The U.S. building sector consumes over 40 percent of the total primary energy produced each year. To encourage facilities and other large consumers to reduce energy use and peak demand, utilities, and other program administrators in more than 32 states offer financial incentives.
Approximately $3.6 billion in rebates, incentives, and demand response programs are available nationally to facility owners. This funding is available through utility incentive programs, which serve as a carbon reduction strategy tasked to reduce load on electric, gas, and water grids.
What are utility incentive programs?
The goal of these energy efficiency incentives is to encourage facility owners to install better-than-code, high-efficiency building systems, such as lighting, HVAC, and controls to reduce the overall energy footprint of their facilities. Incentives subsidize a portion of the first-cost premium of high-efficiency systems over code-minimum systems.
Reducing energy costs through energy efficiency and demand response programs benefits all parties. Utilities lower peak demand and reduce the need for costly infrastructure expansion. As a result, fewer fossil fuels are burned to produce and transport energy and water, which reduces emissions. Facility owners benefit from lower operating costs and improved long-term performance.
Why utility incentive programs are complex
There are more than 20 utility incentive programs on the West Coast alone. Each program operates differently, which can make them difficult to navigate, even for experienced energy professionals. Not only does each program have its own qualifications and methodologies, but requirements can change rapidly as programs respond to shifting market conditions and evolving Public Utility Commission priorities.
Determining which program or programs a project qualifies for can be challenging. Several programs may overlap depending on the region, primary utility provider, building owner, and building use type. For this reason, it is important to understand available utility programs before they are needed.
This blog is part of a series. Click here to read part two.
Senior Project Manager
As Senior Project Manager, Joe Levesque helps clients meet measurable energy cost savings through upgrades and commissioning of HVAC systems. With over 12 years of experience, he specializes in optimizing building performance across higher education, laboratory, manufacturing, and office environments.
