A one-time opportunity to expand the market for premium efficiency motors
A mid-Atlantic utility conducted a detailed research study on their motors market. The study showed that their motor loads come mostly from motors under 50 horsepower, and predominantly from industry. The proportion of premium-efficiency motor sales is very low relative to other areas which, unlike this utility's service territory, have a history of rebate programs. Most sales in this utility's territory are for replacement motors. Manufacturers are planning to create new lines of motors which meet the 1997 federal minimum motor-efficiency manufacturing standard, but are less efficient than premium motors. Few of these motors are on the market yet. The mandatory federal efficiency standard creates a unique, one-time situation where premium-efficiency motors will be a better-established and more familiar product among customers and vendors than less efficient motors. The utility has begun a motors rebate and technical assistance program which is intended to use this one-time opportunity to significantly expand the market for premium motors. Rebates are tied to the new Consortium for Energy Efficiency motor standards to ensure a common message to manufacturers among utilities. While the majority of premium motors available locally already meet the standard, this will encourage manufacturers to bring the rest of their offerings in line. Like many motors programs, this program will offer rebates, marketing, and technical assistance. However, the program design calls for a short-term (three year), very intense effort, including a rebate set at 100% of incremental cost, a short-term vendor bonus, and intensive marketing to large customers. Additionally, the large savings per motor in 1997 (when the baseline is inefficient standard motors) will justify a more generous payment in the first year. Many other US utility motor rebate programs have offered less generous incentives and used less intensive marketing, but have had only marginal impacts on markets (often 20--30%), or have taken many years to have an impact. This program will test the theory that it is better to strike hard at the right moment than to gnaw at the edges of a market for many years. While the program was designed for one utility, the overall approach would be more effective at working with vendors and customers if utilities joined together to sponsor a similar program with common terms and single redemption centers. This may be an option in the coming months.
- Research Organization:
- Pacific Energy Associates, Inc. (US)
- OSTI ID:
- 20001934
- Report Number(s):
- CONF-970750-; TRN: IM0001%%371
- Resource Relation:
- Conference: 1997 ACEEE Summer Study on Energy Efficiency in Industry, Saratoga Springs, NY (US), 07/08/1997--07/11/1997; Other Information: PBD: 1997; Related Information: In: 1997 ACEEE summer study on energy efficiency in industry: Proceedings, refereed papers, and summary monographs, 574 pages.
- Country of Publication:
- United States
- Language:
- English
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