Energy incentive programs running out of funds earlier than expected

As predicted earlier this year, we’ve seen many programs announce that their funding is already exhausted for 2016. Historically, this trend typically occurs late in quarter three or quarter four. Recent program announcements, including BG&E in Maryland,Entergy Mississippi and Eversource New Hampshire have me speculating that there are a few reasons for these early demises.

• Programs aren’t appropriately funded. Some programs just don’t receive the budget that allows for yearlong success. Some utilities start with a small budget and it only takes a few large projects early in the year to potentially wipe out the entire year. I’ve noticed some programs decreasing their customer cap to account for this.
• Programs are gaining popularity. There has definitely been an uptick in program participation over the years, and perhaps this year it’s at an all-time high. Some programs are even backlogged 5-6 weeks due to the number of applications already submitted this year.
• Incentives have increased. There are some programs that currently offer very lucrative incentives for LEDs. With the costs of LEDs going down and high incentives available, it may make sense for customers to make the switch in 2016 compared to other years.

Program funding is never guaranteed and as we can see in 2016, it can deplete very quickly. If you are on the fence with any current projects, I encourage you to act sooner rather than later to avoid any incentive funding issues later this year.

Katie Quam is Energy Management Collaborative's Manager of Customer Incentives. In this role she utilizes her knowledge of incentive programs nationwide to expedite the application process and secure maximum incentive dollars for EMC customers.