Topic:"Incentive Structures" in M12249

1 Table 5: Program Savings & Investment 2026 DSM Extension 2026 Investment a ($ million) Lifetime Benefits b ($ million) First Year Energy Savings (GWh) Lifetime Energy Savings c (GWh) Peak EE Demand Savings (MW) Available Capacity (MW) To...

AI summary Table 5 outlines the 2026 DSM Extension program savings and investment, including residential and business energy efficiency programs, enabling strategies, and demand response initiatives. It details investment amounts, lifetime benefits, energy savings, and other metrics for various programs.

5.1 RESIDENTIAL EFFICIENT PRODUCT REBATES The Residential Efficient Product Rebates program offers residential customers financial incentives for consumer products through retail channels. In the 2023-2025 DSM Plan, the program included tw...

AI summary The Residential Efficient Product Rebates program, part of the DSM Plan, initially had two components: Instant Savings and Appliance Retirement. E1 terminated Appliance Retirement in 2025 due to rising costs and declining savings, leaving only Instant Savings in the 2026 DSM Extension.

18 5.3.1 BUSIN ESS EN ERGY REBATES - 19 The Business Energy Rebates program component offers two pathways: Instant Rebates and Application - Rebates. For Instant Rebates, customers have access to prescriptive rebates[31](#page-72-4) 20 on...

AI summary The Business Energy Rebates program offers two rebate pathways: Instant Rebates, which provide prescriptive rebates at the point of purchase through participating distributors, and Application Rebates, which allow for adjustments based on specific facility conditions and require project applications to E1. The program aims to encourage energy efficiency by offering rebates on a range of equipment.

10 Table 16: 2026 Summary of Business Energy Rebates Program Component Extension Investment ($M) Energy Savings (GWh) Demand Savings (MW) Participation (products) 2026 Total 8.1 31.9 5.2 159,941 Program Component Changes • Business Energy...

AI summary Table 16 summarizes the 2026 Business Energy Rebates Program Component, including investment, energy and demand savings, and participation numbers. The 2026 DSM Extension will follow the same approach as the approved 2023-2025 Plan, with marketing strategies including omnichannel campaigns, paid media, in-store promotion, and outreach to contractors and trade professionals.

1. Evaluated Net Demand Reduction at the Generator In 2024, Efficiency Nova Scotia operated two residential programs (Residential Efficient Product Rebates and Existing Residential) with nine components; three BNI (business, non-profit and...

AI summary In 2024, Efficiency Nova Scotia operated multiple residential and business energy efficiency programs with various components, including residential rebates, business incentives, and demand response initiatives.

A. Appliance Retirement Program (ARet) The Appliance Retirement (ARet) program is one of two program components of the Residential Efficient Product Rebates program. Appliance Retirement advances the retirement of old, inefficient full siz...

AI summary The Appliance Retirement (ARet) program retires inefficient appliances (refrigerators, freezers, air conditioners) via rebates and free removal, retiring 77,696 units since 2012. Participants must own working appliances over 10 years old; certain appliances require co-retirement with full-sized units. ARCA Canada Inc. handles collection and recycling. Rebates range from $10–$50 per appliance. Efficiency Nova Scotia adjusted criteria post-2016 to boost participation and cost-effectiveness.

B. Instant Savings (IS) The Instant Savings program is one of two components of the Residential Efficient Product Rebates program. Instant Savings is an instant cash rebate program offered to purchasers of energy efficient products, delive...

AI summary The Instant Savings (IS) program, part of the Residential Efficient Product Rebates, offers instant cash rebates for energy-efficient products via retailers and online platforms. In 2024, 395,472 products were sold, with Energy Start LED Fixtures leading sales. Energy savings rose 73% to 26.884 GWh, and peak demand savings reached 2.955 MW. A 2025 phase-out of LED rebates was announced. The program's evaluation focuses on energy savings, GHG reductions, and market impact.

C. Home Energy Assessment (HEA) Home Energy Assessment (HEA) is a component of the Existing Residential Programs. This program encourages homeowners to increase the efficiency and comfort of their homes by providing rebates for qualified e...

AI summary The Home Energy Assessment (HEA) program offers rebates for energy efficiency retrofits and equipment. It uses 'test-in/test-out' audits and blower door testing to measure performance. A 2024 marketing campaign focused on promoting heat pumps for electricity-saving homes, though the program also serves non-electric homes since 2018. The 2024 evaluation included surveys, audit reviews, energy savings calculations, and AMI data analysis.

D. Green Heat Green Heat is a component of Efficiency Nova Scotia's Existing Residential program, providing financial incentives for the installation of efficient heating systems that use fuel from renewable resources. The new equipment ca...

AI summary Green Heat, part of Efficiency Nova Scotia's program, offers incentives for renewable heating systems. Installations dropped 21% in 2024 due to participants shifting to the Home Energy Assessment (HEA) and Canada Greener Homes Grant (CGH) programs for higher federal incentives. The program includes heat pumps, biomass, solar, and demand reduction measures, with on-bill financing by Nova Scotia Power.

Efficient Product Installation (EPI) The Efficient Product Installation program (EPI) provides free direct installation of energy-efficient products to homeowners and renters, provided through contractors. In 2024 the Evaluator conducted a...

AI summary The Efficient Product Installation (EPI) program provides free installation of energy-efficient products. In 2024, a market evaluation identified new opportunities, including nine jurisdictions scanned. New eligible measures include smart thermostats, lighting products, and air sealing. The program expanded to include electrician-installed measures as E1 phases out lighting initiatives.

G. Affordable Multifamily Housing (AMH) The Affordable Multifamily Housing (AMH) program provides affordable-housing owners and nonprofit organizations, including rehabilitation and transition housing, with incentives for building-wide ene...

AI summary The Affordable Multifamily Housing (AMH) program offers incentives for energy retrofits in affordable housing, funded by electric ratepayers and the Province of Nova Scotia. Since 2021, the Green Fund increased incentives to 80% for electrical projects and 100% for shelters. Participation rose from 79 to 83 projects between 2023-2024, with comprehensive projects increasing by 70% and prescriptive projects decreasing slightly. The Evaluator noted lower savings per prescriptive project and outlined evaluation objectives including energy savings and GHG emission reductions.

The Evaluator conducted: - Interviews with program staff, participants, and Energy Advisors. - Interviews with dropped-out participants and non-participants to analyze barriers to participation and operating agreement design. To determine...

AI summary The Evaluator assessed the Affordable Multifamily Housing (AMH) program, noting high participant satisfaction but challenges with incentive clarity, project delays, and audit templates. Energy savings fell short of targets, though participation increased. Recommendations include revising incentives, providing technical support, and improving audit templates. The evaluation method was deemed appropriate.

This program serves the business, non-profit and institutional sector (BNI sector). The Efficient Product Rebates program operates the Business Energy Rebates (BER) program. This program has two components, Instant Rebates at point-of-sale...

AI summary The Business Energy Rebates (BER) program, serving the BNI sector, offers instant rebates at point-of-sale and mail-in rebates. In 2024, point-of-sale rebate savings declined 7.7% compared to 2023, with a significant drop in LED Linear Lamps. The Net to Gross Ratio (NTGR) for instant rebates increased slightly to 84% in 2024. The Evaluator provided nine recommendations to improve program delivery, tracking, and marketing, including updating baselines for LED products.

Recommendations SVR2024-BNI Efficient Products – 8. Change baselines for BER and IR rebates to reflect current market practices that have indoor DesignLights Consortium-Standard products as the new baseline with incentives offered for comp...

AI summary The recommendations propose updating BER and IR rebate baselines to use DesignLights Consortium-Standard products as the new benchmark, offering incentives for Premium products. A study on multi-wattage LED lighting products is suggested if existing data is unavailable, focusing on popular products and market regions.

2. BNI Efficient Products Rebates SVR2024-BNI Efficient Products – 8. Change baselines for BER and IR rebates to reflect current market practices that have indoor DLC-Standard products as the new baseline with incentives offered for compar...

AI summary The document proposes adjusting BER and IR rebate baselines to DLC-Standard products, offering incentives for DLC-Premium alternatives. It also recommends reviewing in-situ meter studies for LED lighting products or commissioning a study if necessary.

E1 Responses to Nova Scotia Energy Board (NSEB) Information Requests NON-CONFIDENTIAL - 1 E1 is committed to controlling costs on an ongoing basis, while at the same time meeting its - 2 performance targets. The organization has implemente...

AI summary E1 outlines cost management strategies including benchmarking, competitive procurement, independent reviews, and process improvement. It emphasizes ongoing assessment of customer incentive levels via its Incentive Setting Process, informed by the CLEAResult study and referenced in matter M07544. Related to the 2026 DSM Extension application (M12249).

Date Filed: June 25, 2025 REDACTED Synapse IR-04, Attachment 1, Page 6 of 19 2026 Investmenta ($ million) Lifetime Benefitsb ($ million) First Year Energy Savings (GWh) Lifetime Energy Savings (GWh) Peak EE Demand Savings (MW) Available DR...

AI summary The document provides a detailed breakdown of investment and benefits for various energy efficiency (EE) and demand response (DR) programs in Nova Scotia for 2026. It outlines program-specific investments, lifetime benefits, energy savings, and associated costs, with a focus on residential, business, non-profit, and institutional programs.

Support for Residential Customers – Efficient Products Rebates

AI summary The document discusses Nova Scotia Power's (NSP) Efficient Products Rebates program, administered by EfficiencyOne (E1), aimed at supporting residential customers through energy-efficient product incentives. The Demand Side Management Advisory Group (DSMAG) recommended the program, which must pass the Total Resource Cost Test (TRC) and Program Administrator Cost Test (PAC) for approval.

Support for Business Customers – Direct Installation Program Direct Installation, marketed as Small Business Energy Solutions provides small business customers with access to technical assistance and financial incentives for the installati...

AI summary The Direct Installation Program, marketed as Small Business Energy Solutions, provides technical assistance and incentives for energy-efficient equipment installation. 2024 changes increased eligibility to 600,000 kWh annually and extended preapproval windows. 2026 enhancements include a $5.8 million investment for over 42,000 product installations, improved contractor portals, and expanded commercial direct installation services.

Support for Business Customers – Business Energy Rebates The Business Energy Rebates program component offers two pathways: Instant Rebates and Application Rebates. - For Instant Rebates, customers have access to prescriptive rebates on a...

AI summary The Business Energy Rebates program offers two pathways: Instant Rebates via point-of-purchase discounts and Application Rebates through project applications to E1. A 2026 investment of $8.1 million aims to install over 160,000 energy-efficient products, managed by EfficiencyOne.

Support for Business Customers – Demand Response - The BNI DR program component offers financial incentives to BNI customers for the DR capacity made available during peak events called by NS Power, aiming to reduce their electric load dur...

AI summary The BNI DR program provides financial incentives to customers for reducing electric load during peak events called by NSP. The 2026 DSM Extension will follow the 2023-2025 Plan's approach, focusing on Curtailment and Commercial Batteries, with annual payments based on performance during DR events.

Support for Business Customers – Demand Response (con't) - Eco Shift pilot, including: - DLC smart thermostats: utility control of smart thermostats (mini-split heat pumps, central heat pumps, and electric baseboards). E1 has included a br...

AI summary The Eco Shift pilot under E1 includes demand response initiatives like smart thermostats, water heater controllers, EV managed charging, and battery control. Participants receive annual payments and upfront incentives. A 2026 investment of $2.6 million aims to support over 400 customers through these programs.

E1 Responses to Synapse Energy Economics (Synapse) Information Requests NON-CONFIDENTIAL 1 profit organizations, affordable housing entities, provincial, municipal, regional housing 2 authorities – or "Housing") as shown in the calculation...

AI summary E1 explains its methodology for estimating low-income participation in BER-Instant Rebates (BER-IR) by assuming a proportion similar to BER-Application Rebates (BER-AR). The same methodology applies to BNI and Small Business Energy Solutions (SBES) programs. The text references E1's 2026 DSM Extension application (M12249).

EfficiencyOne (E1) Responses to Small Business Advocate (SBA) Information Requests NON-CONFIDENTIAL - 1 resulted in a change to unitary energy savings for LED lighting measures and updated the - 2 free-ridership level for LED lamps and fix...

AI summary EfficiencyOne (E1) applied 2024 evaluation findings to adjust 2025 tracked energy savings, noting a 7.7% decline in BER evaluated savings due to reduced LED Linear Lamp sales. The 2024 Peach Report recommended updating BER baselines to reflect current DesignLights Consortium standards, with no further study deemed necessary.

Response IR-5-b: - The BNI Efficient Products Rebates (BER) evaluation slightly increases the Net to Gross Ratio - (NTGR) from 81% in 2023 to 84% in 2024, but this does not fully offset the decline in savings. - However, this is not relate...

AI summary The BNI Efficient Products Rebates (BER) evaluation slightly increases the Net to Gross Ratio (NTGR) from 81% in 2023 to 84% in 2024, but this does not offset declining savings. Changing BER and IR rebate baselines is unrelated to NTGR and instead reflects market transformation in indoor lighting efficiency, requiring the evaluator to use the market transformation paradigm to explain program changes.

12 Table 3. Cost-Effectiveness by Energy Efficiency Program Component for 2026 DSM 13 Extension Sector Program Component PAC TRC Residential Energy Efficiency Instant Savings 2.0 1.0 Affordable Multi-Family Housing 1.1 0.6 Affordable Singl...

AI summary Table 3 provides a breakdown of the cost-effectiveness of various energy efficiency program components under the 2026 DSM Extension, including metrics such as Program Administrator Cost (PAC) and Total Resource Cost (TRC) across residential, business, and institutional sectors.

Incentive Calculations for the Project Cost-effectiveness Analysis Tool (CAT) Efficiency Vermont – Burlington, Vermont (November 2008 – June 2010) - Aided in the design of a new approach to calculating incentives for custom energy efficien...

AI summary Efficiency Vermont contributed to designing a new method for calculating incentives for custom energy efficiency projects, focusing on financing and achieving a desired rate of return. They modified the CAT's Excel VBA-based cash-flow projection engine to support this approach during 2008–2010.

Econoler Response to SVR24-G-1: Econoler disagrees that the 2024 evaluated energy savings for compressed air leak projects completed under the Custom Incentives Program (Custom) should not be accepted. Econoler considers them to have been...

AI summary Econoler argues that the 2024 compressed air leak project energy savings under the Custom Incentives Program are valid, complying with industry standards and using trained technicians. They clarify that the 2024 evaluation included partial claims from prior years and true-up adjustments, following existing reporting practices. The Peach Report recommends aligning the program with UMP protocol requirements.

ort for incentive programs. Based on a review of seven jurisdictions where incentives are available for compressed air leak projects, Econoler also said none require the recommended test be performed. [54] Regarding the pattern of claims,...

AI summary Econoler reviewed savings claims for compressed air leak projects, noting no other jurisdictions require the recommended test. Savings claims began in 2022 after customer-E1 discussions, with variations due to differing leakage rates across departments. Econoler disputed a 2024 adjustment claim.

5.5 Mid-course Adjustments [67] The Industrial Group expressed concerns about E1's discretion to reallocate spending between programs and customer classes through "mid-course adjustments". The Industrial Group said E1 was granted this disc...

AI summary The Industrial Group criticizes E1's lack of definition for 'substantial change' in mid-course adjustments, arguing a 25% spending shift violates Board guidelines. E1 defends flexibility but commits to improved reporting. Proposed 2026 spending increases for industrial classes face scrutiny over customer cost impacts.

14 Request IR-9: - 15 (a) Please explain the "enhanced discussion on variances" referenced on 16 page 6-7. - 17 (b) Please describe the specific steps being taken by E1 to manage inter-class 18 reallocation of budgetary amounts, including...

AI summary Request IR-9 seeks clarification on an 'enhanced discussion on variances' referenced on pages 6-7 and asks E1 to detail steps for managing inter-class budget reallocation, including caps on program components, availability, and yearly limits during the 2023-2025 Plan and beyond.

- 25 (b) Please explain the "LED baseline changes in 2025" and why increased 26 rebates were required. 1 2 (c) Did E1 have data or information that suggested that consumers would not purchase LEDs absent higher incentives? If so, please pr...

AI summary The text requests an explanation of 'LED baseline changes in 2025' and the need for increased rebates. It also includes requests for technical data related to the 2026 DSM Extension Energy Efficiency, including Excel files and alignment of measures with previous years' data.

Request IR-4: Refer to M12249, Exhibit E-2, 2024 Peach Report, Section X, Individual Program Component Review, subsection B. Instant Savings (IS), pages 21-22, under Evaluator Findings on p. 22, which includes the following 5 bullets, at p...

AI summary The document discusses Instant Savings (IS) exceeding 2024 targets by 77% and 45% for energy and peak demand savings, with LED products driving 69% of savings. It also notes a 17% increase in non-lighting savings and a 20% reduction in free ridership. The 5th bullet highlights discrepancies between evaluator and Efficiency Nova Scotia's tracked savings. Additionally, BER rebate program savings declined 7.7% in 2024, with recommendations to update baselines for energy efficiency programs.

Request IR-4: Refer to M12249, Exhibit E-2, 2024 Peach Report, Section X, Individual Program Component Review, subsection B. Instant Savings (IS), pages 21-22, under Evaluator Findings which includes the following 5 bullets, at page 22: Ev...

AI summary Request IR-4 challenges the Peach Report's evaluation of Instant Savings (IS) program results, highlighting discrepancies in savings definitions and metrics. Key issues include unclear 'savings at the generator' terminology, 77% and 45% overachievement of 2024 energy/peak demand targets, and 16% higher evaluator-tracked savings compared to Efficiency Nova Scotia's data. Requests clarification on terminology and recommendations to improve DSM plan cost-benefit.

Request IR-5: Refer to M12249, Exhibit E-2, 2024 Peach Report, Section X, Individual Program Component Review, subsection J. BNI Efficient Products Rebates (BER), pages 58-60, which states, at pages 58-59: Point-of-sale rebate evaluated sa...

AI summary The 2024 Peach Report notes a 7.7% decline in BER program savings, with LED Linear Lamps dropping 41%, but a slight increase in NTGR from 81% to 84% mitigated the decline. The report recommends updating baselines for BER and IR rebates to use DesignLights Consortium-Standard products as the new baseline. Questions are raised about the statistical significance of BER results compared to demand response programs and how the baseline change would address savings decline.

2026 DSM PROGRAMMING CHANGES On the residential side, E1 ended appliance retirement on January 8, 2025, as delivery costs were rising, savings were declining as units being retired were newer and more efficient already. In addition, starti...

AI summary E1 ended appliance retirement in 2025 due to rising costs and declining savings, replaced seasonal campaigns with year-round rebates, and added electrician-installed measures for 'Eco Shift' demand response. 'Green Heat' was retired due to lower participation from federal grants, while HEA introduced virtual audits and expanded eligibility. BNI programs saw small business measure expansions and commercial battery additions to demand response.

Table 5: 2026 Program Savings and Investment 2026 Investment Lifetime Benefits b First Year Energy Savings Lifetime Energy Savings c Peak EE Demand Savings Available Capacity Total Resource Cost Test Program Administrator Cost Test ,,,,,,,...

AI summary Table 5 outlines the 2026 Program Savings and Investment for energy efficiency and demand response programs in Nova Scotia. It includes details on investment amounts, energy savings, and capacity benefits for residential, business, and institutional programs.

ort for incentive programs. Based on a review of seven jurisdictions where incentives are available for compressed air leak projects, Econoler also said none require the recommended test be performed. [54] Regarding the pattern of claims,...

AI summary Econoler reviewed savings claims for compressed air leak projects, noting seven jurisdictions don't require a specific test. Historical claims since 2022 stem from 2021 discussions with E1. Facilities' complex networks led to multiple, variable savings claims. Econoler disputed an adjustment to a 2024 value.

5.5 Mid-course Adjustments [67] The Industrial Group expressed concerns about E1's discretion to reallocate spending between programs and customer classes through "mid-course adjustments". The Industrial Group said E1 was granted this disc...

AI summary The Industrial Group raised concerns about E1's authority to make mid-course adjustments to DSM program spending, arguing that a 25% variance constitutes a 'substantial change' and requesting stricter budget management. E1 acknowledged not defining 'substantial change' but emphasized the need for flexibility, proposing enhanced reporting and spending management strategies. The Industrial Group opposed unfettered cost shifting between customer classes, citing impacts on customer rates.