DOE seeking comment on $20M in rebates to support electric system upgrades
The U.S. Department of Energy (DOE) is seeking public comments on draft guidance that would provide $20 million of rebates to support electric system upgrades.
Specifically, the rebates will help utilities, commercial equipment, and building operators make distribution transformers and electric motor systems more efficient.
Replacing aging electric motor systems helps companies make pumps, fans, and compressors more efficient, providing energy and cost savings opportunities. Industrial and commercial electric motors represent about 29 percent of the total electric grid load. Electric motor systems provide the ability to control the speed of electric motors that drive a variety of commercial and industrial equipment, including fans, pumps, and compressors. This, in turn, would save commercial building owners and operators money on their annual utility bills.
Further, upgrading distribution transformers increases resilience and energy efficiency. Distribution transformers reduce voltage to a suitable level for consumers in commercial, residential, and industrial applications. Newer transformers are more resilient and energy efficient, reliably moving electricity from where it’s made to where it’s needed with fewer losses. Rebates incentivize and offset the costs of upgrading these critical grid components.
“More efficient transformers and electric motor systems will reduce energy use, save companies money, and carry more clean energy to American homes and businesses,” U.S. Secretary of Energy Jennifer Granholm said. “We’re harnessing input across America to strengthen our approach to recharging our nation’s infrastructure with the best available technologies at our disposal while slashing energy bills and combatting the climate crisis.”
The rebates come from President Joe Biden’s Bipartisan Infrastructure law. Public responses will help the DOE design programs to achieve the goals and priorities established under the Bipartisan Infrastructure Law.
The deadline to respond is 30 days from publication in the Federal Register.
