Controlling business energy costs with incentives on variable speed drives.

TVA EnergyRight® and your local power company are offering a $100 per horsepower (HP) incentive for the installation of variable speed drives (VSDs) on existing heating, ventilation and air conditioning (HVAC) equipment.

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What are VSDs, and how do they work?

Variable speed drives – also known as adjustable speed drives (ASDs) or variable frequency drives (VFDs) – control the speed and torque of motors that drive fans, pumps or compressors in HVAC systems.

VSDs can dramatically reduce energy use while prolonging the lifespan of your heating and cooling equipment. They work by adjusting the frequency (Hz), voltage (V) or current of your existing HVAC system to better meet load requirements.

Benefits of VSDs

  • Save approximately 35-50% on energy.*

  • Reduce power consumption.

  •  Lower operating costs.

  • Minimize wear and tear on fans, pumps and compressors.

  • Extend HVAC motor life.

  • Protect equipment from power fluctuations.

  • Limit and adjust the amount of torque delivered to HVAC motors.

  • Prolong the lifespan of your HVAC equipment.

*SOURCES: Plant Engineering, Control Engineering

$100 per horsepower (HP) VSD incentives available.

Is your HVAC system eligible for the VSD incentive?

The VSD incentive from TVA EnergyRight requires pre-approval and applies to drives installed on existing HVAC systems including:

  • Cooling tower fans

  • Chilled water pumps

  • Condenser water pumps

  • Hot water pumps, supply/return fans

NOTE: Replacement of multi-speed motor and agriculture and industrial process VSD projects may be eligible through the custom incentive offering. All VSD incentive projects require pre-approval. DO NOT purchase, remove or install any equipment until all pre-approval requirements have been completed and a formal Application Approval Notice has been received via email. The VSD incentive is for installation of VSDs on existing HVAC equipment only.

Start by connecting with a TVA Energy Expert or finding a trusted contractor.

Want to discuss your project or not sure where to start? Connect with a TVA Energy Expert by submitting the form below. If you have a new project, contact a trusted contractor to perform the work. For the best customer experience, we encourage the use of TVA-vetted trade ally from our Preferred Partners Network (PPN), a skilled group of commercial and trade contractors that can help you achieve your energy goals. 

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Incentive Guidelines

Connect with a TVA Energy Expert to get started.

Whether you’re ready to take the next step to save more or you're not sure where to start, we can help. Complete this form, and one of our Energy Experts will follow up with details on next steps and energy management solutions to help you reduce costs.

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Still have a few questions?

Our team is ready to answer your questions so you can start saving.
Call (866) 233-0450 or email TVABusinessIncentive@tva.gov.

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Preferred Partners Network

TVA-vetted contractors are experts in their field and they’re ready to help you apply for incentives and find and implement energy-saving solutions for your business.
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Custom incentive

In partnership with local power companies, TVA offers customizable incentives to help businesses in the region lower costs and operate more efficiently.
Custom incentive

HVAC incentive

Efficient commercial heating, ventilation and air conditioning systems can lower energy costs and improve comfort and air quality.
HVAC incentive