VSD Air Compressor Replacement

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These measures are available for installing a new variable speed (VSD) rotary screw (RS) air compressor, replacing a screw compressor with modulating control or load/no load control to be eligible.


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  • For new VSD compressors only; adding a VSD to an existing compressor does not qualify.
  • The installation of a VSD air compressor as a redundant or backup compressor does not qualify
  • A multiple air compressor system is defined as more than one air compressor being required to operate simultaneously to meet the facility’s compressed air demand, excluding redundant or standby air compressors.
  • In a single air compressor system, the compressor must operate a minimum of 6,000 hours/yr to qualify for the high operation hour situation. The compressor must operate a minimum of 2,000 hours/yr to qualify for the low operation hour situation.
  • In a multiple compressed air systems, the VSD air compressor must operate a minimum of 7,200 hours/yr to qualify for the high operation hour situation. The VSD air compressor must operate a minimum of 4,000 hours/yr to qualify for the low operation hour situation.
  • The VSD air compressor must be at least 50-hp but no larger than 300-hp to qualify.
  • In multiple compressed air systems, system controls must keep the VSD air compressor as the partially load (trim) unit.
  • Only one VSD air compressor can be incentivized per compressor plant.
  • Compressor plants that already have a VSD or variable displacement (VD) air compressors do not qualify.
  • Incentive is based on the horsepower size (hp) of the new VSD air compressor.
  • Must be retrofitting a screw compressor with modulating control or load/no load control to be eligible.
  • For retrofitting VSD compressors only; installing a new VSD air compressor does not qualify.
  • In a multiple compressed air systems, the retrofitted VSD air compressor must operate a minimum of 7,200 hours/yr to qualify.
  • The retrofitted VSD air compressor must be at least 50-hp but no larger than 300-hp to qualify.