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

Energy Incentive Programs, Rhode Island

Updated September 2011

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

Rhode Island's restructuring law includes a system benefits charge of 2 mill/kWh for energy-efficiency programs, and 0.3 mills/kWh for renewable energy programs, through 2012. Over $35 million was budgeted for energy efficiency across all program types (including low-income and residential) in 2010. The programs are administered by the local utilities.

Rebates are available state-wide through the Cool Choice program, which provides rebates for high-efficiency HVAC equipment, including split system and single packaged air conditions and heat pumps. Dual enthalpy economizer controls, demand-controlled ventilation, and electronically commutated motors (ECMs) for supply fans may be eligible for a fixed incentive amount. Contact your utility for pre-approval before purchasing and installing the new equipment.

National Grid provides a variety of energy efficiency services to its electric customers, all of which are organized under two initiatives:

  • The Large Business Programs are for either new construction or existing buildings, and include

    • Incentives for energy-efficient lighting, VFDs, HVAC equipment and chillers, compressed air (new construction only), and custom measures in both new construction and existing buildings (pre-approval required for all rebates);

    • Technical assistance (via third-party contractors) in identifying, implementing, and evaluating energy efficiency opportunities for new construction, renovations, and equipment replacement;

    • Assistance with financing of energy-efficient equipment and projects;

    • Building commissioning (via third-party contractors) to verify that newly installed systems are operating according to specifications; and

    • Fixed low prices, through the "Buyers' Alliance," for lighting materials such as electronic ballasts, high-efficiency fixtures, and energy-efficient lamps.

  • The Small Business Program pays 70% of the cost of the installation of energy-efficient equipment and finances the remaining 30% interest-free for up to 24 months. The program is open to customers with an average demand of 200 kilowatts or less. Free energy audits are also offered.

National Grid participates in the Building Operator Certification (BOC) initiative, which seeks to train and certify building operators to optimize the operations of their facilities.

National Grid also offers gas efficiency opportunities, such as technical assistance, including energy assessments and audits in existing buildings and design assistance in new construction projects.

Financial incentives are available; consult the National Grid "Efficiency Experts."

What utility energy efficiency programs are available to me?

For utility-administered energy efficiency programs, see the previous section.

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

The Independent System Operator New England Inc. (ISO-NE) offers its Demand Response Programs, which 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.

ISO-NE's 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 dispatch able (such as a back-up generator or demand management actions) - into a forward capacity auction that pits demand-side resources against supply-side ones. Bids that are accepted are paid the auction clearing price. 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 began in June, 2010, took place in February, 2008. Future auctions are announced at the FCM web site.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (DSIRE) provides information on programs in Rhode Island that offer incentives for renewable distributed generation. The following programs may be of interest to federal customers:

  • Rhode Island's Renewable Development Energy Fund provides low-interest loans and re-payable grants to support financially self-sustaining renewable projects.

  • New Generation Energy offers a Community Lending Program that provides up to $100,000 at interest rates as low as 2.0% to small businesses and nonprofit organizations for solar thermal and photovoltaic installations.

Are there energy efficiency programs sponsored by the state government?

The Rhode Island Office of Energy Resources works in cooperation with National Grid, to provide cash incentives through both the Large and Small Business Programs (see above for details).

What additional opportunities are available to me?

Federal customers whose utilities have area-wide supply contracts through GSA (e.g. National Grid), 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.