ENERGY STAR Rebates for Restaurant Equipment

ENERGY STAR Rebates for Upgrading Your Restaurant Equipment

Restaurant operators are all too familiar with expensive electric and gas bills that accompany a busy commercial kitchen. As a matter of fact, foodservice businesses consume five to seven times as much energy per square foot than other commercial spaces.1 Frugal operators have found ways to cope, such as emphasizing well-maintained equipment and encouraging staff to run that equipment only when it's being used, but the best way to save in the long run may be to invest in efficient restaurant equipment for your operation.

Some of the biggest energy wasters are old, worn-out pieces of equipment, including poorly insulated ovens, refrigerators with worn-out compressors, and inefficient fryers that can increase utility costs. Upgrading equipment can be an expensive undertaking for foodservice operators, but there may be ENERGY STAR rebates and incentives available to offset the cost of new equipment.

ENERGY STAR Restaurant Equipment

The ENERGY STAR program was created in the 1990s by the Environmental Protection Agency (EPA) to help address growing concerns over global warming caused by carbon emissions.2 The program is intended to encourage the development and sale of energy-efficient consumer goods, commercial equipment, and buildings. A product can earn the ENERGY STAR logo by using significantly less gas or electricity than other models in the same category.

Currently, ENERGY STAR-qualified restaurant equipment exists in categories such as steamers, griddles, hot holding cabinets, and solid-door refrigeration. For information on specific equipment, check out KaTom's article on Understanding ENERGY STAR's Commercial Foodservice Equipment Standards.

ENERGY STAR Rebates & Incentives

To help in the fight against pollution and global warming, local and state governments, energy companies, and other organizations in the United States offer energy efficiency incentives to restaurant owners, encouraging them to invest in ENERGY STAR-certified equipment. Some incentives are offered as cash rebates when businesses purchase certain types of equipment; in other cases, organizations offer low-interest loans to businesses interested in upgrading their facility to be more energy efficient but may not have the cash upfront.

  • Pathway Lending's Energy Efficiency Loans provide 5-year financing at rates of 2 percent to Tennessee businesses.3
  • The District of Columbia Sustainable Energy Utility (DCSEU) sponsors a program offering cash rebates for certain types of kitchen equipment purchased by business owners in D.C.
  • New Hampshire's NHSAVES program offers rebates up to $2,500 per piece of equipment. New Hampshire foodservice businesses should contact their equipment dealer to help identify qualified equipment.4
  • Restaurant owners in areas serviced by Xcel Energy should be aware of rebates available for businesses that find ways to decrease their energy consumption. In certain states, foodservice-specific incentives are offered to restaurants that upgrade their kitchens to include ENERGY STAR appliances. If your business is in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, or Wisconsin, select your state browse the resources and incentives available to you.
  • California is the hot spot for ENERGY STAR rebates. California Energy Wise offers a downloadable list of eligible products. Many restaurant owners are eligible for 0-percent-interest loans of up to $100,000 for purchasing energy-efficient equipment. Cash rebates are available as high as $1,000 on certain pieces of equipment.

ENERGY STAR Refrigerator, Lighting, and HVAC Rebates

It's not just cooking equipment that qualifies for ENERGY STAR rebates. Most foodservice operations will be able to take advantage of refrigeration, lighting, and HVAC-specific rebates.

  • Tucson Electric Power's Commercial Energy Solutions offers rebates to qualifying customers to offset the purchase of ENERGY STAR commercial refrigeration equipment, lighting fixtures, and HVAC systems.5
  • Customers of Rocky Mountain Power in Idaho, Utah, and Wyoming may be eligible for savings and solutions offered by the Wattsmart® Business program, which provides incentives for refrigerators, HVACs, lighting fixtures, and some types of cooking equipment.
  • Businesses in the Southeast may qualify for the TVA's EnergyRight incentives for businesses. Along with offering monetary support for LED lighting and custom energy projects, EnergyRight offers incentives to businesses investing in an energy-efficient HVAC system.
  • Small business owners in Pennsylvania may be eligible for PGW EnergySense rebates as high as $8,400 for a new, energy-efficient commercial boiler.6 While you're there, check out their incentives for upgrading fryers and steam cookers.
  • Florida businesses may be eligible for incentives from Florida Power and Light to help pay for energy-efficient HVAC equipment and lighting among other upgrade.7
  • Georgia Power offers similar incentives to customers who upgrade their HVAC or warewashing equipment.8

These are just a few of hundreds of energy-efficiency rebate programs available across the country that are constantly being updated. The DSIRE database from the NC Clean Energy Technology Center lets you search for rebates your business may be eligible for.9 You can filter the results by state and the type of technology the rebate applies to. The latter includes a filter for commercial cooking equipment and one for commercial refrigeration equipment.

In addition, ENERGY STAR offers a rebate finder that connects business owners with rebates and special offers like tax exemptions and recycling incentives by zipcode.9 Also be sure to contact your utility provider directly to see if they offer energy audits, incentives, or rebates.

References

  1. ENERGY STAR Guide for Restaurants. EPA. Accessed July 2022.
  2. ENERGY STAR History and Major Milestones. ENERGY STAR. Accessed July 2022.
  3. Energy Efficient Loans. Pathway Lending. Accessed July 2022.
  4. Commercial Food Service Equipment. NHSaves. Accessed July 2022.
  5. TEP Business Energy Solutions. Tucson Electric Power. Accessed September 2023.
  6. Commercial Equipment Rebates. PGW. Accessed July 2022.
  7. Custom Incentive Program. FPL. Accessed July 2022.
  8. Business Services. Georgia Power. Accessed July 2022.
  9. Database of State Incentives for Renewables & Efficiency®. NC Clean Energy. Accessed July 2022.
  10. ENERGY STAR Rebate Finder. Energy Star. Accessed July 2022.