote energy efficiency, sustainability, and renewable energy development. Through these incentives, EMNRD aims to support businesses in adopting sustainable practices and reducing their energy costs.

Agricultural Biomass Income Tax Credit

Available for personal income tax returns from January 1, 2011, through January 1, 2030, supporting the transportation of agricultural biomass with certificates issued by EMNRD under specific NMAC codes.

New Solar Market Development Tax Credit (NSMDTC)

Offers $20 million in tax credits for previously rejected applications (2020-2023) and raises the annual cap to $30 million, with eligibility extended to tribal members with leasehold properties. Implementation expected by late summer 2024.

Sustainable Building Tax Credit (SBTC)

Provides tax credits for sustainable building practices and energy-efficient products, including new residential and commercial construction and large commercial renovations.

Renewable Energy Production Tax Credit (REPTC)

Though expired, this credit offered significant incentives for renewable energy projects, providing one cent per kilowatt-hour for wind and biomass and an average of 2.7 cents per kWh for solar, aiding the expansion of renewable resources in New Mexico

Utilizing commercial rebates in the Southwest can significantly reduce the cost of energy-efficient upgrades, allowing businesses to save on energy expenses and contribute to a more sustainable future. By taking advantage of the available incentives in Texas, Oklahoma, and Arizona, businesses can implement cost-effective improvements that enhance energy efficiency and operational performance. For more information on specific rebate programs and to determine eligibility, businesses should contact their local utility providers or visit their websites. Incentive Rebate360 can assist businesses looking to maximize savings on energy projects in every state! For more information and assistance with applying for these incentives, contact Incentive Rebate360 at 480-653-8180 or email [email protected]. 

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