Energy Incentive Programs, Iowa
Updated October 2008
Below you will find questions and answers regarding Iowa's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.
Iowa utilities spent almost $60 million in 2007 across their various programs (including those directed at residential and low-income customers) to promote customer energy efficiency. This sum is expected to grow over the next few years.
What public-purpose-funded energy efficiency programs are available in my state?
Iowa has no public-purpose-funded energy efficiency programs.
What utility energy efficiency programs are available to me?
MidAmerican Energy Company offers energy efficiency programs under the umbrella of the EnergyAdvantage initiative. A multitude of energy-efficient equipment rebates are available, covering lighting, various heating and cooling equipment, and motors and variable speed drives. Rebates are cash-back payments based on equipment type. Variable speed drive incentives are $30 per horsepower controlled and premium motor incentives are available up to $1,275, also depending on HP rating. In addition to these standard rebates, Mid-American offers other energy efficiency incentive programs that may interest federal customers:
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The Custom Systems program provides rebates for a range of measures including energy management systems, direct-fired heating equipment, waste heat recovery systems, and large motors not covered under the standard rebates. The incentives are based on the equipment's incremental cost, peak load reduction, and annual energy use and cost savings.
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The Commercial New Construction program offers incentives to help offset the initial cost of design and installation for energy-efficient options. The incentive is paid to the building owner based upon independently modeled kWh savings. A minimum energy savings of 5% from Iowa code is required to qualify. Incentives range from $0.05 to $0.14 per kWh saved.
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Customers in small buildings may qualify for a free energy audit under the BusinessCheck program.
Alliant Energy offers a set of energy efficiency programs:
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The Standard Rebate Program offers cash incentives for a variety of efficient equipment including ceiling fans, programmable thermostats, heating and air conditioning, lighting, motors, variable frequency drives, appliance recycling, weather stipping/caulking, and windows/doors. Rebates are capped at $5,000 per technology per year.
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The Custom Rebates Program offers financial incentives for energy-efficient equipment, including lighting, variable frequency drives, HVAC, energy management and controls equipment, pipe insulation, waste heat recovery systems, and refrigeration equipment. Incentives are paid after the program is complete and typically are equal to 150% of the annual dollar savings (for some customers the rebate is capped at $0.06 per kWh for the electrical portion of the incentive). To be eligible, projects must have a payback of two years or more after incentive payments.
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Design and construction incentives are available through Alliant's Commercial New Construction program. A minimum savings of 5% below state code is required for construction incentives. Payments range between $0.05 and $0.14/kWh for projects that demonstrate savings from 5% to 35%. Gas incentives are between $0.50 and $1.40 per therm for savings ranging from 5% to 35%.
Aquila offers the following programs:
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The Prescriptive Rebate Program offers customers cash rebates ranging from $50-$500 for upgrading heating, hot water, and cooking equipment.
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The Custom Rebate Program offers financial incentives to commercial customers for projects that reduce natural gas usage. Rebates apply to new high-efficiency heating systems not covered under the Prescriptive Rebate Program.
What load management/demand response options are available to me?
Alliant Energy's Interruptible Programs offer customers year-round reduced rate on electricity in exchange for reducing consumption during peak periods. Customers are typically given two-hour notice to reduce usage to a pre-determined level.
MidAmerican energy offers its EnergyAdvantage Curtailment program to commercial and industrial customers who are able to reduce load by a minimum of 250 kW during peak demand periods. Curtailments take place between June and September and typically start at 1 PM, lasting approximately 6 hours. Curtailment calls (up to 16 per summer) are generally twelve (but as little as two) hours in advance of required reductions. Curtailment incentives are based on the contracted kW reduced during peak periods and are payable as rebates at the end of the peak energy season.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following program may be of interest to federal customers.
Zero-interest loans for half of the system cost (up to $250,000) of renewable energy systems may be available to federal customers through the Alternate Energy Revolving Loan Program administered by the Iowa Energy Center.
Are there energy efficiency programs sponsored by the state government?
The Iowa Office of Energy Independence administers the Iowa Power Fund, which supports projects that promote technological innovation, education and demand for innovative energy projects.
What additional opportunities are available to me?
Federal customers also have energy efficiency opportunities available with utilities that have area-wide contracts with GSA (such as Aquila and MidAmerican Energy) and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.
NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.