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Energy-Efficiency Funds and Demand Response Programs, Iowa

Updated July 2007

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 $1,000, also depending on HP rating. In addition to these standard rebates, Mid-American offers two 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, and waste heat recovery systems. The incentives are based on the equipment's incremental cost, peak load reduction, and annual energy use and cost savings.
  • 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.

Alliant Energy offers a set of energy efficiency programs:

  • 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 speed drives, appliance recycling, weather stipping/caulking, and windows/doors. Rebates are capped at $5,000 per technology per year.
  • The Custom Rebates Program offers financial incentives for energy-efficient equipment, including lighting, variable speed 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 or the electrical portion of the incentive). To be eligible, projects must have a payback of two years or more after incentive payments.
  • 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 5 and 14 cents/kWh for projects that demonstrate savings from 5% to 35%. Gas incentives are between 50 cents and $1.40 per therm for savings ranging from 5% to 35%.

Aquila offers the following programs:

  • The Prescriptive Rebate Program offers customers cash rebates ranging from $50-$500 for upgrading heating, hot water, and cooking equipment.
  • 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 two voluntary economic programs based on service territory. Customers in the former IES territory with an interruptible load greater than 200 kW are eligible for a reduced rate that applies to the portion of the load that is interruptible. Customers in the former IPC service territory are eligible for a rate option wherein participating customers are alternatively credited or charged based on the current wholesale prices for electricity consumed below or above a pre-determined customer baseline load.

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.. 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. Curtailment calls (up to 16 per summer) are generally twelve (but as little as two) hours in advance of required reductions, and may last up to six hours.

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 Alternative Energy Revolving Loan Program administered by the Iowa Energy Center.

Are there energy efficiency programs sponsored by the state government?

The Energy Bureau of the Iowa Department of Natural Resources administers a number of programs, but none are currently available to federal facilities.

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, MidAmerican, and Minnegasco) and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.