Analyzing the Potential of Behavior-Based Energy Efficiency Resources within a Utility’s Commercial DSM Portfolio

Abstract

Electric utility program planners and administrators are increasingly challenged to integrate new and cost-effective programs and measures with additional energy savings potential into their Demand-Side Management (DSM) portfolios, especially when faced with state-mandated saving targets under such policies as state-level Energy Efficiency Resource Standards and Renewable Portfolio Standards. Many DSM portfolios could achieve greater impacts and deeper savings by incorporating insights from social and behavioral sciences. Historically, the risk-averse utility industry has not invested much in promoting behavioral programs in their DSM portfolios as they favor the known, persistent savings from the use of financial incentives as a motivator for customers to install new, energy-efficient lighting and appliances. However, through a field study of 174 utility customers within the commercial building sector, this report uses FirstFuel’s advanced energy analytics platform to uncover the potential of non-financial, behavioral strategies to achieve greater energy savings. Results indicate that feedback programs and the use of social norms can yield considerable savings.