Timing traps: pre-approval, equipment orders and program windows

Trent Van DykePresident / Co-Founder, Incentive TowerOctober 18, 2026 · 3 min read

Some of the most painful incentive losses have nothing to do with eligibility or the quality of the incentive application. They are timing mistakes. A purchase order is issued a week too early. A contract is signed before approval. A program window closes while the team is still gathering documents. In each case the project may have qualified on its merits, but the sequence made it ineligible.

Timing rules differ between programs, so always confirm the specific requirements. The patterns below are common enough that every project team should watch for them.

Pre-approval before purchase

Many utility rebate programs, and many other incentives, require pre-approval or a reservation before equipment is purchased or installed. The logic is that the incentive is meant to influence the decision, so the program wants to review the project before the commitment is made.

The trap is that "purchase" can be defined broadly. Depending on the program, it may mean issuing a purchase order, signing a contract, paying a deposit, taking delivery or starting installation. If you are unsure what counts, ask the program in writing before committing.

Start-of-construction rules

Some grants and incentives restrict costs incurred before a certain date, often the award date, agreement date or a specific notice. Costs incurred earlier may be ineligible even if the project is later approved. Some programs allow pre-award costs only with prior written permission.

Before mobilizing, check whether early site work, design, procurement or demolition could affect eligibility.

Program windows and funding cycles

Programs open and close. Some accept incentive applications on a rolling basis until funds run out. Others have fixed rounds with firm deadlines, sometimes once a year. Some require a pre-application, letter of intent or registration well before the main deadline.

Map every relevant window against the project schedule at the start. A project that is ready two weeks after a once-a-year deadline may face a long wait for the next round.

Funding that runs out

First-come, first-served programs can exhaust their budgets before the published end date. Being eligible is not the same as having funds reserved. Where a program offers reservations or pre-approval that commits funds, find out how and when to secure it.

Completion and in-service deadlines

Approvals often come with a deadline to complete the project, install the equipment or place it in service. Supply chain delays, permitting and interconnection can push completion past that date. Know the deadline, what happens if it is missed and whether extensions are possible, and request them before the deadline passes.

Sequencing when several incentives apply

When a project pursues more than one incentive, each may have its own timing rules. One program may require pre-approval before purchase while another requires the purchase to occur within a specific period. Lay all the timing requirements side by side to find a sequence that works for each, and resolve conflicts before committing.

How to avoid timing traps

A few practical steps prevent most problems:

• Identify timing requirements first. Before any procurement decision, list each program's rules about pre-approval, cost dates, windows and completion deadlines.
• Put a hold on commitments. Agree as a team that no purchase order, contract or deposit goes out until the incentive owner confirms the timing is safe.
• Get it in writing. When a program's timing rule is ambiguous, ask for written clarification and keep it with the project record.
• Track approvals as milestones. Treat pre-approval or a reservation as a schedule milestone that procurement depends on.
• Plan for slow responses. Program reviews take time. Build that time into the project schedule instead of hoping for a quick turnaround.

Communicate across the team

Timing traps usually happen at handoffs. Procurement does not know a pre-approval is pending. A contractor starts work to stay on schedule. Finance pays a deposit to lock in pricing. Make sure everyone who can commit money or start work knows which incentives are in progress and what the timing rules are.

The bottom line

Timing is one of the few incentive risks that is almost entirely within the project team's control. When timing requirements are visible to everyone and treated as real schedule constraints, early warnings come in time to act. That will not guarantee a program's decision, but it keeps a preventable mistake from deciding it for you.