Energy optimization program saves dollars for Michigan farms
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EmailThe Energy Optimization energy efficiency program provides rebates to eligible farmers across Michigan.
The Energy Optimization energy efficiency program provides rebates to eligible farmers across Michigan to better manage their energy use and save money. Energy Conservation Measures (ECMs) are straightforward and rebates are plentiful (see chart). Rebate availability depends on participating utilities (see map) and are updated/modified annually.
|
Energy Conservation Measure |
Rebate |
|
Low-energy Livestock Waterer |
$50/unit |
|
Barn Exhaust Fan |
$2 per blade inch |
|
Barn Circulation Fan |
$2 per blade inch |
|
Commercial Electric Water Heater for Dairy Milk House |
$250/unit |
|
High Performance T8 Fluorescent Lights |
$2-20 per fixture |
|
High Bay Light Replacement (i.e., T8 or T5HO linear fluorescent lights) |
$20-50 per fixture |
|
CFL bulbs |
$1-4 per bulb |
|
LED light bulbs |
$8 per lamp |
|
Lighting Occupancy Sensors |
$15-30 per sensor |
|
Split system Air Conditioning |
$10 per ton |
|
Central Packaged Rooftop AC |
$10 per ton |
|
Variable Frequency Drives |
$60 per hp up to 40 percent of project cost (limitations apply) |
|
Commercial Refrigeration |
Varies. See non-lighting application |
|
Compressed Air |
Varies by utility. |
|
Custom Rebates (i.e., irrigation pump speed controls, irrigation pressure reduction, efficient milk harvesting and cooling equipment, dusk to dawn outdoor lights, etc.) |
$0.05 per annual kWh saved up to 40 percent |
A key aspect of the Utility Energy Optimization program is what is called “custom rebate” options. This means that farmers with a certified farm energy audit who use the custom rebate option get paid per kWh or BTU of calculated savings for each Energy Conservation Measure that is implemented or going to be implemented. The payoff is much larger than the per-piece table values listed above. With a custom rebate option you can use options (proven and available) and you are not limited to the Energy Conservation Measures on the list. To maximize rebates, Michigan State University Extension recommends doing a custom rebate option. It is worth the $500 buy-in required for a certified farm energy audit. Some utility companies even cover the $500 buy-in cost.
The items and rebates listed in the table are usually the same for all utility companies as these items and rates are approved by the Michigan Public Service Commission, however customers need to go to their utility company web page and verify this. For agriculture, most utility companies will allow farms on a “residential” utility rate to avail themselves of the commercial rebates as well. However, farmers need to verify this with their utility company. 
Additional key points about the Energy Optimization program:
- Energy Optimization program staff are available to assist businesses with custom rebates.
- Businesses may also qualify for a variety of other Energy Optimization program rebates. View a rebate summary.
- There are also many residential Energy Optimization programs such as getting in-store discounts on CFL bulbs to rebates on new energy efficient furnaces and appliances. There is even a free online home energy audit tool that shows what energy-saving steps homeowners can take right away.
- Rebate checks are issued 6-8 weeks after the project and paperwork are completed.
- Twelve cooperative and municipal utilities are part of the Michigan Electric Cooperative Association (MECA) collaborative and offer Energy Optimization programs.
- Consumers Energy’s energy efficiency program
- DTE’s energy efficiency program
- Efficiency United handles energy efficiency programs for many utilities including Michigan Gas Utilities, SEMCO, Cloverland, Daggett, Indiana-Michigan Power, Alpena Power, UPPCO and Xcel Energy
- Energy Smart caters to businesses along the west coast of Michigan. Choose a city from a drop-down list to go to the appropriate energy conservation program.
For more details about Energy Optimization programs, call 877-296-4319 or visit michigan-energy.org, or contact Charles Gould at gouldm@msu.edu or Al Go at goaluel@egr.msu.edu.
