Program Design Matrix

Program Model Description Target Incentive Strategy Demand Ramp Up Project Cycle Program Strategy Incentive Share of Cost-Effectiveness
Market(s) Reduction Time Budget
Opportunity
ENERGY STAR Program leverages retail sales Residential Prescriptive incentives Low - some kW 4-6 months Immediate Primarily resource Programs typically w$0.01-0.07/lifetime
labeled products channels (grocery, hardware, and for defined set of impacts for room acquisition, with some allocate 60-80% of the kWh
program drug stores) to offer discounts or measures. May use AC and market transformation budget to incentives w$0.02-$0.5/lifetime
incentives for ENERGY STAR coupon approach or refrigeration through consumer therm
qualified lighting (CFL bulbs, instant rebate via mark- measures education as well as
fixtures, table lamps, ceiling fans, down/buy-down with training/motivating
and LED holiday lights) and participating retailers. retailers to stock and
appliances (clothes washers, promote ENERGY STAR
refrigerators/freezers, TVs, room qualified products
AC).
Audit and direct install Program offers home/business Residential; Programs typically pay Low 2-4 months Immediate Primarily resource Programs typically w$0.02-0.04/lifetime
program energy audit to identify savings small the entire or majority acquisition, with some allocate ~80% of the kWh
opportunities, as well as direct commercial share of the cost of market transformation budget to incentives w$0.06-$1.2/lifetime
installation of low cost energy audit/building diagnostic through consumer (the audit is considered therm
saving measures (CFLs, low flow services, and offer free education an incentive)
devices, pipe wrap). Some installation of direct
programs offer more install measures.
comprehensive audit services
such as blower door testing,
infrared scans, etc.
Efficient heating and Program trains HVAC contractors Residential Programs typically offer High 6-9 months Immediate Resource acquisition, Programs typically w$0.03-0.09/lifetime
cooling program to provide tune up services participating contractors (important to with strong market allocate ~40-50% of kWh
(refrigerant charge/airflow a per-job incentive for plan around transformation the budget to w$0.4-$1.2/lifetime
adjustments, coil cleaning, new qualified tune typical component in training incentives; contractor therm
filter) for existing equipment and/or ups/installations. business contractors and outreach/training
quality installations (right sizing, Consumer incentives for cycle for stimulating market represents the majority
refrigerant charge/airflow high-efficiency new HVAC demand for energy of non-incentive costs
calibration) of new equipment. equipment may also be contractors) efficient HVAC services
Some programs also offer rebates available.
for high-efficiency heating and
cooling equipment (furnaces,
central AC, ground source heat
pumps, etc.)
Home Performance The ENERGY STAR program's Residential Some programs offer Medium - majority 6-9 months 1-4 months Resource acquisition, Programs typically w$0.01-0.09/lifetime
with ENERGY STAR platform for improving the incentives to participating of kW impacts from (there is with strong market allocate ~30-40% of kWh
efficiency of existing homes. contractors -- e.g., improvements in typically a lag transformation the budget to w$0.4-$1.1/lifetime
Programs train home improvement reimbursement for cooling efficiency between initial component in training incentives; contractor therm
contractors in performing training or diagnostic assessment contractors and outreach/training and
comprehensive assessments to equipment -- generally and completion stimulating market QA/QC processes
identify efficiency, comfort, and contingent upon of demand for "whole represent the majority
safety issues, including contractor completion of improvements) home" solutions of non-incentive costs
assessment/testing of heating and specified number of jobs.
cooling systems, windows, Some programs also
insulation, and airflow. Contractor offer homeowner
delivers the agreed-upon financing or incentives to
improvements, or works with other reduce the cost of
qualified providers to perform the needed improvements.
work. 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 Model Description
ENERGY STAR New The ENERGY STAR program's
Homes platform for energy efficient
residential new construction.
Programs recruit and train builders
to construct homes to meet EPA
guidelines. Performance verified
by independent HERS raters. In
some markets, program support
may also be necessary to build
market infrastructure of qualified
HERS raters, or program staff may
become qualified HERS raters.
Prescriptive incentive Program offers standard
program incentives to motivate purchases
of common energy efficient
technologies for the nonresidential
market -- lighting, HVAC
equipment, motors, refrigeration
equipment, etc. Programs typically
leverage trade allies to drive sales
of qualified equipment.
Custom incentive Program offers standard per-kWh, Large
program per-kW, or per-therm incentives
targeting non-standard energy
saving measures or large/complex
projects that affect multiple end
uses. Many programs offer
technical assistance such as
engineering review of project
plans, feasibility studies, or facility
assessments to identify
opportunities.
Retrocommissioning Program promotes systematic
(RCx) program RCx investigations of large
commercial/institutional buildings
to identify needed improvements
to energy management systems,
controls, HVAC systems, and
O&M practices. Many programs
require pre- and post-RCx
benchmarking of building energy
consumption to support
persistence of energy savings.
Programs may support RCx
provider training in areas where
market infrastructure is lacking.
Commercial new Program offers design assistance Commercial
construction program and incentives to promote energy
efficient commercial new
construction. Many programs offer
multiple participation paths. For
projects late in the
design/construction process,
prescriptive incentives for common
energy saving technologies are
available. Projects in the early
planning stages may elect to go
through a more comprehensive
design assistance process.
Public Power Guidebook to Energy Efficiency Program Planning and Implementation
Program Design Matrix
Target Incentive Strategy Demand Ramp Up Project Cycle Program Strategy Incentive Share of Cost-Effectiveness
Market(s) Reduction Time Budget
Opportunity
Residential Programs typically offer Medium - majority 6-9 months 3-6 months Resource acquisition, Programs typically w$0.02-0.05/lifetime
builder incentives, either of kW impacts from with strong market allocate ~25-30% of kWh
in the form of per-home improvements in transformation the program budget to w$0.2-$0.5/lifetime
rebates or through cooling efficiency component in training incentives. Home therm
free/subsidized training home builders/home builder
or HERS ratings. Many energy raters, and outreach/training,
programs also offer stimulating market QA/QC processes, and
cooperative advertising demand for ENERGY marketing efforts
funds and marketing STAR labeled homes represent the majority
collateral. of non-incentive costs.
Nonresidential Standard incentives for High 4-6 months Immediate Primarily resource Programs typically w$0.003-0.03/lifetime
defined set of measures. acquisition, though allocate 60-70% of the kWh
Incentives typically cover market transformation budget to incentives w$0.04-0.5/lifetime
~50-75% of the elements include therm
incremental cost. Some consumer education as
programs offer trade ally well as trade ally
incentives to motivate outreach/coordination
equipment sales.
Standard incentive High 4-6 months 1-6 months; Resource acquisition, Programs typically w$0.003-0.07/lifetime
commercial/ offering based on potentially with market allocate ~60% of the kWh
industrial energy/demand savings. longer for transformation elements budget to incentives. w$0.006-0.14/lifetime
Some programs large/complex that include technical Engineering review, therm
establish a maximum projects assistance as well as technical assistance,
per-project incentive cap, trade ally and
and/or specify that outreach/coordination measurement/verificati
incentives are only on activities represent
available for projects with the majority of non-
payback of ~1.5 years or incentive costs
longer.
Large Incentives cover some/all High 6-9 months 1-3 months Resource acquisition Programs typically w$0.003-0.07/lifetime
commercial/ of the RCx investigation with strong market allocate ~50% of the kWh
institutional cost, typically paid to the transformation budget to incentives.
RCx provider. Some component through RCx provider outreach,
programs also offer training/outreach to RCx training, and QA/QC
implementation providers represents the majority
incentives to the building of non-incentive costs.
owner -- typically a
custom incentive based
on energy or demand
savings.
Programs offer a variety High 6-9 months 1-2 years Resource acquisition, Programs typically w$0.01-0.04/lifetime
of incentive approaches - with strong market allocate 30-50% of the kWh
prescriptive rebates for transformation budget to incentives. w$0.03-$0.1/lifetime
common technologies; component through Technical assistance therm
custom incentives (per- training/ coordination represents the majority
kWh/per-kW) for with design of non-incentive costs.
comprehensive professionals, engineers,
approaches to energy- and other trade allies
efficient design; technical
assistance and
incentives for
architects/engineers.
2
 Program Design Matrix

Program Model Evaluation Approach Resources for Additional Information Public Power Example 1

ENERGY STAR Deemed savings is primary EPA's Rapid Deployment Energy Efficiency Toolkit
labeled products approach. Consumer
program surveys and/or market
effects studies may also be
conducted to estimate free-
ridership/spillover.

Audit and direct install Deemed savings is primary EPA's Rapid Deployment Energy Efficiency Toolkit
program approach. Consumer
surveys and pre- and post-
installation measurement
may also be conducted.

Efficient heating and Deemed savings with pre- EPA's Rapid Deployment Energy Efficiency Toolkit
cooling program and post-installation
measurement conducted to
verify savings from a sample
of projects.

Home Performance ENERGY STAR QA/QC ENERGY STAR information for program sponsors
with ENERGY STAR protocols require site-
inspection of at least 5% of
homes submitted by each
participating contractor.
Savings primarily
determined through pre- and
post-installation
measurement, 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 Evaluation Approach Resources for Additional Information Public Power Example 1

ENERGY STAR New Site inspection of a sample ENERGY STAR information for program sponsors Long Island Power Authority ENERGY STAR Homes program
Homes of homes as part of QA/QC
oversight of HERS raters.
Combination of energy
modeling and post-
construction measurement
conducted to compare
ENERGY STAR qualified
homes against standard
new homes.

Prescriptive incentive Deemed savings is primary EPA's Rapid Deployment Energy Efficiency Toolkit
program approach. Customer survey
approaches and pre- and
post-installation
measurement of a sample of
projects may also be used.

Custom incentive Savings estimated through EPA's Rapid Deployment Energy Efficiency Toolkit
program engineering calculations,
energy modeling. Given the
large per-project savings,
site inspection and pre- and
post-installation
measurement are typically
conducted for most (if not
all) projects

Retrocommissioning Post-RCx site verification EPA's Rapid Deployment Energy Efficiency Toolkit Sacramento Municipal Utility District Retrocommissioning Program
(RCx) program conducted for QA/QC
purposes. Savings verified
through engineering
analysis as well as pre- and
post-installation
measurement.

Commercial new Savings estimated through

construction program building energy modeling.
Post-construction inspection
and measurement for a
sample of projects, or all
projects, depending on
resources. Deemed savings
may be used to a limited
extent.

Public Power Guidebook to Energy Efficiency Program Planning and Implementation 4