Copy of City of Palo Alto Utilities - Commercial Energy Efficiency Rebate Program

October 12, 2011


City of Palo Alto Utilities, through the Commercial Advantage Program and 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
  • 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 web site listed above.


Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: California
Incentive Type: Rebate Program
Web Site:
Administrator: Utility Marketing Services
Start Date:
Eligible Renewable/Other Technologies:
  • Dishwasher
  • Refrigerators/Freezers
  • Dehumidifiers
  • Equipment Insulation
  • Water Heaters
  • Lighting
  • Chillers
  • Furnaces
  • Boilers
  • Heat pumps
  • Air conditioners
  • Steam-system upgrades
  • Building Insulation
  • Windows
  • Motor VFDs
  • Processing and Manufacturing Equipment
  • Custom/Others pending approval
  • Other EE
  • Food Service Equipment
  • Personal Computing Equipment
Incentive Amount: Window Film: $1.35/square foot
Attic/Roof/Wall Insulation: $0.15/square foot
Dishwasher: $50 - $500
Lighting Fixtures: varies by fixture and lamp
Water Heater: $2/MBtuh
Boiler: $1 - $1.50/Mbtuh
Water Heater: $30/unit
Steam Traps: $14/unit
Tank/Pipe Insulation: $2 - $4/MBtuh or linear foot
Commercial Pool Heater: $2/MBtuh
Unitary/Split System AC: $80 - $100/ton
Package Terminal AC/Heat Pump: $100/unit
VFD for HVAC: $80/hp
VFD for Air Handler Systems: $50/unit
Furnace: $150 - $300
Evaporative Fans: Varies by type
Commercial Cooking Equipment: Varies by type and efficiency
Refrigeration Equipment: varies widely
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
Maximum Incentive: $100,000 per CPAU fiscal year (July 1 - June 30)
Custom: 50% of project cost
Eligible System Size: Varies per technology
Equipment 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


Name: City of Palo Alto Development Services Building Division
Organization: City of Palo Alto Utilities
Address: 285 Hamilton Av. (First Floor),
Palo Alto CA 94301
Phone: (650) 329-2496

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.