Energy Optimization (Electric) - Commercial Efficiency Program (Michigan)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Michigan

Name Energy Optimization (Electric) - Commercial Efficiency Program
Incentive Type Utility Rebate Program
Applicable Sector Commercial, Industrial, Small Agricultural
Eligible Technologies Agricultural Equipment, Building Insulation, Caulking/Weather-stripping, Central Air conditioners, Chillers, Compressed air, Custom/Others pending approval, Duct/Air sealing, Energy Mgmt. Systems/Building Controls, Equipment Insulation, Heat pumps, Lighting, Lighting Controls/Sensors, Motor VFDs, Motors, Processing and Manufacturing Equipment, Refrigerators, Water Heaters, Windows, LED Exit Signs, Vending Machine Controls, Commercial Refrigeration Equipment, Food Service Equipment, LED Lighting, Anti-Sweat Heater Controls, Intelligent Power Strip Plug Outlet, Low-Energy Livestock Waterer, Barn Circulation Fan and Exhaust Fan, Barrel Wraps
Active Incentive Yes
Implementing Sector Utility
Energy Category Energy Efficiency Incentive Programs
Amount Custom: $0.06/kWh/yr saved

CFL Bulbs: $1 - $5
CFL Fixtures: $22/fixture
High Performance T8 Lighting Retrofit: $4-$20/fixture retrofit
Standard T8 Lighting Retrofit: $0.75/fixture
T5/T8 High Bay Fluorescent Fixtures: $25-$60/fixture
LED/Other Fluorescent High Bay: $0.25/watt reduced
CFL/LED/Induction Dusk-to-Dawn Lighting: $20 - $50/fixture
Occupancy Sensors: $20 - $50/sensor
LED Traffic Signal: $15/lamp
LED Lamps: $4 - $15/unit
LED/Induction Garage Fixture: $40 - $100/unit
Central A/C and Heat Pumps: $10/ton
HVAC Chillers: $20/ton
Chiller Tune-Up: $6 - $12/ton
Variable Frequency Drives: $40 - $60/HP
Vending Machine Controllers: $50
Commercial Refrigeration Equipment: Varies
Commercial Cooking Equipment: Varies
Compressed Air Nozzles: $100/unit
Variable Speed Air Compressor: $90/HP
Refrigerated Compressed Air Dryer: $0.40 - $1/SCFM
Compressed Air Leak Audit/Reduction: $10/HP

Equipment Requirements High Performance T8 Lighting Retrofits must have CEE approved lamp and ballast specifications for Commercial Lighting systems.
Expiration Date 2013-12-31

Installation Requirements All custom projects must receive written pre-approval before purchases or installations.
Custom projects must have a payback period of 1-7 years, and pre-approval is required.

Maximum Incentive General: See program web site

Custom: 50% of project cost


References DSIRE[1]


The Energy Optimization Programs, administered by WECC, provides commercial electric incentives for the following Michigan utilities:

Energy Optimization

Alger-Delta Electric Coop
Cloverland Electric Coop
City of Escanaba
Marquette Board of Light and Power
City of Stephenson
Great Lakes Energy Coop
Midwest Energy Cooperative
Newberry Water and Light Board
Ontonagon County R E A
Presque Isle Electric and Gas Coop
Thumb Electric Coop
HomeWorks Tri-County Electric Coop

The "Michigan Public Clean, Renewable, and Efficient Energy Act" (Public Act 295 passed in 2008) provided original authorization to create utility energy efficiency programs across the state. Commercial and industrial (C&I) members/customers can participate in prescriptive programs that provide incentives for the installation of energy efficient products and equipment. Prescriptive programs provide a incentive for the replacement or retrofit of high efficiency equipment. Reduced electric use resulting from peak shaving, demand limiting, fuel switching, power generation, or operating schedule changes does not qualify. To qualify, lighting must be used a minimum of 1800 hours per year and other equipment must operate a minimum of 1,500 hours per year. In order to qualify for incentives within the C&I Programs, applicants must obtain written approval prior to any installations.

The C&I Custom Program allows measures and systems to be installed for situations unique to that member’s/customer's processes. Incentives are offered on a per kilowatt (kW) and kilowatt hour (kWh) schedule, based on projected savings. Applicants can complete online forms with attachments of invoices and all project costs and then contact their local power company for more information or an application. Incentive dollar amounts are based upon the annual forecasted reduction at the time of project pre-approval.

Incentive Contact

Contact Name Energy Optimization

Address 431 Charmany Drive
Place Madison, WI
Zip/Postal Code 53719
Phone (877) 296-4319
Fax (608) 249-0339

  • 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)"