Compact Fluorescent Lighting (CFL) Rewards Programs

An Electric utility’s CFL Rewards Programs are used to encourage customers to purchase compact fluorescent lights (CFLs) instead of incandescent lamps. In order to encourage participation and overcome cost barriers, electric utilities are typically offering mail-in and point-of-sale rebates and markdowns (where possible). 

The electric utilities typically pursue partnership opportunities with other companies (e.g. Home Depot, Lowe’s) to reinforce the marketing of these programs. Recognizing that incandescent bulbs will become unavailable by the end of 2011, these specific programs will likely be terminated shortly thereafter.

Program Risks

As with most of the programs, the primary program risk (in terms of meeting the program reduction targets) lie in achieving the estimated participation rates. Monthly reviews are normally established to compare the actual participation rates with those estimated to explore the need to modify the marketing strategy, rebate structure or simply eliminate the measure altogether.

Another risk in this program is the possibility that new lighting technologies will not be as efficient or available at the time incandescent bulbs become available. Each electric utility will need to monitor this, and if this were to be a problem, modify its claimed energy savings based on available technology.

Initial Implementation

These programs are typically offered to all residential customers with the expectation that approximately one-third of the anticipated future year levels will participate in the first year and the second year will accommodate approximately 50 percent of the future year levels. In order to accomplish this, electric utilities will need to target all eligible customers, inform them of the program via bill inserts, direct mail, print and radio advertising, and in-bound call center contact.

Evaluation, Measurement and Verification Requirements

Electric utilities will typically review all rebate applications for eligibility and survey a statistically valid sample (based on achieving a 90 percent confidence level and plus-or-minus 5 percent margin of error) to quantify the number of replacements and the wattage of each new CFL.