Although it may seem counterintuitive, many electric utility companies offer significant financial incentives to install energy efficient equipment that saves energy and money for the end customer. But if that takes money away from the utility company, why even bother?
The first reason is simply marketing and customer retention. In markets where customers have choice regarding who they choose as their utility, all other things being equal, the customer will always choose the one who provides financial incentives to lower their utility costs and/or extend the life of their equipment.
In many states, governments have made sustainable energy policies a high priority, and have set aside tax dollars to be used exclusively for the purposes of reducing consumption. In New Jersey for example, the government issues and disperses financial incentives on behalf of the state itself as part of New Jersey’s Clean Energy Program.
Another good example is California where the California Energy Commission implemented Title 24, an update to existing building codes that mandates technologies like Verdant’s energy management thermostats as part of any major retrofit or new build of an overnight lodging facility.
Supply/Demand & The Economics of Energy Production
Perhaps the most important reason for why utility companies actively seek to reduce consumption is because of an inability to match the demand with current supply levels.
In many states, New York, for example, the demand for power exceeds the supply to such an extent that additional power must be purchased from neighboring regions like Quebec. Solving the problem locally would require building new power plants which is cost-prohibitive, long, and potentially disruptive to local ecosystems. So instead of investing vast amounts of capital into new facilities, it is actually more cost-beneficial to reduce consumption on the existing grid in order to accommodate more customers who will pay a higher cost per kilowatt hour.
How can I find out if my utility company has rebates?
Navigating the landscape of utility rebates can be overwhelming if you’re not sure what you’re looking for. Fortunately, Verdant has simplified this process. Simply input your information into our rebate finder tool, and we’ll provide you specific details about rebates available from your utility company.