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This study analyzed the cost performance of electricity efficiency programs implemented by 116 investor-owned utilities between 2009 and 2015 in 41 states, representing about three-quarters of the total spending on U.S. efficiency programs. We applied our typology to characterize efficiency programs along several dimensions (market sector, technology, delivery approach, and intervention strategy) and report the costs incurred by utilities and other program administrators to achieve electricity savings as a result of the programs. Such cost performance data can be used to compare relative costs of different types of efficiency programs, evaluate efficiency options alongside other electricity resources, benchmark local efficiency programs against regional and national cost estimates, and assess the costs of meeting state efficiency policies. The savings-weighted average cost of saved electricity for the period was $0.025/kilowatt-hour (kWh). The cost of saved electricity for programs that targeted residential customers was $0.021/kWh, compared to $0.025/kWh for programs for commercial and industrial customers. Ultimately, we developed an aggregate program savings “cost curve” for the actual electricity efficiency resource during the period that provides insights into the relative costs of various types of efficiency programs and the savings contribution of each program type to the efficiency resource at a national level.

We compiled information on state policy drivers (e.g., DSM plan filings, IRPs, new legislation or major public utility commission decisions on electricity efficiency) through August 2018.

Midcontinent ISO); Carmen Best (Recurve); Brian Kooiman (OhmConnect); Brenda Chew (Smart Electric Power Alliance); Tim Woolf (Synapse Energy Economics); Julie Michals (E4theFuture); and Tom Eckman (Berkeley Lab consultant). We also thank other experts we interviewed (Appendix A) and SEE Action Network Executive Committee members who provided feedback on draft materials for the report.All opinions, errors, and omissions remain the responsibility of the authors. All reference URLs were accurate as of the date of publication. Other Reports in This Series Introduction for State and Local Governments: Describes grid-interactive efficient buildings in the context of state and local government interests; highlights trends, challenges, and opportunities for demand flexibility; provides an overview of valuation and performance assessments for demand flexibility; and outlines actions that state and local governments can take, in concert with utilities, regional grid operators, and building owners, to advance demand flexibility  Determining Utility System Value of Demand Flexibility from Grid-Interactive Efficient Buildings:Describes how current methods and practices that establish value to the electric utility system of investments in energy efficiency and other distributed energy resources (DERs) can be enhanced to determine the value of grid services provided by demand flexibility resourcesIn addition, DOE offers a fact sheet, overview, and series of technical reports with more information on technologies and strategies for grid-interactive efficient buildings: https://www.energy.gov/eere/buildings/gridinteractive-efficient-buildings.