Business Solutions FAQ - Incentives

Once I receive an incentive, do I have any further obligation with the business solutions program?

Once a project is complete and payment is made, SMECO and the Public Service Commission require that a subset of projects be visited. This is to verify that sales transactions and equipment installations remain in accordance with the plans that were approved and upon which incentives were paid. SMECO may contact you to visit your site to perform this verification. All measures must be installed and working at the time of inspection.

How are custom incentives determined?

Custom incentives are based on the cost of installing the high-efficiency measures and the resulting energy and demand savings. In all cases, the high-efficiency measure must be cost-effective. For retrofit measures where the efficiency of existing equipment or systems is being improved, the incentive is up to 50% of the installed cost of the high-efficiency measure. For new construction or the purchase of new or replacement equipment, the incentive is up to 75% of the cost of the high-efficiency equipment over the standard efficiency equipment. In all cases, if the incentive results in a customer simple payback of fewer than 1.5 years, the incentive will be reduced to an amount that will result in a 1.5-year payback.

Does the pre-approval letter guarantee payment of incentives at the full amount?

The pre-approval letter guarantees payment of the incentives at the full amount as long as all conditions of the pre-approval letter have been met. Any change in equipment specifications, quantities installed, or other factors affecting energy savings and project costs may result in changes to the incentive amount. Any changes from the original pre-approval letter conditions must receive SMECO approval before being implemented to guarantee incentive payment.

Can I receive the incentive in the form of a bill credit?

Yes. Please indicate the payment method on the application form after the project is complete when the final paperwork is submitted.

Beginning April 1, 2018, all incentive payments for Business Solutions program participants will be made electronically or via bill credit.