Emerging Utility Incentives for Energy-Efficient Drive Systems: What You Need to Know in 2025

Introduction

The constantly evolving landscape of energy efficiency is driving significant changes in how industrial and commercial facilities approach their motor-driven systems. As utility companies and government agencies respond to the global imperative to reduce energy consumption and lower emissions, new and expanded financial incentives are becoming available—making investments in energy-efficient drive systems even more attractive. In 2025, understanding and capitalizing on these incentives is crucial for operators seeking to reduce operating costs, modernize equipment, and gain a competitive advantage.

A Closer Look at Utility Incentives in 2025

Recent policy developments and rising energy prices have made incentive programs for energy-efficient technologies more impactful than ever. Utilities are substantially increasing funding pools and broadening eligibility criteria, targeting a wider range of drive system upgrades beyond the traditional focus on Variable Frequency Drives (VFDs). Facilities can now access incentives for DC Variable Speed Drives (VSDs), premium-efficiency motors, advanced control systems, and even custom-engineered solutions designed to maximize savings.

• Prescriptive Rebates: These are commonly offered for installing standard VFDs and VSDs on qualifying applications (such as HVAC fans, pumps, and conveyors). Rebates are typically calculated per horsepower or kWh saved.
• Custom Incentive […]
  

How to Choose the Right Variable Speed Drive for Your Application

Variable Speed Drives (VSDs) have become indispensable in modern industrial environments where efficiency, process control, and operational flexibility are crucial. Selecting the most appropriate VSD for your specific needs can be complex, as every application places distinct demands on drive performance and features. This newsletter will guide you through the technical considerations and trade-offs involved, so you can make an informed decision that optimizes both reliability and return on investment.

Understanding Variable Speed Drive Types and Selection Factors

The foundation of correct VSD selection starts with a clear understanding of your application’s mechanical demands, electrical environment, and process requirements. The two primary categories are AC Variable Frequency Drives (VFDs) and DC Variable Speed Drives (VSDs). Each offers unique strengths:

• AC Variable Frequency Drives (VFDs): Regulate motor speed by varying the frequency and voltage supplied to AC motors. VFDs are ideal for constant torque applications and are widely deployed in pumps, fans, conveyors, and mixers due to their efficiency and versatility.
• DC Variable Speed Drives: Adjust the speed of DC motors by changing armature voltage or field current. DC drives shine when high starting torque or precise low-speed control is needed, often for cranes, hoists, and legacy systems.

Key […]

Exploring Utility Rebates and Incentives for Installing Variable Frequency Drives

Variable Frequency Drives (VFDs) continue to be one of the most effective solutions for managing energy consumption in industrial and commercial facilities. While the technical and operational advantages of VFDs are well established, the financial incentives available for their installation are often overlooked. As energy costs remain a significant concern for facility managers, understanding how to leverage rebates and incentives can make the decision to upgrade to VFD technology even more compelling.

Photo by Cayetano Gros

The Case for VFDs: Efficiency and Cost Reduction

VFDs allow precise control over motor speed and torque, enabling systems to operate at optimal efficiency. This technology is particularly valuable for applications involving pumps, fans, compressors, and other centrifugal equipment, where matching motor output to demand can yield substantial energy savings. According to industry estimates, more than 60% of industrial electricity is consumed by electric motors. By integrating VFDs, facilities typically realize:

• Significant energy savings through reduced power consumption
• Lower maintenance costs by minimizing mechanical and electrical stress on equipment
• Improved process control for consistent product quality and production flexibility
• Extended equipment lifespan due to gentler start/stop cycles and reduced wear

Understanding Utility […]

The Impact of Electric Motors on Energy Consumption in Manufacturing

Comparing AC vs. DC Variable Speed Drives: Which is Best for Your Application?

Introduction

Variable speed drives play a critical role in modern industrial automation, offering precise control and efficiency for electric motors across countless applications. When choosing between AC and DC variable speed drives, understanding the technical distinctions, advantages, and limitations of each is essential for selecting the best solution for your facility’s needs. In this newsletter, I’ll provide a detailed comparison of AC and DC drive technologies, highlight their respective strengths, and offer guidance on how to make the right choice for your application.

Technical Comparison: AC vs. DC Variable Speed Drives

AC Variable Speed Drives (commonly known as Variable Frequency Drives or VFDs) regulate the speed of AC motors by varying the frequency and voltage supplied to the motor. Modern VFDs use advanced power electronics, such as insulated gate bipolar transistors (IGBTs), to provide smooth and efficient motor control. They are widely used in applications ranging from pumps and fans to conveyors and mixers.

DC Variable Speed Drives control the speed of DC motors by adjusting the armature voltage and, in some cases, the field current. DC drives have historically offered excellent torque control at low speeds, making them a preferred choice […]

Understanding the Impact of VFDs on Motor Longevity and Maintenance

Variable Frequency Drives (VFDs) have become a cornerstone of modern industrial operations, offering precise motor control, improved energy efficiency, and enhanced process flexibility. Yet, a question that often arises is: how do VFDs affect the long-term health and maintenance needs of electric motors? In this newsletter, We’ll provide a comprehensive look at the relationship between VFDs and motor longevity, drawing on both technical insights and practical experience.

Technical Discussion: VFD Operation and Motor Stress

At their core, VFDs modulate the frequency and voltage supplied to an AC motor, allowing for controlled acceleration, deceleration, and variable speed operation. While this capability brings clear benefits, it also introduces unique electrical and mechanical stresses that must be understood to maximize motor lifespan.

Key Technical Considerations:

• Voltage Waveform Distortion: VFDs use pulse-width modulation (PWM) to synthesize AC output. The resulting non-sinusoidal waveform can cause voltage spikes at the motor terminals, especially with long cable runs or older insulation systems.
• Increased Motor Heating: The high-frequency switching of VFDs can induce additional losses in the motor windings and core, raising operating temperatures and potentially accelerating insulation aging.
• Bearing Currents: PWM drives can generate shaft voltages that, if not properly mitigated, […]
  

The Impact of Electric Motor Controls on Industrial Automation

The integration of electric motors into industrial automation has revolutionized the way industries operate, offering numerous benefits such as enhanced efficiency, improved safety, and increased productivity.

Electric motors are pivotal in transforming electrical energy into mechanical energy, which is essential for the functioning of various industrial machinery. This transformation has led to significant advancements in manufacturing processes, allowing for precise control and optimization of operations.

One of the key benefits of using electric motors in industrial automation is their ability to improve energy efficiency. By optimizing the power usage, these motors help industries reduce operational costs and minimize environmental impact. Additionally, the use of Variable Frequency Drives (VFDs) in conjunction with electric motors further enhances this efficiency by allowing precise control over motor speed and torque.

Furthermore, electric motors contribute to improved process control. They enable precise adjustments in speed and torque, which are crucial for maintaining product quality and consistency. The capability to monitor and adjust these parameters in real-time allows for more agile and responsive manufacturing processes.

At Joliet Technologies, we specialize in providing […]