Topic:"Program Requirements" in M07544

Table 3: Research Engagement Phase Research and Engagement Phase can set the stage for incentive adjustments in order to properly balance the incentive rate vs. the identified market barriers and the requirements to adequately deliver the...

AI summary The text discusses the importance of setting incentive rates in energy efficiency programs to balance market barriers and savings goals. It highlights how financial forecasting is used to assess the impact of incentives on program budgets and identify potential budget constraints that may hinder program delivery strategies.

With respect to program budgets, there may be an acceptable incentive level threshold that is based on total expenditure or unit costs. For certain programs, this threshold is often set at a maximum incentive for a project, or on some kind...

AI summary The text discusses the importance of setting acceptable incentive level thresholds for program budgets, based on total expenditure or unit costs, and highlights the need for recommendations on absolute limits or suggested boundaries based on forecasted program expenditure after accounting for administration costs.

For the Instant Savings Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities Understand Financial Impacts For Instant Savings, EfficiencyOne gains an understanding of financial...

AI summary CLEAResult recommends continuing current activities for the Instant Savings Program, including program evaluation, planning, and financial analysis. They also suggest implementing general principles to support the program, particularly regarding incentive level changes and new measure introductions.

updated, consistent with the recommendations in the General Principles section. Understand Supply Chain and Service Provider Considerations For the Custom Program, EfficiencyOne gains an understanding of the supply chain and service provid...

AI summary The document discusses how EfficiencyOne gains understanding of supply chain and service provider considerations through program management and evaluation. It also outlines how financial impacts are assessed through project screening, program management, and evaluation. CLEAResult recommends continuing current activities and implementing General Principles to support the program.

Understand Customer Motivation and Barriers for Participation For the Business Energy Rebates Program, EfficiencyOne gains an understanding of customer motivations and barriers through: 1. Market Research; 2. Ongoing Program Management; 3....

AI summary EfficiencyOne outlines methods to understand customer motivation and barriers for participation in the Business Energy Rebates Program, including market research, ongoing program management, benchmarking, and program evaluation. Financial support was identified as a key factor influencing business participation in energy efficiency initiatives.

iderations through the following activities: 1. Ongoing Program Management and 2. Program Evaluation. Ongoing Program Management Through the delivery of the program, EfficiencyOne interacts with the supply chain regularly through the discu...

AI summary The Home Energy Assessment program recommends continuing ongoing program management and evaluation activities, including interactions with service organizations and annual evaluations to gather feedback and suggestions for improvement.

While Ontario does not have a documented incentive level setting methodology, a formal process has been established for all potential program changes and new program proposals. This process covers incentive level changes. All proposed chan...

AI summary Ontario lacks a formal incentive level setting methodology but has a process for program changes and proposals involving business case development and approval by the IESO. Key considerations include technology costs, savings, market structure, and financial impact. Incentive levels are often reviewed annually or during program evaluations, with specific examples like the Retrofit program's recent lighting track changes.

Cost Effectiveness Requirements The gas utilities' overall DSM goals are to achieve all the cost-effective DSM available in its market. The OEB determined that cost effectiveness should be based on the Total Resource Cost-plus (TRC-plus) t...

AI summary Gas utilities must achieve all cost-effective Demand Side Management (DSM) in their markets. The Ontario Energy Board (OEB) mandates the Total Resource Cost-plus (TRC-plus) test for screening programs, with low-income programs requiring a minimum TRC-plus ratio of 0.7 and Resource Acquisition programs requiring 1.0. Market transformation programs are exempt from cost-effectiveness testing.

After determining incentive values by analyzing the considerations that determine the two influences (perceived value, return on investment) of incentive setting, the final requirement is to establish and follow a review protocol. In some...

AI summary The text outlines the importance of establishing a periodic review protocol for energy efficiency program incentives. It emphasizes the need for ongoing assessments based on factors such as market transformation, technology evolution, and stakeholder engagement. Review frequency may vary depending on program structure and technology maturity, with some requiring more frequent evaluations.

Research and Engagement Phase Financial Impacts & Risks Using preliminary incentive rates identified in the previous phase and participation forecast, the impact on the aggregate administrator budget and the program budget can be determine...

AI summary The text discusses the financial impacts and risks associated with incentive rates in energy programs, emphasizing the need to balance administration and incentive funding to overcome market barriers. The Energy Trust of Oregon is highlighted as an example of an organization that considers these impacts during program development.

Understand Supply Chain and Service Provider Considerations For Instant Savings, EfficiencyOne gains an understanding of the supply chain and service provider considerations through the following activities: 1. Ongoing Program Management;...

AI summary EfficiencyOne engages in ongoing program management and annual program evaluations to understand supply chain and service provider considerations for the Instant Savings Program. Annual meetings with retailers and manufacturers provide insights into stocking plans, product pricing, and marketing strategies, which support technology assessments and market research.

Principles section. Understand Supply Chain and Service Provider Considerations For the Custom Program, EfficiencyOne gains an understanding of the supply chain and service provider considerations through: 1. Ongoing Program Management and...

AI summary The document discusses how EfficiencyOne understands supply chain and service provider considerations through program management and evaluation, and how it assesses financial impacts via project screening, program management, and evaluation. CLEAResult recommends continuing current activities and implementing general principles to support the program.

Distributors can provide insight on the contractor and customer program experience. EfficiencyOne also has dedicated Application Coordinators for application support and approval in the program. They work with both the distributors in the...

AI summary EfficiencyOne works with distributors and customers to provide insight into program experiences and manage applications. Program benchmarking and evaluation are conducted to understand customer motivations and barriers, with recommendations to continue market research and evaluation activities for the commercial and industrial sectors.

ough the following activities: 1. Market Research; 2. Ongoing Program Management; 3. Program Benchmarking; and 4. Program Evaluation. Market Research EfficiencyOne conducted research with the participants in the Home Energy Assessment prog...

AI summary EfficiencyOne conducted market research and ongoing program management for the Home Energy Assessment program, finding that initial audits provided value and that 25% incentives were more effective than interest-free financing. They also performed demographic research and benchmarked the program against similar initiatives.

FUTURE TARGETS The Conservation First Framework covers the time period from 2015-2020. The province-wide budget for the six years is $2.2 billion, of which LDCs are provided with $1.8 billion. The IESO retains some funds for central servic...

AI summary The Conservation First Framework (2015-2020) allocates $2.2B province-wide, with $1.8B for LDCs and IESO retaining funds. Ontario's total target is 8.7 TWh (7 TWh for LDCs), with annual savings at 1.3% of sales. Each LDC must complete a CDM plan meeting cost-effectiveness and budget targets.

Research and Engagement Phase can set the stage for incentive adjustments in order to properly balance the incentive rate vs. the identified market barriers and the requirements to adequately deliver the program to meet savings goals. Many...

AI summary The text discusses the importance of adjusting incentive rates to balance market barriers and program delivery strategies, emphasizing the need to assess the impact of incentive rates on program budgets and identify potential budget constraints that may hinder achieving savings goals.

For the Instant Savings Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities Understand Financial Impacts For Instant Savings, EfficiencyOne gains an understanding of financial...

AI summary CLEAResult recommends continuing current activities for the Instant Savings Program, including program evaluation, planning, and financial analysis, while implementing general principles to support incentive level changes and new measures. Cost effectiveness is assessed using TRC and PAC, with regulatory requirements of TRC ≥1.0 at the program level.

Understand Customer Motivation and Barriers for Participation For the Custom Program, EfficiencyOne gains an understanding of customer motivations and barriers through: 1. Market Research; 2. Ongoing Program Management; 3. Program Benchmar...

AI summary EfficiencyOne conducted market research to understand customer motivations and barriers for participation in the Custom Program. The research found that financial incentives were not effective in driving participation, and educational incentives combined with access to financial support were more valuable. Ongoing program management is also emphasized for improving participation.

For the Business Energy Rebates program, CLEAResult has the following recommendations:  For the Business Energy Rebates Program, EfficiencyOne gains an understanding of especially for customer motivations and barriers through: underperfor...

AI summary CLEAResult recommends that EfficiencyOne conduct market research, ongoing program management, benchmarking, and program evaluation to understand customer motivations and barriers for the Business Energy Rebates program. Research from 2014 highlighted the importance of financial support for business participation in energy efficiency initiatives.

While Ontario does not have a documented incentive level setting methodology, a formal process has been established for all potential program changes and new program proposals. This process covers incentive level changes. All proposed chan...

AI summary Ontario has established a formal process for changing incentive levels in energy programs, requiring a business case development and approval by the IESO. Factors considered include technology costs, savings, market research, and financial impact. Incentive levels are often reviewed annually or during program evaluations, with specific programs like the Retrofit program recently adjusting levels based on historical and future participation trends.

Table 4: Cost Effectiveness Tests and Relationship to Incentive Setting from a Return on Investment Perspective Cost Effectiveness Test General Description and Features Implication for Incentive Setting The PAC can be reported as a ratio (...

AI summary This table outlines the cost-effectiveness tests, focusing on the Program Administrator Cost (PAC) and the Participant Cost (PC). The PAC is presented as a ratio or net benefit, while the PC evaluates the financial perspective of participants over the lifetime of a measure. The PC is not an approved test by the URB and may indicate the need for increased incentives if costs exceed benefits.

Research and Engagement Phase can set the stage for incentive adjustments in order to properly balance the incentive rate vs. the identified market barriers and the requirements to adequately deliver the program to meet savings goals. Many...

AI summary The text discusses the importance of balancing incentive rates with market barriers and program delivery requirements to meet savings goals. It highlights the need to assess the impact of incentive rates on program budgets and identify potential budget constraints that may hinder program delivery strategies.

program delivery structure, there may be options to improve tracking frequency. It is advised that as much granularity as possible should be used for frequency. This granularity will provide insight into potential program or portfolio budg...

AI summary The text discusses the importance of improving tracking frequency in program delivery structures to better manage budget risks and allow for timely adjustments in program spending, with some programs only capable of monthly data tracking.

For the Instant Savings Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities Understand Financial Impacts For Instant Savings, EfficiencyOne gains an understanding of financial...

AI summary CLEAResult recommends continuing current activities for the Instant Savings Program, including program evaluation, planning, and financial analysis, and implementing general principles to support cost-effectiveness and regulatory requirements such as a TRC of ≥1.0.

updated, consistent with the recommendations in the General Principles section. Understand Supply Chain and Service Provider Considerations For the Custom Program, EfficiencyOne gains an understanding of the supply chain and service provid...

AI summary EfficiencyOne gains insights into supply chain and service provider considerations through program management and evaluation. Financial impacts are understood via project screening, program management, and evaluation. CLEAResult recommends continuing current activities and expanding cost-effectiveness screening to include the Program Administrator Cost.

and customer program experience. EfficiencyOne also has dedicated Application Coordinators for application support and approval in the program. They work with both the distributors in the midstream program and customers who access the down...

AI summary EfficiencyOne manages the Business Energy Rebates program with dedicated support and application coordinators. Program design was influenced by Efficiency Vermont, and annual evaluations assess free ridership and spillover savings. Recommendations include continuing market research and segmentation analyses to better understand customer motivations and barriers in the commercial and industrial sectors.

FUTURE TARGETS The Conservation First Framework covers the time period from 2015-2020. The province-wide budget for the six years is $2.2 billion, of which LDCs are provided with $1.8 billion. The IESO retains some funds for central servic...

AI summary The Conservation First Framework (2015-2020) allocates a $2.2 billion province-wide budget, with $1.8 billion for LDCs and IESO retaining some funds. Ontario's target is 8.7 TWh, with LDCs having 7 TWh. Annual savings aim for 1.3% of sales. Each LDC must submit a CDM plan meeting cost-effectiveness criteria and budget alignment.

While Ontario does not have a documented incentive level setting methodology, a formal process has been established for all potential program changes and new program proposals. This process covers incentive level changes. All proposed chan...

AI summary Ontario has established a formal process for proposing and approving changes to incentive levels for energy programs. This process involves business case development, stakeholder review, and consideration of factors like technology costs, savings, and market research. The IESO and LDCs conduct ongoing research and evaluations to inform these decisions, with some programs having annual review cycles.

Incentive Setting Component Factors that can Place Upwards Pressure on Incentive Rates Factors that can Place Downwards Pressure on Incentive Rates Budget Impact • Reduction in administration costs, leaving additional space in the budget....

AI summary The table outlines factors influencing incentive rates in programs, including budget impact, customer and technology research, supply chain discussions, benchmarking, program evaluation, financing, and education. Upward and downward pressures on incentives are identified based on various considerations such as cost changes, customer participation, and market conditions.

FINDINGS AND IDENTIFIED BEST PRACTICES Our jurisdictional research has shown that the majority of jurisdictions employ similar methodologies and approaches to setting incentives. All of the jurisdictions have broad program design, TRM and/...

AI summary The document outlines findings and best practices for setting energy efficiency incentives, noting that most jurisdictions use similar methodologies. While there is no single consolidated process, general frameworks and best practices are identified, with a focus on detailed nuances rather than high-level steps already performed by EfficiencyOne.

Figure 7: Identified Incentive Setting Best Practices Methodology Research and Engagement Phase To de ine he im f t he te t t o rm p ac m ea su re he l s ing d bu dg it t to ta ta t a t, on av s rg e n e is it ica l to ic ip ion te t t cr...

AI summary This figure outlines a methodology for identifying best practices in incentive setting, focusing on the research and engagement phase, including the development of programs, stakeholder input, and the creation of a framework for implementation.

t t t t ug ac p rog ra m ma na g em en w ry ) d hro h he lua ion ive ins ig ht t t t t ag en an ug p rog ra m ev a p roc es s, rec e fro he ly ha in. T h is ica ion is d inu t t to nt m su p p c co mm un en co ura g e co e, d h is ins ig h...

AI summary The text discusses the Instant Savings Program and CLEAResult's recommendations, emphasizing the need for improved program management, communication, and the importance of efficiency and customer engagement. It highlights challenges in implementation and the need for a more effective approach to achieve energy savings.

Principles section. Understand Supply Chain and Service Provider Considerations For the Custom Program, EfficiencyOne gains an understanding of the supply chain and service provider considerations through: 1. Ongoing Program Management and...

AI summary The document discusses how EfficiencyOne understands supply chain and service provider considerations through program management and evaluation, and how it gains insight into financial impacts through project screening and evaluation. It recommends continuing current activities and expanding to include the PAC.

r>ac n er es e nc an ex am p o co n o a na s w re re ne o lua d de ine he ir in d iv i du l c i bu ion lue fo he te to te t tr t to r t to p rog ra m we re ev a rm a on va cu s me r. E f f ic ien On du d de h ic h t de d he ha is ics f t h...

AI summary CLEAResult provides recommendations for the Home Energy Assessment program, focusing on efficiency, program management, and participant cost considerations. The text emphasizes the need for improved program structure, stakeholder engagement, and cost-effective implementation strategies.

While Ontario does not have a documented incentive level setting methodology, a formal process has been established for all potential program changes and new program proposals. This process covers incentive level changes. All proposed chan...

AI summary Ontario has established a formal process for changing incentive levels for energy programs, involving business case development, review, and approval by the IESO. Key considerations include technology costs, savings, penetration, and financial impact. Incentive levels are often reviewed during program evaluations or design processes, with some programs having annual review cycles. The Retrofit program recently updated its prescriptive lighting track incentives based on historical and future participation trends.