Incentives & Rebates
Spencer Municipal Utilities encourages customers to save energy by looking for efficient products, and to make it easy to choose to be more energy efficient-SMU offers rebates for saving energy!
Rebate Forms
These must be turned in to SMU within 90 days of invoice or project completion.
Note: All rebates must have a copy of the receipt of purchase.
Downloadable versions of these forms are also available:
2024 SMU Resource Conservation Incentive Program
The SMU Resource Conservation Incentive Program provides financial incentives to encourage customers to make improvements to their homes or businesses that save energy and water.
General Program Information
- The effective date is January 1, 2024. Programs may be changed or cancelled by SMU without notice. Customers should check with SMU for information on programs.
- Energy efficiency incentives are only available for properties that are within the SMU electric service territory.
- SMU reserves the right to verify installation and invoices prior to rebate being paid.
- SMU reserves the right to meter devices for which a rebate is paid to aid in determination of actual energy savings. Such metering will be at SMU’s expense.
- Rebates will not exceed 50% of equipment costs minus any manufacturers or dealer rebates. Insulation subject to limits listed in Section 1.
- Rebates will be issued to the party that paid for the improvement. If the rebate is for improvements at an owner-occupied residential or commercial property, the rebate will be paid as a credit to the utility account at that location. If that party does not occupy the residence or commercial property where the device was installed, the rebate will be applied as a credit to another utility account in that party’s name, or will be given in the form of a check. Payment will be made upon approval of completed application, receipt, and SMU verification.
- Improvements made to residential rental properties will be considered residential rebates, but will be subject to the annual commercial rebate limits.
- For rebates in excess of $1,000, the applicant may request a check rather than credit. In order to receive rebates for improvements under the 2024 program, the improvements must be paid for and/or installed during 2024. Rebates must be submitted within 90 days of invoice date or project completion.
- Customers are responsible to insure that all equipment and/or improvements are installed in accordance with all codes, standards, and regulatory requirements.
- Rebates will be approved on new improvements only. No rebates will be approved for used items.
- SMU does not guarantee reduced usage, demand, or cost savings. SMU makes no warranties, expressed or implied, with the respect to any improvements made. In no event shall SMU be liable for any incidental or consequential damages. SMU does not endorse any manufacturer or product in this program.
- Completed applications will be processed on a first come, first served basis, until available funds are committed.
- Any income tax or other taxes which may be payable as a result of a rebate being paid (or applied to the utility account) are the responsibility of the customer.
- The decision of SMU regarding any disputes which arise in the rebate program is final.
- Customers who receive the rebate will agree on the application to allow SMU to install and operate demand response devices if the use of such devices is deemed prudent by the SMU Board of Trustees.
Insulation
- SMU customers who use electricity as their primary heating fuel (resistance or heat pump) are eligible to apply for rebates on insulation improvements.
- For purposes of the rebate, “cost” includes materials, contract labor, and/or equipment charges incurred for the insulation project.
- Spray foam insulation installed during new home or commercial building construction is eligible for rebates.
- In order to qualify for insulation rebates, an SMU employee must verify the level of insulation before and after the improvement is made through a basic insulation verification.
- Rebates may be issued for more than 1 type of installation upgrade at the same address. However, all insulation rebates are subject to the annual limit per account listed in Section 11 of the program.
Insulation (Residential)
Attic/Ceiling | Increase insulation to R-49+ | 70% of cost up to $750 |
Exterior Wall | Increase insulation to R-13+ | 70% of cost up to $750 |
Note: For multi-family residential properties, the maximum rebate is $750 per housing unit.
Insulation (Commercial)
Capped at $0.30 per square foot insulated.
Attic/Ceiling | Increase insulation to R-49+ | 70% of cost up to $5,500 |
Exterior Wall | Increase insulation to R-13+ | 70% of cost up to $5,500 |
Energy-Efficient HVAC & Water Heater Rebates
- Efficiency requirements listed below are based on the ENERGY STAR® program minimums. As an ENERGY STAR® partner utility, SMU may revise these requirements as they are revised by ENERGY STAR®. In order to qualify for a rebate, the equipment must be installed by a licensed HVAC contractor, must be AHRI listed and the AHRI certificate must be included with the rebate application.
- In order to qualify for a rebate on a heat pump, the building must be heated with electricity. For heat pumps, SMU will pre-authorize the rebate to help the customer and the contractor with planning. Please contact SMU for information on pre-authorization.
Ductless Mini-Split Heat Pump | $200 per ton | ||
Residential or Small Commercial Air Source Heat Pump | |||
Powered by single-phase current; rated below 65,000 Btu/hr | SEER = 16.0+ | $250 per ton | |
Large Commercial Air Source Heat Pump (powered by 3-phase current) | |||
< 65,000 Btu/h | Single Package | > 14 SEER; 11 EER; 8.0 HSPF | $150 per ton |
< 65,000 Btu/h | Split System | > 14 SEER; 11 EER; 8.2 HSPF | $150 per ton |
65,000 Btu/h to 135,000 Btu/h | >11.3 EER; 11.4 IEER; 3.35 COP* | $150 per ton | |
135,001 Btu/h to 250,000 Btu/h | >10.9 EER; 11.0 IEER; 3.25 COP (COP rated at 47°F) | $150 per ton | |
Ground Source (Geothermal) Heat Pump (residential or commercial, closed loop only) | |||
Water-To-Air | > 16.1 EER & 3.5 COP | $1,000 per ton; $500 per ton for replacement of equipment | |
Water-To-Water | > 15.1 EER & 3.0 COP | "$1,000 per ton; $500 per ton for replacement of equipment" | |
Multi-Stage Compressor for Air Source or Ground Source Heat Pump | |||
Additional rebate for use of a multi-stage compressor | $100 per ton | ||
Electric Heat (permanently wired installation-only when installed with heat pump) | |||
≥ 1,000 watts (1 kW) | $50 per kW | ||
ECM Motor | |||
For new or existing furnace; gas, electric resistance, or heat pump | $50 | ||
Desuperheater | |||
When installed with a heat pump | $150 | ||
Heat Pump Water Heater | |||
ENERGY STAR® | $500 | ||
Central AC or Heat Pump Annual Checkup | |||
Pre-season inspection by a qualified HVAC professional | $25 |
Commercial Energy Efficient Lighting Rebates
- Commercial lighting rebates are available for retrofit installations where a less-efficient form of lighting is being replaced and are available to customers on a commercial utility rate.
- The only lighting rebates available for new commercial construction is use of LED fixtures with occupancy sensors.
- All lighting improvements installed between January 1, 2024 and December 31, 2024 are eligible to apply
during 2024. - All bulbs and ballasts removed must be disposed of in accordance with any Federal, State, or local government regulations.
- Customer agrees to maintain lighting for which rebates were received at the same efficiency level or greater (i.e. customer cannot replace a burned out lamp with one of lower efficiency).
- SMU will not pay for the replacement of failed fixtures or burned out bulbs, regardless of whether the equipment was installed under this rebate program or not.
T12 and HID Retrofit | (replacing existing T12, HID (metal halide or high pressure sodium) fixtures with LED fixtures) $5 per 4 foot bulb, $10 per 8 foot bulb | |
Occupancy Sensors | $25 | |
Exit Lamps | LED conversion or new | $30 |
LED fixtures | ||
Less than or equal to 30 watts | $30 | |
31 to 99 watts | $50 | |
100 watts or larger | $100 | |
Custom Energy Efficiency Rebates & Measures
In addition to the energy efficiency rebates prescribed in this program, SMU staff will work with customers to develop custom rebates for improvements that result in significant energy savings.
Such custom measures could include
- Renewable energy facilities
- Combined heat and power systems
- Commercial/industrial energy audits
- Energy audits for rental properties
Customers interested in developing a custom rebate for such measures should contact SMU before making the improvements.
Dealer Incentive Program
- A dealer authorized for incentives must be a retail customer of SMU.
- In order to qualify for incentives, dealer must sign a dealer incentive agreement stating their intent to follow the rules and regulations of the program. The signed letter must be received by SMU on or before March 31, 2024.
- SMU shall keep records of all rebates processed and what dealer incentives have been earned. At the end of each calendar year, SMU shall reimburse the dealer for any incentives earned during the year. Upon request, SMU will provide Dealer with an itemized listing of incentives paid.
- Failure of dealers to abide by the rules of this program will result in forfeiture of the dealer incentives.
Ductless Mini-Split Heat Pump | $25 per ton | |
Residential or Small Commercial Air Source Heat Pump | ||
SEER = 16.0+ | $25 per ton | |
Large Commercial Air Source Heat Pump | ||
ENERGY STAR | $25 per ton | |
Ground Source (Geothermal) Heat Pump | ||
ENERGY STAR | $200 per ton | |
Heat Pump Water Heater | ||
ENERGY STAR | $200 |
Program Limits
- Energy Efficiency and Conservation
- The total of all energy efficiency incentives issued during 2024 shall not exceed $100,000.
- A residential property may not receive more than $2,500 in rebates during the calendar year.
- A non-residential property may not receive more than $7,500 or $0.25 per square foot of the area improved whichever is more in rebates during the calendar year.
- Rebates for air source or ground source heat pumps, or rebates for insulation in multi-family residential properties, do not count toward the annual limits for residential or non-residential rebates.
- Governmental entities are not limited annual maximums. Rebates are not subject to filing deadlines listed in General Program Information item 8. Governmental agency shall work with SMU staff to file the rebate on a timely basis upon acceptance of the project as complete.