Manufacturers in Minnesota, Wisconsin and most of Illinois can save thousands of dollars in energy bills by improving the efficiency of their compressed air systems. Energy incentive programs from your local power company may help upgrade or optimize your compressed air system at little or no cost to you.
ComEd, Xcel Energy and Wisconsin Energy may offer several energy incentives and rebates that not only save you money but also improve the efficiency of your compressed air system. These programs often pay some or all of leak detection, compressed air efficiency studies and can provide you with rebates for system upgrades. For more details on specific programs your utility company offers make sure to check out the links below:
Xcel Energy Rebates and Incentives
Why would your energy company want you to use less energy?
Utilities want to reduce the overall load on the power grid to address growing demands on their existing infrastructure. By helping their customers be more energy efficient, energy companies can forestall expensive infrastructure upgrades, reduce the risk of outages and better regulate supply and demand.
Manufacturers and other large energy users provide the greatest opportunity for energy companies to reduce the overall load on the power grid and avoid big swings in energy demand. For many manufacturers, the compressed air system represents a large share of their overall energy consumption. Inefficiencies in compressed air systems can add thousands of dollars to the average manufacturer’s energy bill and add to the strain on the power grid.
Programs are funded as part of your electric bill. You will find the programs under the “Taxes and Fees” section of your energy bill. You have already paid for these programs, so you might as well
Incentive Programs for Compressed Air
Compressed Air Studies
The first step for improving efficiency of your compressed air system is a compressed air study.
Manufacturers in Northern Illinois who are customers of ComEd are eligible for a Comprehensive Industrial Study that covers Compressed Air, Process Cooling, Industrial Refrigeration, Wastewater Treatment/Water Supply and Process Efficiency. Manufacturers who implement energy-saving measures identified in the comprehensive study can qualify for up to $0.12 for each kWh of energy saved under the ComEd Industrial Systems Program.
Wisconsin Manufacturers, through the Focus On Energy Program may qualify for 50% coverage or upto $7500 to complete an investigative study utilizing data logging, to determine the best way to optimize compressed air systems.
Xcel Energy customers with compressed air systems of 10 HP or greater are eligible every 5 years for a compressed air study. With pre-approval, Xcel will cover 100% of the costs of a compressed air leak detection study when you repair 75% of the leaks identified in the study. There are funding limits based on HP - make sure to check with your provider.
Compressed Air Rebate Programs
In addition to compressed air studies rebate programs are available that can offset the cost of upgrading compressed air equipment. These programs fall into two main categories:
- Prescriptive Rebate Programs: These programs offer a defined rebate for purchase of energy-saving upgrades for your compressed air systems, including VSD air compressors, zero-loss condensate drains, and more.
- Custom Efficiency Projects: This program provides rebates for other types of improvements based on the kilowatts (kW) of energy saved.
Prescriptive Rebate Programs
Prescriptive rebates can help companies offset the cost of energy-saving improvements to their compressed air systems. In some cases, these rebates may cover the majority of the cost. When you fill out your paperwork, you can designate your compressed air vendor as the recipient of the rebate. Then, your vendor will bill you for only the cost of the equipment above and beyond what the rebate program covers. Prescriptive rebates can only be used to purchase new equipment.
The ComEd rebate program covers $85 per HP for new air compressors with integrated VSD (up to 200 HP) when replacing an existing fixed-speed rotary screw compressor or installing a new one for a new facility or expansion. They also offer rebates for purchase of equipment such as:
- Zero-Loss Drains
- Refrigerated and Desiccant Dryers
- Compressed Air Pressure Flow Controllers
- Air Storage
- Low Pressure Drop Filters
Fluid-Aire Dynamics is a ComEd approved service provider and can work with you to make sure you are getting the most from these programs.
Wisconsin Focus on Energy prescriptive incentive covers $40/HP towards the purchase and installation of a new VSD air compressor. Rebates are also available on:
- VSD Vacuum Pumps
- Cycling Refrigerated Dryers
- Dewpoint Demand Controls for Desiccant Dryers
- Zero-Loss Drains
- Mist Eliminators
- And more
As an authorized service provider, your Fluid-Aire Dynamics team can help you get the most from these rebate programs.
Customers in Minnesota are eligible for Xcel Energy rebate programs that cover New VSD Compressors at $150/HP for compressors 10-40 HP. Compressors must have a factory-integrated VSD. Xcel Energy offers several additional prescriptive rebate programs for compressed air that cover:
- Zero-Loss Drains
- Cycling Refrigerated Dryers
- Mist Eliminators
- Cycling Refrigerated Dryers
- Dyer Purge Demand Controls
There may be additional programs that you can qualify for, your Fluid-Aire Dynamics team can assess your needs and help you to get the most from these programs as possible.
Customer Efficiency Programs
ComEd, Xcel Energy and Wisconsin’s Focus on Energy programs all provide rebates for custom efficiency projects outside the scope of the prescriptive rebate program. These projects are approved on a case-by-case basis based on the amount of energy saved. Custom projects include installation of VSD air compressors larger than 200 HP and other energy-saving projects not covered by the prescriptive programs. Fluid-Aire makes it easy to qualify for incentive and rebate programs. We are an authorized service provider for compressed air system energy incentives and we’ll even fill out the paperwork for you and provide all the required documentation.
Leak Detection and Repair Programs
One of the most popular programs that energy companies provide is leak detection. Under these programs, manufacturers can get most compressed air leaks fixed at little or no cost and make other energy-saving improvements. Manufacturers must commit to repairing at least 75% of the leaks detected - depending on your service location. The money can be paid directly to the vendor, so there are little or no up-front costs for manufacturers. Make sure to contact Fluid-Aire Dynamics to see which programs are available in your area.
On average, about 35% of compressed air produced is wasted. Finding and fixing leaks will keep compressed air waste to a minimum.
Aire Tip: A 1-CFM leak will add ~$35 in energy costs per shift.
Getting Started with Energy Incentives for Compressed Air Systems
Fluid-Aire makes it easy to qualify for incentive and rebate programs from your energy provider. We are an authorized service provider for compressed air system energy incentives throughout Illinois, Wisconsin and Minnesota. We’ll even fill out the paperwork for you and provide all the required documentation. We can:
- Conduct compressed air studies through your providers’ program
- Identify your greatest opportunities for energy savings and rebates
- Detect and repair leaks
- Install qualifying equipment and upgrades, including VSD air compressors
Contact us to learn how we can help you improve the energy efficiency of your compressed air system. If you are not located in these service areas, there are most likely incentives available to you as well; contact your local energy provider or give us a call and we will be happy to point you in the right direction. The sooner you get started, the sooner you can start saving money on your energy bill!