Skip Navigation to main content U.S. Department of Energy Energy Efficiency and Renewable Energy
Federal Energy Management Program
 
About the ProgramProgram AreasLaws and RegulationsInformation ResourcesFinancing MechanismsTechnologiesServicesHome

Energy Incentive Programs, Rhode Island

Updated November 2009

Below you will find questions and answers regarding Rhode Island's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.

Some of the following documents are available as Adobe Acrobat PDFs. Download Adobe Reader.

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

Rhode Island's restructuring law includes a system benefits charge of 0.3 mills/kWh for energy efficiency programs through 2012. More than $20 million was spent across all program types (including low-income and residential) in 2008. The programs are administered by the local utilities.

Rebates are available through two programs offered state-wide:

  • The MotorUp initiative provides rebates for premium efficiency three-phase motors up to 200 horsepower. Rebates range from $45 to $700 depending on horsepower and enclosure (open or closed).

  • The Cool Choice program provides rebates for high-efficiency HVAC equipment, including split system and single packaged air-conditioners 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.

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

  • Large Business Programs are for new construction or existing buildings and include:
    • Rebates for energy-efficient lighting, variable speed drives (VSDs), HVAC equipment, and other custom measures.
    • Technical assistance in identifying, implementing, and evaluating energy efficiency opportunities for new construction, renovations, and equipment replacement.
    • Competitive financing of energy-efficient equipment and projects.
    • Building commissioning to verify that newly installed systems are operating according to specifications.
    • 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-saving improvements 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 also participates in the Building Operator Certification (BOC) initiative, which trains and certifies building operators to optimize facility operations.

National Grid's Business Energy Efficiency Services for Gas Customers (formerly Keyspan) offer several gas efficiency programs, including:

  • Prescriptive rebates for common control measures, such as programmable thermostats, boiler reset controls, and steam traps.

  • High-efficiency gas-heating and water-heating rebates to cover the cost difference between standard and high-efficiency gas space- and water-heating equipment, such as furnaces, condensing unit heaters, and direct fired heaters. Rebates are limited to 50% of equipment cost capped at $100,000 per project.

  • The Energy Efficiency Engineering Co-Funding Program (PDF 272 KB) offers cost sharing up to 50% (limited to $10,000 per project) for engineering studies aimed at improving efficiency of gas end uses.

What utility energy efficiency programs are available to me?

Utility-administered energy efficiency programs are outlined in the previous section.

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 Rhode Island that offer incentives for renewable distributed generation. The following programs may be of interest to Federal customers:

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

  • National Grid's Solar Thermal Rebate Program, part of its Business Energy Efficiency Services initiative, offers gas customers $3 per therm of first year savings (covering 50% of cost up to $100,000) for solar thermal space- or water-heating 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 large and small business programs (see above for details).

What additional opportunities are available to me?

Federal customers whose utilities have areawide supply contracts through the General Services Administration (GSA) (e.g., National Grid) 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.