Initiatives

Massachusetts 3-Year Energy Efficiency Plans

For four years running, Massachusetts has been ranked number one in the nation for energy efficiency by the American Council for an Energy Efficiency Economy (ACEEE). This top ranking is largely due to the state’s nation-leading, utility energy efficiency programs. Each year these programs produce incremental savings equivalent to more than 2.5% of statewide electricity sales and 1% of statewide natural gas sales. The programs implemented since 2010 are producing annual savings of over 3,400 gigawatt-hours of electricity, 77 million therms of natural gas, and 2 million tons of greenhouse gas emissions.

With annual budgets of over $650 million, these programs are creating significant business opportunities for energy efficiency companies. The programs fund the purchase and installation of energy efficient equipment, energy audits, engineering studies, and other energy efficiency services. They help energy efficiency companies to grow and put energy professionals to work.

Massachusetts energy efficiency programs are governed by three-year plans, which must be approved by state regulators. The plans establish the savings goals, budgets, program priorities, and program designs. Each plan is a blueprint for three years and for a total of nearly $2 billion in energy efficiency spending.

The plan for the next three-year period, 2016 – 2018, is being developed and reviewed by regulators in 2015. NEEC is participating actively in this regulatory process, urging regulators to maintain the state’s ambitious energy savings goals and to align program spending in ways that will maximize the industry’s growth. NEEC submits written comments, presents testimony from industry leaders, and participates directly in decision making through its representative on the state Energy Efficiency Advisory Council. NEEC gives the industry a voice in these critical regulatory decisions.

Energy Efficiency Industry Profile Report

The energy efficiency industry is a remarkable ecosystem of companies. Its most visible members are energy efficiency specialty firms, such as energy services companies and program implementation vendors. However, the industry is much broader. It encompasses a broad range of company types, such as manufacturers, distributors, retailers, electricians, plumbers, insulation and HVAC contractors, architects, engineers, builders, and many others. Hundreds of these traditional businesses have made energy efficiency a core component of their products and services.

To chart this diverse industry, NEEC is developing an energy efficiency industry profile report. The report will provide a comprehensive overview of the energy efficiency industry by describing the various industry sectors, profiling selected companies, and documenting the ways that efficiency firms interact with each other and with the efficiency programs.

The report will also examine changes in the efficiency industry in Massachusetts since the enactment of the Green Communities Act in 2008. That legislation produced a fourfold increase in energy efficiency program activity in the state. The report will look at how the program expansion has affected both existing firms and new entrants.