Utilities boost rebates to save energy and cash

Jul. 24—TRAVERSE CITY — Utility rebate programs have come a long way from the early days of handing out a few dollars to get customers to change out their light bulbs.

These days, utility companies serving Northwest Michigan are investing hundreds of thousands of dollars annually in rebates for a wide variety of residential and business needs, ranging from electric vehicles and chargers, yard equipment, appliances, HVAC systems, heat pumps, home and business construction upgrades and — still — light bulbs.

"It's really been evolving," said Jacob Hardy, a key accounts and sustainability manager at Traverse City Light & Power who runs the utility's rebate programs. "As we went along and more technology was introduced, it just kept expanding."

Utility rebate programs in Michigan go back more than 15 years to state legislation in 2008 that was designed to incentivize consumers to reduce energy use and save money on their utility bills. The earliest initiatives were largely centered on light bulbs and fixtures, as residents and businesses owners used rebate programs to purchase pricier LED lights to replace traditional incandescent bulbs throughout their homes and businesses.

As electric and energy-efficiency technology continued to improve, utility rebate programs — along with various state and federal tax credits for energy efficiency projects — were gradually expanded to include home appliances, such as refrigerators, and washers and dryers. Home improvement projects like energy-efficient windows and insulation work were added to rebate programs. Commercial and industrial utility customers could access rebate programs for projects like energy audits, and for more capital and physical plant iwnvestments including heat pumps and HVAC upgrades.

As electric options continue to expand into various household products, rebate programs are growing in areas including lawn mowers and electric lawn tools, even electric snow blowers.

TCLP expanded its commercial/industrial rebate program to include commercial kitchen and refrigeration upgrades, large-scale air compressors and electric power tools.

Light & Power continues to bolster its rebate program, and recently launched a partnership with four bike shops in Traverse City to offer customers a $300 rebate toward the cost of a new electric bike.

Hardy said some of the new initiatives, including the electric lawn mower and e-bike rebates, have been "wildly popular" with utility customers. Light & Power will invest more than $400,000 into its various rebate programs in its 2024-25 budget.

TCLP Executive Director Brandie Ekren said the purpose for rebate programs often goes beyond cost savings and energy reduction — they can also help households reduce their carbon footprint by relying less on fossil fuels as an energy source.

The motivation behind the new e-bike rebates was to help their customers live a healthier lifestyle.

"It's a strategic focus in our climate action plan — the question was how do we pull not just the energy savings, but the climate impact as well," Ekren said. "We're trying to monetize both the climate and health benefits...

"It's not an exact science; it's more of an art. But it's something we're working on."

Customers are also taking advantage of rebate programs targeting electric vehicle and EV charging stations. Cherryland Electric Cooperative based in Grawn offers a $500 rebate toward the purchase of a new, used or leased electric vehicle — not including hybrids — and $800 toward the purchase of a Level 2 EV charging station.

Courtney Doyle, Cherryland's communications and member services manager, said the utility has experienced an uptick in its EV rebate program. Cherryland issued 88 EV-related rebates in 2023, and has already processed 68 more EV rebate applications through June of this year. The utility received 459 applications across its various rebate programs last year and is on a similar pace for this year, and budgets about $200,000 a year for its rebate initiatives.

Doyle said utility rebate programs will continue to evolve. Improving electric technology and consumer trends will help drive those changes, along with looming changes in state law. While electric cooperatives and municipal utilities were eventually phased out from mandated rebate programs spelled out in earlier legislation, new state law coming on line in 2026 will require those utilities to expand their energy-saving efforts, and effective rebate programs will be part of those strategies, she said.

"I think we're going to see a lot of those measures changing," Doyle said. "It's a really complex thing."

Consumers Energy is the region's largest electricity provider and offers many of the same commercial and residential rebate incentives, including heating and cooling systems, appliances, insulation and windows, appliances, lighting and EV chargers.

"As time goes by and technology changes, you have opportunities to take advantage of what's out there," Consumers spokesman Brian Wheeler said. "You've seen a lot of opportunities to reduce energy use and energy waste."

Wheeler said Consumers is also seeing a surge in rebate applications related to electric vehicles, with more than 6,000 rebates worth $500 each issued in Michigan for EV charging stations. Consumers has also committed to expanding EV charger access across Michigan, with plans to add 1,500 charging stations thoughout the state by the year 2030.

"Clearly, we expect EV growth will only accelerate," he said.

Despite the proliferation of rebate programs, Wheeler said the available incentives are not being fully utilized and that residents and businesses are leaving money on the table.

"There are still homeowners and businesses that haven't maximized the opportunities for energy efficiency," he said. "There's a segment of people out there that simply aren't aware of what's available."

Customers are urged by utility officials to visit their websites to learn about rebate offerings, and watch for inserts in their electric bills or other newsletters about new rebates or changes in existing programs. Officials said the rebate offerings are constantly evaluated to gauge consumer interest — with an eye toward changing technology — to make them work best for their customers.

"Every year we re-evaluate the program to see how the technology changes," Hardy said. "It's so important that we stay on top of what's coming out."