How to Calculate the Effectiveness of Energy Efficiency Programs

In How to Calculate the Effectiveness of Energy Efficiency Programs, you'll learn ...

• How to assess the cost-effectiveness of energy efficiency programs using five widely accepted cost-effectiveness tests
• How these tests are used in practice, highlighting differences in results based on program design, assumptions, and regional policy goals
• Guidance on interpreting results, considering non-energy benefits, accounting for avoided costs, and understanding the influence of discount rates
• How regulatory agencies select and emphasize specific tests based on broader policy priorities

Overview

Preview a portion of this course before purchasing it.

Credit: 4 CPD

Length: 57 pages

This course offers a detailed exploration of how to assess the cost-effectiveness of energy efficiency programs, equipping professionals with the tools to make informed decisions about energy investment strategies. It introduces five widely accepted cost-effectiveness tests: the Participant Cost Test (PCT), Program Administrator Cost Test (PACT), Ratepayer Impact Measure (RIM), Total Resource Cost Test (TRC), and Societal Cost Test (SCT).

Each test is examined from a unique stakeholder perspective—participants, utilities, ratepayers, all customers, and society as a whole. The course demonstrates how these tests are used in practice, highlighting differences in results based on program design, assumptions, and regional policy goals.

Real-world utility program examples help contextualize the application of each test, and the course provides guidance on interpreting results, considering non-energy benefits, accounting for avoided costs, and understanding the influence of discount rates. It also explores how regulatory agencies select and emphasize specific tests based on broader policy priorities such as equity, environmental impact, and financial viability.

Additional focus is placed on measure-level versus portfolio-level analysis, net-to-gross adjustments, and the treatment of greenhouse gas reductions. By completing this course, learners will gain a comprehensive framework to evaluate the full value and impact of energy efficiency programs.

Specific Knowledge or Skill Obtained

This course teaches the following specific knowledge and skills:

• The five primary tests used to evaluate energy efficiency programs,
• How to calculate the benefits and costs of the programs,
• The application of each of the five cost-effectiveness tests,
• The interrelationships between the tests,
• How to categorize benefits and costs for each test,
• The considerations of avoided costs and IRP
• How to calculate the NPV for a project.

Certificate of Completion

You will be able to immediately print a certificate of completion after passing a multiple-choice quiz consisting of 30 questions. CPD credits are not awarded until the course is completed and quiz is passed.