Archive for the ‘Energy Rebates’ Category

The American Recovery and Reinvestment Act of 2009 has created incredible opportunities for energy savings. More and more areas of the country now have rebates available for commercial lighting upgrades. Organizations in 42 states currently have rebate programs available for energy efficiency lighting in commercial buildings.

Buildings in thousands of municipalities across the US are now eligible for lighting efficiency rebates from state organizations and local utilities. Programs like these provide customers with incentives to upgrade inefficient lighting systems to new energy efficient ones. The incentives range anywhere from $.50 per lamp to $450 per fixture and include lights such as T8 lamps, as well as LED exit signs, sensors and more.

Aelux has been continuously monitoring events related to Pennsylvania’s Act 129 which requires each of the seven major Electric Distribution Companies (EDCs) in Pennsylvania to adopt a plan to reduce energy demand and consumption within its service territory. The minimum saving requirements for each EDC is 1% by May 2011 and 3% by May 2013.

The Pennsylvania Utility Commission (PUC) has now approved three of the plans – Allegheny, PECO and PPL Electric Utilities Corp.

The approved Energy Efficiency and Conservation plans (EE&Cs) include various programs for commercial, industrial, government and non-profit customers to increase energy efficiency and conservation efforts that the Aelux team is exploring so as to make them available to every customer who qualifies.

The U.S. Department of Energy reports that lighting represents 40% of the average commercial building’s electric bill, followed by motors/HVAC (40%) and other equipment (20%). And, the Energy Cost Savings Council, reports that energy–efficient lighting projects generate an average 45% return on investment, paying for themselves in just 2.2 years. Yet, 80% of existing commercial buildings operate lighting systems installed before 1986.

To combat the country’s ongoing energy issues, Congress passed The Energy Policy Act of 2005, commonly referred to as EPACT. EPACT contains the Energy Efficient Commercial Buildings Deduction, which allows deducting the cost of new lighting systems completed before January 1, 2014 in a single tax year instead of amortized over a period of years.

The Commercial Buildings Tax Deduction also includes the Interim Lighting Rule that allows deducting non–warehouse indoor lighting at between $0.30 and $0.60/sq.ft on a sliding scale based on a 25–40% reduction below the maximum allowable lighting power density (W/sq/ft.). In warehouses, the indoor lighting is required to achieve a 50% reduction in lighting power density to obtain the maximum deduction of $0.60/sq.ft.  The Interim Lighting Rule also includes additional control and switching requirements. Any cost over the legislated caps is deducted on normal, non–accelerated schedules.

To obtain the deductions, lighting projects must be meet the National Renewable Energy Laboratory (NREL) Energy Savings Modeling and Inspection Guidelines. Aelux regularly qualifies lighting upgrades for EPACT deductions.  Additional information and assistance is available from any Aelux team member.

[Information for this post was obtained from LightingTaxDeduction.org and AboutLightingControls.org]