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Utility Rebates for VFDs

Utility Rebates for VFDs

Still Going Strong in 2022

Over 700 utility companies in the United States offer rebates for the installation of VFDs. The $ per HP ranges from $15 to $150.

If you exclude the time it takes to document the job and process the claim, it is as close to free money as it gets. In the face of inflationary markets, facilitating your customers’ payback on their investment, is a smarter play than ever before.

The good

For HVAC applications, retrofit opportunities remain exceptionally lucrative. If you have a loyal customer base consisting of hospitals, schools, and other institutional customers, they remain prime candidates for quick payback on upgrade opportunities where there is no existing VFD. Also, over the last decade many utilities have enhanced the rebates available for new construction projects.

The challenge

Everything is totally de-centralized. A broad brush anecdote will not provide justice in explaining the opportunity at hand. 700 utilities with an equal number of rules and regulations that can change multiple times per year means a bit of sleuthing is needed locally to sort out the details.

Consider a few generic examples

Excluding the energy payback, and just focusing on rebate $ on the table for doing the paperwork, here are two examples for a typical $80K job:



Why do utility companies offer rebates for VFDs?

VFDs actually save energy. It is not hyperbole. It is real. Any realized reduction in actual energy demand defers the utility’s investment in additional capacity. The strategy of energy savings applies even to those who supply it. Cost avoidance is better for the bottom line, even in a market where competition is limited.

Find out more about potential rebate opportunities in your area for installing our drives in new or retrofit work.

For more information or to discuss further, contact Don Cameron, Yaskawa's HVAC Segment Manager, at or (224) 374-8254