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

Energy Incentive Programs, Utah

Updated September 2011

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

Utah has no public-purpose-funded energy efficiency programs. However, in March of 2011 the Governor's Office released a new 10-year strategic energy plan that identifies a number of potential future energy efficiency improvement strategies.

What utility energy efficiency programs are available to me?

Utah utilities budgeted over $90 million in 2010 to promote energy efficiency in the state. Energy efficiency activity will likely continue to increase. In 2009 the Utah legislature adopted a resolution that directs the Utah Public Service Commission (PSC) to approve energy efficiency programs that will save at least 1% of electric utilities' annual retail sales, and 0.5% per year for gas utilities. The PSC is in the process of considering targets and other DSM policies, including decoupling and utility performance incentives.

In March of 2011, PacifiCorp/Rocky Mountain Power released its 2011 Integrated Resource Plan, which includes a significantly expanded role for energy efficiency and load management as compared to previous years. The plan projects that by 2020 energy efficiency and load management programs will provide about 13% of system capacity and 11% of energy within the company's total resource mix. The utility offers several energy efficiency programs for commercial, industrial and irrigation customers:

  • The Utah Energy FinAnswer program provides cash incentives for energy efficiency retrofits, major renovation and new construction projects, equal to $0.12 per kWh of the projected annual savings plus $50 per average monthly on-peak kW savings. Incentives are capped at 50% of the energy efficiency project cost. The program also incorporates a variety of energy efficiency services, including facility energy analysis, detailed design assistance for construction projects, commissioning, and post-installation savings calculation, tailored to the specific needs of the project.

  • The Utah FinAnswer Express program for retrofits and new construction/renovation provides prescriptive rebates for energy-efficient lighting, HVAC, variable frequency drives, green motor rewinds and other equipment and custom measures. Some equipment installations and measures require pre-approval. Incentive amounts depend on the equipment installed and are capped at 50% of measure costs.

  • The Recommissioning program provides free building analysis to optimize energy use and reduce energy costs in existing buildings.

  • The Self Direction Credit Program provides incentives to large commercial and industrial customers who self-fund energy conservation projects at their facilities. Customers who engineer, implement and commission qualifying projects may receive credits to offset the Customer Efficiency Services charge on their bills.

Questar Gas sponsors the Thermwise Program, which provides rebates for efficient HVAC, water heating, food service and laundry equipment, as well as for high-efficiency windows and roof and wall insulation. Rebates vary depending on the type and capacity of the equipment.

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

PacifiCorp/Rocky Mountain Power sponsors several load management/demand response programs for Utah business customers:

  • The Energy Exchange program is an internet-based voluntary demand reduction program. Rocky Mountain Power posts a price for each hour in which load reductions are needed, and customers may respond by pledging to curtail a specified amount of their load. Participants are paid the posted price per unit of measured energy reduction in each hour of the curtailment. Eligibility is limited to customers with at least 1 MW of connected load.

  • The Cool Keeper program provides a nominal annual bill credit or 15% reduction on heating and cooling costs in exchange for allowing the utility to install at no cost a web-programmable thermostat or Digital Control Unit (DCU). On selected peak demand weekdays from June 1 through August 30, the utility will coordinate load reduction for participating air conditioner units.

  • The Irrigation Load Control program offers financial incentives to irrigators who agree to curtail electricity use during certain periods. Irrigators choose which sites to enroll in the program and which load control option best suits their needs. Rocky Mountain Power installs an electric timer at participating sites. From May 25 through September 15, the timer interrupts power to the pump according to the pre-determined curtailment schedule. Participants are awarded a participation credit from $5.41 to $11.19 per kW per year, depending on the option chosen.

What distributed energy resource options are available to me?

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

Rocky Mountain Power's Solar Incentive Program is fully subscribed for the 2011 program year; however interested customers are encouraged to sign up on the waiting list. In the event any approved parties decide not to participate, the next customer on the waiting list will be contacted.

Federal customers may be able to take advantage of the Utah State Renewable Energy Systems Tax Credit (10% of investment, with a maximum credit of $50,000) by partnering with private sector contractors (such as ESCOs) with tax relief appetites. Wind, biomass and geothermal commercial systems greater than 600 kW are not eligible for the investment tax credit, but are eligible for a production tax credit of $0.35/kWh.

Are there energy efficiency programs sponsored by the state government?

Utah's state government does not currently offer any energy efficiency programs to federal customers. For information on potential future opportunities, contact the Utah Office of Energy.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide contracts through GSA 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.