Incentives can build on the foundations laid by efficiency standards and labels by promoting the purchase of highly efficient products, especially if those products are not yet cost-effective for the average consumer. Well-designed financial incentive programs speed the transformation of the market toward more energy efficient products. As the cost of efficient products decreases over time (through streamlined production and economies of scale), incentives can be phased out. The efficiency gains achieved through the incentive program can then be cemented by more-ambitious standards, in a virtuous cycle of improvement.
SEAD INCENTIVES ACTIVITIES
SEAD supports the development and implementation of energy efficiency incentive programs and facilitates peer-to-peer information sharing on incentive policies and program design best practices. SEAD provides the research and tools needed by policy makers to develop and implement energy efficiency incentive programs that will reduce energy demand and CO₂emissions.
To date, the SEAD incentives program has focused on:
- Developing tools to help policy makers design and finance appliance efficiency programs;
- Assessing benefits and barriers to effective incentive programs across the globe;
- Building a database of global incentive programs;
- Collaborating with governments to improve existing and develop new incentives programs; and
- Sharing best practices and facilitating dialogue between incentive stakeholders.
Further detailed information on the SEAD Incentives Working Group activities is now available. DOWNLOAD THE SEAD INCENTIVES WG BROCHURE.
THE LEERA MODEL
The Incentives Working Group has developed a new tool, the Lawrence Berkeley National Laboratory Energy Efficiency Revenue Analysis (LEERA) model, to help policy makers design revenue-neutral appliance efficiency incentive programs. For more information, DOWNLOAD THE LEERA MODEL BROCHURE.
SEAD INCENTIVE PROGRAM RESOURCES
SEAD has published a report examining incentives program design and implementation across the globe. Further information on the report and accompanying materials are available here.
SEAD STAKEHOLDER COLLABORATION ACTIVITIES
On 26 April 2012, the SEAD Incentives working group launched its first initiative, the Efficient Product Promotion Collaborative. The Collaborative will explore options to provide technical support for program design and foster information exchange between electric utilities, regulators, policy makers, and other parties to further the scope, benefits, and effectiveness of these programs. Information on the SEAD Incentives Efficient Product Promotion Collaborative is available here.