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Compressed Air - MN
Compressed Air Efficiency
Minnesota businesses can earn rebates and reduce costs
Overview
Minnesota businesses can earn significant rebates and reduce costs through better performance when you use our Compressed Air Efficiency study and rebates.
According to the Department of Energy, 50% of the air supply from a typical compressed air system is lost due to leaks and wasteful measures. In addition, the energy costs for inefficient systems can account for up to 76% of the total lifetime costs of the equipment.
Learn ways to reduce waste and minimize your operating expenses through our Compressed Air study (preapproval required) and get the most out of your compressed air system reducing your energy costs and improving productivity.
We offer study funding and rebates that help you implement equipment updates or improvements resulting in lower energy use or higher production. This offsets your purchase costs while improving payback and return on investment.
Benefits
When you take advantage of our Compressed Air Efficiency study and rebates, you:
- Receive funding for a study on how to improve your compressed air system.
- Can earn substantial rebates (an average of $5,000 based upon $400/kW saved).
- Offset upfront costs and shorten payback periods on new equipment.
- Reduce your air waste as much as 50%.
- Improve productivity and increase your profitability.
- Enhance your system knowledge.
Details
In two steps, we will help you identify and implement ways to avoid wasting energy and to start saving money and energy with your compressed air system.
- Conduct a Compressed Air Study – We’ll analyze your supply and demand usage via air flow and/or electric metering. The report will identify leaks, wastes and associated costs and offer recommendations and financial analysis.
- Implement study measures (recommended system upgrades) – When you implement identified eligible measures from the study; you can receive rebates that improve your return on investment. On average, customers received rebates of $5,000 based upon $400/kW saved.
| Incentive | Product | Parameter | Offer |
|---|---|---|---|
| Funding | Study | 50 hp | Not available |
| > 50 hp | 50-99 hp = $1,500 + $20/hp 100-199 hp = $2,000 + $20/hp 200-499 hp = $3,000 + $20/hp 500hp and greater must submit proposal for study funding incentive |
||
| Rebates | Integrated VSD Air Compressor 10 - 50 hp
|
See rebate application | Plan A: $100/hp Plan B: $100/hp $3,000 |
| No Loss Air Drains | $200/unit | ||
| Custom Rebates for all other related non-prescriptive equipment or improvements. Preapproval required | Up to $400/kW |
Who Qualifies
To qualify, you must:
- Be a business electricity customer of Xcel Energy in Minnesota.
- Receive preapproval (submit study application).
How to Get Started
For Studies
- Select a compressed air vendor from the list of participating providers.
- With your vendor, complete and submit the study application for preapproval.
- Submit your completed report for study reimbursement.
For Rebates
- Pursue prescriptive rebates on variable speed compressors or no loss air drains.
- Pursue custom rebates for process or equipment improvements identified in your report. Custom rebates require preapproval before purchasing (see application for details).
- Complete and submit the appropriate application.
Additional Information
If you have any questions regarding our Compressed Air Efficiency study and rebates, call us at 1-800-481-4700 or email energyefficiency@XcelEnergy.com.
