Custom Equipment

Custom Equipment Incentive Program

The Custom Equipment Incentive Business Program is offered to commercial, industrial, governmental and institutional customers of FirstEnergy's Pennsylvania utilities (Met-Ed, Penelec, Penn Power and West Penn Power).

Eligible Measures

Custom projects include technologies or customer-specific energy efficiency projects that do not meet the eligibility criteria for other business programs. Projects must have a Total Resource Cost (TRC) test score of one or greater.

  • Industrial process upgrades
  • Energy management system installation
  • Compressed air system upgrades (a compressed air calculator is available for download from the program resources section for projects involving a single-system air compressor of 40 hp or less)
  • Air cooled chillers
  • Upgrading existing motors to energy efficient motors in lieu of rewinding an existing motor
  • Replacing motor speed controls with variable frequency drives (VFDs) (excluding VFDs included in the Prescriptive service offering)
  • Water/wastewater system improvements
  • Economizers
  • Building control or energy management systems that are not required by code (e.g., demand control ventilation or exhaust air heat recovery)
  • Retro-commissioning
  • Data center equipment retrofits and upgrades
  • Chilled water system redesign
  • Refrigeration system upgrade in a refrigerated warehouse
  • HVAC system redesign to optimize equipment and controls
  • Combined Heat & Power

Ineligible Measures

  • Power factor correction devices
  • Motor soft starts
  • Renewable energy technologies that generate electricity (e.g., wind generation, micro-hydro turbines, etc.)
  • Fuel Switching (e.g., replacement of an electric chiller with an absorption chiller)

Effective Dates

To qualify for incentives through the program, equipment must be new and installed after June 1, 2016.

Pre‐Approval Requirements

Program participants are encouraged to seek pre-approval before purchasing their proposed equipment to ensure it meets program requirements and is eligible for incentives. If your project was completed or installed on June 1, 2016, or later and you did not obtain pre-approval, then you may apply for incentives no later than 180 days from the date of project completion (completion is defined as all equipment being installed and operable).

The Program Administrator must receive a copy of all required documentation before incentives are paid. Annual kWh savings are determined by one of three methods:

  • Performance-based – demonstrated by an hourly energy simulation model. For LEED-certified projects, and other projects which have a detailed energy model, input and output reports from the software program.
  • Deemed – demonstrated by submitting program-approved calculators
  • Measured – demonstrated by site data collection. Direct measurement may take place before or after retrofit, or at both times. In some cases, direct measurement may be combined with engineering calculations to determine electrical energy savings.
Equipment Equipment & Eligibility Requirements Incentive

Variable Speed Drives (VFDs)

Eligible measures include VFDs installed on existing motors that drive fans, pumps, and other suitable applications.

$50 per hp controlled

Three Phase Motors

Eligible measures include the installation of new motors that exceed NEMA premium efficiency standards.

$20 per hp

How do I apply?

Step 1 – The participant should complete and submit a Custom Equipment Incentive application online and upload required documents through the application portal. The following documents are required for a pre-approval (if the project is already complete, applicants should also submit the required documentation listed in Step 3):

  • Completed and signed W-9 tax form for the incentive payee. The W-9 form must be current and dated within the last 24 months.
  • If applicable, customers who wish to issue all or a portion of their incentive to a third party should complete a Dual Incentive Payments form.
  • Scope of work with a summary of the existing and proposed/installed systems
  • Manufacturers' specification (cut) sheets for each proposed/installed item to verify that the equipment is eligible. Please circle or highlight the relevant information on the specification (cut) sheets such as the equipment efficiency ratings.
  • Detailed energy savings analysis/calculations with supporting pre data/measurements (if applicable).
  • Copy of utility bill to confirm account number and service address. If desired, the participant may obscure all cost and rate related information.

Step 2 – The program administrator will notify the applicant via email when the review is complete and funds have been reserved.

Step 3 – Once the project is complete, participants should review their application for any changes and submit the following documents to the program administrator for review:

  • Revised energy savings analysis/calculations (if changes were made during construction).
  • Detailed, itemized invoices or proofs of purchase for the equipment installed.
  • Completed letter of attestation.
  • Post energy data/measurements (if applicable).

Supporting technical documentation will be reviewed by program administrator and an onsite inspection to verify the installation may be conducted. Upon receipt and verification of all required documentation, the incentive check will be processed and mailed to the applicant or to an authorized representative, if requested on the application.