2010: The year of the rebate.

Minnesota energy efficiency rebates at an all-time high make this the ideal year to upgrade, improve and save.

The beginning of a new year—not to mention a new decade—is always a great time to pause, reflect, reevaluate. For small and mid-size Minnesota businesses looking to improve their overall energy efficiency, 2010 promises to be the best year ever. By partnering with Xcel Energy, businesses can realize much greater energy efficiency rebates than ever before available; in fact, many rebates are more than double their previous levels.

"We believe that many small and mid-size business owners and facility managers who have been on the fence about whether to do efficiency upgrades will look at these new rebate numbers and decide that now is the time," says Karen Rhodes, Manager, Energy Efficiency Marketing at Xcel Energy. "There's never been a better time to combine the long-term savings that come from greater efficiency with the short-term payback benefits of rebates."

New boiler rebates up to 7 times higher.

If your heating equipment is more than 10 years old, it could use up to 50% more natural gas than new models, and it's less reliable and can even have safety problems. These new rebates can greatly assist participating companies in lowering their natural gas costs even as they defray the initial costs associated with retrofits or improvements.

In addition to being significantly higher than before, rebates for new boilers are much easier to calculate. "Previously, a new condensing boiler would cap out at $500 per MMBTUH using an equation with multiple inputs," Rhodes explains. "But with these new rebate levels, if you get a new boiler that is 92% efficient or higher, you'll get a flat rebate of $3,500 per MMBTUH." A rebate calculator tool is also available for more assistance, and other rebate options for energy-efficient heating equipment also are available. See XcelEnergy.com/HeatingEfficiency for full program details.

Lighting rebates higher across the board.

For most businesses, lighting is a main driver of energy bills, accounting for up to 44% of monthly energy bills. Every step to lower your lighting use, from installing energy-efficient lighting to limiting lights to where and when you need them, can significantly lower your energy bills and earn substantial rebates that are even higher in 2010.

For example, for a standard T-12 to T-8 retrofit (3-lamp fixture), Xcel Energy will pay $28 per fixture, compared to $16 per fixture in 2009. It's important to note that T-8 installations must now include a high-efficiency ballast, which previously was not required.

Increased furnace efficiency rebates.

In 2010, Xcel Energy will be offering three different levels of furnace efficiency rebates ranging from $100 to $250 when Minnesota businesses install qualifying energy-efficient furnaces. "As always, customers should look for the ENERGY STAR^® symbol to be sure that they are getting the most efficient appliance available," says Rhodes. "They should talk to their dealer to make sure that they get a furnace that qualifies for a rebate."

New drive rebates an average of 373% higher.

Companies looking to upgrade their motors and drives will find the new rebates to be a huge upgrade in and of themselves. For example, the rebate for a 5 hp drive is now $600, compared to $30 per hp or $150 in 2009. Additionally, motor rebates will offer a standard rebate level based on horsepower for greater rebate potential and ease of use.

Up to 75% rebates on energy use studies.

But the opportunities for substantial rebates are not just limited to the purchase and/or upgrade of equipment. Xcel Energy also offers financial reimbursement for studies that analyze the energy use of Minnesota companies in the areas of heating, cooling, lighting, motors and drives, and more. These studies can help companies like yours identify and prioritize the best energy efficiency improvements for your unique situation.

"Our funding can actually reimburse up to 75% of a company's study cost, up to $25,000," explains Rhodes. "This is in addition to rebates on actual energy efficiency implementation that can offset your project costs and reduce payback periods." Nearly any type of energy-saving project can be considered for these rebates.

Also new in 2010 is a lower nine-month payment threshold to qualify for custom type rebates. Previously, custom projects had to have a payback of one year or more. Now, lower payback projects have a greater chance of receiving rebates. Additionally, effective October 1 of 2009, custom projects are eligible for substantially increased rebates of up to $400 per kilowatt (kW) saved, and up to $5 per dekatherm (Dth) saved.

Pre-approval is required for all custom projects prior to purchase or installation, and some restrictions apply. Full details for these rebates are available on the program applications, which are available at xcelenergy.com or through Xcel Energy's Business Solutions Center at 1-800-481-4700.

"It is our hope that these higher rebates inspire many Minnesota companies to take a good look at their systems, and make the changes today that can save a great deal of energy—and money—in the long term," Rhodes concluded. "The environmental benefits are something we can all feel very good about. But at the end of the day, we realize the bottom line is saving money."