Energy-efficiency funding in the U.S. and Canada rose to $4.5 billion in 2008, a 21% increase since 2007, according to the Consortium for Energy Efficiency (CEE). [i] The American Reinvestment and Recovery Act (ARRA), or federal stimulus plan, will further increase energy efficiency spending in 2009. The State Energy Program (SEPs) <http://apps1.eere.energy.gov/state_energy_program/> and Energy Efficiency and Conservation Block Grant (EECBGs) <http://www.eecbg.energy.gov/> funding programs included in the ARRA will boost funding on the state and local levels by $6.3 billion.[ii] CEE has been tracking ratepayer-funded energy efficiency programs in the U.S. since 2006. Annual growth in U.S. energy efficiency programs is illustrated in Figure 1:
Figure 1. Annual growth in U.S. energy efficiency programs, in millions of dollars, since 2006.
Energy-efficiency programs run the gamut from simple, prescriptive rebates to innovative financing initiatives. Most programs that are just getting stared opt for lighting and HVAC rebates. For instance, many utilities offer rebates for compact fluorescent bulbs and T8 retrofits.[iii]
One of the more innovative programs in the U.S. is the City of Berkeley’s Financing Initiative for Renewable and Solar Technology (FIRST) <http://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=26580> . This voluntary program helps property owners finance renewable and energy-efficient, or clean energy projects by providing the capital costs for equipment purchase and installation. The City of Berkeley views clean energy like other public goods, like water and roads, the public policy reason for creating this financing mechanism.[iv]
The city created a land-secured financing or assessment district comprised of property owners that voluntarily signed up for the program. Proceeds of a Clean Energy Bond are then given to property owners to pay the up-front costs of their clean energy projects. The property owner then repays the project costs on their property tax bills over the course of the next 20 years, presumably with the energy savings from the project.[v]
Other municipalities can apply for EECBG funding through the ARRA and use it as the basis of their own innovative financing initiative. Along with continued growth in existing energy efficiency programs, as they spread, these innovative programs will likely bring about new opportunities for electrical distributors in the energy management market.
[i] http://www.cee1.org/ee-pe/2008/#relationship accessed June 26, 2009.
[ii] Callahan, Kateri, “Energy Efficiency & the Stimulus Bill: Rebuilding the Economy Today for a “Green Energy” Tomorrow.” Alliance to Save Energy webinar, March 17, 2009.
[iii] Jewell, Mark. “Keeping Efficiency at the Top of the List”, Engineered Systems, June 2009. Available at: http://www.esmagazine.com/Articles/Column/BNP_GUID_9-5-2006_A_10000000000000600036
[iv] DeVries, Cisco. U.S. Department of Energy Energy Efficiency and Conservation Block Grant Planning and Strategy Webcast, June 15, 2009. Available at: http://www.eecbg.energy.gov/Downloads/DOE_WEBINAR_DEVRIES_061509.pdf
[v] DeVries, Cisco. U.S. Department of Energy Energy Efficiency and Conservation Block Grant Planning and Strategy Webcast, June 15, 2009. Available at: http://www.eecbg.energy.gov/Downloads/DOE_WEBINAR_DEVRIES_061509.pdf