Those are Incentives, Not Rebates:Incentives, Using DSM Funds to Leverage Investment in Low-Income Multifamily Housing

Elizabeth M. Chant and Jennifer L. Chiodo, Vermont Energy Investment Corporation
Michael Sherman, Peregrine Energy Group

Keywords

Abstract

Vermont established the Residential Energy Efficiency Program (REEP) in 1997 to overcome barriers to energy improvements in low-income multifamily housing and to promote energy investment in this difficult market. REEFs innovative design combines DSM resources from partner utilities with resources from the low-income Weatherization Assistance Program (WAP) and provides technical assistance that includes input from both the REEP and WAP technical staffs.

REEP is comprehensive in its approach and fuel-blind in its use of incentives. All cost-effective opportunities for energy savings are analyzed and presented to building owners. DSM and WAP incentives are pooled and used to promote the full package of recommended measures. Incentives are presented in support of the comprehensive project, rather than on a prescriptive-measure basis. This allows REEP to encourage adoption of all cost-effective measures, rather than capturing only electric savings or only those measures with short paybacks that owners would do on their ownwith no incentive.

Since 1997, REEP has addressed more than 1,350 residential units and estimates annual savings of 3,866 MWh and 13,506 MMBTU (net for fuel switch projects). Annual energy cost savings are estimated at over $475,000. With $750,000 in incentives, REEP has generated nearly $2.3 million of efficiency investments.

This paper examines factors that contribute to REEFs success in this difficult market and explores potential replicability. The design of the program, the willingness ofthe utility and WAP partners to be innovative, and the flexibility of REEFs implementation are just some ofthe keys to REEP’s successes.