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PenLight Commercial Energy Efficiency Incentives: Rebates for Washington Businesses

October 08, 2026 Kaitlyn Dambrosio

Peninsula Light Company (PenLight) provides commercial energy efficiency incentives for eligible electric customers in its service territory around Gig Harbor and the Key Peninsula in Pierce County, Washington. Qualifying businesses can offset part of the cost of lighting, HVAC, refrigeration, water heating, and building improvements.

PenLight incentives vary by equipment and project type. Some are calculated per ton of heating or cooling capacity; others are based on horsepower, the number of installed units, or the area improved. Understanding those differences helps businesses estimate potential Washington commercial rebates while planning a project.

Key Takeaways

PenLight’s commercial program covers several types of energy efficiency projects in its Washington service territory.

  • Existing building and new construction lighting projects may qualify for PenLight commercial incentives.
  • Qualifying commercial heat pump installations may receive incentives ranging from $150 to $1,500 per ton, depending on the measure.
  • Eligible HVAC controls and variable frequency drives have separate incentive rates based on equipment type and capacity.
  • PenLight lists commercial refrigeration, heat pump water heating, windows, and attic insulation as eligible measures.
  • Businesses should review current program requirements before purchasing equipment or beginning work to avoid missing potential incentive dollars.

What PenLight Commercial Incentives Are Available?

PenLight lists five main categories of commercial energy efficiency improvements: lighting, HVAC, refrigeration, heat pump water heating, and building envelope upgrades. The program includes measures for different types of facilities, from offices and commercial buildings to stores with refrigerated display cases and lodging facilities with packaged terminal heat pumps.

These are utility-specific incentives. A business elsewhere in Washington would need to review the programs offered by its own electric utility.

Can New Construction and Existing Building Lighting Qualify?

Yes. PenLight says lighting in both existing buildings and new construction may qualify for its commercial lighting incentive program. An eligible project can reduce lighting energy use and maintenance costs while improving the work environment.

PenLight does not publish one standard rebate amount for every commercial lighting project. Businesses considering a lighting upgrade or new construction installation can send their project details to PenLight’s energy specialist to learn which measures and incentive amounts apply.

What Commercial HVAC Rebates Does PenLight Offer?

PenLight offers commercial HVAC incentives for qualifying heat pumps, heat recovery ventilators, variable frequency drives (VFDs), and advanced rooftop unit controls. Its published rates include:

Commercial HVAC improvement Listed incentive
Air-source heat pump retrofit $1,000 per ton
Air-source heat pump upgrade $150 per ton
Ductless heat pump retrofit $1,000 per ton
Ductless heat pump upgrade $300 per ton
Variable refrigerant flow (VRF) system retrofit $1,500 per ton
Heat recovery ventilator $2.50–$4.00 per cubic foot per minute (CFM)
VFD control improvement on a commercial pump under 100 horsepower $180
VFD on an air handling unit fan $500 per horsepower
Packaged terminal heat pump retrofit in lodging or residential care facilities $150 per unit
Advanced rooftop unit controls, Full $250 per ton
Advanced rooftop unit controls, Lite $120 per ton

“Retrofit” and “upgrade” are distinct measures with different rates. For example, the listed air-source heat pump retrofit incentive is $1,000 per ton, while the upgrade incentive is $150 per ton. A five-ton system would therefore have different potential incentive amounts depending on which measure the installation qualifies for.

A VFD adjusts motor speed to match changing operating needs. PenLight lists one VFD measure for a commercial pump under 100 horsepower and another for an air handling unit fan. Advanced rooftop unit controls also have separate Full and Lite rates, with a qualified products list for those controls.

See the Real-World Value of Commercial Energy Efficiency Rebates

Commercial energy efficiency incentives can help Washington businesses reduce upfront project costs and improve the return on their energy efficiency investments. However, maximizing available savings requires more than identifying rebate programs. Understanding eligibility requirements, navigating applications, and managing documentation can make a significant difference in successfully capturing incentives.

Explore our case studies to see how Incentive Rebate360 has helped organizations secure valuable rebates and achieve measurable project savings, then connect with our commercial rebate experts to discuss potential PenLight incentives and other opportunities available for your upcoming projects.

👉 Explore Our Commercial Rebate & Incentive Case Studies

👉 Schedule a Call with Our Commercial Rebate Experts

What Commercial Refrigeration Incentives Are Available?

PenLight’s commercial refrigeration measures include efficient evaporator fan motors, refrigerated case doors, and strip curtains for freezers or coolers.

Commercial refrigeration improvement Listed incentive
Replace a display case shaded-pole evaporator fan motor with an eligible ECM or PMSM $55 per motor
Replace a walk-in shaded-pole evaporator fan motor with an eligible ECM or PMSM $140 per motor
Add doors to a medium-temperature vertical case $300 per linear foot
Add doors to a low-temperature horizontal case $100 per linear foot
Add doors to a medium-temperature horizontal case $100 per linear foot
Add freezer or cooler strip curtains $9 per square foot of doorway

An electronically commutated motor (ECM) or permanent magnet synchronous motor (PMSM) can replace a qualifying shaded-pole evaporator fan motor. PenLight lists the $140 walk-in motor incentive for both motors at or below 23 watts and motors above 23 watts.

What Water Heating and Building Envelope Incentives Does PenLight List?

PenLight also lists commercial incentives for replacing standard electric water heaters and improving electrically heated buildings. The table keeps each amount and its key condition together.

Commercial improvement Listed incentive Key condition
Tier 4 unitary heat pump water heater $1,800 per unit Replaces a standard electric water heater
Tier 3 unitary heat pump water heater $1,600 per unit Replaces a standard electric water heater
Split-system heat pump water heater $2,200 per unit Replaces a standard electric water heater
Window upgrade $9 per square foot Building is electrically heated
Attic insulation Confirm rate with PenLight Building is electrically heated and meets the listed existing-insulation condition

Unitary heat pump water heaters must be installed according to manufacturer specifications and appear on the applicable Bonneville Power Administration (BPA) qualified products list. PenLight lists attic insulation as a commercial measure, but its page does not clearly state a dollar amount for that incentive.

Frequently Asked Questions

What does “per ton” mean in a PenLight HVAC incentive?

A ton measures heating or cooling system capacity. For a qualifying measure listed at $1,000 per ton, a five-ton installation would have a preliminary incentive estimate of $5,000, subject to the program’s terms.

Does “residential care facility” mean the packaged terminal heat pump incentive is residential?

No. PenLight lists the packaged terminal heat pump retrofit under its commercial HVAC incentives. “Residential care facility” identifies one of the facility types eligible for that commercial measure, alongside lodging.

Do PenLight window and attic insulation incentives apply to every commercial building?

No. PenLight states that the building must be electrically heated for those listed measures. The attic insulation measure also specifies a condition for the building’s existing insulation.

Review PenLight Incentives Before Your Project Begins

PenLight commercial incentives may help offset the cost of eligible energy efficiency improvements, but the opportunity is easiest to evaluate while you’re still choosing equipment and project plans. Reviewing the available measures and program requirements before a purchase or installation can help a business identify qualifying work and avoid missing potential incentive dollars.

Incentive Rebate360 can review your project for available incentives, help assess program requirements, and manage rebate applications. Contact our team before your project begins so we can include potential PenLight incentives in the plan from the start. Call 480-653-8180, email [email protected], or schedule a call with the button below.

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