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Updates to Burbank Water and Power’s Portfolio of Customer Rebates for Efficiency and Electrification
Date: April 22, 2025
Contents
Introduction ..................................................................................................................... 1 Business Rebates ........................................................................................................... 1 Commercial Landscape Equipment Battery Rebate ........................................................ 6 Battery Energy Storage Incentive .................................................................................... 6 Residential Rebates for Efficiency and Electrification...................................................... 8 Used EV Rebates .......................................................................................................... 10 Commercial EV Charging Station Rebates ................................................................... 11
Introduction
This attachment contains supplemental information to support the recommendations in the Updates to Burbank Water and Power’s Portfolio of Customer Rebates for Efficiency and Electrification staff report.
Business Rebates
The parameters of the existing program are as follows:
1. Customer must have a commercial electric account.
2. Each customer account is limited to $100,000 in rebates per year.
3. Reimbursement is limited to 25% of installed cost, or $100,000, whichever is less.
4. Rebates are set at either a specific value per measure or at $0.05 per kWh in estimated annual energy savings when no specific measure is available, otherwise known as a custom incentive.
5. Annually, BWP has allocated $450,000 to the program, but the annual average spending since fiscal year (FY) 2020-21 has been $290,993.
Burbank Water and Power has contracted with Alternative Energy Systems Consulting, Inc. (AESC), the winning bidder from a Southern California Public Power Authority (SCPPA) request for proposal, to audit BWP’s efficiency program and recommend new, cost-effective measures for the business community that meet the current needs of the community.
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Many of the measures on offer are outdated, either in their approach to compensation or as a technology solution. For example, the Business Rebates program still offers a specific measure for thermal energy storage, an uncommon energy -saving device that BWP has rebated once in the program's history. It also offers power factor correction, now commonly removed from utility rebate programs as quality power factor is seen as an obligation of our customers, not an optional measure.
Based on the recommendations from AESC, BWP staff proposes implementing a new suite of deemed incentive measures. “Deemed incentives” refer to offering specific incentives for specific common energy efficiency or electrification measures. A “measure” refers to the specific action being taken in order to receive the incentive.
In summary, staff are recommending the following updates:
1. Add rebates for common food service measures, such as efficient commercial ovens, commercial refrigeration measures, and new commercial electrification measures, such as heat pump water heaters.
2. For lighting measures, products must be on the Design Lights Consortium’s (DLC) Qualified Product List.
3. Increase the deemed incentive cap from 25% to 100% of project cost.
4. Increase the annual customer cap from $100,000 to $200,000 per year.
5. Allocate $800,000 of the Public Benefits budget for business rebates.
In the table below, m easures are organized by technology type in column one, and the specific measure is described in column two. The recommended rebate values in column three in the table below were determined by capping the incentive at either 50% of the gross measure cost, or 100% of the incremental measure cost, which is the cost difference between the standard efficiency measure and the high- efficiency measure, or at a cap that, if the incentive were any higher, would make the measure less than cost - effective. Column four describes the unit for each incentive, as some incentives are per measure, and some incentives are determined by the size/ impact of the measure, such as per ton for HVAC. The incremental cost in column five is the difference in cost between the energy-efficient measure and the standard measure. The average measure cost in column six is the average full cost to install each measure.
Table 1 – New Deemed Incentive Measures
Technology
Type
Measure Rebate/
Incentive
(up to)
Unit Incremental
Cost
Average
Measure
Cost
Food
Service
Commercial Door-Type
Dishwasher
$250 Each $267.30 $6,791.24
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Food
Service
Electric Hand-Wrap
Machine
$250 Each $252.03 $1,857.90
Food
Service
Efficient Commercial
Convection Oven, Full,
Electric
$950 Each $960.23 $8,611.80
Food
Service
Efficient Commercial
Convection Oven, Half,
Electric
$475 Each $495.89 $7,152.75
Food
Service
Commercial Deck Oven,
Electric
$2,500 Each $2,619.24 $13,830.81
Food
Service
Electric Combination Oven,
>15 Pans
$1,500 Each $2,270.79 $31,053.92
Food
Service
Efficient Commercial Fryer,
Electric
$650 Each $652.37 $15,269.24
Food
Service
Efficient Commercial
Griddle, Electric
$700 Len-ft $711.74 $3,531.09
HVAC Package Heat Pump, Under
24 kBtu/hr
$125 Ton $126.94 $1,890.66
HVAC Package Terminal Air
Conditioner, Under 24
kBtu/hr
$150 Ton $153.13 $1,925.00
HVAC VFD for Packaged Single-
zone DX HVAC unit
$100 Each $144.74 $271.09
HVAC VSD on HVAC fan control $125 Rated-
HP
$257.76 $257.76
HVAC -
Fuel-
Substitution
Package Heat Pump,
<65kBtuh, Fuel Substitution
$450 Ton $470.55 $2,439.11
HVAC -
Fuel-
Substitution
Split Heat Pump, <65kBtuh,
Fuel Substitution
$350 Ton $347.56 $2,159.44
Lighting 2x4, 2x2, 1x4 New Interior
LED Troffer or Integrated
retrofit kits, ≥ 125 LPW
$6 KiloLu
men
$6.29 $52.04
Lighting Interior LED Direct/Indirect
Linear Ambient 2', 4' or 8' ft.
New Luminaire or retrofit kit,
≥ 125 LPW
$6 KiloLu
men
$7.20 $55.71
Lighting 4-foot LED T8 Lamp $1 Lamp $1.06 $31.21
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Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 35 W
$5 Lamp $1.98 $139.97
Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 50 W
$8 Lamp $2.61 $144.35
Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 70 W
$15 Lamp $4.46 $157.38
Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 100 W
$30 Lamp $6.82 $173.87
Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 150 W
$50 Lamp $11.09 $203.77
Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 200 W
$70 Lamp $15.06 $231.53
Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 250 W
$90 Lamp $18.78 $257.55
Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 310 W
$125 Lamp $26.48 $311.49
Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 360 W
$145 Lamp $30.24 $337.83
Outdoor
Lighting*
LED Mogul Base Lamp
HID Retrofits for Outdoor
Area/Pole and Decorative
Fixtures, 400 W
$160 Lamp $33.26 $358.92
Refrigeration Display Case Anti-Sweat
Heater, Low-Temp
$60 Len-ft $118.36 $118.35
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Refrigeration Display Case Anti-Sweat
Heater, Med-Temp
$30 Len-ft $66.58 $66.57
Refrigeration ECM Retrofit for a Walk-in
Cooler or Freezer
$125 Each $347.31 $347.31
Refrigeration Fan Motor Retrofit for
Refrigerated Display Case
$50 Each $102.78 $104.91
Refrigeration Floating Head Pressure
Controls
$80 Cap-
Tons
$203.66 $239.05
Refrigeration New Display Case with
Doors, Freezer
$300 Len-ft $331.79 $1,970.38
Refrigeration New Display Case with
Doors, Cooler
$500 Len-ft $505.61 $1,762.22
Refrigeration Medium-Temperature Case
Doors, with LEDs
$275 Len-ft $562.88 $562.87
Refrigeration Medium-Temperature Case
Doors, without LEDs
$250 Len-ft $523.53 $523.53
Water
Heating
Heat Pump Water Heater
>=45 to <=55 gallons
$1,000 Each $1,039.66 $2,290.47
Water
Heating
Heat Pump Water Heater
>55 gallons
$400 Each $401.58 $3,167.40
Water
Heating
Heat Pump Water Heater,
>= 45 to <= 75 gallons, Fuel
Substitution
$1,000 Each $1,036.25 $2,584.34
Water
Heating
Heat Pump Water Heater,
>75 gallons, Fuel
Substitution
$700 Each $703.98 $2,935.11
Water
Heating
Large Heat Pump Water
Heater, Commercial and
Multifamily, Fuel
Substitution
$60 CapOu
t-kBtuh
$62.10 $178.94
Food
Service
Fryer, Commercial, Fuel
Substitution
$1,500 Each $4,448.88 $9,840.41
*The proposed rebate for outdoor lighting fixtures exceeds the incremental cost . This is due to the small incremental measure cost relative to the full measure cost and a high total resource cost (TRC) ratio for the measure. The TRC ratio refers to the value of the measure's benefits compared to its total costs. In the case of these LED outdoor fixtures, the high energy savings allow for a rebate higher than the incremental costs but still less than 50% of the gross measure cost.
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Commercial Landscape Equipment Battery Rebate
Providing an incentive for electric landscape equipment helps local businesses with the upfront cost of converting equipment while also promoting a healthier, quieter community.
According to the California Air Resources Board, a commercial operator using one backpack leaf blower for one hour generates the same smog-forming emissions as a car driving 1,100 miles.
The South Coast Air Quality Management District (SCAQMD) manages a rebate program called the Commercial Electric Lawn and Garden Equipment Program that provides up to 85% discount on electric equipment, which enables competitive pricing with gas-powered alternatives. The Burbank City Council approved a rebate program on October 1, 2019, which enabled BWP to provide Burbank -based landscape companies that participate in the SCAQMD’s program with an additional $475 rebate for an extra battery. Having spare batteries is important for electric landscape equipment to ensure continuous operation, increased efficiency, battery life management, and emergency preparedness.
Typical prices for spare batteries used with handheld equipment have decreased in recent years, ranging from $100 to $375, in contrast to prices in 2020, when the range was $135- $500. Larger battery backpacks range in price from $700 to $1,200. With current battery prices, BWP seeks to use the timing as an opportunity to provide local commercial landscapers with extra batteries at even more of a discount than before to encourage continuous use of electric equipment.
BWP staff are recommending the following updates to the existing program:
1. Add an enhanced rebate for m unicipal, educational, and non-profit customers for up to 85% of the cost of spare battery(ies), not to exceed $2,500.
2. For all other commercial customers, the general incentive will provide a rebate for up to 85% of the cost of spare battery(ies), not to exceed $500.
3. Allocate $10,000 of the Public Benefits budget for the program.
Battery Energy Storage Incentive
BWP plans to launch the Council-adopted Solar Net Billing program in January 2026. This program introduces new solar customers to a seasonal time-of-use rate. The value of this rate is maximized when a customer pairs solar with a battery; however, in most cases, batteries are not cost-effective from utility bill savings alone. Adding resiliency and backup power capability adds considerable value, but the value is not easily quantified.
Staff researched what level of incentive would make battery storage cost -effective from utility bill savings alone. The results were used to identify an incentive amount for a battery storage incentive pilot program. Below are the research assumptions:
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• Calculations with a 13.5 kWh battery storage unit
• Customer does not discharge battery down to 0% and does not start charging battery from 0%. The customer discharges only 10 kWh of the 13.5 kWh back to the grid
• Customer uses stored energy during peak periods because this is when energy delivered from the utility is priciest. This maximizes the money they can save on their energy bill.
• Battery and installation costs a total of $11,500
• Battery has a 10-year expected life
• Sun shines for most of the time during on-peak periods • Customer has a medium size service
• Oversizing solar is not factored into estimates
• Customer takes advantage of the 30% Federal Solar Tax Credit • Customer is enrolled in the soon-to-launch BWP Solar Net Billing Program • Customer submits a new Interconnection Agreement to participate
Below (Table 2) is the comparison between an average customer’s bill without a battery and with a battery. The difference between these two bills is a savings of $614.55/year.
Assuming a battery lasts ten years, lifetime savings would be $6,145.50 for a customer with a battery.
Table 2. Comparing Customer Bills – No Battery vs. with Battery Summer Winter Annual Bill
Original (no battery) $784.25 $690.48 $1,474.73
New (with battery) $472.73 $387.45 $860.18
Assuming battery and installation costs are $11,500 and factoring in the 30% Federal Tax Credit, upfront battery costs are $8,050. Without a BWP incentive, a customer does not break even on their battery investment from utility bill savings alone until year 14 (i.e., a simple payback calculated by taking the $8,050 in battery costs divided by $614.55 in annual battery savings). To support a positive return on investment (ROI) for the customer within the battery’s 10-year lifespan, a BWP incentive must be larger than $1,904.50. This figure comes from taking upf ront battery costs and subtracting 10- year battery savings:
$8,050 - $6,145.50 = $1,904.50.
Using the 13.5 kWh battery size as a base case, and aiming for a seven- year payback period, the incentive would be $3,700. To provide a greater incentive for 4kV systems, aiming for a six -year payback period results in an incentive level of $4,400. However, some batteries on the market are smaller than 13.5 kWh, so staff has converted t hese ATTACHMENT 1
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base cases into a $/kWh incentive by taking the incentive amount, and dividing it by the
13.5 kWh system size. This results in a $275/kWh incentive for general installations, and a $325/kWh incentive for installations on 4kV circuits.
For the base case of a 13.5 kWh battery , if the Federal Tax credit is discontinued, then the cost will increase by $3,450. The BWP incentive would need to be increased by $3,450 or $255/kWh to achieve the same results. Should this situation occur, then BWP staff will propose this increased incentive to the Board for approval.
Given a 10-year battery lifespan, those receiving the g eneral rebate break even around year seven, and those with the enhanced 4kV rebate break even around year six. A six- to-seven-year payback period aligns with existing payback periods for solar systems and ensures that the battery system pays back the customer investment before the expected end-of-life.
Residential Rebates for Efficiency and Electrification
The Home Rewards Rebate Program is a long -standing residential efficiency program that has served Burbank residents since the early 1990s. The program currently provides incentives for Energy Star measures, such as refrigerators, ceiling fans, room ACs, and other home efficiency measures, including attic and wall insulation, smart thermostats, and variable speed pool pumps. Since FY 2020- 21, BWP has budgeted $100,000 annually for the program, but the average spend is $83,616 , with an average of 496 rebates processed per year.
BWP’s Residential Building Electrification Program, also known as Electrify Your Home, was introduced in 2023 and includes incentives to swap out fossil -fuel equipment with efficient electric alternatives for various home functions, such as space heating and cooling, water heating, cooking, and clothes drying. Since the program's launch, BWP has issued 95 rebates to customers totaling $269,500.
Heat-pump heating, ventilation, and cooling (HVAC) incentives are currently set at $1,000/ton with no cap. HVAC incentives for general residential customers are consuming most of the program’s budget and faster than expected. Based on this experience and the staff’s research on other utility incentives, staff recommend capping the heat -pump HVAC incentive at $2,500 for general residential customers and $5,000 for low-income.
This proposed incentive cap is in line with other leading jurisdictions that offer heat-pump HVAC rebates such as Glendale Water and Power and the City of Palo Alto.
To qualify for the newly proposed enhanced rebates, the applicant must either be an affordable housing provider installing the measure(s) in an affordable housing unit or a low-income residential customer enrolled in BWP’s Lifeline Program or Burbank Utility Service Subsidy (BUSS). The Lifeline Program income limit is based on figures appearing ATTACHMENT 1
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in the Burbank Fee Schedule with the most recent figures for "very low family income" households (50% of area median income) published by the US Department of Housing and Urban Development (HUD). The BWP BUSS program income limit is based on 60% of the a verage Burbank h ousehold income limit , which is the same as the City of Burbank’s PASS program.
BWP staff researched incentives from other public utilities as well as related State and Federal incentives . AESC gathered measure cost data from a statewide industry- standard database called the Energy Risk and Trade Management (eTRM) system. The recommended incentive amounts are what BWP would need to provide low -income customers, in addition t o the existing BWP rebates , to cover up to the full cost of the measure, but never more than the amount that the customer pays after State and Federal incentives.
The California Energy Commission (CEC) manages a related program for income- qualified California residents called Home Electrification and Appliance Rebates (HEEHRA). HEEHRA is federally funded by the Inflation Reduction Act which is overseen by the US Department of Energy and managed by the CEC. To qualify, homeowners must use a TECH Clean California-certified contractor trained in HEEHRA rebates.
The HEEHRA rebate available for single-family buildings is for heat pump space heating and cooling (HVAC). Single-family homes include buildings with four or fewer units (fourplexes, duplexes, singles), condos, and manufactured or mobile homes. Burbank residents who qualify for Lifeline, BUSS and PASS fall within the 80 percent AMI and would be eligible for up to an $8,000 rebate. For that reason, no low-income enhancement is recommended for single-family HVAC measures.
Table 3 – Single-Family Low-Income Recommended Incentives Measure Unit
Existing
BWP
Rebate
Average
Measure
Cost
Recommended
Low-Income
Adder
Total BWP
Incentive
(up to)
Ceiling Insulation,
Residential Area-ft2 $0.15 $2.35 $1.00 $1.15
Wall Insulation,
Residential Area-ft2 $0.15 $1.70 $1.00 $1.15
Refrigerator or
Freezer, Residential Each $75 $900 $800 $875
Electric range with
electric resistance
cooktop, Fuel
Substitution
Each $500 $1,346 $500 $1,000
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Electric range with
induction cooktop,
Fuel Substitution
Each $500 $2,735 $1,500 $2,000
Electric resistance wall
oven, Fuel
Substitution
Each $200 $2,498 $1,800 $2,000
Induction cooktop,
Fuel Substitution Each $200 $2,411 $1,800 $2,000
Heat Pump Clothes
Dryer, Residential,
Fuel Substitution
Each $200 $1,680 $400 $600
Multi-family HEEHRA rebates are available for heat pumps for HVAC, heat pump water heaters, electric cooking ranges and ovens, and heat pump clothes dryers. These rebates are included in Table 4 in the Outside Available Rebates column. Multifamily properti es include properties that are five or more residential units and must meet specific low - income housing requirements to be eligible for the HEEHRA rebates.
Table 4 – Multi-Family Low-Income Recommended Incentives Measure Unit
Existing
BWP
Rebate
Average
Measure
Cost
Outside
Available
Rebates
Recommended
Low-Income
Adder
Total
BWP
Incentive
(up to)
Ceiling Insulation,
Residential
Area
-ft2 $0.15 $2.35 NA $1.00 $1.15
Wall Insulation,
Residential
Area
-ft2 $0.15 $1.70 NA $1.00 $1.15
Refrigerator or
Freezer,
Residential
Each $75 $900 NA $800 $875
Electric range with
induction cooktop,
Fuel Substitution
Each $500 $2,735 $840 $1,000 $1,500
Electric resistance
wall oven, Fuel
Substitution
Each $200 $2,498 $840 $1,000 $1,200
Induction cooktop,
Fuel Substitution Each $200 $2,411 $840 $1,000 $1,200
Heat Pump Clothes
Dryer, Residential,
Fuel Substitution
Each $200 $1,680 $840 $400 $600
Used EV Rebates
BWP’s current rebate for a used EV is $1,000 with a limit of two rebates per account. Staff proposes the following enhancements to the Used EV Rebate Program:
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1. Increasing the rebate from $1,000 to $4,000 for low-income customers enrolled in BWP’s programs, such as the Burbank Utility Business Subsidy (BUSS) or Lifeline.
2. Adding a price limit of $25,000 for used EVs to be eligible for the proposed low - income rebate of $4,000.
For comparison, the following rebates are offered by other California electric utilities for the purchase of used electric vehicles. BWP is proposing an enhanced rebate of $4,000 for low-income customers enrolled in the Burbank Utility Service Subsidy (BUSS) or Lifeline programs.
Utility Standard
Rebate
Low-Income
Rebate (up to)
Burbank Water and Power $1,000 $4,000 (proposed)
Colton Electric Utility $1,000 $1,500
Los Angeles Department of Water and Power $1,500 $4,000 Pasadena Water and Power $250 - $500 $1,250 - $1,500
Pacific Gas and Electric $1,000 $4,000
Riverside Public Utilities $1,000 $2,500
Southern California Edison $1,000 $4,000
San Diego Gas and Electric $1,000 $4,000
Commercial EV Charging Station Rebates
To better enable City of Burbank departments, education institutions, and local non-profits in the transition from fossil -fuel-powered vehicles to plug- in electric vehicles, BWP is recommending enhanced rebates for municipal, educational, and non-profit customers to provide up to 75% of project costs or $200,000, whichever is less.
The following utilities offer enhanced commercial EV charging station rebates for municipal, educational, and/or non- profit customers. Each utility has a unique incentive structure.
Glendale Water and Power (GWP)
GWP offers enhanced rebates for educational properties, non- profit organizations, low- income housing structures, disadvantaged communities, or DC fast chargers. Enhanced rebates are capped at $75,000. Standard rebates are capped at $50,000
Standard Rebate Enhanced Rebate
50% of total costs 75% of total costs
Pasadena Water and Power (PWP)
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PWP offers enhanced rebates for educational properties, low-income housing structures, disadvantaged communities, or DC fast chargers. Rebates are capped at $75,000.
Standard Rebate Enhanced Rebate
$3,000 per port $6,000 per port
Anaheim Public Utilities (APU)
APU offers standard and enhanced rebates for public and fleet EV chargers. Enhanced public rebates are available for schools or public DC fast chargers. Enhanced fleet rebates are available for schools or municipal facilities. Rebates are capped at 10 charging stations for public chargers, $45,000 for standard fleets, and $95,000 for school and municipal fleets.
Charger Location Standard Rebate Enhanced Rebate
Public $3,500 per port $7,500 per port
Fleet $5,000 per port $10,000 per port
Riverside Public Utilities (RPU)
RPU offers enhanced rebates for schools, affordable housing developments, and publicly accessible DC fast chargers. Rebates are capped at 5 per location
Standard Rebate Enhanced Rebate
$5,000 per charger $10,000 per charger
Roseville Electric Utility (REU)
REU o ffers enhanced rebates for multi-family and non- profit customers. Level 2 EV charger rebates are limited to 10 ports. DC fast charger rebates are limit ed to $20,000 per charger.
Charger Type Standard Rebate Enhanced Rebate
Level 2 $3,000 per port $4,000 per port
DC fast charger N/A $20,000 per charger
City of Palo Alto
Palo Alto o ffers rebates for multi -family and non -profit customers only . Rebates are capped at $80,000 or 75% of total costs, whichever is less.
Standard Rebate Enhanced Rebate
N/A $8,000 per port
San Diego Gas and Electric (SDG&E)
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SDG&E offers rebates of up to $75,000 per charger for fleets at transit agencies, school districts, or companies in disadvantaged communities that are not Fortune 1,000 companies only.
Charger power Rebate
Up to 19.2 kW $3,000 per charger
19.3 – 50 kW $15,000 per charger
50.1 – 150 kW $45,000 per charger
150.1 kW or greater $75,000 per charger