Program Update:

FirstEnergy’s Ohio utilities are committed to making safety our top priority.

Throughout the evolving coronavirus health emergency, FirstEnergy’s Ohio electric companies are committed to closely monitoring developments related to the coronavirus and taking appropriate precautions to protect the health and safety of our employees, contractors and customers.

To ensure that safety, effective immediately, FirstEnergy Ohio electric companies are temporarily suspending all Commercial & Industrial (C&I) Energy Efficiency programs until further notice. Please check back for updates.

This will not impact FirstEnergy’s Ohio C&I customers with pre-approved applications. Customers with pre-approved C&I Energy Efficiency applications may check the status of those applications by emailing a program representative at

FirstEnergy’s Mercantile Customer Program continues to accept applications for projects that are already completed.

Eligible customers wishing to participate in FirstEnergy’s Mercantile Customer Program, or those who have questions regarding the program, may visit the program website by clicking here.

Custom Equipment

Learn more about cash incentive programs that provide

reimbursement for custom equipment projects.

Custom Equipment Incentive Program

The Custom Equipment Incentive Program is offered to commercial, industrial, governmental and institutional customers of Ohio Edison, The Illuminating Company and Toledo Edison (FirstEnergy’s Ohio utilities).

Eligible Measures

Custom projects include technologies or customer-specific energy efficiency projects that do not meet the eligibility criteria for other business programs.

Eligible projects and technologies may include:

  • Industrial process upgrades
  • Energy management system installation
  • New construction or renovation projects that involve multiple building systems and exceed state energy codes (e.g., lighting, HVAC and building envelope codes)
  • Air cooled chillers
  • Upgrading existing motors to energy efficient motors
  • Replacing motor speed controls with variable frequency drives (VFDs) (excluding VFDs included in the Prescriptive service offering)
  • Water/wastewater system improvements
  • Economizers
  • Building control systems that are not required by code (e.g., demand control ventilation or exhaust air heat recovery)
  • Combined Heat & Power

Ineligible projects and technologies include

  • Power factor correction devices
  • Motor soft starts
  • Renewable energy technologies that generate electricity (e.g., solar photovoltaic, wind generation, micro-hydro turbines, etc.)
  • Fuel Switching (e.g., replacement of an electric chiller with an absorption chiller)

Effective Dates

To qualify for incentives through the program, equipment must be new and installed after January 1, 2017.

Pre‐Approval Requirements

All custom equipment applications received by the program will require pre-approval before the purchase and installation of materials.

Program Incentives

Custom Equipment Performance Incentive An incentive of $0.05/kWh saved is offered for projects under the Custom Equipment Incentive program. All Custom Equipment Incentives are limited to 50 percent of the total project cost.
Prescriptive Incentives Equipment & Eligibility Requirements Incentive
Variable Speed Drives (VFDs) Eligible measures include VFDs installed on existing motors that drive fans, pumps, and other suitable applications. $50 per hp controlled
Three Phase Motors Eligible measures include the installation of new motors that exceed NEMA premium efficiency standards. $20 per hp

The Program Administrator must receive a copy of all required documentation before incentives are paid. Annual kWh savings are determined by one of three methods:

  • Performance-based – demonstrated by an hourly energy simulation model. For LEED-certified projects, and other projects which have a detailed energy model, input and output reports from the software program.
  • Deemed – demonstrated by submitting program-approved calculators
  • Measured – demonstrated by site data collection. Direct measurement may take place before or after retrofit, or at both times. In some cases, direct measurement may be combined with engineering calculations to determine electrical energy savings.

How do I apply?

The participant should complete and submit a Custom Equipment Incentive application online and upload required documents through the application portal. The following documents are required for a pre-approval:

  • Completed and signed W-9 tax form for the incentive payee. The W-9 form must be current and dated within the last 24 months.
  • Scope of work with a summary of the existing and proposed systems
  • Manufacturers’ specification (cut) sheets for each proposed item to verify that the equipment is eligible. Please circle or highlight the relevant information on the specification (cut) sheets.
  • Detailed energy savings analysis/calculations with supporting pre data/measurements (if applicable).
  • Copy of utility bill to confirm account number and service address. If desired, the participant may obscure all cost and rate related information.

Step 2 – The Program Administrator will notify the applicant via email when the review is complete and funds have been reserved. The applicant will have 90 days from the date of the pre-approval letter to complete the project.

Step 3 – Once the project is complete, participants should review their application for any changes and submit the following documents to the Program Administrator for review:

  • Revised energy savings analysis/calculations (if changes were made during construction).
  • Detailed, itemized invoices or proofs of purchase for the equipment installed.
  • Completed letter of attestation.
  • Post energy data/measurements (if applicable).
  • If applicable, customers who wish to issue all or a portion of their incentive to a 3rd party should complete a Dual Incentive Payment form.

Supporting technical documentation will be reviewed by Program Administrator and an onsite inspection to verify the installation may be conducted. Upon receipt and verification of all required documentation, the incentive check will be processed and mailed to the applicant or to an authorized representative, if requested on the application.