Commercial rebates and incentives can offer significant cost savings for businesses, but many applicants encounter obstacles that prevent them from maximizing their rebate recovery potential. Below are ten common mistakes businesses often make and how to avoid them when applying for rebates and incentives.

1. Assuming Rebates Only Apply to Retrofits

There is a wide variety of financial rebates that apply to projects other than retrofits. Many programs offer incentives to new construction projects when making energy-efficient buildings. These programs can be found through state and local governments as well as utility providers.

2. Not Accounting for Taxes on Rebates

Rebates are often considered taxable income, but businesses sometimes overlook the potential tax impact when accepting rebate funds. This can lead to unexpected tax bills, especially if rebates are used as compensation for project expenses.

Before accepting a rebate, consult with a tax professional to understand the potential tax implications and plan for any increased tax liability at the end of the year.

3. Failing to Collaborate with Contractors

Some projects and inspections need to be finished by a specific deadline in order to receive the financial rebate. By keeping an open line of communication with contractors during projects, you can ensure that the timeline is on track for what it needs to be.

Outsourcing project management is a key tool to streamline projects and keep track of the retrofit through a single point of contact. Our partner, Action Services Group, is a national service provider for turn-key lighting, signage and electrical projects that can assist with managing commercial retrofits and solutions.

4. Underestimating the Complexity of Custom Rebates

Custom rebates are typically required for large, complex, or unique projects, and the application process can be lengthy and detailed. Many businesses dive into these programs without realizing how much time and effort are needed to gather the required documentation and approvals.

5. Missing Rebate Deadlines

Losing track of deadlines means leaving money on the table. Many programs have strict application deadlines and for programs on a first come-first serve basis, submitting applications as soon as possible is crucial. Deadlines need to be met for application submissions, energy audits, inspections and more. Using a rebate management service can help keep track of all the important dates to maintain.

6. Submitting Non-Compliant Products

Utilities frequently require that products, such as LED fixtures, meet specific standards (e.g., DLC listed) to qualify for rebates. Purchasing products that do not meet these criteria can disqualify your application.

Always verify that the products you’re purchasing meet the necessary standards, such as DLC listing, and double-check the product’s compliance before submitting your rebate application.

7. Engaging the Wrong Stakeholders

The decision to move forward with a rebate-eligible project in a business often involves multiple stakeholders. Failing to engage the right people—those who understand energy costs and the value of rebates—can stall the process.

Identify and engage key decision-makers, such as CFOs or utility bill managers, who understand the financial benefits of energy-efficient upgrades and rebates.

8. Overlooking Eligibility Requirements

One of the most common mistakes businesses make is failing to fully review the eligibility requirements for rebate programs. Applying without confirming eligibility can result in wasted time and rejected applications.

Thoroughly read and understand the eligibility guidelines for each rebate program. If there’s any doubt about your business qualifications, contact the program provider for clarification before submitting your application.

9. Relying on Generic Applications

Using a generic, one-size-fits-all approach for multiple rebate applications often leads to failure. Utility providers look for specific, tailored information that demonstrates an understanding of their program’s objectives and requirements.

Customize each application to reflect the unique goals and requirements of each rebate program. Take time to address all of the program’s specific criteria and submit accurate, detailed information.

10. Neglecting to Follow Up

Many businesses assume their job is done once the rebate application is submitted, but failure to follow up can delay the process. Following up shows your continued interest and may help address any issues quickly.

After submitting your application, follow up with the utility provider to confirm receipt, check on the status, and inquire about any additional steps. A polite follow-up can help ensure that the application is progressing smoothly.

Avoiding Rebate Mistakes with Incentive Rebate360

By outsourcing to a rebate management expert, like Incentive Rebate360, your rebate applications will be in qualified hands. Our rebate specialists use their years of experience and industry knowledge to help you maximize your rebate recovery to boost your bottom line. They will streamline the process from start to finish by handling documents, following through with rebate providers, and ensure all deadlines and requirements are met. Reach out to our specialists today by calling 480-653-8180, emailing [email protected], or schedule a call that fits your needs by clicking the button below!