Using Building Size to Optimize Electric Utility Energy Efficiency Incentives
Abstract
Electric utilities and government agencies across the U.S. offer
financial incentives and subsidies to help end users offset the cost of
energy efficiency measures (EEMs) installed in their facilities. These de-
mand-side management programs are designed to reduce overall ener-
gy use to decrease strain on the grid, increase resiliency, meet regulatory
requirements, and save money for both the utility and their customers.
However, many utilities do not tailor their incentive programs to serve
the needs of different building sizes. This occurs despite their custom-
ers’ varying energy profiles, economic and staffing resources, appetite
for specific technologies, and overall organizational goals. The EEMs
and savings potential for small buildings have less complicated build-
ing systems and generally fewer resources for energy upgrades. They
are not the same as those for large buildings with more complex energy
systems and dedicated building engineering staff. Our study reviews
common utility energy efficiency incentive structures and analyzes the
lighting and cooling equipment in small, medium and large commercial
buildings. It proposes that optimizing incentives for building size can
help utility policy-makers increase the enrollment, cost effectiveness
and overall energy savings of their energy efficiency programs.
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