Business Customer Rebates

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Take advantage of rebates that can help reduce the cost of doing business and improve your bottom line. City of Palo Alto Utilities (CPAU) offers prescriptive and custom rebates to commercial, industrial, and public sector customers for water- and energy-efficiency improvements, equipment upgrades, and electrification projects, including projects that replace natural gas equipment with efficient electric alternatives.

Here's How You Qualify

  • You must be a non-residential CPAU customer receiving electric and/or gas service at commercial rates.
  • Apply and receive approval before purchasing equipment to qualify for the rebate.
  • Rebates are available for existing facilities undergoing equipment upgrades or recommissioning. New construction projects are not eligible.
  • Agree to the Business Customer Rebates (BCR) Terms and Conditions(PDF, 469KB) to qualify for a rebate (see page 27).

     

We Offer Two Types of Rebates

Standard Rebates

Prescriptive rebates are a simple and fast way to receive rebates. Eligible equipment and rebate amounts are listed in the Business Customer Rebate Catalog(PDF, 469KB). Follow the steps below to apply for a prescriptive rebate:

Step 1.Prepare Your Application

Check the Rebate Catalog(PDF, 469KB) to confirm that your equipment meets the program’s specifications and eligibility requirements. If your equipment or project is not listed, you may be eligible for a custom rebate.

Step 2.Submit a Rebate Application

Apply for Rebates Now

Step 3.Get Approved for Installation 

You’ll receive an email within 10 days with your project approval status. Please wait for approval before purchasing or installing equipment.

Step 4.Apply for Building Permits and/or Planning Entitlements

Before installing your equipment, get an issued permit and/or planning entitlement with Planning and Development Services.

Apply for Building Permits Now

Step 5.Install Equipment and Upload Supporting Documentation

Purchase and install within 180 days of your approval. After installation, use the link in your approval email to upload invoices, permits, and supporting documentation.

Step 6.Receive Rebate  

We'll verify your documents and send your rebate check within 2 – 4 weeks. 

Custom Rebates

Custom rebates are available for retrofit projects that do not qualify for standard rebates and retrocommissioning projects.

While retrofitting involves replacing outdated equipment, retrocommissioning focuses on improving the efficiency of what is already in place. Qualifying retrocommissioning projects include replacements such as controls or modifications to air conditioning systems which result in verifiable electric and/or natural gas savings. Here’s how to get a custom rebate:

Step 1.Prepare Your Application

Make sure your project complies with the Program Eligibility Requirements and Terms and Conditions (see page 27).(PDF, 469KB)

Step 2.Get an Energy Savings Report Stamped by a Licensed Engineer

Consult a licensed engineer for an energy savings reports and have it stamped by the engineer. Make sure your project shows verifiable electric and/or natural gas savings and your report complies with the Savings Estimation Requirements (page 4)(PDF, 469KB).

If you need assistance with getting an energy savings report, contact us at utilityprograms@paloalto.gov

Step 3.Submit a Rebate Application

Apply for Rebates Now

Step 4.Get Approval for Installation

You will be notified via email within the next 10 days to schedule a pre-installation inspection.  

After this inspection, you will be notified via email if your project is approved for installation. Please wait to purchase equipment until you hear back. 

Step 5.Apply for Building Permits and/or Planning Entitlements

Before installing your equipment, get an issued permit and/or planning entitlement with Planning and Development Services.

Apply for Building Permits Now

Step 6.Install Equipment and Upload Supporting Documentation

Purchase and install equipment within 180 days of your approval. After installation, use the link in your approval email to upload invoices, permits, and supporting documentation. 

Step 7.Schedule Post-Installation Inspection and Receive Rebate

We will schedule a post-installation inspection to verify your project energy savings. Rebates are subject to change based on our verification.

After verification, we will send your rebate check within 2 - 4 weeks.

Frequently Asked Questions

How do energy efficiency and electrification upgrades benefit my business?

  • Lower operating costs – Using less energy can lower your facility's utility bills and increase your profit margins.  
  • Reduce facility’s carbon footprint – Facilities can reduce their carbon footprint with energy-efficient, electric equipment powered by Palo Alto’s carbon neutral electricity. Making your facility more sustainable can improve your brand image with customers, the public, and employees. 
  • Improve health and comfort for building occupants – Studies have shown that people working in energy efficient buildings are less likely to suffer from fatigue and headaches. Improving the health of workers could in turn have significant implications for workplace productivity. 

Why should my business switch to electric equipment?

We encourage customers to consider electrification, a shift from fossil fuels to electricity for space and water heating, transportation and cooking. CPAU's electricity is sourced from renewable and hydroelectric resources, but natural gas is a fossil fuel that will always produce greenhouse gas emissions.

The Business Customer Rebate Program now offers electrification rebates on equipment such as heat pump water heaters, packaged or split system heat pumps, commercial electric fryers, and commercial electric convection oven.