Motor and Drive Efficiency Rebate Program

Motors are expensive because 98% of it’s cost is the energy to run the motor. The lifetime energy use of a motor will cost you more than the initial capital outlay–just 2% of a typical large motor’s life-cycle cost.

A hasty decision or doing nothing has operational cost implications. When you’re ready to install qualified high-efficiency motors or drives, use our rebates, and help offset your critical first cost– purchase price of new equipment. If you’re a business is in Minnesota and you’re an Xcel Energy customer, you can earn rebates on motors that can save energy and improve your bottom line.

When you take advantage of our Motor and Drive Efficiency rebates, you can:

• Reduce your monthly energy bills by using more energy-efficient equipment.
• Defray up-front costs and shorten payback periods on equipment.
• Decrease downtime and maintenance.
• Increase output quality, operating efficiency and productive life of equipment.

Rebates offered

We offer rebates for our business electric customers in Minnesota who install qualifying drives (variable frequency, adjustable speed), constant speed motor controllers, and NEMA Premium® efficiency motors.

Rebates are capped at 60% of project cost (up from 50% previously).

Custom equipment and rebate amounts

Plan to save money, cut costs and manage your bottom line

Plan ahead and understand your equipment so you save money in the long term. Inventory your motor equipment and download valuable tools to help get the most out of your motors and drives.

Refer to Additional Information for helpful resources and tools.

To qualify, you:

• Must be a business electric customer of Xcel Energy in Minnesota.
• Must purchase and install qualified equipment as listed in the appropriate application.
• Must have invoices that are dated 1/1/2011 or after.
• May qualify for “custom” rebates on additional measures that are not listed. Custom rebates require preapproval before you purchase any equipment.

Review the upcoming changes to the national efficiency standards. Refer to the appropriate application to ensure the equipment you plan to purchase is qualified for the rebate. 

If you have any questions, please call our Business Solutions Center at 1-800-481-4700 or contact your account manager.

Complete and submit the application per requirements and application instructions.

Xcel Energy is a proud sponsor of the Motor Decisions Matter (MDM) campaign. This national campaign encourages sound motor management and planning to cut motor energy costs and increase productivity. 

Visit MDM’s website for more information and helpful tools like their motor planning kit or sponsored calculator to estimate annual energy cost, capital investment, payback and more. Your vendor may also have useful tools and software.