Energy Incentive Programs, Maine
Updated November 2009
Below you will find questions and answers regarding Maine's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.
What public purpose-funded energy efficiency programs are available in my state?
Maine's restructuring law provides for energy efficiency programs through a statewide charge of up to 1.5 mills/kWh. The costs of these programs are included in the rates of the local electric distribution utilities. Almost $17 million was spent in 2008 across all program types (including low-income and residential). The programs are administered by Efficiency Maine and overseen by the state's public utilities commission.
The following two programs may be of interest to Federal customers:
The Efficiency Maine Business Program offers both pre-established cash rebates (on high-efficiency lighting products, packaged air-conditioners, NEMA premium motors, and variable frequency drives) as well as customized incentives that are dependent on the energy efficiency work being done. No more than $250,000 of incentives can be received by a single customer over a two year period.
Efficiency Maine also sponsors the Building Operator Training and Certification Program, which trains and certifies building operators to optimize facility operations.
What utility energy efficiency programs are available to me?
Information on Maine's electric utility energy efficiency programs is outlined in the previous section. In addition, Unitil (formerly Northern Utilities) offers its Energy Assessments program in which large facilities (greater than 40,000 therms/year) receive a free walk-through audit followed by a 50% cost-shared (up to $7,500) scoping study to identify gas efficiency improvements. Installation of these retrofits is then cost-shared at 50% up to $50,000 per master meter. As a member of GasNetworks, Unitil also offers rebates of up to $1,350 for high-efficiency gas-fired space- and water-heating equipment.
What load management/demand response options are available to me?
The Independent System Operator New England (ISO-NE) offers demand response programs that provide payments to electricity users for load reductions (of as little as 100 kW) either by reducing usage or by operating on-site generation during periods of high demand. Customers may participate in the program through any participating member ("Enrolling Participant") of the New England Power Pool, such as a utility company, power marketer, competitive energy supplier, or independent curtailment service provider (CSP). The enrolling participant is allowed to aggregate load to reach the quantity qualification limit, so customers interested in these programs with less than 100 kW to offer may want to contact their utility or other eligible party.
ISO-NE offers several options:
The Real-Time Demand Response Program provides an opportunity for customers to receive payments for voluntarily responding to system emergencies. Participants are paid for actual load reductions, based on the higher of the real-time zonal price or a guaranteed floor price ($350/MWh for customers that can respond within 2 hours and $500/MWh for those that can respond within 30 minutes). Participants may receive additional incentives by qualifying as an installed capacity (ICAP) resource for their load reduction capacity, although response to system emergencies then becomes mandatory. In order to facilitate notification of emergency events and verification of load curtailments, customers must have an approved Internet-Based Communication System (IBCS) installed. Participating customers must also have interval metering installed at their facility.
The Real-Time Profile Response Program provides remuneration to customers without interval metering for voluntarily responding to system emergencies. The enrolling participant must have the physical ability to interrupt loads at the customer's facility within 30-minutes notice of a system emergency. Payment for verified load reductions is based on the real-time zonal price with a $100/MWh floor price. Participants may receive additional incentives by qualifying as an ICAP Resource for their load reduction capacity, although response to system emergencies then becomes mandatory.
The Real-Time Price Response Program provides customers with the opportunity to receive payments for voluntarily reducing load during periods when the real-time zonal price is projected to be high. ISO-NE will notify participants either the night before or day of an event if the zonal price is expected to exceed $100/MWh ($0.10/kWh). Participants can voluntarily respond to the notification and submit load data to verify their load reductions. Payment for verified load reductions is based on the real-time zonal price with a $100/MWh floor price. Customers must have interval metering installed at their facility to participate in this program.
The Day-Ahead Load Response Program is a more sophisticated variant of the Real-Time Price Response Program. Customers submit offers of hourly load reductions into the day-ahead market and are then notified by their enrolling participant if the offers are accepted. If so, the customer must drop load during the cleared hours but is remunerated by the greater of its bid or the actual clearing price for those hours. Customers must have interval metering installed at their facility to participate in this program.
The ISO-NE Forward Capacity Market (FCM) allows customers to bid their load reduction capabilities – whether constant (such as an indoor lighting retrofit project), seasonal (such as a new energy-efficient chiller plant), or dispatchable (such as a back-up generator or demand management actions) – into a forward capacity auction that pits demand-side resources against supply-side resources. These auctions take place periodically for commitment periods several years in the future. For instance, the first auction (for resources whose contribution to the grid must begin on June 1, 2010), took place in February 2008. Future auctions are announced at the FCM Web site. However, in the "transition period," in effect before the first commitment period begins in June 2010, so-called Other Demand Resources (such as energy-efficiency, load management, or distributed generation) of at least 100 kW installed after June 2006 are eligible for fixed "installed capacity" payments from ISO-NE. To qualify for these payments, demand resources must participate in either the Real-Time Demand Response Program or the Real-Time Profiled Response Program. The rate of remuneration is $4.05/kW per month in 2009 through 2010. Applications must include a measurement and verification plan to assure ISO-NE of the ability to perform.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs in Maine that offer incentives for renewable distributed generation. The following programs may of interest to Federal customers:
The Voluntary Renewable Resources Grant program supports demonstration projects using renewable energy technologies, including solar thermal electric, photovoltaics, wind, biomass, hydroelectric, geothermal electric, fuel cells, municipal solid waste, and tidal energy. It is funded by the Voluntary Renewable Resources Fund, which is supported by donations made by consumers on their electric bills. The program is administered by the Maine Public Utilities Commission. Grants are awarded as funds are available with a maximum award of $50,000.
The Maine State Energy Program's Solar and Wind Program provides financial incentives for solar heating, solar electric installations, and small wind energy installations. For commercial solar hot water or space heating, the program rebates 25% of the cost or $1,000 (whichever is less). For solar electric, the incentive is $2.00/watt for the first 1,000 watts. While all funds for solar projects have been allocated for 2009, the program will receive additional funds and accept new applications in January 2010. Qualifying wind installations can receive $500 per 500 watts capacity up to $4,000 (or $6,000 if it is part of a highest-standards pilot).
Are there energy efficiency programs sponsored by the state government?
For information on state sponsored energy efficiency programs, contact the Maine Energy Resources Council.
What additional opportunities are available to me?
Federal customers whose utilities have areawide supply contracts through the General Services Administration (GSA) (e.g., Central Maine Power and Maine Natural Gas) may be able to take advantage of third-party financed energy efficiency projects called utility energy service contracts (UESCs). Information is available through the GSA Energy Center of Expertise Library. 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.