HomeMy WebLinkAbout~Master - Resolution approving updates to Smart Energy Rebate ProgramRESOLUTION NO. 25-584
RESOLUTION APPROVING UPDATES TO SMART ENERGY REBATE PROGRAM
FOR THE CITY OF AMES, IOWA
WHEREAS, Electric Demand Response programs have limited lifetimes and
should be reviewed and adjusted as the available technology and markets for energy -
efficient technology change. Staff reviewed the utility's current demand response
programs, benchmarked with other local electric utilities, and drafted recommended
changes for review by the Electric Utilities Operations Review Advisory Board (EUORAB)
at its October 2025 meeting; and,
WHEREAS, after reviewing the proposed changes, EUORAB is recommending
updates to the Demand Response program through rebate offerings that better
incentivize climate action strategies.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames,
Iowa, that the updates to Smart Energy Rebate Program are hereby approved as outlined
in Attachment A.
ADOPTED THIS 18th day of November, 2025.
_______________________________ _________________________________
Renee Hall, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Rollins
Voting aye: Beatty-Hansen, Betcher, Gartin, Junck, Rollins
Voting nay: None Absent: Corrieri
Resolution declared adopted and signed by the Mayor this 18th day of November, 2025.
ATTACHMENT A
Retire the Custom Rebate Program. Staff proposes retiring the custom rebate program
effective January 1, 2026, because the program has largely been used for LED upgrades.
The LED Lighting rebate program was retired in 2020 due to the technology becoming
widely available. Custom rebates often rely heavily on an independent analysis of energy
savings conducted by a third-party engineering firm to validate savings that offset the
payback to the utility.
Increase the minimum efficiency for Air Conditioner rebate to 17.2 Seasonal Energy
Efficiency Ratio (SEER2). Currently, air conditioners of 15.2+ SEER2 are eligible under
the rebate program. Staff proposes to increase the minimum SEER2 rating to 17.2, as a
SEER2 rating between 15.2 – 17.1 is no longer considered above standard efficiency.
The incentive for these units will be capped at $200. Other utilities, including Midland and
federal tax incentive programs, have recently increased their minimum SEER2 ratings to
17 as well.
Remove rebates for freezers, small refrigerators, dehumidifiers, and dishwashers .
Energy Star-rated appliances have become widely adopted by manufacturers. Electric
staff believes that the decision to purchase these products is no longer dependent on the
rebate offered from the department. Surrounding utilities have retired similar appl iance
rebate programs, and staff believes that following suit will allow the Smart Energy rebate
program to put more resources where needed.
Increase Heat Pump and Heat Pump Water Heater Rebate Program to support the
City's Climate Action Plan. Staff proposes increasing the air source heat pump,
geothermal heat pump, and heat pump water heater rebates to increase adoption. This
also better aligns Ames' programs with neighboring utilities. The changes will keep the
existing rebate structure. For air source heat pumps, units between 15.2 - 17.1 SEER2
will qualify for a $600 rebate. Air source heat pump units with SEER2 values greater than
17.2 will qualify for a $1,200 rebate. A different measure is used for geothermal heat
pumps. Installed units that are Energy Star rated will be eligible for $1,000/ton. Units that
are not Energy Star rated are eligible for $800/ton. These technologies are alterna tive
heating and cooling systems to natural gas by transferring heat rather than generating it.
This increases their efficiency and reduces the home's carbon footprint. Increasing the
rebate tied to these products achieves both Smart Energy and Climate Act ion Plan
goals.
Create a Rebate for Attic Insulation to Help Customers Reduce Energy
Consumption. Attic insulation is one of the most cost-effective ways to increase energy
efficiency in your home. The EPA estimates that homeowners in our region can save an
average of 16% on heating and cooling costs annually by properly air sealing their homes.
As many older homes undergo retrofits, addressing insulation is critical to strengthening
the home's building envelope and ensuring long -term savings. Staff believes this
incentive will encourage weatherization improvements that will lower energy consumption
for City of Ames Electric customers.
Table 1: Costs of equipment and rebate amounts.
Rebate Current
Amount
Proposed
Amount
Estimated
Equipment
Costs
Neighboring
Utilities' Rebate
Geothermal
Heat Pump
$400/$500 per
ton
$800/$1,000
per ton
$15,000 -
$20,000 $800-1,500 per ton
Air Source
Heat Pump $500/$1000 $600/$1200 $8,000 $600-$1,500
Air Source
Heat Pump
Water
Heater
$400 $500 $2,500-$3,000 $500-$600
Central Air
Conditioner $200/$400 $0/$200 $3,000 - $5,000 $0 - $400
Attic
Insulation N/A
50% of the
project cost up
to $250
$2,000 - $3,000 $500