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U.S. Department of Energy Energy Efficiency and Renewable Energy

Energy Incentive Programs, Arkansas

Updated November 2011

Arkansas utilities collectively budgeted nearly $18 million for energy efficiency programs in 2010.

What public-purpose-funded energy efficiency programs are available in my state?

Arkansas has no public-purpose-funded energy efficiency programs.

What utility energy efficiency programs are available to me?

Entergy Arkansas offers several commercial and industrial programs that may be of interest to federal customers:

  • The Small Commercial & Industrial Energy Solutions program provides a free energy consultation, usually including a walk-through audit, to customers with peak reduction projects less than 20 kW. Participants who then implement the recommended measures (e.g., efficient roofing, insulation, window film, lighting, heating and cooling equipment, and motors) within 45 days using one of the program's pre-qualified contractors receive an incentive of $115 per kW of the resultant demand reduction during the summer peak period (May-September, 11a.m.-9p.m. weekdays, excluding holidays).

  • The Large Commercial & Industrial Energy Solutions program provides free consultative services, including an energy audit, to customers with projects that reduce peak load by 20 kW or more. Participants who then implement the recommended measures – using in-house staff, a contractor of their choice, or one of the program's pre-qualified contractors – receive an incentive of $159 per kW of the project's summer peak electricity savings. Eligible measures are lighting, air conditioning, electric chillers and premium efficiency motors. Measurement and verification of savings is required but streamlined in this program.

  • The Large Commercial & Industrial Standard Offer program offers $230 per kW of verified summer peak electricity demand reduction to customers with peak loads of 100 kW or more (or combined demand of at least 250 kW for multiple facilities). Simpler measures eligible for "deemed savings" receive 100% of the total estimated incentive upon satisfactory installation, while more complex measures receive 60% at installation and then another 40% based on measured and verified results one year after installation.

OG&E offers several energy efficiency programs including the following:

  • The Lighting Rebate Program provides audits and payback analysis as well as incentives of $2 per T8 or T5 lamp installed. Note that while all incentive funds for 2011 have been exhausted, additional rebate funds may be available in 2012.

  • The Building Efficiency Program offers financial incentives of $250 per kW for projects that significantly reduce peak demand.

  • The Geothermal Program offsets costs for installation of geothermal systems at a rate of $375 per ton.

AEP Southwestern Electric Power Company (SWEPCO), a unit of American Electric Power offers its Commercial and Industrial Standard Offer Program to customers with a peak load of 50 kW or greater. Providers such as energy service companies (ESCOs) and mechanical contractors are remunerated at $175 per peak kW and 6.5¢/kWh of verified savings.

Other programs that may be relevant to federal customers include the following:

  • Arkansas Oklahoma Gas Company (AOGC) provides rebates for installation of efficient space and water heating equipment.

  • Center Point Energy offers rebates for installation of high-efficiency boiler systems and boiler components, heating systems, water heaters and food service equipment, as well as free natural gas energy audits (valued at $2,000).

  • Empire District Electric Company's Commercial and Industrial Energy Efficiency Rebate Program provides prescriptive incentives for installing high-efficiency lighting, air conditioning, chillers, motors, and variable frequency drives. Empire also offers custom incentives for other types of efficiency measures or comprehensive projects.

What load management/demand response options are available to me?

Entergy offers several demand response programs:

  • The Large Commercial & Industrial Demand Response program offers three demand response options for customers who are able to shift or curtail load during peak pricing events. The Optional Interruptible Service Rider (OISR) is for customers who can interrupt at least 100 kW of load during on-peak hours. Participants must have appropriate metering and communications equipment installed, and penalty charges apply if the agreed-upon load is not curtailed when requested. The Large General Service Time-of-Use Rate Schedule (GST) for customers with demand less than 1000 kW and the Large Power Service Time-of-Use Rate Schedule (PST) (1000 kW and greater) reward customers who can shift demand to off-peak periods. The first step toward participation is to meet with an account service manager and receive a detailed rate analysis as part of determining which program might be optimal.

  • The Experimental Market Valued Energy Reduction (MVER) Service Rider provides credits to customers for providing load curtailments of at least 1 MW. The rider has two options. The Market Valued Call Option provides customers with both a monthly reservation payment, which they receive regardless of whether any curtailments are required, and a performance payment based on actual load curtailments. In exchange, Entergy can make curtailment requests either the same day or one day in advance. Participants who do not curtail are assessed a penalty. The Market Valued Energy Service offering is a bidding program in which customers can make day-ahead bids to the utility, indicating their curtailable load and price. Customers can make their bids via the internet.

  • The Experimental Energy Reduction (EER) Rider is open to customers that can curtail at least 150 kW. Entergy will notify participants on a day-ahead basis if they are accepting offers to curtail and at what price ($/kWh). Interested participants may respond, indicating the amount they are willing to curtail.

AEP SWEPCO offers two load management opportunities:

  • The Experimental Curtailable Service Rider is available to customers with loads larger than 1 MW. As little as ten minutes' notice is provided for curtailments. This rider is available only in conjunction with Company's Lighting and Power or Large Lighting and Power rate schedules.

  • The 2011 AEP Load Management Standard Offer provides incentives to energy efficiency service providers (e.g., ESCOS, retail electric providers or customers) for load curtailment on short notice (as little as one hour) during non-holiday weekday afternoon peak demand periods (between 1 and 7 p.m.) to customers with demand of at least 250 kW. Payments are based on verified demand savings.

Electric Cooperatives of Arkansas, a generation and transmission utility providing power to 17 distribution cooperatives in Arkansas, offers its distribution cooperative customers an interruptible rider that provides incentives or bill credits for participation. Check your local cooperative to see if this option or others are available to end-use customers.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (DSIRE) provides information on programs that offer incentives for renewable distributed generation. Arkansas currently has no programs of this type open to federal customers.

Are there energy efficiency programs sponsored by the state government?

No state energy efficiency programs are currently available to federal customers. For information about opportunities, contact the Energy Office within the Department of Economic Development.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide supply contracts through GSA (e.g., Entergy and OGE), may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.

NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.