Why utilities energy efficiency

This comprehensive site describes EVT's programs and service offerings that can help you identify the most cost-effective ways to reduce energy use in your home or business. EVT can also be reached by calling This comprehensive site describes BED's programs and service offerings that can help you identify the most cost-effective ways to reduce energy use in your home or business. BED can also be reached by calling This gives utilities a limited window to establish a new business model implementing innovative technology.

However, for many utilities, they lack the in-house skills and funding to develop data driven energy management solutions. What presents itself is a market opportunity for capitalization, which calls for a change in the traditional business model for utilities.

Historically, utilities focused on supplying cost-effective, reliable electricity still a priority. However, utilities now must evolve, marketing their new energy- and cost-saving services to consumers and help integrate distributed resources to a grid originally designed for central generation and distribution.

Although some utilities have developed simple models for bill reduction and energy management, they often lack the software capabilities to execute and deliver their services to their large customer bases. Though advances in technology have created disruptions in the market for utilities, they also generate opportunities. Many utility industry leaders have turned their focus to how these technologies can complement their existing services by creating customer value through reliability and reduced costs.

They usually require specific spending for low-income customers, either a specific dollar amount or percentage of total spending. In Minnesota, for example, electric utilities are required to spend 0. Energy efficiency investments typically must meet a cost-benefit test to make sure there is enough energy saved per dollar spent; this return on investment is much lower for low-income programs.

Energy efficiency investments ensure hot water is available, that homes are warm and lit, and that unsafe space heaters or hot pots are not used for cooking and heating. Low-income efficiency programs also help avoid utility shut-offs, a benefit for both customers and the utility. What were they using last year, or what should they be using to maintain a healthy comfortable environment? Schiller co-authored another Berkeley Lab study released in May that explored how to incorporate factors including health, productivity, water resources, grid reliability and comfort into cost-benefit calculations.

Some Midwest states already use some of these measures in their tests, as cataloged by the National Efficiency Screening Project. Right now, the societal test does not capture these and health-related benefits, but we are working with Xcel and a contractor to quantify the non-energy impacts of these programs.

Consumer and advocacy groups are calling for policy changes and funding to address such challenges. Households with incomes below a certain threshold are eligible for federal weatherization and efficiency programs, which can often fund structural repairs needed before energy efficiency overhauls are made.

These funds are disbursed based on level of need, and not everyone who is eligible receives them. Utilities can help by providing retro—commissioning services or supplying energy use data to benchmark the buildings' baseline energy efficiency.

Residential Retrofit Programs — Local governments and utilities can help build local contractor capacity to retrofit homes for energy savings. In many cases, they have started with home energy audits to help home owners identify problems and solutions for improving energy efficiency. Residential Weatherization and Direct Install Programs — Local governments can partner with utilities and community organizations to support low-income weatherization or multifamily and small business direct install programs to improve energy efficiency in buildings.

Local governments may be able to collaborate with several types of utility, state or regional energy efficiency programs to design efficiency programs for homes and businesses, and to improve the efficiency of their own facilities. Utility—run Programs — Investor-owned, municipal, co-operative, and public district utilities or other program sponsors may offer their own set of energy efficiency programs under a variety of funding mechanisms.

Public—Benefit Programs — Some states require investor-owned utilities to collect a surcharge from ratepayers that is used to fund programs such as energy efficiency, renewable energy, or low-income energy assistance. While utilities typically administer public-benefit programs, in some states the fund is administered by a nonprofit or contractor organization.

Local governments also may have an opportunity to access these funds directly to implement local energy efficiency initiatives.