CenterPoint Energy Incentives

CenterPoint Incentive Programs for Commercial and Small Industrial Buildings

CenterPoint also offers several energy incentives 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 ENERGY STAR equipment, and must be used in a facility with a non-residential power meter in the CenterPoint service area.

2) Commercial Standard Offer Program (CSOP)

This program offers incentives for a wide range of energy efficiency measures, in new construction and existing buildings. However, new constructions must exceed the requirements of current 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. They must achieve a demand reduction of at least 15 kW during summer, or energy savings of at least 100,000 kWh.

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

In 2023, CenterPoint has a program budget of $6 million and a demand reduction goal of 13.2 MW. The maximum amount that can be claimed by a single sponsor is 20% of the budget ($1.2 million). The program opened for project applications on January 16, and all projects must be completed and submitted by December 1.

The following table summarizes the incentive rates available in 2023:

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

The 2022 CSOP had a total budget of $6.2 million and a demand savings target of 13.2 MW. CenterPoint had used $4.2 million by the end of the year, reaching 9.7 MW in demand savings. 

427 commercial energy efficiency projects were submitted in 2022: 131 had been completed when the program closed applications, 251 were in construction, and only 45 had been canceled. The energy efficiency measures installed across these projects can be broken down as follows:

• 80% lighting upgrades
• 3% direct-expansion cooling systems
• 3% refrigeration
• 4% cooling
• 10% all other measures, including electric motor upgrades and variable frequency drives (VFD)

68% of energy efficiency projects completed in 2022 were existing building retrofits, and 32% were new constructions.

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 load reduction is required.

• The current incentive rate is $30.00/kW. Participants are paid at the end of the year, based on verified demand savings.
• The program budget is currently $3.3 million per year, and CenterPoint aims for a total demand reduction of 110 MW (110,000 kW).
• The availability period for curtailments is from June 1 to September 30, between 1 and 7 PM, on weekdays that are not federal holidays.
• There are two tests in a given year, and four unscheduled emergency events (ERCOT Energy Emergency Alert – Level 2).

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.

4) Commercial CoolSaver A/C Tune-Up Program

This program offers free AC tune-ups for commercial customers, which would normally have a cost of up to $190 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, at least one year old and currently operational.
• Not having received a CoolSaver tune-up during the last five 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) Schools and Non-Profit Efficiency Program

This program focuses on electricity consumers such as K-12 public schools, private schools, higher education institutions, places of worship and nonprofit organizations. CenterPoint offers cash incentives to implement energy efficiency measures in both new constructions and existing buildings.

The list of energy efficiency measures eligible for assistance includes:

• Lighting upgrades
• HVAC upgrades
• Variable frequency drives (VFD) for motor equipment
• Window film
• Refrigeration efficiency measures
• Energy efficient roofing (existing buildings only)
• Solar power and other renewables

Cash incentives are complemented with free technical assistance from CenterPoint: energy performance benchmarking, energy master planning workshops, and equipment recommendations (vendor-neutral). CenterPoint also provides communication assistance for participants who want to promote their project results.