Program Design Matrix Program Model Descrip

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					                                                                                                                 Program Design Matrix




                      Program Model              Description                                 Target Market(s)   Incentive Strategy              Demand Reduction       Ramp Up         Project Cycle        Program Strategy
                                                                                                                                                Opportunity            Time

                      ENERGY STAR labeled        Program leverages retail sales           Residential           Prescriptive incentives for     Low - some kW       4-6 months         Immediate            Primarily resource
                      products program           channels (grocery, hardware, and drug                          defined set of measures.        impacts for room AC                                         acquisition, with some
                                                 stores) to offer discounts or incentives                       May use coupon approach         and refrigeration                                           market transformation
                                                 for ENERGY STAR qualified lighting                             or instant rebate via mark-     measures                                                    through consumer education
                                                 (CFL bulbs, fixtures, table lamps,                             down/buy-down with                                                                          as well as training/motivating
                                                 ceiling fans, and LED holiday lights)                          participating retailers.                                                                    retailers to stock and
                                                 and appliances (clothes washers,                                                                                                                           promote ENERGY STAR
                                                 refrigerators/freezers, TVs, room AC).                                                                                                                     qualified products


                      Audit and direct install   Program offers home/business energy Residential; small         Programs typically pay the Low                         2-4 months      Immediate            Primarily resource
                      program                    audit to identify savings opportunities, commercial            entire or majority share of                                                                 acquisition, with some
                                                 as well as direct installation of low cost                     the cost of audit/building                                                                  market transformation
                                                 energy saving measures (CFLs, low                              diagnostic services, and                                                                    through consumer education
                                                 flow devices, pipe wrap). Some                                 offer free installation of direct
                                                 programs offer more comprehensive                              install measures.
                                                 audit services such as blower door
                                                 testing, infrared scans, etc.

                      Efficient heating and      Program trains HVAC contractors to          Residential        Programs typically offer        High                   6-9 months      Immediate            Resource acquisition, with
                      cooling program            provide tune up services (refrigerant                          participating contractors a                            (important to                        strong market transformation
                                                 charge/airflow adjustments, coil                               per-job incentive for qualified                        plan around                          component in training
                                                 cleaning, new filter) for existing                             tune ups/installations.                                typical                              contractors and stimulating
                                                 equipment and/or quality installations                         Consumer incentives for                                business                             market demand for energy
                                                 (right sizing, refrigerant charge/airflow                      high-efficiency new                                    cycle for                            efficient HVAC services
                                                 calibration) of new equipment. Some                            equipment may also be                                  HVAC
                                                 programs also offer rebates for high-                          available.                                             contractors)
                                                 efficiency heating and cooling
                                                 equipment (furnaces, central AC,
                                                 ground source heat pumps, etc.)
                      Home Performance with      The ENERGY STAR program's                Residential           Some programs offer             Medium - majority of   6-9 months      1-4 months (there    Resource acquisition, with
                      ENERGY STAR                platform for improving the efficiency of                       incentives to participating     kW impacts from                        is typically a lag   strong market transformation
                                                 existing homes. Programs train home                            contractors -- e.g.,            improvements in                        between initial      component in training
                                                 improvement contractors in performing                          reimbursement for training      cooling efficiency                     assessment and       contractors and stimulating
                                                 comprehensive assessments to identify                          or diagnostic equipment --                                             completion of        market demand for "whole
                                                 efficiency, comfort, and safety issues,                        generally contingent upon                                              improvements)        home" solutions
                                                 including assessment/testing of heating                        contractor completion of
                                                 and cooling systems, windows,                                  specified number of jobs.
                                                 insulation, and airflow. Contractor                            Some programs also offer
                                                 delivers the agreed-upon                                       homeowner financing or
                                                 improvements, or works with other                              incentives to reduce the cost
                                                 qualified providers to perform the work.                       of needed improvements.
                                                 Program includes test-out procedures,
                                                 and program staff provide QA/QC of
                                                 contractor work.




Public Power Guidebook to Energy Efficiency Program Planning and Implementation                                                                                                                                                              1
                                                                                                              Program Design Matrix




                      Program Model              Description                              Target Market(s)   Incentive Strategy              Demand Reduction       Ramp Up      Project Cycle        Program Strategy
                                                                                                                                             Opportunity            Time

                      ENERGY STAR New            The ENERGY STAR program's                 Residential       Programs typically offer        Medium - majority of   6-9 months   3-6 months           Resource acquisition, with
                      Homes                      platform for energy efficient residential                   builder incentives, either in   kW impacts from                                          strong market transformation
                                                 new construction. Programs recruit and                      the form of per-home            improvements in                                          component in training home
                                                 train builders to construct homes to                        rebates or through              cooling efficiency                                       builders/home energy raters,
                                                 meet EPA guidelines. Performance                            free/subsidized training or                                                              and stimulating market
                                                 verified by independent HERS raters.                        HERS ratings. Many                                                                       demand for ENERGY STAR
                                                 In some markets, program support may                        programs also offer                                                                      labeled homes
                                                 also be necessary to build market                           cooperative advertising
                                                 infrastructure of qualified HERS raters,                    funds and marketing
                                                 or program staff may become qualified                       collateral.
                                                 HERS raters.

                      Prescriptive incentive     Program offers standard incentives to Nonresidential        Standard incentives for    High                        4-6 months   Immediate            Primarily resource
                      program                    motivate purchases of common energy                         defined set of measures.                                                                 acquisition, though market
                                                 efficient technologies for the                              Incentives typically cover                                                               transformation elements
                                                 nonresidential market -- lighting, HVAC                     ~50-75% of the incremental                                                               include consumer education
                                                 equipment, motors, refrigeration                            cost. Some programs offer                                                                as well as trade ally
                                                 equipment, etc. Programs typically                          trade ally incentives to                                                                 outreach/coordination
                                                 leverage trade allies to drive sales of                     motivate equipment sales.
                                                 qualified equipment.

                      Custom incentive program Program offers standard per-kWh, per- Large commercial/       Standard incentive offering High                       4-6 months   1-6 months;          Resource acquisition, with
                                               kW, or per-therm incentives targeting  industrial             based on energy/demand                                              potentially longer   market transformation
                                               non-standard energy saving measures                           savings. Some programs                                              for large/complex    elements that include
                                               or large/complex projects that affect                         establish a maximum per-                                            projects             technical assistance as well
                                               multiple end uses. Many programs offer                        project incentive cap, and/or                                                            as trade ally
                                               technical assistance such as                                  specify that incentives are                                                              outreach/coordination
                                               engineering review of project plans,                          only available for projects
                                               feasibility studies, or facility                              with payback of ~1.5 years
                                               assessments to identify opportunities.                        or longer.

                      Retrocommissioning (RCx) Program promotes systematic RCx       Large commercial/       Incentives cover some/all of High                      6-9 months   1-3 months           Resource acquisition with
                      program                  investigations of large               institutional           the RCx investigation cost,                                                              strong market transformation
                                               commercial/institutional buildings to                         typically paid to the RCx                                                                component through
                                               identify needed improvements to                               provider. Some programs                                                                  training/outreach to RCx
                                               energy management systems, controls,                          also offer implementation                                                                providers
                                               HVAC systems, and O&M practices.                              incentives to the building
                                               Many programs require pre- and post-                          owner -- typically a custom
                                               RCx benchmarking of building energy                           incentive based on energy
                                               consumption to support persistence of                         or demand savings.
                                               energy savings. Programs may support
                                               RCx provider training in areas where
                                               market infrastructure is lacking.


                      Commercial new             Program offers design assistance and Commercial             Programs offer a variety of High                       6-9 months   1-2 years            Resource acquisition, with
                      construction program       incentives to promote energy efficient                      incentive approaches -                                                                   strong market transformation
                                                 commercial new construction. Many                           prescriptive rebates for                                                                 component through training/
                                                 programs offer multiple participation                       common technologies;                                                                     coordination with design
                                                 paths. For projects late in the                             custom incentives (per-                                                                  professionals, engineers,
                                                 design/construction process,                                kWh/per-kW) for                                                                          and other trade allies
                                                 prescriptive incentives for common                          comprehensive approaches
                                                 energy saving technologies are                              to energy-efficient design;
                                                 available. Projects in the early planning                   technical assistance and
                                                 stages may elect to go through a more                       incentives for
                                                 comprehensive design assistance                             architects/engineers.
                                                 process.




Public Power Guidebook to Energy Efficiency Program Planning and Implementation                                                                                                                                                      2
                                                                                                                Program Design Matrix




                  Program Model              Incentive Share of           Cost-Effectiveness          Evaluation Approach             Resources for Additional Information                 Public Power Example 1
                                             Budget

                  ENERGY STAR labeled        Programs typically           w$0.01-0.07/lifetime kWh Deemed savings is primary            EPA's Rapid Deployment Energy Efficiency Toolkit   Rochester Public Utilities Conserve
                  products program           allocate 60-80% of the       w$0.02-$0.5/lifetime therm approach. Consumer surveys                                                            and Save program
                                             budget to incentives                                    and/or market effects studies
                                                                                                     may also be conducted to
                                                                                                     estimate free-ridership/spillover.




                  Audit and direct install   Programs typically           w$0.02-0.04/lifetime kWh Deemed savings is primary          EPA's Rapid Deployment Energy Efficiency Toolkit     Seattle City Light Home Energy Audit
                  program                    allocate ~80% of the         w$0.06-$1.2/lifetime therm approach. Consumer surveys                                                            program
                                             budget to incentives (the                               and pre- and post-installation
                                             audit is considered an                                  measurement may also be
                                             incentive)                                              conducted.




                  Efficient heating and      Programs typically           w$0.03-0.09/lifetime kWh    Deemed savings with pre- and EPA's Rapid Deployment Energy Efficiency Toolkit        Fort Collins Utilities Check Me!
                  cooling program            allocate ~40-50% of the      w$0.4-$1.2/lifetime therm   post-installation measurement                                                        Program
                                             budget to incentives;                                    conducted to verify savings from
                                             contractor                                               a sample of projects.
                                             outreach/training
                                             represents the majority of
                                             non-incentive costs




                  Home Performance with      Programs typically           w$0.01-0.09/lifetime kWh    ENERGY STAR QA/QC                 ENERGY STAR information for program sponsors       Austin Energy Home Performance
                  ENERGY STAR                allocate ~30-40% of the      w$0.4-$1.1/lifetime therm   protocols require site-inspection                                                    with ENERGY STAR program
                                             budget to incentives;                                    of at least 5% of homes
                                             contractor                                               submitted by each participating
                                             outreach/training and                                    contractor. Savings primarily
                                             QA/QC processes                                          determined through pre- and
                                             represent the majority of                                post-installation measurement,
                                             non-incentive costs                                      though deemed savings may be
                                                                                                      used for a limited number of
                                                                                                      measures (e.g., CFLs)




Public Power Guidebook to Energy Efficiency Program Planning and Implementation                                                                                                                                                   3
                                                                                                               Program Design Matrix




                  Program Model             Incentive Share of           Cost-Effectiveness          Evaluation Approach              Resources for Additional Information               Public Power Example 1
                                            Budget

                  ENERGY STAR New           Programs typically        w$0.02-0.05/lifetime kWh       Site inspection of a sample of ENERGY STAR information for program sponsors         Long Island Power Authority
                  Homes                     allocate ~25-30% of the   w$0.2-$0.5/lifetime therm      homes as part of QA/QC                                                              ENERGY STAR Homes program
                                            program budget to                                        oversight of HERS raters.
                                            incentives. Home builder                                 Combination of energy modeling
                                            outreach/training, QA/QC                                 and post-construction
                                            processes, and marketing                                 measurement conducted to
                                            efforts represent the                                    compare ENERGY STAR
                                            majority of non-incentive                                qualified homes against
                                            costs.                                                   standard new homes.



                  Prescriptive incentive    Programs typically           w$0.003-0.03/lifetime       Deemed savings is primary      EPA's Rapid Deployment Energy Efficiency Toolkit     Sacramento Municipal Utility District
                  program                   allocate 60-70% of the       kWh                         approach. Customer survey                                                           Business Rebates & Incentives
                                            budget to incentives         w$0.04-0.5/lifetime therm   approaches and pre- and post-
                                                                                                     installation measurement of a
                                                                                                     sample of projects may also be
                                                                                                     used.



                  Custom incentive program Programs typically            w$0.003-0.07/lifetime       Savings estimated through        EPA's Rapid Deployment Energy Efficiency Toolkit   Seattle City Light Industrial
                                           allocate ~60% of the          kWh                         engineering calculations, energy                                                    Conservation program
                                           budget to incentives.         w$0.006-0.14/lifetime       modeling. Given the large per-
                                           Engineering review,           therm                       project savings, site inspection
                                           technical assistance, and                                 and pre- and post-installation
                                           measurement/verification                                  measurement are typically
                                           activities represent the                                  conducted for most (if not all)
                                           majority of non-incentive                                 projects
                                           costs

                  Retrocommissioning (RCx) Programs typically         w$0.003-0.07/lifetime          Post-RCx site verification      EPA's Rapid Deployment Energy Efficiency Toolkit    Sacramento Municipal Utility District
                  program                  allocate ~50% of the       kWh                            conducted for QA/QC purposes.                                                       Retrocommissioning Program
                                           budget to incentives. RCx                                 Savings verified through
                                           provider outreach,                                        engineering analysis as well as
                                           training, and QA/QC                                       pre- and post-installation
                                           represents the majority of                                measurement.
                                           non-incentive costs.




                  Commercial new            Programs typically           w$0.01-0.04/lifetime kWh Savings estimated through                                                              Long Island Power Authority
                  construction program      allocate 30-50% of the       w$0.03-$0.1/lifetime therm building energy modeling. Post-                                                      Commercial Construction program
                                            budget to incentives.                                   construction inspection and
                                            Technical assistance                                    measurement for a sample of
                                            represents the majority of                              projects, or all projects,
                                            non-incentive costs.                                    depending on resources.
                                                                                                    Deemed savings may be used
                                                                                                    to a limited extent.




Public Power Guidebook to Energy Efficiency Program Planning and Implementation                                                                                                                                                  4

				
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