Rebate Programs Aim to Speed Up Power Grid Upgrades, DOE Says

Jun 11, 2023

Energy efficient distribution transformers and other power grid components are eligible to apply for a piece of a $20 million federal rebate program aimed to speed up power grid upgrades, the Energy Department plans to announce Tuesday.

The funding, allocated by the bipartisan infrastructure law approved in 2021, will be distributed among two rebate programs, one focused on transformers and another on extended product systems that use equipment with electric motors, such as pumps, air compressors, and fans. The program comes as the energy industry grapples with delays in getting a supply of transformers that Biden officials say are crucial to achieving net-zero emissions from the power grid by 2035.

The transformer rebate program encourages the use of more efficient models that will reduce operating costs and deliver consumer savings, the department states in an announcement shared with Bloomberg Law. Distribution transformers, which convert high-voltage electricity to levels safe enough to be utilized by homes and businesses, lose some energy in the process. Inefficient models “pose an increased risk to the security and effectiveness of the nation’s electricity system,” the announcement states.

The rebates for extended product systems, which include fans, pumps, compressors, and electric motors, will aid the replacement of equipment commonly used in manufacturing, industrial, and process equipment.

“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,” Energy Secretary Jennifer Granholm said.

The application portal for distribution transformer rebates is open from Aug. 1, 2023, to Dec. 31, 2023, or until funds are exhausted. The portal for extended product systems will open in the coming weeks. Qualified applicants can receive up to $25,000 in rebates through this program.

To contact the reporter on this story: Daniel Moore in Washington at [email protected]

To contact the editor responsible for this story: JoVona Taylor at [email protected]

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