Final incentive amounts will be calculated based on the final cost of project net outside funding received, provided such cost is reasonable in the judgment of DP&L, and will be limited to the lesser of 100% of the incremental cost or 50% of the total project cost, not including taxes, warranty fees, installation costs, or maintenance fees.
- $0.05 per kWh saved + $50 per kW saved
Heating, Ventilation and Air Conditioning
- $0.10 per kWh saved + $100 per kW saved
- $0.08 per kWh saved + $100 per kW saved
Your payback period must be 7 years or less and is determined by this formula:
Payback Period = Total Incremental Equipment Costs / Estimated Annual Electric Savings
Incremental Equipment Costs consider the installed cost of the high efficiency equipment compared to the costs of any minimum federal- and state-mandated efficiency standards. If none exist, then industry accepted standard efficiency equipment should be used. If no standard equipment is applicable, the total equipment cost should be used. Estimated Annual Electric Savings consider electric savings at your current average customer rate.
Please follow the guidelines below to determine the appropriate kWh and kW baseline.
New efficiency measure added to an existing system
New equipment being added to an existing system to increase system efficiency. You are pro-actively seeking ways to improve an existing system. Examples might include advanced occupancy sensors added to an existing lighting system. The energy baseline is the performance of the existing system in its original, working condition.
Early retirement of equipment
Replacement of inefficient equipment that has not yet reached the end of its useful life with new, more modern equipment. You are opting to pro-actively replace the inefficient equipment even though it is still functioning. Examples would include the replacement of a traditional 250 hp motor with a premium efficiency motor. The energy baseline is the performance of the existing system in its original, working condition.
Replacement of equipment at the end-of-useful life or replacement of failed equipment
You must replace the equipment and now have the option to choose more efficient replacement equipment. For example, if you have to replace 20-year-old welders which no longer function properly and now have the option to use efficient inverter welders. The energy baseline is any minimum federal- and state-mandated efficiency standards that may exist. In the absence of these standards, generally accepted industry standards should be used. For example, it would not be standard practice today to install an 8.0 SEER split-system HVAC unit.
If your project directly impacts facility production levels, we will consider the energy savings per unit of production.
Page last updated: January 2, 2019.