Energy Star Billing: Innovative Billing Options for the Residential Sector

Current demand-side management (DSM) programs aim mainly at promoting retrofits of energy-efficient technologies. So far, little attention has been paid to increasing the consumer’s ability to evaluate their own energy use relative to others. Do consumers understand their energy consumption? What information do they need to change their energy consuming behavior? The University of Delaware is attempting to answer these and other such questions through research associated with an innovative, voluntary US Environmental Protection Agency (US EPA) initiative known as Energy Star Billing (ESB). EPA and its utility partners are working to stimulate efficiency improvements in existing homes by providing homeowners with an energy consumption comparison. Partner utilities incorporate a billing statement that compares each individual customer’s energy consumption with other residential customers in a designated comparison group (e.g., same size house, same block, or neighborhood). It is anticipated that the least-efficient homeowners will be motivated to seek energy improvements to avoid being the ‘‘worst’’ homes in their comparison group. The achievements of the most energy-efficient homes will serve as an example of attainable performance levels for other residential users. Also, options for comparisons through time (e.g. this year compared to last year) allow customers to evaluate the consumption impacts of installed efficiency measures. An improved, service-oriented bill may also offer competitive advantages in a deregulated utility environment. The ESB program is a market-driven approach that offers technical and evaluation assistance to electric and gas utilities who wish to participate.