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DOE Launches Rebate Programs for Transformers and Critical Industrial Equipment

Aug. 3, 2023
This funding will be distributed through two rebate programs, one focused on transformers and another on extended product systems.

The U.S. Department of Energy has announced $20 million to support the installation of energy-efficient distribution transformers and extended product systems that use equipment with electric motors, such as pumps, air compressors, and fans. This funding, made possible by the Bipartisan Infrastructure Law, will be distributed through two rebate programs, one focused on transformers and another on extended product systems. The rebate programs aim to help domestic manufacturers, utilities, tribes, hospitals, schools, and other operators finance equipment upgrades, which will conserve energy and reduce costs while slashing greenhouse gas emissions across multiple sectors of the economy.

“Today’s announcement will help more affordably upgrade distribution transformers—essential pieces of energy infrastructure that ensure electricity can move safely and reliably to homes and businesses across America—as we focus on modernizing our electric grid to meet our growing energy needs and combat the climate crisis,” said U.S. Secretary of Energy Jennifer M. Granholm.

According to the DOE statement, older, less efficient equipment that composes the bulk of distribution transformers currently on the electric grid pose an increased risk to the security and effectiveness of the nation’s electricity system. Authorized by the Energy Act of 2020 and funded by the Bipartisan Infrastructure Law, the rebate program seeks to help eligible entities replace aging and inefficient transformers with new, qualified energy efficient models. Transitioning to these newer models should reduce overall power consumption and emissions while cutting operation costs and delivering consumers savings in the form of lower utility bills, the DOE said.

Qualified applicants can receive up to $25,000 in rebates through this program. Details regarding eligibility and rebate calculations were published in previous distribution transformer rebate guidance and extended product system rebate guidance. The application portal for distribution transformer rebates is open from Aug. 1, 2023, to Dec. 31, 2023, or until funds are exhausted. The application portal for extended product systems will open in the coming weeks. An informational webinar will be held on Aug. 9, 2023. Register here

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