Energy-Efficiency Funds and Demand Response Programs, Indiana

Updated July 2007

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

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

What utility energy efficiency programs are available to me?

Duke Energy offers the Energy Efficiency Incentive Program for rebates on high-efficiency lighting, motors, pumps, air-conditioning units, and heat pumps. Incentives are prescriptive, based on the efficiency and capacity of equipment. Eligibility is limited to customers with a demand less than 500 kW. Incentives are capped at $50,000 per calendar year per facility for all eligible equipment.

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

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers two demand response programs:

The Emergency Load Response Program provides participants with a payment representing the marginal cost of power at the nearest hub on the PJM system (the locational marginal price, or "LMP") or $0.50/kWh, whichever is greater, for providing load reductions when notified by PJM of a system emergency. Compliance with any load reduction request is voluntary; no penalties are assessed if a participant decides not to provide a load reduction. Retail electricity customers may participate through any PJM Member (for example, their electricity provider) or directly, by registering as a Special Member with PJM.
The Economic Load Response Program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. As with the PJM emergency program, participation is fully voluntary. Program participants have the choice of two options: the Day-Ahead or Real-Time Option. In the Day-Ahead Option, participants submit load reduction bids (of at least 100 kW) into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices. In the Real-Time Option, participants can decide at any time to provide load curtailments (with one hour notice to PJM), and receive payment based on the real-time electricity price. Retail electricity customers can participate in the program through any existing PJM Member, such as their utility, a third-party electricity supplier, or a specialty "curtailment service provider" (CSP). Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both the emergency and economic programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation.

Duke Energy offers the PowerShare program, in which participants are remunerated for reducing load below a customer-specific baseline during summer weekdays when market prices are high. There are two options: a voluntary and mandatory one. Payments are higher for the mandatory program, but there is a penalty for not meeting the committed load shed during notified events.

AEP offers both an emergency and price curtailable service rider for customers over 1 MW in Indiana. Under these programs, the facility can select from two emergency or three price options depending on the duration of curtailment it is willing to commit to.

Indianapolis Power & Light offers various curtailable riders (PDF 141 KB, 31 pp) (Riders 14-18) that permit customers to take advantage of credits both for capacity (contracted kW) and energy (actual kWh curtailed during events) in exchange for curtailing consumption or using their generators in times of grid emergencies or high wholesale power prices.
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What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following program may be of interest to federal customers.

Indiana's Alternative Power & Energy Grant Program provides funds for the purchase and installation of power generation, heating, and cooling equipment, and for other equipment necessary for the operation of the renewable energy system. Solar electric and solar water heating are eligible, as are windpower installations Projects are eligible for grants covering 50% of costs up to $25,000.

Are there energy efficiency programs sponsored by the state government?

The Indiana Economic Development Corporation offers a variety of loans and grants for energy efficiency projects. However, no programs are currently available to federal customers.

What additional opportunities are available to me?

Federal customers also have energy efficiency opportunities available with utilities (e.g., Duke Energy) that have area-wide contracts with GSA and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.