Compressed air users in Consumers Energy’s service area in Michigan can reduce energy costs for their systems through their Energy Efficiency Rebates and Programs for Business. Rebates through this program cover all or part of the cost of energy-saving improvements such as leak repair, VSD compressors, high-efficiency dryers and more.
About the Consumers Energy Efficiency Program for Business
Consumers Energy serves 6.6 million electric customers in Michigan, including residential, commercial and industrial power users. Energy Efficiency Rebate Programs for Business are targeted to commercial and industrial power users to help them reduce their energy consumption.
The program includes:
- Prescriptive incentives offer a set amount of money for specific types of projects, such as installing zero-loss drains or upgrading to a VSD compressor.
- Custom incentives provide rebates based on the amount of energy saved.
The program includes rebates for energy-efficiency improvements including lighting, HVAC, and process electricity applications such as compressed air. Because compressed air is often one of the biggest single energy-using applications for manufacturers, it represents a significant opportunity for energy savings. Inefficiencies in compressed air systems can add thousands of dollars to the average manufacturer’s energy bill and add to the strain on the power grid.
Why Does Your Energy Company Want You to Use Less Energy?
Reducing the overall load on the power grid helps utilities better regulate supply and demand, minimize the risk of outages due to excess demand, and reduce overall wear and tear on transmission and distribution infrastructure. It can also help them forestall expensive infrastructure upgrades. Manufacturers and other large energy users provide the greatest opportunity for energy companies to reduce the overall load on the power grid and avoid big swings in energy demand.
Who Is Eligible for Energy Incentives through the Consumers Energy Efficiency Program for Business?
The Consumers Energy incentive program is open to commercial and industrial customers in good standing. The project must be installed at a facility served by Consumers Energy.
There is a limited pool of funds for energy rebates through the program each calendar year, which runs through November 30. Pre-approval is not required for all prescriptive rebates, but an application is recommended to ensure that funds are reserved for your project. Custom incentive projects always require preauthorization.
Applications are completed online. If you’re not sure if your project qualifies, or need some advice in filling out the application, you can talk to a program advisor at 877-607-0737.
Consumers Energy Prescriptive Incentives for Compressed Air Systems
Prescriptive incentives from Consumers Energy can help companies offset the cost of energy-saving improvements to their compressed air systems — in some cases, they may cover the majority of the cost. The prescriptive incentives offer a set dollar amount for purchasing qualifying energy-saving equipment for your compressed air systems, including VSD air compressors, zero-loss condensate drains, and more. There are no caps on prescriptive incentives.
Check the 2024 Program Catalog for details on all prescriptive incentives.
VSD Compressor Incentives
For many manufacturers, upgrading from a fixed-speed to a Variable Speed Drive (VSD) air compressor provides the single biggest opportunity for energy savings. A VSD air compressor saves energy by controlling the frequency supplied to the drive motor on the air compressor in response to real-time demand on the system.
- When demand is low, the motor will run at a reduced speed, requiring less energy to operate.
- When demand for compressed air is higher, the VSD will automatically increase the frequency to meet CFM demands.
The Consumers Energy prescriptive incentive provides rebates on the purchase and installation of a new VSD rotary screw air compressor to replace an existing fixed-speed rotary screw compressor with inlet modulation or load/no load control. Pre-notification is required for all VSD upgrades.
Other things to know:
- Eligible VSD air compressors must have an annual operating period of at least 2,000 hours per year and must be of equal or greater HP than the compressor(s) being replaced.
- Backup or redundant systems are not eligible.
- In some cases, when upgrading from an existing VSD compressor to a larger VSD compressor, the difference in HP may qualify for the subsidy.
- Purchase of a VSD compressor for a new build may also qualify.
Want to retrofit your existing air compressor with a variable speed drive motor? Consumers Energy covers VSD retrofits for multi-compressor systems between 50 and 300 HP. The compressor must have annual runtime of at least 6,000 hours to qualify.
Aire Tip: Switching from a rotary screw air compressor to a VSD air compressor could save 30-70% on energy consumption for compressed air. Read more: Why Choose or Upgrade to a Variable Speed Drive Air Compressor?
Summary of 2024 Supply-Side Prescriptive Incentive Programs for Compressed Air from Consumers Energy
| Program Number | Description | 2024 Incentive Limit | Pre-Notification Required? |
|---|---|---|---|
| CA107 | VSD Air Compressor, <50HP ● 24/7 operation ● 3-shift ● 2-shift ● 1-shift |
$200/HP $150/HP $100/HP $50/HP |
Yes |
| CA110 | Refrigerated Cycling Thermal Mass Air Dryer | $1/SCFM | Yes |
| CA111 | Refrigerated Cycling VSD Air Dryer | $3.50/SCFM | Yes |
| CA112 | Refrigerated Cycling Digital Scroll Air Dryer | $3/SCFM | Yes |
| CA113 | Air Dryer, Desiccant to Refrigerated | $4/SCFM | Yes |
| CA114 | Heated Blower Purge Desiccant Air Dryer | $4/SCFM | Yes |
| CA124 | Correct-Sizing Air Compressors (Reduction in HP for Rotary Screw Compressors) | $95/HP | Yes |
Demand-Side Measures: Compressed Air Audits and Leak Repair
An energy audit with a leak detection survey is a great place to start your energy savings journey. Compressed air leaks can add hundreds or thousands to your annual energy bill: on average, studies show that 30% of compressed air is wasted. Finding and fixing air leaks and minimizing compressed air waste can provide significant energy savings.
Consumers Energy covers energy audits, leak detection and leak repair through their Demand Side Compressed Air Energy Incentives.
A few things to know:
- Compressed air systems must have a rated HP of 50 HP or above and an annual runtime of 2,000 hours or more.
- The incentives are available to eligible business customers every two years.
- The energy audit and leak repair must be completed by a qualified third-party contractor with at least five years of experience.
- At least 50% of identified air leaks (by volume) must be repaired to qualify for the incentive.
- Consumers Energy will cover up to a maximum of $20,000 or 100% of the project cost.
| Program Number | Description | 2024 Incentive Limit | Pre-Notification Required? |
|---|---|---|---|
| CA201 | Compressed Air Energy Audit | $15/HP | Yes |
| CA202 | Compressed Air Energy Audit w/ VSD | $20/HP | Yes |
| CA203 | Compressed Air Energy Audit with Metered Flow | $25/HP | Yes |
| CA204 | Compressed Air Energy Audit with Metered Flow and VSD | $30/HP | Yes |
| CA205 | Compressed Air Leak Repair | $7.50/HP | Yes |
| CA206 | Compressed Air Leak Repair with VSD | $10/HP | Yes |
Fluid-Aire Dynamics offers compressed air studies and system audits, including data logging and leak detection. In a leak detection survey, technicians use an ultrasonic leak detector to pinpoint the location and size of compressed air leaks in your system. We can repair most leaks on the spot and will tag larger leaks for later repair. If the cost of repair will exceed the amount covered by the Consumers Energy rebate, we’ll let you know exactly what to expect. (We find the cost of repair is almost always less than the cost of leaving the leak unrepaired.)
Aire Tip: A 1-CFM leak will add ~$35 in energy costs per shift per year.
Getting Started with Consumers Energy Incentives for Compressed Air Systems
Fluid-Aire Dynamics makes it easy to qualify for compressed air energy incentives through Consumers Energy. We can even fill out the paperwork for you and provide all the required documentation to make participation as easy as possible.
We can:
- Identify your greatest opportunities for energy savings and incentives.
- Install qualifying equipment and upgrades.
- Conduct compressed air audits and leak detection surveys and fix compressed air leaks.
Contact us to learn how we can help you improve the energy efficiency of your compressed air system. The sooner you get started, the sooner you can start saving money on your energy bill!
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