An inside look at securing energy rebates for manufacturing firms

Sep 22, 2020 | Shannon Blog

Identifying and successfully getting energy rebates for manufacturing plant owners is one of Shannon’s specialties, and the result can be billions of BTUs saved per year. Saving money is good for manufacturers, and saving energy is good for the environment. But plant operators and owners don’t always know that an array of incentives exist for investing in sustainable products.

Many utility companies offer manufacturing plants rebates for energy-saving products like thermal and acoustic removable insulation blankets, lighting controls, energy control systems, and more. For some products, utilities offer prescriptive rebates. This would be a fixed sum toward a project that is known to save energy, like LED lights. Utilities will also offer customized energy rebates that make sense for the scale of the project. With its knowledge of the industry players, Shannon can help manufacturers get custom energy rebates.

“Utility companies say, ‘If you can insulate your system with conventional piping insulation and these reusable, removable blankets, we’ll incentivize you by giving you custom rebates,” said Mike Makofsky, Northeast regional manager at Shannon.

The energy rebates for manufacturing plants can take several forms depending on the utility, from rate reduction to direct cash back. Oftentimes, facility managers will be unaware that they are eligible to receive rebates.

“The thing is many customers don’t realize that they’re entitled to this money,” said Makofsky. “The rebates are very important, and we always try to get as much of a rebate as possible.”

Makofsky also works to find new energy rebate opportunities as they become available. He’s currently working to connect clients with rebates from sources beyond utility companies.

“I just connected with one rebate provider,” said Makofsky. “And in most cases, this provider will actually help an employer qualify for a custom energy rebate.”

Depending on the utility and the size of the project, an energy rebate for manufacturing firms can cover a substantial percentage of the project costs for sustainable systems. With rebates and energy savings combined, energy-saving solutions can pay for themselves in just a few months, giving facility owners something to think about when investing in the future of their plant.