Energy Optimization (Electric) - Commercial Efficiency Program

August 05, 2022


The Energy Optimization Programs, administered by the MIchigan Electric Cooperative Association (MECA) collaborative, provides commercial electric incentives for the following Michigan utilities:

  • Alger-Delta Electric Cooperative
  • Cloverland Electric Cooperative
  • Daggett Electric Company
  • City of Escanaba
  • Great Lakes Energy Cooperative
  • HomeWorks Tri-County Electric Cooperative
  • Marquette Board of Light and Power
  • Midwest Energy Cooperative
  • Newberry Water and Light Board
  • Ontonagon County Rural Electrification Association
  • Presque Isle Electric and Gas Cooperative
  • City of South Haven
  • City of Stephenson

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 1,800 hours per year and other equipment must operate a minimum of 1,500 hours per year.

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 (kWh) basis, based on projected annual savings. 

Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: Michigan
Incentive Type: Rebate Program
Web Site:
Start Date:
Eligible Renewable/Other Technologies:
  • Equipment Insulation
  • Water Heaters
  • Lighting
  • Lighting Controls/Sensors
  • Chillers
  • Heat pumps
  • Air conditioners
  • Compressed air
  • Energy Mgmt. Systems/Building Controls
  • Motors
  • Motor VFDs
  • Processing and Manufacturing Equipment
  • Agricultural Equipment
  • Custom/Others pending approval
  • Other EE
  • Food Service Equipment
  • Vending Machine Controls
  • Commercial Refrigeration Equipment
Incentive Amount: Lighting: Varies
HVAC Chillers: $20/ton
Chiller Tune-Up: $6 - $12/ton
Variable Frequency Drives: $20 - $60/HP
Vending Machine Controllers: $30 - $65
Commercial Refrigeration Equipment: Varies
Commercial Cooking Equipment: Varies
Compressed Air Nozzles: $100/unit
Barrel Insulation Wraps: $100/sq. ft.
Automatic High-Speed Door: $15 - $100/sq. ft.
Industrial 3-Phase HF Battery Charger: $125 - $300/charger
High Efficiency Welder: $125/welder
PC Network Energy Management Software: $9/PC controlled
ECM Furnace Blower Motor: $200/fan motor
Smart Thermostat: $75/unit
Heat Pump Water Heater: $500/unit
Hotel Guest Room Energy Management: $70
Variable Speed Air Compressor: $90/HP
Variable Displacement Air Compressor: $35/HP
Two-Stage Rotary Screw Air Compressor: $20/HP
Compressed Air Engineered Nozzle: $100/nozzle
Zero-Loss Condensate Drain: $50/drain
Low Pressure Drop Filter: $5/HP
Compressed Air Pressure Flow Controller: $5/HP
Air Compressor Outdoor Air Intake: $4/HP
Compressed Air Storage Tank: $25/HP
Refrigerated Compressed Air Dryer: $3.50/SCFM
Heat-of-Compression Air Dryer: $3.50/SCFM
Refrigerated Cycling Compressed Air Dryer: $0.40 - $1/SCFM
Heated Desiccant Compressed Air Dryer: $2.50/SCFM
Blower Purge Desiccant Compressed Air Dryer: $3.50/SCFM
Electric Tool Replacing Pneumatic Air Tool: $60 - $100/tool
Compressed Air Leak Audit/Reduction: $10/HP

Custom: $0.06/kWh/yr saved
Maximum Incentive: General: 75% of the project cost, unless otherwise noted on website
Custom:75% of the project cost
Equipment Requirements: See program website
Installation Requirements: See program website


This program has 3 incentives
Technologies: Motor VFDs
Sectors: Commercial, Industrial, Federal Government, Agricultural
Parameters: The incentive has a maximum of 20.00 $/horsepower, The incentive has a minimum of 100.00 $/horsepower
Technologies: Vending Machine Controls
Sectors: Commercial, Industrial, Federal Government, Agricultural
Parameters: The incentive has a maximum of 30.00 $/Unit, The incentive has a minimum of 65.00 $/Unit
Technologies: Custom/Others pending approval
Sectors: Commercial, Industrial, Federal Government, Agricultural
Parameters: The incentive is 0.06 $/first year kWh savings


Name: Energy Optimization
Address: 431 Charmany Drive
Madison WI 53719
Phone: (877) 296-4319

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.