Energy optimization program saves dollars for Michigan farms

Charles<gouldm@msu.edu> Gould, and Al Go, Michigan State University Extension - December 07, 2012

The Energy Optimization energy efficiency program provides rebates to eligible farmers across Michigan.

The Energy Optimization energy efficiency program provides rebates to eligible farmers across Michigan to better manage their energy use and save money. Energy Conservation Measures (ECMs) are straightforward and rebates are plentiful (see chart). Rebate availability depends on participating utilities (see map) and are updated/modified annually.

Energy Conservation Measure	Rebate (restrictions apply)
Low-energy Livestock Waterer	$50/unit
Barn Exhaust Fan	$2 per blade inch
Barn Circulation Fan	$2 per blade inch
Commercial Electric Water Heater for Dairy Milk House	$250/unit
High Performance T8 Fluorescent Lights	$2-20 per fixture
High Bay Light Replacement (i.e., T8 or T5HO linear fluorescent lights)	$20-50 per fixture
CFL bulbs	$1-4 per bulb
LED light bulbs	$8 per lamp
Lighting Occupancy Sensors	$15-30 per sensor
Split system Air Conditioning	$10 per ton
Central Packaged Rooftop AC	$10 per ton
Variable Frequency Drives	$60 per hp up to 40 percent of project cost (limitations apply)
Commercial Refrigeration	Varies. See non-lighting application
Compressed Air	Varies by utility.
Custom Rebates (i.e., irrigation pump speed controls, irrigation pressure reduction, efficient milk harvesting and cooling equipment, dusk to dawn outdoor lights, etc.)	$0.05 per annual kWh saved up to 40 percent of project cost (limitations apply)

A key aspect of the Utility Energy Optimization program is what is called “custom rebate” options. This means that farmers with a certified farm energy audit who use the custom rebate option get paid per kWh or BTU of calculated savings for each Energy Conservation Measure that is implemented or going to be implemented. The payoff is much larger than the per-piece table values listed above. With a custom rebate option you can use options (proven and available) and you are not limited to the Energy Conservation Measures on the list. To maximize rebates, Michigan State University Extension recommends doing a custom rebate option. It is worth the $500 buy-in required for a certified farm energy audit. Some utility companies even cover the $500 buy-in cost.

The items and rebates listed in the table are usually the same for all utility companies as these items and rates are approved by the Michigan Public Service Commission, however customers need to go to their utility company web page and verify this. For agriculture, most utility companies will allow farms on a “residential” utility rate to avail themselves of the commercial rebates as well. However, farmers need to verify this with their utility company. map

Additional key points about the Energy Optimization program:

Energy Optimization program staff are available to assist businesses with custom rebates.
Businesses may also qualify for a variety of other Energy Optimization program rebates. View a rebate summary.
There are also many residential Energy Optimization programs such as getting in-store discounts on CFL bulbs to rebates on new energy efficient furnaces and appliances. There is even a free online home energy audit tool that shows what energy-saving steps homeowners can take right away.
Rebate checks are issued 6-8 weeks after the project and paperwork are completed.
Twelve cooperative and municipal utilities are part of the Michigan Electric Cooperative Association (MECA) collaborative and offer Energy Optimization programs.
Consumers Energy’s energy efficiency program
DTE’s energy efficiency program
Efficiency United handles energy efficiency programs for many utilities including Michigan Gas Utilities, SEMCO, Cloverland, Daggett, Indiana-Michigan Power, Alpena Power, UPPCO and Xcel Energy
Energy Smart caters to businesses along the west coast of Michigan. Choose a city from a drop-down list to go to the appropriate energy conservation program.

For more details about Energy Optimization programs, call 877-296-4319 or visit michigan-energy.org, or contact Charles Gould at gouldm@msu.edu or Al Go at goaluel@egr.msu.edu.

This article was published by Michigan State University Extension. For more information, visit https://extension.msu.edu. To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters. To contact an expert in your area, visit https://extension.msu.edu/experts, or call 888-MSUE4MI (888-678-3464).