CenterPoint Energy Incentives

CenterPoint Incentive Programs for Commercial and Small Industrial Buildings

1) Commercial High-Efficiency Foodservice (CHEF) Program

The CHEF program from CenterPoint offers incentives for ENERGY STAR commercial kitchen equipment at the point of sale. The incentive is available from wholesalers, manufacturers, sales representatives, brand dealers, design consultants, industry buying groups, franchise groups and service/maintenance providers.

The following table summarizes the incentives available for all the ENERGY STAR product categories covered in the program:

*NOTE: The incentive amount depends on the product model and manufacturer.

These rebates can only be claimed for new equipment with the ENERGY STAR rating, and they must be used in a facility with a non-residential power meter (in the CenterPoint service area).

2) Commercial & Industrial Standard Offer

This program offers incentives for a wide range of energy efficiency measures, in new construction and existing buildings. However, new constructions must exceed the minimum requirements of energy efficiency standards to be eligible. The program classifies facilities into large or small, based on their current consumption and the targeted savings:

• Large facilities are those that currently have a peak demand of at least 100 kW in a single site, or 250 kW in multiple sites. These must achieve a demand reduction of at least 15 kW during summer, or energy savings of 100,000 kWh.

• Small commercial facilities are those with a peak demand below 100 kW. They must save at least 1 kW in demand, or 100 kWh in energy consumption.

The 2021 program budget is $6 million, and the demand reduction goal is 11.7 MW. The program opened on January 11, applications will be received until October 22, and the deadline is December 1.

The 2020 incentive program had an original budget of $5 million, and the savings goal was also 11.7 MW. Total incentives of $6 million were awarded, saving 11.5 MW. 402 projects were submitted, and 276 were completed by the end of the year. The energy efficiency measures installed can be broken down as follows:

• 59% lighting
• 25% direct-expansion cooling systems
• 8% refrigeration
• 4% other cooling systems
• 1% motor upgrades
• 1% VFDs
• 2% all other measures

In the 2020 program, 96% of energy efficiency projects were retrofits in existing buildings, and only 4% were new constructions.

The following table summarizes the incentive rates available in 2021:

*NOTE: The incentive cap is 50% of installed costs.

3) Commercial Load Management

The Texas electricity grid must deal with demand peaks during summer, and this is caused in great part by air conditioning systems in homes and businesses. The commercial load management program rewards non-residential consumers who can quickly decrease their demand when requested, which eases the transmission and distribution burden on the grid.

• To be eligible, participants must be capable of shedding at least 100 kW, and CenterPoint will notify them 30 minutes in advance when the load reduction is required.
• There will be two tests in a given year, and four unscheduled events depending on how demand peaks behave.
• The availability period for curtailments is from June 1 to September 30, between 1 and 7 PM, on weekdays that are not federal holidays.

Participants must have a Smart Meter or Interval Data Recorder, and the program requires a one-year commitment. They can opt out early without facing penalties, but they will also miss the rewards, which are awarded until the end of the program year.

• As of 2021, the program awards up to $30 per kilowatt of verified curtailed load. There is a total savings goal of 110 MW, with a program budget of $3.3 million.
• The 2020 program budget was also $3.3 million, but the incentive rate was $31.50/kW and the savings target was 104.76 MW.

4) Commercial CoolSaver Program

This program offers free AC tune-ups for commercial customers, which would normally have a typical cost of $140 each. The service is offered by approved contractors, and consumers must meet the following conditions to be eligible:

• Having a central air conditioner or heat pump with at least 25 tons of capacity, which is at least one year old.
• Not having received a tune-up from the CoolSaver program in the previous 5 years.
• Outdoor temperature above 70°F.

An AC tune-up can reduce your electricity bills during summer, without having to invest in a new unit. The measure also contributes to indoor air quality and comfort, since the AC system will work optimally during the summer.

5) Data Center Energy Efficiency Program (DCEEP)

Data centers have a very important role in the modern business world, since they host e-commerce platforms and critical applications. The DCEEP from CenterPoint was created for the data center industry, helping operators improve their reliability and uptime.

• This program offers cash incentives for energy efficiency measures in data centers.
• There is also free technical assistance such as energy assessments, savings calculations, and benchmarking.
• The program is available for non-residential sites with a service voltage below 69 kV, and they cannot be government or non-profit buildings.

Data center projects must be subject to an inspection and approval before the application. Owners can reach out before the planning stage begins, so the CenterPoint program managers can recommend improvements that save energy.

6) Healthcare Energy Efficiency Program (HEEP)

The HEEP is another no-cost program from CenterPoint, which provides cash incentives and technical assistance for commercial healthcare facilities: hospitals, clinics, assisted living facilities, nursing care facilities, laboratories, medical offices, etc. The technical assistance available includes energy assessments, savings calculations, and benchmarking.

7) Retro-Commissioning

The retro-commissioning (RCx) program for CenterPoint focuses on finding low-cost or zero-cost measures to reduce energy consumption in commercial buildings. Eligible commercial buildings can receive a free analysis, which can be compared to an ASHRAE Level 2 Audit. The facility types covered by the program include manufacturing plants, hospitals, university campuses and retail spaces.

The free energy analysis comes with one important condition: Customers who get the benefit must implement the measures proposed, at their own expenses. 

• To make sure that this happens, the program requires each participant to commit $5,000 upfront, to be used for measures with a bundled payback period of less than 1.5 years. 
• Individual measures can have payback periods of up to 5 years, as long as the combined payback is less than 1.5 years.
• The amount of $5,000 can be reduced if the total cost of the measures identified is smaller.

The program focuses on low-cost measures with quick payback periods. Some examples are HVAC temperature reset, outside  air reduction, HVAC start-up optimization, LED lighting schedule adjustments, and speed controls for electric motors. If a commercial customer decides not to install the energy efficiency measures, the recommissioning service must be paid, at a rate of $0.05 per kWh of identified savings.

The 2021 program has introduced an incentive for Monitoring Based Commissioning (MBCx), which consists of commissioning a building more frequently with the help of hardware and software. MBCx uses data analysis to identify new opportunities to save energy, and also to detect areas in which performance has dropped.

The program provides a cash incentive if the energy efficiency measures are implemented quickly, considering two factors:

• Achieved percentage of the proposed savings.
• Time in which the percentage was achieved.

The maximum incentive for fast implementation is $0.06/kWh, which is available for achieving at least 95% of the identified savings in less than a month. If the savings percentage achieved is lower, or the project takes longer, the incentive is gradually reduced. There is also an incentive of $0.03/kWh for implementing an MBCx system (Monitoring Based Commissioning).

8) SCORE/CitySmart

This is a more general program, which offers financial incentives and technical assistance for a wide range of commercial buildings. These include schools, universities, municipalities, religious organizations and non-profit organizations. The technical assistance offered includes services like energy benchmarking, energy master plan development, access to funding sources, and media communications support.

The SCORE Program offers incentives for specific energy efficiency measures, which are very similar to those offered in the Commercial and Industrial Standard Offer Program. These incentives can be claimed for new constructions, renovations, and maintenance projects.

The 2021 SCORE/CitySmart program has a budget of $2,107,908, with a savings goal of 17,900,000 kWh and 4,600 kW.

The 2020 budget was originally $2,307,908, with a target of 19,205,000 kWh and 5,000 kW. However, the program achieved savings of 20,574,534 kWh and 5,277 kW, exceeding its target, at a cost of $2,328,977. The savings were equipment to the consumption of 1,679 homes, and the environmental benefit was equivalent to removing 3,143 cars from circulation.