Energy Rebates

Cash Rebates

Why are Utilities Offering Energy Rebates to Data Center Customers?
There are many reasons why utilities are providing energy rebate incentives for energy efficient IT equipment or facilities, including:

  • Utilities cannot bring new energy capacity online fast enough to meet the explosive electricity demand for today’s data centers, which are larger and denser. The EPA estimated that the United States IT sector consumed about 61 billion kilowatt-hours in 2006, or 1.5 percent of total U.S. electricity consumption, and this is expected to double over the next five years
  • IT workload growth is multiples of GDP for most companies and can be 10x for some sectors, such as financial services and web businesses
  • Companies are facing huge growth rates in data storage (50% – 130% annual growth is typical)
  • License approvals for new power plants are consistently being rejected by regulatory authorities. For example, one hundred fifty (150) requests for new power plant construction have been cancelled in the last six years due to environmental concerns and regulations
  • In the U.S. since 2004, no marginal power capacity has been added with nuclear plants due to prohibitive regulations and a societal attitude of “not in my backyard.”

Given all these circumstances, utilities are encouraging data center customers to replace older, less efficient IT equipment and data center facilities with new, energy efficient IT equipment and energy efficient data center facilities.

Energy Rebate Programs for Energy Efficient IT Projects
Data Center Rebates offers energy rebate services to customers implementing best practices for energy efficiency in their data centers. Data Center Rebates negotiates with utilities to provide a convenient cash rebate program for data center customers planning to:

  1. Install energy efficient IT equipment (e.g., servers, storage drives, routers, fans, UPS)
  2. Install energy efficient cooling systems (HVAC, CRAC Units, chillers)
  3. Reduce on-peak power and cooling demand
  4. Consolidate or virtualize compute, storage, and networking resources
  5. Implement better power management practices

Data Center Rebates makes it easier for customers to apply and qualify for energy rebates offered by utilities. In order to reduce operating costs and carbon emissions, more and more customers are redesigning their data centers and implementing best practices for energy efficiency. Utilities, meanwhile, have developed energy rebate programs specifically for data center efficiency. For enterprise-class data centers, rebates can be in the hundreds of thousands of dollars.

Energy Rebate Programs for IT Projects Offered by Utilities

Example #1: Non-Residential New Construction (NRNC) or Savings by Design
Non-Residential New Construction (NRNC), also known in California as “Savings By Design” is a program for commercial, industrial, high tech, and agricultural customers that encourages energy efficient building and process design and construction. The program, popularized in California by four investor-owned utilities, such as PG&E, under the auspices of the California Public Utilities Commission (CPUC), offers owners and their design teams a variety of services and follows the protocol outlined in the NRNC/Savings By Design program material. Though PG&E’s NRNC program offers analysis and resources to aid data center customers and design teams with energy efficient facility design, Data Center Rebates also provides valuable time-saving assistance to our customers.

Example #2: Non-Residential Retrofit (NRR) Program
Customers installing new IT equipment can save electricity costs by qualifying for customized incentives for business energy efficiency retrofit projects involving the installation of high efficiency equipment or data center facilities.
The total energy rebate is based on actual reduction in energy usage. Data Center Rebates consult our customers regarding how to sponsor projects under this approach, and we can assist with the completion of application forms, confirmation of eligibility, and guidance on any the technical aspects.

Example #3: Custom Bid Program
As described, customers can receive energy rebates by installing new, energy efficiency IT equipment or data center facility. Customers can also design their own energy-saving project and propose the incentive amount necessary to implement the project. This usually requires more effort and negotiation by the customer and Data Center Rebates, but the potential energy rebates can be substantially greater than those offered through the New Construction or Retrofit programs. Typically, measures applied for under a Custom Bid program cannot overlap other incentive programs. Incentive levels will vary by utility.

Maximize Your Energy Rebates
Data Center Rebates has years of experience negotiating energy rebates with utilities and makes it easier for customers to apply and qualify. We validate project savings in these five areas: power efficiencies; cooling efficiencies; on-peak demand reduction; consolidation/virtualization initiatives; and improved power management. Utilities across the United States, Canada, and Europe are offering energy rebates to data centers using best practices for energy efficiency. Reasons for this include:

– Utilities cannot build new power plants fast enough to meet the electricity demand for data centers and U.S. data center electricity consumption is expected to double over the next five years;

– Electricity demands of data centers need to be met today and utilities prefer to encourage customers to replace less efficient, old IT equipment with new, efficient IT equipment and data center designs;

– CapEx to build a power plant is about $3 billion on average, which is very expensive, risky, and can take several years to bring online.

Energy Rebate Programs for Energy Efficient IT Projects
Data Center Rebates offers energy rebate services to customers implementing best practices for energy efficiency in their data centers. Data Center Rebates negotiates with utilities to provide a convenient cash rebate program for data center customers planning to:

1. Install energy efficient IT equipment (e.g., servers, storage drives, routers, fans, UPS);

2. Install energy efficient cooling systems (HVAC, CRAC Units, chillers);

3. Reduce on-peak power and cooling demand;

4. Consolidate or virtualize compute, storage, and networking resources; or

5. Implement better power management practices.

Data Center Rebates makes it easier for customers to apply and qualify for energy rebates offered by utilities. In order to reduce operating costs and carbon emissions, more and more customers are redesigning their data centers and implementing best practices for energy efficiency. Utilities, meanwhile, have developed energy rebate programs specifically for data center efficiency. For enterprise-class data centers, rebates can be in the hundreds of thousands of dollars.