ACEEE Evaluates the Impact of Performance Incentives on State Energy Efficiency

A new report from an American Council for an Energy-Efficient Economy (ACEEE) states that performance incentives are an important part of a comprehensive state policy strategy that includes energy efficiency savings targets and utility business model tools.

The report describes the foundation necessary for energy efficiency to thrive as a resource for a utility of the future and analyzes actual energy savings performance compared to the set of policies in place.

While performance incentives play an important role in elevating utility interest in energy efficiency outcomes and are increasingly being aligned with specific savings thresholds to encourage utilities to meet or exceed their targets, by themselves they are not associated with as much energy efficiency achievement as are energy efficiency resource standards (EERS).

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