Should you use utility incentives to buy new equipment?

This air compressor was funded at 50% with an energy incentive.

The purchase of air compressors can be expensive. Sometimes the untimely death of your equipment can stretch the maintenance budget, and repairing it can leave you with the same old tired and inefficient equipment.  If and when problems happen, you should consider looking for assistance through various available energy incentives.

For example, a small metal products fabricator needed a new 25-hp compressor, due to ongoing maintenance issues with their old unit. The new variable-speed drive unit was to cost $22,000, about 30% more than a fixed speed unit. However, the variable compressor qualified for a $6,500 incentive and saved about $3,400 per year in electricity costs.  Payback on the purchase was 1.3 years. The old unit remained for an emergency back-up.

Another example: a cabinet making company needed to replace its old worn out compressor due to advanced age and an expensive upcoming rebuild. Its power utility had financial incentives available to pay for someone to come in and measure their system to recommend improvements. The auditor found that the system was extremely inefficient and was wasting $9,400 per year in electricity costs. A new variable speed compressor, upgraded energy efficient cycling dryer, and system storage receivers were recommended that were to cost about $45,000.  The energy savings generated a financial incentive of $20,300 to help pay for the replacement.  The new project also eliminated a costly $15,000 rebuild of the old compressor.  Simple payback for the project was a little more than one year.

There is an online database of energy programs accessible through the USDOE. Have a look for programs in your area. If you can’t find anything in your area, be sure to check with your power utility or compressor service provider to see if you can qualify for some support. In Canada, there are energy incentive in most provinces. These can quickly be found with an online search.

Database Link: https://www.energy.gov/savings/search?keyword=compressed%20air

Why pay for it all yourself?  Take advantage of the energy rebates to renew your system and save energy for years to come!