Customer Support

Compressed Air Efficiency for Trade Partners

Help your business customers increase their system knowledge and earn rebates with our Compressed Air Efficiency program. The majority of the money a customer spends on a compressed air system is in the energy costs to run it. Studies have shown that during the lifetime of a compressed air system, over 75 percent of the cost to own and operate it is in electricity costs. It makes good economic sense to help customers maximize the efficiency of their systems.


  • Your customers may qualify for funding for a study on how to improve their system. Study funds (preapproval required) typically cover:
    • (50hp – 99hp systems) 100 percent of study costs up to $2,500
    • (100hp+ systems) 75 percent of study costs up to $15,000
  • Customers can qualify for rebates related to improving the efficiency of their compressed air systems:
    • Rebates for No Air Loss Drains of up to $200
    • Rebates for VFD compressors of up to $7,000
    • Rebates for Custom projects of up to $600/kW saved (preapproval required).


All compressed air studies require preapproval and Xcel Energy recommends that all customers complete a study before performing any system upgrades. Studies should be done at least every five years; study funding is limited to one rebate per system every five years.

For customer purchases of No Air Loss Drains, or qualifying compressors, the rebates are prescriptive (pre-determined) and do not require preapproval. For almost any other compressed air system capital cost upgrade, customers may apply for rebate preapproval using the custom application.

How to Get Started

We recommend that you start by providing a quote to your customer detailing the scope of your proposed work. Complete the Compressed Air Efficiency study application, and attach your customer quote.

Submit to the study application and quote to us for preapproval before beginning the study.

The study content must consist of the following:

  • Identification of leaks and their associated energy costs
  • System baseline as determined by evaluating compressed air system supply and demand
  • Recommendations with payback and estimated energy savings
  • Description of major compressed air system components
  • Identify system loading of major compressed air users
  • Provide flow and/or electric metering results
  • Identify results of the leaks and unregulated demand inspection
  • Identify execution steps and provide cost estimate to repair the leaks
  • Recommend improvements to the customer’s maintenance procedures
  • Recommend follow-up actions to improve operation and efficiency

We will respond within one week of receiving your completed study application to confirm study funding. After completing the study, your customer must submit a copy of the study report, an inventory of leak fixes, and your study invoice. The documents should be submitted to the customer’s Xcel Energy Account Representative, or to

Study Application (PDF)
VFD and No Loss Air Drain Application (PDF)
Custom Application (PDF)

Additional Information

If you have any questions about our Compressed Air Efficiency for Trade Partners program and how your business can benefit, call our Business Solutions Center at 1-855-839-8862, email, or contact Trade Relations Manager, Bob Macauley at 303-294-2675 or

Compressed Air Efficiency Information Sheet (PDF)
Suggested Study Template (PDF)
Compressed Air Challenge (external link)
Department of Energy Compressed Air Best Practices (external link)

Energy Saving Tip

What's the point in filling your home with cool or warm air, only to have it disappear? Invest in high quality insulation to help keep temperature-controlled air where it belongs.

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