From the pages of In Business magazine.
Rebate Bus, launched by co-founders Joe Pater and Mitch Vogel in 2017, has developed a way to make utility rebates easier to navigate. The startup connects light manufacturers and utility companies by providing the utilities with a database that identifies products that qualify for utility rebates.
After working in the energy efficiency industry for nearly a decade — first with Wisconsin Energy Conservation Corp. (WECC) in Madison, and later with MaxLite, a lighting products manufacturer, Pater, 37, identified a problem in need of a solution: Collecting energy rebates from utility companies was often very complicated, and programs could change from utility to utility, or state to state.
Across North America, he explains, electric, gas, and water utilities are driven to increase the adoption of efficient products and technologies, which can translate into cost savings for them because they have to generate less electricity or distribute less gas and water.
In general, energy efficiency upgrades have been found to save up to 65 percent of operating energy costs, making them great investments over the long haul. In some cases, a utility rebate can cover as much as 50 percent of the upfront costs.
Utility incentive programs offset the costs of these efficient upgrades, but navigating through the available offers and following the submittal process can be complicated and takes time.
“Say you own a warehouse with 50 old lights in the ceiling,” Pater explains. “You know they’re inefficient and consume a lot of energy, but upgrading to a newer system with energy efficient bulbs can cost a lot of money you don’t have, despite the long-term benefits.” Rebates can help.
While he credits Wisconsin’s Focus On Energy program for its forward thinking, he says the process of obtaining rebates can still be confusing.
Also, with no standardization of utility rebate programs, a business owner with multiple locations might have to deal with four or five different utility rebate programs, which gets very complex.
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Rebate Bus software accesses all available rebates and incentives in a market to make the process easier, and it’s especially helpful for multisite business locations, Pater explains. The database constantly monitors programs, products, and utilities to make accessing the rebates easy. It works behind the scenes with manufacturers, distributors, and contractors who, in turn, provide their services to business owners.
“We help customers understand the options and simplify the process to help bring down the upfront costs of an upgrade,” he adds. “By making the process seamless, business owners can experience the upgrade and achieve the energy savings.”
And that, he says, gives members a competitive edge.
“Let’s say company A gives you a bid and doesn’t mention a utility rebate or says you have to figure it out yourself. Company B not only tells you about the available rebates but also says it will handle all the documentation for you so all you have to do is realize the savings. Which company would you choose?”
Pater bootstrapped the startup with about $40,000 of his own money, and family members (his first investors) bought in, as well. An invitation to partake in the Ameren Accelerator in St. Louis — a joint venture between Ameren, a large utility company, the University of Missouri system, UMSL Accelerate, and Capital Innovators — provided the company with an additional $100,000 boost.
The unique startup, which has 14 full- and seven part-time employees, has signed on 30 members thus far. Pater hopes to grow that to 200 by the end of 2019. The company also maintains a St. Louis office.
“We offer members month-to-month deals and have no long-term contracts,” Pater says. “These are their businesses, and I want to earn their trust for the long term.”
Is the company profitable yet? “We’re ramen profitable,” he laughs, “meaning we’re thrifty and generating very small profits that get invested back into the company. I’d say we’re just about breakeven — and optimistic.”
Rebate Bus
608.513.9408
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