Energy Incentives Can Mean Money in Your PocketEnergy Incentives Can Mean Money in Your Pocket

The federal government, state governments, and utility companies offer incentives to business owners to encourage them to purchase energy-efficient machinery. The incentives are designed to offset the cost of such machinery, which can be higher than less-efficient models. "But thousands of dollars [in incentives] go by the wayside because people don't know about them," said Bruce Blau of Bruce Blau & Associates (Fresno, CA), an energy consulting firm. Blau spoke about incentives on Tuesday at Engel North America's (York, PA) ribbon-cutting ceremony for its technical center in Corona, CA. Engel supplies injection-molding equipment, including a line of all-electric, energy-efficient machines.Incentives differ from rebates in that companies must apply for them before removing old equipment and buying or installing new energy-efficient equipment, according to Blau, whose firm offers services to help companies through the incentive filing and inspection process. Incentives are calculated based on several parameters, such as throughput, run time, and the type of machine that is purchased. In California, for example, fixed-volume hydraulic machines are used as the industry standard to measure against. The state's incentives for variable-volume equipment run from 8 to 13% of machine costs; all-electric models can qualify for more, according to Blau. Funding for incentives comes from a fee collected from every energy user in the state.Part of the incentive-filing process includes pre- and postinstallation inspections at a company's facility. Blau suggested that this is where having a consultant on your side can really make a difference. There have been instances in which inspectors measured the wrong throughput products, he said. His firm offers to coordinate inspection appointments and accompany the inspector so that the inspector doesn't inadvertently come up with lower run times and throughputs. Blau's firm then reviews the approved incentive to make sure the correct amount is paid. The process takes about four to six weeks, he said.Resources for learning more about incentives in your area can be found online or by contacting your state energy office, local utilities, or consulting firms like Blau's. One such online resource is the Database of State Incentives for Renewables & Efficiency (DSIRE), an ongoing project of the North Carolina Solar Center (Raleigh, NC) and the Interstate Renewable Energy Council (Latham, NY) funded by the U.S. Department of Energy (Washington, DC). The DSIRE Web site allows visitors to search for incentives by state, type, technology, and eligible sectors.