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Business Incentives

Utility Incentives

Choose Your Utility Provider: Pepco -- BG&E -- Potomac Edison

 

Image of Pepco logoPepco Commercial and Industrial Energy Savings Program

Pepco, using funding from the EmPower Maryland Act, provides a variety of incentives for energy savings in commercial buildings and multi-family properties.  These programs are highly diverse and offer solutions for a variety of building owners and operators.  The programs are approved until 2015. Please visit the Pepco website for the most current information. 

Construction and Equipment Incentives

New Construction and Major RenovationsGet incentives and technical assistance for new building projects that incorporate efficient technologies or exceed code requirements.  Anyone building a project should check-in with the Pepco team to determine what incentives they may be eligible for. 

Lighting Fixtures and Controls: Incentives for the installation of energy efficient lighting systems and controls such as light emitting diodes (LEDs) and occupancy sensors, includes  “prescriptive” incentives for more common retrofits and “custom incentives” for innovative and more complex projects. 

Variable Frequency Drives: Incentives for controllers that regulate the speed and power of motors that drive building systems such as heating and cooling systems.  

Packaged Heating, Ventilating and Air Conditioning: Incentives for the replacement of packaged Heating, Ventilating and Air Conditioning (HVAC) systems common in many small commercial buildings with more energy efficient replacements.  

Chillers: Incentives for the installation of energy efficient chillers.  

Water Heating Incentives: Incentives for the installation of more efficient commercial water heating equipment. 

Specialized Controls: Incentives for a variety of energy saving controls, such as hotel room occupancy “master switches”.  

Custom Projects: Energy management is a continually evolving industry with new products and approaches being developed daily.  The Custom Projects incentives involve technologies that do not fit neatly into the broader programs or that are comprehensive.  For most efforts, incentives are calculated as $0.16/kWh of estimated first year savings.  Whenever considering a building improvement check with the Pepco Commercial and Industrial Energy Savings staff so you do not miss an opportunity.  

Commercial Food Service Equipment: Restaurants, cafeterias and delis are amongst the most energy intensive types of businesses.  Fortunately, there are a wide array of incentives for energy efficient food service equipment such as freezers, refrigerators and deep fryers.  Smaller restaurants may be eligible for the Pepco Small Business Program which provides deeper incentives for organizations under 100 KW in annual demand 

 

Energy Efficiency Incentives

Chief Energy Officer Online: Get accurate information on your building’s energy consumption, demand and other data related to your energy usage that can help you identify savings opportunities.

Energy Savings Studies: An energy savings study, also referred to as an energy audit, is a fundamental effort to understand what energy savings opportunities exist in a building and the respective returns on investment.  While the scope of studies varies, in general, a customer will receive a itemized list of energy conservation measures with estimated savings. Substantial incentives are available to offset the costs of energy studies.

Smaller businesses, with under 100 kW in annual demand are eligible for a study at no additional cost as part of the Pepco Small Business Program.

Retro-Commissioning: Is a systematic process of evaluating a building’s energy systems and retuning them to optimize energy efficiency.  A typical retro-commissionining project will include restoring building system settings to factory presets and installing select no-low cost energy conservation measures.  Most retro-commissioning projects return the initial investment in 6 to 18 months making them one of the most cost-effective measures available. 

HVAC Tune-up: Ensure your HVAC system is running at optimum efficiency and maintain its longevity potential by getting an HVAC tune-up.   

Continuous Energy Improvement Commissioning: Manage energy in your building in a strategic and ongoing manner by monitoring energy consumption and high value energy savings opportunities.  Pepco offers incentives for this powerful energy management tool  

Pepco Small Business Program: Small businesses, defined by the utility as buildings that have energy demand less than 100 kW in peak energy use annually, are eligible for enhanced incentives that can cover up to 90% of the costs of improvements. Eligible organizations do not necessarily need to be a business, and many congregations, non-profits and even government buildings may be eligible.

The Pepco Small Business Program is a powerful, facilitated process, where the business selects a trade ally of their choice, as long as they are qualified to participate in the program and receives:

  • A walk through energy assessment by a trained professional who will provide detailed energy savings recommendations,
  • The installation of up to $250 in low and no cost measures, typically compact fluorescent light bulbs or LED exit signs.
  • A quote for a package of work, including the enhanced incentives available under the small business program, for work identified in the walk through energy assessment. 

Multi-Family Properties: Master metered multi-family properties are eligible for most of the incentives available under the commercial and multi-family program, but are also eligible for incentives similar to what would typically be available for residential consumers. Visit our Multi-Family page for a full listing of energy incentives.

 

Trainings

Operations and Maintenance Training: The frontline of maintaining energy efficiency is having staff such as building technicians, facility managers and energy managers aware of the best opportunities for reducing energy costs in a facility.  Up to 80% or $1,000 per training is available to reduce the costs of training your employees.  Common trainings include U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) training and Building Operations and Management Institute Systems Technician Training.  

Occupant Training: The daily behaviors of employees and other building occupants, such as turning off lights and enabling power savings options on computers can put a quick dent in an organizations energy costs and serve as a launch pad to broader sustainability efforts. The Pepco Commercial and Industrial Program’s offer up to $5,000 per utility account, determined based on an organizations actual performance, to offset the costs of campaigns to leverage energy conscious occupant behaviors.     

Multiple Measure Bonuses: Energy efficiency savings often are magnified by taking a systems approach involving adopting multiple energy conservation measures simultaneously.  To promote this, the Pepco Commercial and Industrial Energy Savings Program offers a 10% bonus incentive for buildings that install multiple measures simultaneously.  

 

Pepco Energy Wise Rewards Program

The Energy Wise Rewards Program enables businesses and master metered accounts to save money by allowing Pepco to automatically lower their energy consumption during peak periods.  This prog​ram has the added benefit of reducing emissions and the need for new power plants.

By signing up for the program, the consumer receives a one-time bill credit and an annual reward for agreeing to let Pepco cycle their cooling equipment several times a year using an advanced smart thermostat or a switch on the cooling unit or heatpump.  

Multi-family communities with one utility meter serving multiple units, known as master metered properties, can also participate under special terms. 

If you are a multi-family property owner or manager you may be able to get special resources to help enroll your tenants or residents.  Contact Pepco for more information. 

 

BG&E LogoBG&E

BG&E, using funding from the EmPower Maryland Act, provides a variety of incentives for energy savings in businesses, congregations, non-profits and other organizations. While a list of popular incentives provided below for your convenience, please visit their website for the most current program information

Small Business Energy Solutions: Up to 80% of the costs of popular retrofits for qualifying small businesses whose annual energy demand is less than 60 kW in a given year 

Business Solutions: Incentives for a variety of common energy efficiency improvements in businesses, congregations, non-profits and other facilities. Includes incentives for:

  • lighting including controls and new fixtures. For example, many fixtures can receive an incentive up to $40 each.
  • $8 to $200 a ton for various energy efficient HVAC units and chillers, additional incentives for variable frequency drives and advanced controls.
  • Commercial food service equipment, refrigeration upgrades, plug loads and other common equipment for food service and other businesses.
  • Incentives for multi-family apartment air-conditioners, heatpumps, appliances and other common equipment. 

Retrocommissioning: Is a systematic process of evaluating a building’s energy systems and retuning them to optimize energy efficiency. A typical retrocommissionining project will include restoring building system settings to factory presets and installing select no-low cost energy conservation measures. Most retrocommissioning projects return the initial investment in 6 to 18 months making them one of the most cost-effective measures available.

Tuition Assistance:  The BOC Training Tuition Reimbursement Program seeks to increase knowledge of efficient building operations by offsetting the cost to attend appropriate training courses. Approved courses are listed on the application form along with participant eligibility requirements.

 

Potomac Edison LogoPotomac Edison

Potomac Edison, using funding from the EmPower Maryland Act, provides a variety of incentives for energy savings in businesses, congregations, non-profits and other organizations.  While a list of popular incentives provided below for your convenience, please visit their website for the most current program information.  

Construction and Equipment Incentives

Lighting Program: Offers a performance based incentive of $0.05/kWh saved in the first year.  You pick the design that works best for your business and the Potomac Edison tools will identify your savings.  

Food Service Program: Offers incentives for a variety of restaurant and food service specific improvements such as refrigeration controls, high efficiency freezers and deep fryers.  

HVAC Efficiency Program: Incentives of up to $100 per ton, depending on equipment performance level, for the installation of high efficiency air conditioning equipment.  

Water Heating Program: Receive up to $200 for replacing an old water heater with an energy efficient model.  

LEED for New Construction Certification Incentive: Receive up to 50% of the cost of the United States Green Building Council’s Leadership in Energy and Environmental Design certification fees and an incentive for each kWh saved up to $15,000.  A great incentive for building greener and more energy efficiency commercial buildings. 

 

Trainings

Tuition Assistance: The Building Operations Training Tuition Reimbursement Program offsets the cost to attend appropriate training courses. Approved courses and eligibility are listed on the the website.

 

Energy Efficiency

Energy Audit Program: An energy audit is the first step towards identifying the best energy savings opportunities in buildings.  Potomac Edison’s program offers audit services to buildings that do not exceed 100 kW in demand.  

Custom Program: Energy management is a continually evolving industry with new products and approaches being developed daily.  Projects that involve technologies that do not fit neatly into the broader programs or that are comprehensive are eligible for incentives.  For most efforts incentives are calculated as $0.05/kWh of estimated first year savings. 

Whenever considering a building improvement check with the Potomac Edison staff so you do not miss an opportunity.   

 

Government Incentives

 

Maryland State Incentives

Maryland Save Energy Now Program: Focused on Maryland industrial facilities, including sectors such as biotechnology, this program provides integrated one-on-one consultations, financing and other resources to help improve the efficiency of Maryland manufacturing.   

Jane Lawton Loan Program: Provides between $40,000 and $500,000 in low-cost financing (2.5%) for energy efficiency improvements to non-profits, municipalities, businesses, and other organizations.

Maryland Clean Energy Grant Program: Operated by the Maryland Energy Administration, Provides grants for a variety of clean energy installations for homeowners.  Including:

  • $30 per kW of solar photovoltaic installation,
  • $10 per sq. ft. of solar water heating installation,
  • $90 per ton of geothermal heating and cooling 

Note that funds often run out quickly, so make sure you reach out to the Maryland Energy Administration for updated information.  

Renewable Energy Certificates: Are certificates that document the “clean energy” attributes of solar electric, solar thermal and geothermal systems.  These certificates can be sold using a process developed by the Maryland Public Service Commission (MD-PSC) to meet state regulatory requirements levied on energy suppliers.  The good news is this can result in cash for you if you own and operate your system (if you lease your provider has most likely sold these on your behalf).  The process is a little hard to navigate, so it is definitely something to talk to your provider about. 

 

Federal Incentives

Commercial Energy Efficiency Tax Credits (179-D)A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001. 

Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. These tax deductions are available for systems “placed in service” from January 1, 2006 through December 31, 2013.

Federal Clean Energy Tax Credit: Businesses and for-profit organizations who installed solar energy systems, geothermal heat pumps, or small wind turbines before December 2016 may be eligible for a 30% tax credit.  This tax credit is one of the single largest incentives for the installation of these environmentally beneficial technologies. 

 

Seal of Montgomery CountyMontgomery County Incentives

Property Tax Credit for Energy and Environmental Design

Montgomery County organizations which pay property taxes and achieve high levels of green achievement verified by either the U.S. Green Building Council (or an equivalent standard approved by the County’s Department of Permitting Services) are eligible for a property tax credit between 25% and 75% for 3 to 5 years depending on the LEED rating system (or equivalent) and level of achievement.  Applicable LEED (Leadership in Energy and Environmental Design) rating systems include LEED New Construction (LEED-NC), LEED Core and Shell (LEED – CS) and LEED Existing Building (LEED – EBOM).  The total incentives available in any given year are $5 million.

The incentives also vary between buildings “covered” by the County’s 2006 Green Building Mandate, which required all buildings over 10,000 square feet to achieve a minimum of LEED certified or equivalent, or not.  Covered buildings are subject to the law whereas uncovered buildings are not. 

 

Credits Available to Buildings Covered Under the 2006 Green Building Mandate Based on LEED Certification
Rating System Achievement Level Percentage Credit Credit Year
LEED NC or CS Gold 25% 5
LEED NC or CS Platinum 75% 5
LEED - EBOM Gold 10% 3
LEED - EBOM Platinum 50% 3

 

Buildings not covered under the 2006 Green Building Mandate, which would typically be older existing buildings or buildings constructed after 2008 that are under 10,000 square feet, are eligible for the following incentives. 

 

Credits Available to Non-Mandated Buildings Based on LEED Certification
Rating System Achievement Level Percentage Credit Credit Year
LEED NC or CS Silver 25% 5
LEED NC or CS Gold 50% 5
LEED NC or CS Platinum 75% 5
LEED - EBOM Silver 10% 3
LEED - EBOM Gold 25% 3
LEED - EBOM Platinum 50% 3

 

Download the application for the tax credit from the Division of Treasury website. (PDF, 85KB)

 

Other Incentives

 

ENERGY STAR Special Offer and Rebate Finder: Considering purchasing an ENERGY STAR qualified product or making improvements to your home in the near future? Looking for businesses and manufacturers with special rebates? Use the ENERGY STAR Special Offer and Rebate Finder.