City of Palo Alto Utilities - Commercial Energy Efficiency Rebate Program (California)

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Last modified on February 12, 2015.

Financial Incentive Program

Place California
Additional Place applies to City of Palo Alto Utilities
Name City of Palo Alto Utilities - Commercial Energy Efficiency Rebate Program (California)
Incentive Type Utility Rebate Program
Applicable Sector Commercial, Industrial
Eligible Technologies Boilers, Building Insulation, Central Air conditioners, Chillers, Clothes Washers, Comprehensive Measures/Whole Building, Custom/Others pending approval, Dehumidifiers, Dishwasher, Energy Mgmt. Systems/Building Controls, Equipment Insulation, Furnaces, Heat pumps, Lighting, Lighting Controls/Sensors, Motor VFDs, Processing and Manufacturing Equipment, Refrigerators, Steam-system upgrades, Water Heaters, Windows, LED Exit Signs, Vending Machine Controls, Commercial Cooking Equipment, Commercial Refrigeration Equipment, Personal Computing Equipment, Food Service Equipment, Tankless Water Heater, Heat Pump Water Heater, LED Lighting, Server Virtualization
Active Incentive Yes
Implementing Sector Utility
Energy Category Energy Efficiency Incentive Programs
Amount T12 Fixtures: Custom

Reduced Wattage T8: $1 - $1.50/unit
Accent/Directional Lighting: $4 - $45
Signage: Varies
Interior Pulse-Start Metal Halide: $20 - $150/unit
Exterior Pulse-Start Metal Halide: $15 - $75/unit
Interior Induction Fixtures: $25 - $125
Exterior Induction Fixtures: $25 - $100
LED Case Lighting: $60 - $80/door
LED Lighting: Custom
Occupancy Sensors: $20 - $55/unit
Window Film: $1.35/square foot
Attic/Roof/Wall Insulation: $0.15/square foot
Dishwasher: $50 - $500
Ozone Clothes Washer: $24/pound
Gas Water Heater/Direct Contact Water Heater: $2/MBtuh
Heat Pump Water Heater: $30/unit
Tankless Water Heater: $2/Mbtuh
Boiler: $1 - $1.50/Mbtuh
Steam Traps: $14/unit
Tank/Pipe Insulation: $2 - $4/MBtuh or linear foot
Commercial Pool Heater: $2/MBtuh
Furnace: $150 - $300
Unitary/Split System AC: $80 - $100/ton
Package Terminal AC/Heat Pump: $100/unit
VFD for HVAC: $80/hp
Vending Misers: Free
Refrigeration Equipment: varies widely, see program website
Commercial Cooking Equipment: Varies by type and efficiency, see program website
Lab Upgrades: 50% of evaluation costs; $0.08/kWh saved; $1/therm saved
Commercial/Hospitality Direct Install Equipment: Free
Custom Measures: $0.10/first year kWh energy savings
Natural Gas Custom Rebate: $1.00/first year therm savings

Eligible System Size Varies per technology
Equipment Requirements See program forms for specific efficiency requirements

Rebates are restricted to upgrades of existing equipment.
All projects must exceed all federal and state government-mandated efficiency standards.
Replacement equipment must operate for minimum of 5 years.
New-construction, fuel-switching and co-generation projects are ineligible.

Installation Requirements All equipment must be purchased and installed within 6 months of application approval

Equipment must be installed by a licensed contractor

Maximum Incentive $100,000 per CPAU fiscal year (July 1 - June 30)

Incentives exceeding $50,000 must be pre-approved
Custom: 50% of project cost

Program Administrator Utility Marketing Services

References DSIRE[1]


City of Palo Alto Utilities, through the Commercial Advantage Program several separate offerings, provides incentives for commercial customers to replace old equipment with new, more efficient equipment. Eligible businesses must receive electric service from the CPAU. In order to receive a rebate, your application must be accepted before purchasing your equipment. Rebates are available for:

  • Lighting
  • Boilers and Water Heating equipment
  • HVAC equipment
  • Chillers and heat rejection equipment
  • Laboratory upgrades
  • Commercial Cooking equipment
  • Refrigeration equipment
  • Commercial Hospitality upgrades
  • Custom rebates
  • Networked PC's Power Controls
  • Appliances and General equipment

The rebate is capped at $100,000 per fiscal year, and applies to replacement equipment only. Applications must be approved before the replacement equipment is purchased, and the equipment must be installed within 6 months of the application approval. Energy savings for the custom rebate must be estimated by a professional engineer. Facilities with at least 50% of square footage dedicated as lab space are eligible to participate in the Laboratory Energy Efficiency Program.

More information, including a list of qualifying products, specifications, and forms, can be found on the website listed above.

Incentive Contact

Contact Name City of Palo Alto Utilities
Department Utility Marketing Services
Address 250 Hamilton Ave, PO Box 10250
Place Palo Alto, California
Zip/Postal Code 94303
Phone (650) 329-2241


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"