Business rebates

  • Earn cash rebates for making high-efficiency improvements to your business facility
  • Save energy and money
  • Reduce operating costs
  • Signing up is quick and easy

About the program

The Business Rebate Program helps commercial and industrial customers earn cash rebates for making energy-saving improvements to their existing facilities or building new facilities above state building code. It also offers rebates to help offset a portion of energy audit costs.

Our application process was designed with busy business owners in mind, so signing up for our rebates is quick and easy.

Eligibility

Louisville Gas and Electric and Kentucky Utilities commercial and industrial customers may participate in this program.

The eligibility requirements are:

  • Commercial and industrial customers who have been paying into the DSM mechanism are eligible to apply for rebates within 24 months of the date the upgrades were installed.
  • LG&E gas-only customers are not eligible for this program.

Apply now

Be sure to have your account number and tax ID or social security number handy. Contractors, vendors and energy service companies may apply by phone.

By phone (Franklin Energy)

Existing building rebates

Chillers

  • Air-Cooled: $5 per ton
  • Water-Cooled: $3 per ton
  • Chilled Water Reset: 0 to 3,000 tons: $100 to $2,000 per unit

Custom projects

Equipment not covered in another category will be paid $0.03 per kWh saved (first year savings only).

Energy improvements can take many shapes and forms, so if an energy improvement is not found in another category, it may fall into the “custom” rebate category. Eligible custom improvements include but are not limited to:

  • LED Lighting - UL-certified and either DLC or ENERGY STAR®
  • Compressed air systems
  • Exhaust ventilation
  • A/C Occupancy Sensors
  • Day Lighting Controls
  • Induction Lighting
  • Insulation
  • Energy Management Systems

Energy Audit

  • Earn back 25% of your energy audit cost
  • Maximum rebate of $3,000
  • Must qualify for another rebate category when applying

Business customers who’ve had an energy audit performed at their facility can earn a rebate to help offset the cost of the audit. After you’ve made qualifying, high-efficiency improvements to your facility, apply for our rebates to earn cash back on the audit and another rebate category.

LEED major renovations

Earn rebates from $2,000 to $10,000 based on LEED certification points.

If you’re renovating a property to meet LEED v4 certification standards, you may be eligible for cash rebates from $2,000 to $10,000. Rebates are based on points awarded under the LEED Energy & Atmosphere – Optimize Energy Performance, Advanced Energy Metering, and Demand Response categories and square footage of the building, per the chart below.

Energy & Atmosphere - Optimize Energy Efficiency Performance, Advanced Energy Metering, and Demand Response categories Less than 25,000 sq ft Greater than or qual to 25,000 sq ft
1 to 5 points $2,000 $4,000
6 to 10 points $2,500 $6,000
11 to 15 points $3,000 $8000
16+ points $3,500 $10,000

Energy & Atmosphere - Optimize Energy Efficiency Performance, Advanced Energy Metering, and Demand Response categories  

  • 1 to 5 points    
    • Less than 25,000 sq ft: $2,000    
    • Greater than or qual to 25,000 sq ft: $4,000
  • 6 to 10 points    
    • Less than 25,000 sq ft: $2,500    
    • Greater than or qual to 25,000 sq ft: $6,000
  • 11 to 15 points    
    • Less than 25,000 sq ft: $3,000    
    • Greater than or qual to 25,000 sq ft: $8000
  • 16+ points    
    • Less than 25,000 sq ft: $3,500    
    • Greater than or qual to 25,000 sq ft: $10,000

Lighting

Rebate amount: Ranging from $3 to $55 per bulb

Improving your business’s lighting is an easy way to save energy and earn rebates from our program. Business customers can earn anywhere from $3 to $55 per lighting fixture, depending on the type of bulb and efficiency. Improving lighting in some facilities can even help improve workforce productivity.

Motors

Motors: Open and TEFC: $2 per HP

Pumps

Pumps: 7.5 HP to 50 HP: $50 each to $300 each

VFDs

Rebate amount: $16 per hp (all sizes)

Variable frequency drives (VFDs) offer commercial and industrial customers better control of energy usage. Rather than the "all-on or all-off" approach used in more traditional motors and equipment, variable frequency drives only require the amount of energy necessary to run at the time, providing a more moderated use of power.

New building rebates

LEED new construction

Earn rebates from $2,000 to $10,000 based on LEED certification points.

If you’re building a new facility to meet LEED v4 certification standards, you may be eligible for cash rebates from $2,000 to $10,000. Rebates are based on points awarded under the LEED Energy & Atmosphere – Optimize Energy Performance, Advanced Energy Metering, and Demand Response categories and square footage of the building, per the chart below.

Energy & Atmosphere - Optimize Energy Efficiency Performance, Advanced Energy Metering, and Demand Response categories Less than 25,000 sq ft Greater than or qual to 25,000 sq ft
1 to 5 points $2,000 $4,000
6 to 10 points $2,500 $6,000
11 to 15 points $3,000 $8,000
16+ points $3,500 $10,000

Energy & Atmosphere - Optimize Energy Efficiency Performance, Advanced Energy Metering, and Demand Response categories        

  • 1 to 5 points    
    • Less than 25,000 sq ft: $2,000    
    • Greater than or qual to 25,000 sq ft: $4,000
  • 6 to 10 points    
    • Less than 25,000 sq ft: $2,500    
    • Greater than or qual to 25,000 sq ft: $6,000
  • 11 to 15 points    
    • Less than 25,000 sq ft: $3,000    
    • Greater than or qual to 25,000 sq ft: $8,000
  • 16+ points    
    • Less than 25,000 sq ft: $3,500    
    • Greater than or qual to 25,000 sq ft: $10,000

New construction

Earn rebate between $1,500 and $11,200 for new commercial construction built 10-25% above state code.

Are you expanding your business with a new, efficient building? If so, you could be eligible for cash rebates for your energy-efficiency investments. Rebates are awarded based on percentage of savings and square footage, per the chart below.

Performance Tier % Savings Over Code Less Than 25,000 sqft Greater Than or Equal to 25,000 sqft
1 10% $1,500 $4,500
2 15% $2,300 $6,800
3 20% $3,000 $9,000
4 25% $3,800 $11,200

Performance Tier            

  • 1    
    • % Savings Over Code: 10%    
    • Less Than 25,000 sqft: $1,500    
    • Greater Than or Equal to 25,000 sqft: $4,500
  • 2    
    • % Savings Over Code: 15%    
    • Less Than 25,000 sqft: $2,300    
    • Greater Than or Equal to 25,000 sqft: $6,800
  • 3    
    • % Savings Over Code: 20%    
    • Less Than 25,000 sqft: $3,000    
    • Greater Than or Equal to 25,000 sqft: $9,000
  • 4    
    • % Savings Over Code: 25%    
    • Less Than 25,000 sqft: $3,800    
    • Greater Than or Equal to 25,000 sqft: $11,200

FAQs

Frequently asked questions and additional information.

Helpful resources

Commercial contractors, vendors and ESCOs ENERGY STAR® Tips for Businesses

Related news

LG&E and KU Energy LLC reserves the right to revise program requirements and incentive levels at any time subject to approval of the Kentucky Public Service Commission. Incentives are subject to availability.