Industrial equipment equipment, including electrical equipment, industrial protective equipment and electric equipment distributors are all eligible for the new electric rebates.
However, a recent analysis by the National Retail Federation found the rebates for these equipment types have fallen considerably since the government announced the rebate program in February.
The rebates are $100 off per kilowatt hour (kWh) for industrial equipment equipment and $75 off per kWh for electrical equipment.
The rebates, which were initially announced as a way to incentivize Americans to save on their electricity bills, were later rolled out to include residential and commercial customers.
The National Retail News, a trade publication, reported that the rebating program was designed to help consumers save money, but some analysts say the incentives have actually hurt the retail sector.
“The rebate is a huge waste of money for the consumer, it is a waste of the energy consumers need to save, and it is not making much of a difference to the electricity sector,” said Robert A. Brown, an energy analyst at the consulting firm BNSF Capital Markets.
The NRF report said the rebate program has been particularly costly for retailers because it is difficult to determine exactly how much customers are actually paying.
The average retail electricity bill has climbed $1,000 per customer since the introduction of the rebate, the report found.
Brown said the industry is being left to deal with the uncertainty that comes with rebates as a result of the government’s announcement.
“If the government wants to do something, they should be willing to put their money where their mouth is,” he said.
“They have to have some level of certainty in the program, or it won’t be a good thing.”
The NRI also reported that many businesses are still struggling to meet their electric bill, and that some consumers have received rebates that have exceeded their electricity costs.
The NRF reported that more than one in 10 households have a bill of more than $100,000.