In an effort to bolster the nation's power grid and accelerate the transition to clean energy, the U.S. Department of Energy (DOE) is set to announce a $20 million federal rebate program targeting inefficient electrical equipment. The funding, allocated through the bipartisan infrastructure law passed in 2021, aims to support the upgrade and replacement of key components in the power grid, including transformers, motors, and fans.

The first rebate program focuses on distribution transformers, which play a crucial role in converting high-voltage electricity to safe levels for homes and businesses. However, many existing transformers are inefficient, leading to energy losses and higher operating costs. The DOE encourages the adoption of more energy-efficient models through this program, which will not only reduce operational expenses but also contribute to consumer savings. Additionally, the department stresses that upgrading these transformers is vital for enhancing the security and effectiveness of the nation's electricity system.

The second rebate program targets extended product systems, including equipment like fans, pumps, compressors, and electric motors that are widely used in manufacturing, industrial, and process facilities. By incentivizing the replacement of such equipment with energy-efficient alternatives, the DOE aims to drive substantial energy savings and contribute to the broader goal of achieving net-zero emissions from the power grid by 2035.

Energy Secretary Jennifer Granholm expressed her enthusiasm for the program, emphasizing its role in ensuring a safer, more reliable, and affordable energy infrastructure across America. The application portal for distribution transformer rebates is now open until December 31, 2023, or until funds are exhausted, with qualified applicants eligible to receive rebates of up to $25,000. The portal for extended product systems will be made available in the coming weeks, providing additional opportunities for energy-conscious businesses and organizations to participate in the grid upgrade initiative.

Source: news.bloomberglaw.com