Cooling Efficiency

Minnesota businesses can lower upfront costs and shorten payback periods on qualified cooling equipment with our Cooling Efficiency rebates.

Cooling is the number two user of electricity for most commercial buildings. New cooling equipment is at least 20% more efficient than units just 15 years old, and the most-efficient new units are up to 52% more efficient than the minimum-efficiency models. (Source: E Source by Platts).

Our rebates lower your up-front cost and shorten your payback period.

When you take advantage of our Cooling Efficiency rebates, you:

• Earn a prescriptive rebate up to 50-60% of incremental costs on average.
• May be eligible for custom rebates where you can receive up to $400/kW saved.
• May also be eligible for up to 75% off the cost (not to exceed $25,000) of a detailed engineering study.
• Lower upfront costs and shorten your payback period to as low as nine months on high-efficiency units.
• Benefit from at least a 20% increase in cooling efficiency compared to older units.
• Save money on your cooling costs over time while increasing comfort in your facility.

How the program works

We have three options to help you save energy and earn cash incentives involving cooling systems:

• Prescriptive rebates
• Custom rebates
• Engineering assistance studies

Prescriptive rebates

Earn fixed rebates for purchasing new energy efficient equipment. Rebate levels are designed to average 50-60% of incremental cost. See Who qualifies for more details.

Custom rebates

Rebates are available for unique equipment that does not fall under our prescriptive program. Customers are eligible to receive up to $400/kW saved, but don’t forget preapproval is required to qualify.

As of Jan. 1, 2010, Custom Efficiency rebates can cover up to 60% of your project's costs and can help bring paybacks down to nine months. See our Custom Efficiency page for more information.

Examples:

• Energy Recovery
• Cooling Towers
• Ground Source Heat Pumps

Engineering Assistance Studies

Study funding is available for customers who are looking to analyze their cooling system and require detailed engineering to justify equipment recommendation. We will fund up to 75% of the study cost not to exceed $25,000.

Once the study is complete we will offer implementation rebates for completing energy saving opportunities. See our Energy Analysis page for more information.

To be eligible, you:

• Must be an Xcel Energy business electricity customer in Minnesota.
• Must purchase new qualifying cooling systems (see list of qualifying equipment).
• Can not apply for rebates on used, rebuilt or refurbished equipment.

Qualifying equipment includes:

• DX Units: Condensing Units, Split Systems and Rooftop Units
• PTACs (Packaged Terminal Air Conditioner)
• Water Source Heat Pumps
• Hotel Room Controllers
• Economizers
• Plate and Frame Heat Exchangers
• VFD on Chillers (retrofit only)
• Chillers (Air Cooled, Screw and Scroll, Centrifugal)

See the back of the rebate application for additional details.

For prescriptive rebates

1. Purchase and install new qualifying cooling equipment. Customers have 12 months from the equipment invoice date to apply for a Cooling Efficiency rebate.
2. Fill out the rebate application. Please note the application process section in the Rules and Requirements section above. (All information needs to be supplied before a rebate check can be issued.)
3. Mail or fax completed rebate application along with the original paid invoices to:

   Xcel Energy, Rebate Operations
   P.O. Box 829
   Minneapolis, MN 55440-0829
   Fax: 612-330-5675

For details on how to apply for custom rebates see our Custom Efficiency page. For information on how to get started with the engineering study, see our Energy Analysis page.

For any questions on our Cooling Efficiency rebates, call our Business Solutions Center at 1-800-481-4700 or email bsc@xcelenergy.com.