Residential ENERGY STAR-Energy Efficiency Appliance Programs

Electric Utility Energy Efficiency Appliance Programs

The ENERGY STAR and High Efficiency Appliance Programs are used to encourage electricity customers to purchase energy-efficient appliances. As part of the program and in an effort to counter customer resistance resistance form the on higher initial purchase price of high-efficiency appliances, electric utilities are typically offering rebates in the range of 50 percent of the appliance’s incremental cost. These rebates are normally provided for the purchase of the following types of appliances:

• Clothes Washers
• Clothes Dyers
• Dishwashers
• Refrigerators
• Freezers
• Programmable Thermostats
• Room Air Conditioners

Under these programs, the electric utility typically contracts with a third-party service provider to handle the administrative support activities including the handling of point of sale agreements, marketing activities, rebate processing, and any previous appliance recycling that may be required. There will also be provisions to modify the program as federal minimum energy efficiency standards are increased.

Program Risks

As with most of the energy efficiency (EE) 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 EE measure altogether from the utility’s demand management efforts.

Another risk in this type of program is the possible increase in the federal energy efficiency standards for specific appliances. The electric utility will need to keep current on the inevitable changes in this area, and modify the programs accordingly.

Initial Implementation

These programs are typically offered to all residential customers with the expectation that approximately one-third of the future year participation levels will be realized in the first year and the second year will achieve 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 out-bound call center contact.

Evaluation, Measurement and Verification Requirements (E,M&V)

Electric utilities will typically review all rebate applications for eligibility. They will also commonly survey a statistically valid sample (based on achieving a 90 percent confidence level and plus-or-minus 5 percent margin of error) to make estimates about before and after comparisons of basic nameplate data and capacity. In cases where recycling is called for (normally refrigerators and freezers), utilities also verify that the removal of the previous appliance actually occurred.