Astonishing Results
Examine Surges in Participation at Distributor-Focused Midstream Programs
By shifting the incentive to wholesale distributors, program participation has often at least doubled, and in some cases, increased ten-fold (see Table 1 below).
If interested in speaking to utility program managers and/or consulting firms that have implemented distributor-focused midstream programs, please contact ENERGY STAR at midstreamdistributor@energystar.gov.
| Efficiency Program | Measure | Incentive Amount | Increase in Program Participation |
|---|---|---|---|
| ENERGY STAR Certified Heat Pump Water Heater (HPWH)3 | $600* | 423%4 (PYI)5 |
| ENERGY STAR Certified HPWH | $300/$500** | 750%7 |
| ENERGY STAR Certified HPWH and Natural Gas Water Heaters9 | $300 for gas; $600 for HPWH | 1000%10 (PY2) |
| ENERGY STAR Certified Natural Gas Boiler and Furnaces | $450 to $800 | 234% (PY2) | |
| ENERGY STAR Certified HPWH12 and Natural Gas Water Heaters | $100 for gas; $300 for HPWH14 | Just began program in 2017 |
Next: Why it Works: Understand how the market chain benefits when incentives target distributors >
3 Criteria available online at: http://www.efficiencymaine.com/at-home/heat-pump-water-heater-program/.
4 4/14/17 Email from Andy Meyer indicates downstream in FY 16 was 2,600 HPWHs and was tracking for 11,000 in FY 17.
5 PY1 means the percent increase was realized in program year 1.
7 “Market Madness: Coordinating Supply Chain Players on the HPWH Court”, VEIC, Presented at the ACEEE Hot Water Forum, February 27, 2017. Available online at: http://aceee.org/sites/default/files/pdf/conferences/hwf/2017/Merson_Session4D_HWF17_2.28.17.pdf (PDF, 1.7MB).
9 Criteria available online at: https://www.energizect.com/your-home/solutions-list/high-efficiency-natural-gas-hot-water-rebates.
10 “Promoting ENERGY STAR® Water Heaters and HVAC Equipment through Midstream Incentive Programs”, Presented at the AESP Brown Bag webinar, May 11, 2017.
12 Tied to the NEEA’s Advanced Water Heater Specification (formerly known as the Northern Climate Specification) that includes a requirement of ENERGY STAR certification.
14 HPWH also benefits from an additional $300 midstream rebate from NEEA and a $600 state tax credit.
* Incentive amount changed from $750 to $600 in August 2017.
** $300 for NEEA Tier 1; $500 for NEEA Tier 2 & 3