---
title: "Utility Rebates for Compressed Air Sequencers | 30–70% Coverage"
description: "Most U.S. utilities cover 30–70% of sequencer installation costs. Prescriptive rebates of $2,000–$15,000 per sequencer plus custom incentives. Find your utility program."
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Utility Incentive Programs 

# Utility Rebates Cover 30–70% of Cost 

Most electric utilities offer energy efficiency incentive programs that cover a significant portion of compressed air optimization projects. We handle the entire rebate process from application to collection.

30–70% Typical Rebate Coverage 

$15K+ Avg Rebate per Project 

60–90 days Rebate Processing Time 

## Types of Utility Rebates

Multiple rebate pathways exist for compressed air efficiency projects. We identify and pursue the most lucrative option for your facility.

### Prescriptive Rebates

$2,000–$15,000 

Fixed-dollar rebates per sequencer unit installed. Pre-approved amounts make budgeting straightforward with fast processing times.

-   Per-unit fixed dollar amount 
-   No custom measurement required 
-   Fastest application processing 
-   Typically paid within 60–90 days 

### Custom / Performance Rebates

$0.05–$0.15/kWh 

Based on verified energy savings measured through pre/post monitoring. Higher total rebate potential for larger systems.

-   Based on measured kWh savings 
-   Requires pre/post energy data 
-   Higher rebate for larger savings 
-   M&V documentation provided by us 

### Compressed Air Audit Subsidies

50–100% Funded 

Many utilities fund comprehensive compressed air audits. These audits identify savings opportunities and serve as rebate pre-qualification.

-   CAGI-compliant audit methodology 
-   Supply and demand side analysis 
-   Leak survey and quantification 
-   Rebate pre-qualification included 

## Custom Rebate Application Process for Sequencer Installations

Custom (performance-based) rebate applications yield the highest incentive dollars for compressed air sequencer projects. Unlike prescriptive rebates with fixed amounts, the custom pathway pays based on actual verified kWh savings—often resulting in 2–5× the rebate value. Here's exactly how the process works.

1

### Pre-Installation Baseline Measurement (2–4 Weeks)

Before any equipment is installed, the utility requires a documented energy baseline of your existing compressed air system.

#### What We Measure

-   Individual compressor kW draw (via power loggers or CT metering) 
-   System pressure at multiple points (supply, headers, point-of-use) 
-   Total system flow (CFM) using insertion or inline thermal mass meters 
-   Compressor run status, load/unload cycles, and blow-off events 
-   Operating hours by shift, day, and weekend/holiday schedules 

#### Baseline Deliverables

-   kW demand profiles at 1-minute intervals (min 2 weeks) 
-   Specific power calculation: kW per 100 CFM baseline 
-   Annual energy consumption estimate (kWh/year) 
-   Load profile analysis identifying waste periods 
-   Leak load quantification during non-production hours 

2

### Custom Application Submission & Pre-Approval

We prepare and submit the formal custom rebate application to your utility's energy efficiency program administrator.

#### Application Package Includes

Project Narrative 

Detailed description of the sequencer installation, existing system deficiencies, and expected operational improvements.

Baseline Energy Report 

Full data logs, load profiles, and calculated annual kWh consumption under current operating conditions.

Projected Savings Calculation 

Engineering analysis showing estimated kWh reduction based on sequencer simulation against baseline demand data.

Equipment Specifications 

Allen-Bradley PLC specifications, I/O count, communication protocols, metering equipment, and installation scope.

Cost Proposal 

Itemized project cost including hardware, software, installation labor, commissioning, and M&V monitoring.

Simple Payback Analysis 

Net project cost (after rebate) divided by annual energy savings to demonstrate payback period under utility thresholds.

Important:  Most utilities require pre-approval before equipment is purchased or installed. Submitting after installation risks forfeiting the rebate entirely. We coordinate this timeline to ensure approval is secured before the project begins.

3

### Sequencer Installation & Commissioning

With pre-approval in hand, the Allen-Bradley PLC sequencer is installed, programmed, and commissioned on your compressed air system.

#### PLC Programming

Custom sequencing logic for your specific compressor fleet—load/unload, VFD trim, cascade pressure bands, and fail-safe modes.

#### Sensor Commissioning

Power meters, flow meters, pressure transducers, and dew point sensors calibrated and verified against reference instruments.

#### Performance Tuning

Pressure bands, staging delays, and rotation schedules are optimized over 1–2 weeks to maximize efficiency before M&V begins.

4

### Post-Installation Measurement & Verification (2–4 Weeks)

The M&V period captures actual energy performance with the sequencer running, under comparable operating conditions to the baseline.

#### M&V Methodology (IPMVP Option B)

We follow the International Performance Measurement & Verification Protocol (IPMVP) Option B—Retrofit Isolation with All Parameter Measurement. This is the gold standard accepted by virtually all utility programs for custom compressed air projects.

Post-installation kW logging at same measurement points 

Normalized comparison adjusting for production volume differences 

Side-by-side specific power comparison (kW/100 CFM) 

Annual kWh savings projection using regression analysis 

CO₂ emissions reduction calculation 

Utility-formatted M&V report with raw data appendices 

5

### Final Submission & Rebate Collection

The complete post-installation documentation package is submitted to the utility for final review and rebate payment.

#### Final Package Contents

-   Completed M&V report with verified annual kWh savings 
-   Final project invoices and proof of payment 
-   Equipment cut sheets and installation photos 
-   Commissioning sign-off from facility operations 
-   Updated simple payback calculation with actual costs and savings 

$0.05–$0.15 

per kWh saved

60–90 days 

check processing

$10K–$75K+ 

typical rebate range

### Example: Custom Rebate Calculation for 500 HP System

#### Baseline (Before Sequencer)

System Size 500 HP (5 × 100 HP rotary screw) 

Operating Hours 8,400 hrs/year 

Avg System kW 320 kW (uncontrolled cascading) 

Specific Power 26.7 kW/100 CFM 

Annual Energy 2,688,000 kWh/year 

Annual Cost (@$0.10/kWh) $268,800/year 

#### Post-Installation (With Sequencer)

Avg System kW 248 kW (optimized staging) 

Specific Power 20.7 kW/100 CFM 

Annual Energy 2,083,200 kWh/year 

Annual Cost $208,320/year 

kWh Saved 604,800 kWh/year 

Annual Savings $60,480/year 

Custom Rebate @ $0.10/kWh saved

$60,480 Rebate

Project payback reduced from 10 months to under 4 months 

## Additional Rebate-Eligible Measures

Beyond sequencers, many complementary compressed air improvements also qualify for utility incentives.

Improvement Measure Typical Rebate 

VFD Compressor Installations $50–$200/HP 

Compressed Air Leak Repair $0.03–$0.08/kWh saved 

No-Loss Condensate Drains $100–$500/drain 

Cycling Refrigerated Dryers $500–$3,000/unit 

Piping & Header Upgrades Custom incentive 

Pressure/Flow Controllers $1,000–$5,000/unit 

Heat Recovery Systems Custom incentive 

Air Receiver Storage Tanks $500–$2,000/tank 

## Our Rebate Process

We manage the complete utility rebate lifecycle so you can focus on operations.

1

### System Assessment

We evaluate your compressed air system and identify all rebate-eligible improvements.

2

### Utility Coordination

We contact your utility, confirm program availability, and submit pre-approval applications.

3

### Installation & M&V

Equipment is installed and we conduct measurement & verification to document energy savings.

4

### Rebate Collection

We prepare and submit all required documentation. You receive your rebate check—typically within 60–90 days.

## Don't Leave Money on the Table

We'll identify your utility's available rebate programs and handle all documentation—at no additional cost to you.

[Check Your Rebate Eligibility](/contact) [View Savings Projections](/savings)

## Related Reading

[Utility Rebates 

### State-by-State Utility Rebate Guide

](/blog/state-by-state-utility-rebates)[Resources 

### DOE Compressed Air Challenge Resources

](/blog/doe-compressed-air-challenge-resources)[Utility Rebates 

### How to Apply for Utility Rebates

](/blog/how-to-apply-utility-rebates)

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Emergent Energy Solutions, LLC is a Philadelphia-based company specializing in energy monitoring, compressed air optimization, and sustainability consulting for commercial and industrial facilities.

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#### Resources

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#### Part of the Emergent Energy family

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