Hospitals & Healthcare

Hospitals are the second most energy-intensive commercial space type in the United States, spending $8.8 billion on energy each year to meet patient needs. Hospitals and medical offices are finding that energy efficiency offers a way to reduce operating costs. Healthcare facilities that have implemented extensive energy-efficiency improvements have reduced energy use by 20 percent.

Every dollar that a non-profit healthcare organization saves on energy is equivalent to $20 in new revenues for hospitals or $10 for medical offices. Additionally, for-profit hospitals, medical offices and nursing homes can boost earnings per share by a penny by reducing energy costs just 5 percent. Investing in energy efficiency can not only preserve crucial funds, but the reduction in the energy load can dramatically extend power reliability during disasters and other emergencies. A high-performance healthcare facility also enhances your opportunity to improve market share, employee retention and philanthropic success. Hospitals and Healthcare Fact Sheet PDF

Pepco offers innovative solutions and cash incentives that can help you offset energy costs.1

The benefits of energy-efficient upgrades are numerous

  • Reduce operating costs
  • Create healthier, more comfortable healing and work environments
  • Improve light and air quality
  • Contribute to a more sustainable future
  • Make your facility more attractive to medical professionals and philanthropic donors

Earn Cash Incentives

Hospitals and other medical facilities can take advantage of Pepco’s standard incentives for installing new, energy-efficient equipment. Cash incentives are available to customers planning unique equipment, system and industrial process improvements. If you have energy-saving improvements planned that are not available through other incentive programs, you may be eligible for custom incentives.

Pepco pays cash incentives for qualifying energy-efficient improvements, such as:

Additional incentive opportunities

  • Operations & Maintenance Training incentive
  • Technical support and cash incentives are offered to owners and design teams for new construction, major renovation, and building addition projects.

Additional savings

Enhanced incentives are offered through the Small Business Program. If your building has a monthly demand of 100 kW or less over a twelve month period, you may be eligible for a Walk-Through Energy Assessment (WTEA) and enhanced incentives. The WTEA and the installation of low cost measures (up to $250) will be completed at no additional cost by a Small Business Trade Ally of your choice.

Project Snapshot

Businesses and institutions now have access to technical and financial resources to improve lighting, upgrade heating, ventilation, air-conditioning and controls systems and build high-performance buildings. Below is an example of a recently completed project at a local hospital. Pepco supported the project with advice early in the process and cash incentives after the upgrades were completed, helping the customer save money, improve comfort and boost productivity.

 VFDsControlsLightingChillerComprehensive Project
Project Cost$112,800$205,084$574,017$259,920$1,151,821
Annual Energy Savings (kWh)2,115,740291,903777,229219,8953,404,767
Annual Energy Cost Savings2$317,361$43,785$116,584$32,984$510,715
Existing Bldgs Incentive$54,800$46,704$93,675$44,800$239,979
Payback (YRS)
2Average price of electricity = $0.15/kWh
3Payback = (Project cost - incentive) / energy savings

Get started today

We can help you identify energy-efficiency opportunities in your facility and analyze their energy impact and cost-effectiveness. Customers with a maximum monthly peak demand greater than 60 kW are eligible for incentives to assist with an ASHRAE Level 2 Energy Audit.

If you need technical assistance in completing an energy-efficiency project, qualified contractors from our Trade Ally Network are available to assist you. To find a trade ally in your area please visit Find a Trade Ally

Learn more about:
Program Eligibility and Application Process
Eligible measures and incentives for Existing Buildings Projects
Eligible measures and incentives for New Construction Projects/Major Renovation Projects