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energy efficiency

Variable Frequency Drives

Con Edison offers incentives for variable frequency drives (VFDs). VFDs provide opportunities for energy savings in many motor-driven systems. By controlling motor speed and torque (twisting force) to accommodate system load variations, VFDs coupled with NEMA premium-efficiency motors offer greatly enhanced system control and efficiency.

The following VFD applications are eligible for a $60/HP prescriptive incentive:
  • Building Exhaust Fans
  • Make-up Air Fans
  • HVAC Supply and Return Air Fans
  • Heating Water Pumps
  • Cooling Tower Fans
  • Chilled/Condenser Water Pumps
  • Water Source Heat Pump Circulating Loop Pumps
The following process-related VFD applications can be eligible for performance-based custom incentives, with payment based on estimated kWh savings:
  • Process Fans and Pumps
  • Process Machinery
  • Other Processes where system efficiencies are improved by coupling VFDs with motor-driven systems
Custom incentives are paid as follows, based on estimated kWh savings per year:
 Savings LevelBuy-Back Incentive
Tier 110% or less$0.88/kWh
Tier 211 to 20%$0.11/kWh
Tier 3Greater than 20%$0.132/kWh
See eligibility requirements here. Note: With respect to projects involving the replacement of an existing VFD, incentives are only available where the existing VFD is nonfunctional and has been nonfunctional for at least 6 months. Please contact your energy advisor or call us at 1-877-797-6347 for requirements prior to initiating your project.

Application Process
  • XACT - Application and Incentive Calculation Tool
    The XACT tool assists customers and Market Partners in completing the program application and forms needed to participate in the program. Features and benefits include:
    • Excel–based application and calculation tool.
    • Drop down menu of each program measure and incentive calculation data (including baseline ranges for allowable installation costs).
    • Ensures energy-savings and incentive calculations are accurate.
    • Reduces pre-approval time by minimizing the need for multiple reviews of the project between the program and you.
    If you are interested in using XACT or have questions, please contact us at

Please refer to our Con Edison C&I Energy Efficiency Program Application and the VFD Measures and Rebates Table for specific program participation details, guidelines, and requirements.

Custom Program incentives may be available for other VFD applications where system efficiencies are improved by coupling VFDs with motor-driven systems. Please contact the Program Office for requirements prior to initiating your project.
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Make sure your Custom Project qualifies for an incentive

Learn about the NY State Public Service Commission requirements for custom measures, controls and VFDs.

To learn more visit:
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Custom Incentives

To learn more contact us by email, or call 1.877.797.6347 to speak with a program representative

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