Energy Incentive Programs, Iowa

Updated November 2011

Iowa utilities budgeted almost $160 million in 2010 across their various programs (including those directed at residential and low-income customers) to promote energy efficiency in the state.

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 financing opportunities and rebates are available, covering lighting, various heating and cooling equipment, motors and variable speed drives, and commercial kitchen equipment. Rebates are cash-back payments based on equipment type. For example, variable speed drive incentives are $30 per horsepower controlled and lighting incentives range from $3 to $50 per lamp or fixture. In addition to the standard rebates, Mid-American offers other energy efficiency incentive programs that may interest federal customers:

The Custom Systems program provides rebates for a range of measures including energy management systems, direct-fired heating equipment, waste heat recovery systems, and ground-source heat pumps. The incentives are based on the equipment's incremental cost, peak load reduction, annual energy use reduction, and cost savings. Pre-approval by MidAmerican is required.
The Commercial New Construction program offers incentives to help offset the initial cost of design and installation of energy-efficient options. Two tiers of efficiency are targeted through the Customer Track (30-40% better than Iowa code; enrollment before completion of schematic design phase) and Custom Track Plus (40-60% above code; enroll before space-type programming or just after architect selection). The incentive is paid to the building owner based upon independently modeled kWh savings. Incentives range from $0.06 to $0.19 per one year's kWh saved, and $0.60 to $1.90 per therm saved.
Customers in small buildings (< 50,000 sq. ft.) may qualify for a free energy audit under the BusinessCheck program. Some efficiency options identified during the audit may be eligible for rebates from MidAmerican.
Facilities greater than 50,000 sq. ft. can get a free energy management evaluation, energy audit and cash incentives for adopted efficiency measures under the Nonresidential Energy Audit program. Customers may also be eligible for incentives for energy efficiency investments recommended in the evaluation. Those interested in more comprehensive efficiency improvements can enroll in the EfficiencyPartners program for an energy efficiency action plan to address short- and long-term goals.
Customers with a load of 1 MW or greater are eligible to submit bids requesting incentives for efficiency projects to MidAmerican, which will distribute funds based on a comparative evaluation of all bids through the Efficiency Bid program. ESCOs and other third-party efficiency providers can propose on behalf of customers through this program (though all incentives are paid to customers only).

Alliant Energy offers a set of energy efficiency programs, including the following:

Cash incentives are available for a variety of efficient equipment including heating and air conditioning, appliances (and appliance recycling), lighting, motors and variable frequency drives, commercial food service equipment, and lighting and vending machine controls.
The Custom Rebates Program offers technical support and financial incentives for energy-efficient equipment, including lighting, variable frequency drives, HVAC, energy management and controls equipment, pipe insulation, and refrigeration equipment. Incentives are paid after the program is complete and typically are equal to 150% of the annual dollar savings. To be eligible, projects must have a payback of two years or more after incentive payments. Contact Alliant before beginning a custom project.
Design and construction incentives are available through Alliant's Commercial New Construction program. A minimum savings of 15% beyond Iowa code is required for construction incentives (40% below code for the Custom Plus Track). Payments range between $0.06 and $0.19/kWh, and $0.60 and $1.90 per therm, for one year's savings for projects that demonstrate savings from 15% to 60% beyond code. Pre-approval is required.
Low interest financing for small energy efficiency projects is available through the Low Interest Financing program. Loans range from $1,500 to $25,000, and must be applied to the cost of equipment, not installation. Pre-approval is required.

Black Hills Energy (formerly Aquila) offers the following programs:

The Prescriptive Rebate Program offers customers cash rebates ranging from $25-$500 for upgrading to energy-efficient equipment, such as that used for heating, hot water, and cooking.
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 rates on electricity in exchange for reducing consumption during peak periods at least once per year. 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 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.

Utilities in the footprint of MISO (formerly the Midwest Independent System Operator) may enroll interested customers in any of MISO's various demand response offerings, from which they can receive payments for reducing load. Federal customers should contact their local utility representative to inquire about participation.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (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 $1 million) 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 whose utilities have area-wide supply contracts through GSA (e.g., Atmos Energy Corporation, Black Hills (Aquila) and Mid American), may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.

NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.