Compressed Air Rebate

Rebates for Compressed Air System are based on whole system performance as modeled by an Energy Solutions Company appointed by Island Energy (Utility). Be sure to contact the Utility early in your project design to verify rebate eligibility.


The following compressed air systems are eligible for Island Energy’s Energy Efficiency Rebate Programs.

Program Eligibility

  • New Compressed air system
  • Total compressed air system redesigns/gut-rehabilitations
  • Partial compressed air system redesigns/gut-rehabilitations
  • Air Compressor replacement and retrofit

Key Energy efficiency Measures

The energy-efficiency measures listed below may contribute individually or interactively to improve the overall energy saving of the compressed air system over the standard industry baseline. Other permanent energy-efficiency measures may be considered by the Utility if energy saving is demonstrated.

  • Efficient Air Compressors-Utilize variable frequency drive (or variable displacement) air compressors. For base-loaded air compressors, use two stage machines.
  • Automatic Drains-to reduce air loss, install automatic traps and drains.
  • Air Dryers-Install a more efficient cycling/thermal mass driver instead of a standard refrigerated dryer. Install a desiccant dryer that use less purge air than a standard dryer (such as externally heated or pulse/purge systems).
  • Automatic Sequencer-Sequence compressor operation is more efficient with an automatic sequencer, by minimizing part-load operation of constant speed machines, and by using the most efficient machines first.
  • Air Storage, Flow Control Valves, Pressure Regulators-install equipment that enables the system to operate reliably at a lower pressure.
  • Efficient Nozzles and Blowers-Install high efficiency nozzles to help improve end use efficiency, and replace inappropriate use of compressed air with low pressure blowers.

Application Process

  • Customer must sign a Letter of Intent with an Energy Solutions Company to conduct a fee base investment grade audit to assess potential savings at the customer’s expense.
  • Customer who is interested in a particular program resulting in energy savings identified in the feasibility study and willing to invest to improve energy efficiency at their facilities must file an application for that particular project with the Utility.
  • Utility must approve the application with a written notice of acceptance before customer purchases and installs any equipment for the project.
  • Customer must provide proof of purchases and supporting documents within 90 days of purchase date and must include all of the following information:
  1. Retailer/Contractor name, address and phone number
  2. Itemized listing of each purchase including quantity, product description, manufacturer, model number, or other identifying information.
  3. Purchase price per product
  4. Date “Paid in Full” or Payment Turns
  5. Product Installation date
  • Upon project completion day and after all required documentations are received, customer must notify utility for a final inspection.
  • In the first three months after the new measures are installed/improved, Utility will start monitoring and evaluation process.
  • Rebates requires inspections and/or measurements of the performance of the measures, therefore, customer agrees to provide access to the project site to the Utility’s designated officer and/or its agent and data information required for the evaluation.

Rebate Calculation

  • Electric custom rebate is $0.05/kWh saving in the first year demonstrated by the Investment grade audit report, subject to validations by the Utility.
  • Total reimbursement amount do not exceed $35,000 per application.

Still Have Questions???

For more information, please call 707-562-5000.


Island Energy