Save now and later with VFDs

You can make a big impact on your annual energy costs with variable frequency drives (VFDs). Most single-speed motors use far more power than necessary. The Appalachian Power Commercial & Industrial Program wants to help you kick-start utility savings with rebates for VFDs. Appalachian Power’s energy-efficiency rebates can help you install VFDs that reduce energy costs by matching motor speeds with actual load requirements.

To be eligible for a rebate, these energy-saving devices must be:

  • A new VFD installed on new or existing equipment, but cannot be a replacement VFD.
  • Mounted on chilled or hot water systems replacing a primary pump in a single or duplex configuration. Secondary or back-up configurations do not qualify.
  • Limited to motors of 200 HP or less.
  • Pre-inspected by program staff for any applications involving over 100 HP (on one or multiple motors).


Setting: a 15HP motor with VFD used on a heating hot water pump in a 3-shift industrial application. Assuming 90 percent motor efficiency, 75 percent load factor and constant volume baseline control, the VFD results in a power reduction of 32,384 kWh per year. At an average electric rate of $0.10 per kWh, you will see an annual cost savings of $3,238, a $1,619 rebate and short payback period of just 1.1 years.

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