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Cool Savings with Permanent Load Shifting

By shifting more of your energy use to off-peak hours, you not only run your business more efficiently, you stand to see savings on your bill. Find out if you’re eligible and learn more about incentives here, then call your SCE Account Manager to get started.  

Thermal Energy Storage

Thermal Energy Storage (TES) is the process of redistributing energy use for cooling from on-peak hours when demand and rates are highest to off-peak hours, when rates are lower. When you invest in a Thermal Energy Storage system for your business, you’ll be able to produce your cooling energy in the evenings, and deploy it during high-demand afternoon hours, so you can operate during peak periods while minimizing your peak energy costs.

Find out more about the Program Guidelines, or learn more in the fact sheet.


If you qualify, you may be eligible for reimbursements of up to $875 per kilowatt for shifting your cooling load and reducing grid stress and demand. Incentives are awarded on a first-come, first-served basis, based on availability of funds. Your total reimbursement may be calculated up to 50% of your total Thermal Energy Storage system equipment and installation costs (up to $1.5 million), are subject to verification of cooling load shift, and are paid in your choice of one or two installments:  

  • Two-Installment Option: If you select this option, may be eligible to receive 25% of the cost of your feasibility study up front (up to $10,000) upon feasibility study and pre-installation inspection review and approval. You may be eligible for the remaining 75% of upfront and project costs after installation, post-installation inspection, and approval.
  • Single-Installment Option: If you select this option, you may be eligible for a single installment and receive up to 100% of the cost of your feasibility study and project costs after installation, post-installation inspection, and approval.

The Math: Calculating Incentives

How much incentive you qualify for is determined by your designed and verified cooling load shift during the feasibility study review and post-installation inspection. We’ll verify your cooling load shift and convert it from tonnage to kilowatts. This calculation will apply to both full and partial storage systems. Conversions vary: 0.7 kilowatts per ton are applied to water cooling chillers, and 1.2 kilowatts per ton apply to air cooling chillers. Your total incentive calculation is the lesser of your calculated cooling load shift, up to 50% of verified total project cost.

This illustration is an example of how to calculate your incentive, using water cooling chillers as an example – keep in mind that the lesser of the calculated incentive or the verified project cost incentive will be your total incentive.  For the calculated incentive, take the number of tons (designed and verified cooling load shift), multiply this by the conversion factor of 0.7 kW per ton (or 1.2 kW per ton for air cooling chillers); then multiply this by the PLS incentive of $875; this equals the calculated incentive.  To calculate the project cost incentive, multiply the total project cost (in dollars) by the project cost cap of 50 percent; this equals the project cost incentive.

Eligibility & Requirements

Eligibility Requirements

In order to qualify for incentives, your business must meet the following criteria:  

  • Bundled Service, Direct Access, Community Choice Aggregation customers
  • Billed on a Time of Use (TOU) rate schedule
  • Have an installed interval data recording or Edison SmartConnect® meter, where interval data features have been enabled
  • Committed to shift on-peak cooling load to off-peak periods for 60 consecutive months
  • Prepared to monitor and record Thermal Energy Storage data and submit annual reports to SCE


Eligible Equipment


The most common thermal storage media is water or ice. Qualifying equipment includes but is not limited to: 

  • Chilled water or other fluid
  • Ice-on-coil (external melt)
  • Ice-on-coil (internal melt)
  • Encapsulated ice or phase change material
  • Ice harvester/chiller
  • Ice slurry
  • Integrated direct expansion packaged units with ice-on-coil


Equipment Requirements


Thermal Energy Storage systems must adhere to the following requirements to qualify: 

  • Commercially available with a proven track record
  • Equipped to shift cooling load to off-peak periods
  • Fully automated, providing integrated operation of the Thermal Energy Storage and site normal cooling system
  • Installed within 18 months of our approval of reservation of your incentive (extensions may be provided on a case by case basis)
  • New, with the exception of refurbished Thermal Energy Storage tanks
  • Installed at the Customer premises
  • Installed and functioning for a minimum of five years
  • Meet current building codes for existing and new construction
  • Have a five-year warranty that covers replacement of equipment for manufacturer defects or breakdown of the equipment with proper usage of the system

Application & Review Process

The application, review and installation process will follow the high-level steps listed below:

  • Submit application
  • Application review and approval
  • Submit Feasibility study
  • Feasibility study review and approval
  • Pre-installation inspection
  • Signed agreement
  • TES system installation
  • Submit Commissioning report
  • Post-installation inspection
  • Incentive
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