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Title: Estimating the cost of saving electricity through U.S. utility customer-funded energy efficiency programs

Abstract

The program administrator and total cost of saved energy allow comparison of the cost of efficiency across utilities, states, and program types, and can identify potential performance improvements. Comparing program administrator cost with the total cost of saved energy can indicate the degree to which programs leverage investment by participants. Based on reported total costs and savings information for U.S. utility efficiency programs from 2009 to 2013, here we estimate the savings-weighted average total cost of saved electricity across 20 states at 0.046 per kilowatt-hour (kW h), comparing favorably with energy supply costs and retail rates. Programs targeted on the residential market averaged 0.030 per kW h compared to 0.053 per kW h for non-residential programs. Lighting programs, with an average total cost of 0.018 per kW h, drove lower savings costs in the residential market. We provide estimates for the most common program types and find that program administrators and participants on average are splitting the costs of efficiency in half. More consistent, standardized and complete reporting on efficiency programs is needed. Differing definitions and quantification of costs, savings and savings lifetimes pose challenges for comparing program results. Reducing these uncertainties could increase confidence in efficiency as a resourcemore » among planners and policymakers.« less

Authors:
 [1];  [1];  [1];  [1];  [1];  [1];  [1]
  1. Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Publication Date:
Research Org.:
Lawrence Berkeley National Laboratory (LBNL), Berkeley, CA (United States)
Sponsoring Org.:
USDOE Office of Electricity (OE)
OSTI Identifier:
1650029
Alternate Identifier(s):
OSTI ID: 1396879
Grant/Contract Number:  
AC02-05CH11231
Resource Type:
Accepted Manuscript
Journal Name:
Energy Policy
Additional Journal Information:
Journal Volume: 104; Journal ID: ISSN 0301-4215
Publisher:
Elsevier
Country of Publication:
United States
Language:
English
Subject:
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION; energy efficiency; ratepayer-funded efficiency; demand-side management; cost of saved energy; savings target; emissions reduction

Citation Formats

Hoffman, Ian M., Goldman, Charles A., Rybka, Gregory, Leventis, Greg, Schwartz, Lisa, Sanstad, Alan H., and Schiller, Steven. Estimating the cost of saving electricity through U.S. utility customer-funded energy efficiency programs. United States: N. p., 2017. Web. doi:10.1016/j.enpol.2016.12.044.
Hoffman, Ian M., Goldman, Charles A., Rybka, Gregory, Leventis, Greg, Schwartz, Lisa, Sanstad, Alan H., & Schiller, Steven. Estimating the cost of saving electricity through U.S. utility customer-funded energy efficiency programs. United States. https://doi.org/10.1016/j.enpol.2016.12.044
Hoffman, Ian M., Goldman, Charles A., Rybka, Gregory, Leventis, Greg, Schwartz, Lisa, Sanstad, Alan H., and Schiller, Steven. Tue . "Estimating the cost of saving electricity through U.S. utility customer-funded energy efficiency programs". United States. https://doi.org/10.1016/j.enpol.2016.12.044. https://www.osti.gov/servlets/purl/1650029.
@article{osti_1650029,
title = {Estimating the cost of saving electricity through U.S. utility customer-funded energy efficiency programs},
author = {Hoffman, Ian M. and Goldman, Charles A. and Rybka, Gregory and Leventis, Greg and Schwartz, Lisa and Sanstad, Alan H. and Schiller, Steven},
abstractNote = {The program administrator and total cost of saved energy allow comparison of the cost of efficiency across utilities, states, and program types, and can identify potential performance improvements. Comparing program administrator cost with the total cost of saved energy can indicate the degree to which programs leverage investment by participants. Based on reported total costs and savings information for U.S. utility efficiency programs from 2009 to 2013, here we estimate the savings-weighted average total cost of saved electricity across 20 states at 0.046 per kilowatt-hour (kW h), comparing favorably with energy supply costs and retail rates. Programs targeted on the residential market averaged 0.030 per kW h compared to 0.053 per kW h for non-residential programs. Lighting programs, with an average total cost of 0.018 per kW h, drove lower savings costs in the residential market. We provide estimates for the most common program types and find that program administrators and participants on average are splitting the costs of efficiency in half. More consistent, standardized and complete reporting on efficiency programs is needed. Differing definitions and quantification of costs, savings and savings lifetimes pose challenges for comparing program results. Reducing these uncertainties could increase confidence in efficiency as a resource among planners and policymakers.},
doi = {10.1016/j.enpol.2016.12.044},
journal = {Energy Policy},
number = ,
volume = 104,
place = {United States},
year = {Tue Jan 24 00:00:00 EST 2017},
month = {Tue Jan 24 00:00:00 EST 2017}
}

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Cited by: 18 works
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Works referenced in this record:

The Short-Run and Long-Run Effects of Behavioral Interventions: Experimental Evidence from Energy Conservation
journal, October 2014


Review of demand-side data needs for least-cost utility planning
journal, May 1990


What Does a Negawatt Really Cost? Evidence from Utility Conservation Programs
journal, January 1992


Works referencing / citing this record:

Review of the United States energy system in transition
journal, January 2019


Determinants of energy futures—a scenario discovery method applied to cost and carbon emission futures for South American electricity infrastructure
journal, March 2019

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