With rising utility costs and tighter margins, restaurants are forced to look more closely at where they can improve efficiency and increase energy savings. One often-overlooked opportunity is energy rebates. These are programs that reward businesses for choosing high-efficiency equipment with upfront discounts or financial incentives.
From cooking equipment to refrigeration, there are thousands of products used in commercial kitchens that qualify for these energy-saving rebates. This guide will break down how energy rebate programs work, what types of kitchen equipment qualify, and how Avanti assists restaurants in the identification process to maximize these opportunities.
What Are Energy Rebates
Most restaurants qualify for energy rebates, but many don’t know how impactful they can be on utilities and energy savings. Energy rebates put money back in the pockets of owners and franchisees by investing in products that will save them money over time. An energy rebate is a partial refund or discount that customers receive when they purchase commercial restaurant products that have been deemed energy efficient. This comes as an incentive for purchasing energy-saving products, which will be applied at the point of sale with the Instant Rebates program.
In the past, rebates were often sent through the mail or by check. Today, many energy rebate companies provide quicker rebates that get applied right away, cutting wait time and providing instant benefits.
According to the U.S. Energy Information Administration in 2018, restaurants are among the most energy-intensive commercial buildings in the U.S. This study also showed that up to 80% of energy wasted is used on heat and noise by inefficient appliances, HVAC systems, lighting, and refrigeration.
As trends point towards finding unique and critical ways to lower costs for restaurants, now is the best time to identify and implement energy rebates to maximize energy savings. Introducing an energy-efficient combination of ovens, convection ovens, and more helps restaurants lower costs while increasing the longevity of equipment.
Craig Whitacre, Senior National Account Manager at Energy Solutions, says there are many motivators for switching to energy-efficient equipment. “The motivation for an end user to look at an energy-efficient piece of equipment versus non would be for the savings,” Whitacre said. “You’re doing your part to be as green as you can, run as efficiently as you can, and it’s going to save you money on your utilities.”
In recent years, Whitacre has seen more chain restaurants exploring energy-efficient solutions. “If you had a fryer that you changed for a more energy-efficient model, you might save $40 a month on your gas bill,” Whitacre said. “That’s awesome, but then when you take that and multiply it on a chain that’s got 500, 1,000, or 2,000 locations—all of a sudden it’s not $40 anymore, it’s 10s of thousands of dollars.”
Energy-Efficient Kitchen Equipment That Qualifies for Rebates
Every kitchen requires thoughtful equipment to satisfy needs such as high volume, consistency, and longevity to avoid repairs and replacements. Did you know that more than 3,000 kitchen equipment products qualify for energy rebates in California alone? If you aren’t exploring energy rebates, you may be leaving money on the table.
Luckily, there are numerous resources to help restaurant owners and foodservice operators find the right equipment. Our expert consultants at Avanti can help you navigate the world of energy savings. To certify products before purchasing, organizations such as Frontier Energy, which has a nationally recognized Food Service Technology Center, offer demonstrations, training, and testing to verify qualifications for utility rebates and ENERGY STAR® certification.
Ovens and Cooktops
Switching to energy-efficient ovens and cooktops is simpler when you know what options are available. When choosing between induction vs. electric stoves, consider boiling times, energy efficiency, and surface safety for any kitchen type. Similarly, when it comes to ovens, customers can reduce operational costs significantly, reduce water usage, and lower energy consumption. Introducing these appliances can increase overall energy savings while taking full advantage of energy rebates. Oven and cooktop appliances that qualify for energy rebates include:
- Combination Ovens
- Convection Ovens
- Conveyor Ovens
- Deck Ovens
- Induction Cook Tops
Refrigerators and Freezers
Purchasing appliances that qualify for energy rebates is easier when you know which products and brands offer reliable alternatives. By choosing energy-saving products, you qualify for energy rebates while increasing the energy savings of kitchen appliances, saving customers more in the long term. Selecting freezers and refrigerators that are opted into energy rebates sets them at a discounted price you’ll see at the point-of-sale. Discover rebates on:
- Freezers
- Ice machines
- Refrigerated Chef Bases
- Refrigerators
Other Energy-Saving Commercial Kitchen Appliances
There are more categories of energy-saving commercial kitchen equipment than you think. Switching to energy-efficient alternatives can lower operational costs, enhance food quality and consistency, and contribute to operational sustainability. Other equipment qualifying for energy rebates includes:
- Conveyor Toasters
- Fryers
- Hot Food Holding Cabinets
- Soup Wells
- Steamers
- Demand Control Ventilations
- Dishwashers
How Much Can Restaurants Save with Energy Rebates?
For restaurants that purchase energy-saving kitchen equipment, the savings may seem small, but over time, they will pay dividends. Energy Star states, “Restaurants use about five to seven times more energy per square foot than other commercial buildings. High-volume quick-service restaurants (QSRs) may even use up to 10 times more energy per square foot than other commercial buildings.” With differing sizes for kitchens and food preparation stations, restaurants can see large increases in savings over time.
Although some energy-saving products have a more expensive upfront cost, owners have seen long-term savings with around 35% less energy consumption than standard equipment, according to Energy Star.
You can also expect to see a reduction in operational costs when investing in energy-efficient appliances. To increase energy savings, implement guidelines for employees like turning off equipment when it’s not being used, avoiding opening doors on equipment, or utilizing energy-saving features offered on newer models.
Energy Rebate Programs for Foodservice Equipment
Energy rebate programs can vary from state to state. You may be eligible for a variety of rebate programs depending on where you live and operate. Let’s explore some of the most popular energy rebate programs in the foodservice industry.
Energy Rebates in California
One of the largest partners is California Instant Rebates, which is a statewide program serving customers of California’s four major utilities: PG&E, SoCal Gas, Southern California Edison, and San Diego Gas and Electric.
With simple tools like zip code look-up and equipment lookup for the California programs, customers can see the most up-to-date appliances and see whether the equipment they are purchasing still qualifies for rebates. With monthly updates to qualified product lists, customers can confirm rebates before purchasing.
Focus on Energy Food Service Instant Discounts
The Focus on Energy Food Service Instant Discounts program offers customers point-of-sale discounts on high-efficiency, natural gas, and electric kitchen equipment for eligible Wisconsin businesses. Customers must purchase qualifying HVAC, water heating, commercial kitchen equipment, or life science freezers to benefit from this program.
By working with a participating kitchen equipment contractor or dealer, you can take full advantage of the program’s discounts. The advantage of the Instant Discount Program is that you’ll receive discounts at the time of the sale rather than receiving checks later.
Other Energy Rebate Programs
Beyond California and Wisconsin, several other states offer programs for commercial kitchen equipment, such as:
- Avista Foodservice Instant Rebates: offers point-of-sale rebates in Idaho and Washington on high-efficiency natural gas and electric commercial foodservice equipment.
- DTE Commercial Midstream Food Service Program: offers instant rebates on energy-efficient commercial kitchen equipment through participating dealers. It helps foodservice operators save energy and lower utility bills without needing to apply for rebates themselves.
- MA, NH, & RI Commercial Foodservice Initiative: is a regional energy-efficiency program that provides instant, point-of-sale incentives on high-efficiency commercial kitchen equipment through participating dealers.
- PSE Foodservice Instant Rebates: provides point-of-sale rebates on high-efficiency commercial kitchen equipment through participating dealers in the Puget Sound, WA. It enables customers to receive discounts instantly at purchase while lowering energy use and utility bills, with no separate rebate application required.
- Southwest Gas Instant Rebates! Point-of-Sale Foodservice Rebate Program: provides instant, point-of-sale rebates on high-efficiency commercial foodservice equipment through participating dealers in California and Nevada.
Common Questions About Energy Rebates for Restaurants
What appliances qualify for rebates in California?
Many appliances qualify for instant rebates, such as commercial cooking and refrigeration, through programs like the California Foodservice Instant Rebates Program. In addition, ENERGY STAR® certified appliances often include fryers, ovens, griddles, steam cookers, hot food holding cabinets, ice machines, and commercial refrigerators/freezers.
Are there instant rebates for foodservice equipment?
Yes, there are many rebates for foodservice equipment. Avanti experts are here to help you discover products that qualify for rebates. California foodservice operators can find a list of Instant Rebates qualified appliances here. Need help choosing between gas vs. electric equipment or designing efficient workflows for your operation? Kitchen equipment contractors like Avanti can walk you through these decisions from concept to completion or even resupply to replace current appliances.
Can restaurants stack rebates and tax credits?
Yes, businesses may be able to stack rebates and tax credits because they come from different funding sources and serve different purposes. Tax credits are provided by government entities (federal, state, or local) and reduce the amount of taxes owed. Rebates are usually offered by utilities (IOUs) and provide upfront or post-purchase cash incentives for qualifying equipment or upgrades.
Because these programs are funded independently, they are generally not mutually exclusive, meaning both can often be used for the same project. That said, it’s important to:
- Review each program’s rules carefully, as some may limit how incentives can combine
- Ensure the same costs are not improperly claimed across programs.
Bottom line: In most cases, rebates and tax credits can be stacked. However, tax treatment can vary, so it’s advisable to consult with a qualified tax professional to understand how credits apply to your specific situation.
How long do rebates take to process?
Through the Instant Rebate program, claims are processed at the point of purchase. Your kitchen equipment dealer will file the claim, and the rebate will typically be processed within a week if all items and necessary materials are provided.
How Avanti Helps Restaurants Maximize Energy Savings
Across the foodservice industry, there are many energy rebate programs customers can opt into by purchasing more energy-saving kitchen appliances. Avanti Restaurant Solutions helps customers leverage energy savings by taking advantage of energy rebate programs throughout the US. With point-of-sale rebates applied directly to your purchase, receiving rebates has never been easier.
Avanti ranks #16 across the foodservice industry in Energy Solutions’ Cross Program Distributor Report. Our team has helped clients save over $331,000 by switching to energy-efficient equipment. With over 503 units sold, 316K kWh in energy savings, and more than 53K therms in gas saved, Avanti is here when you’re ready to make the change.
