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White Papers

Standing At the Crossroads of Residential DSM Lighting Programs

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In this white paper, ICF discusses the still pending decision related to the Energy Independence and Security Act (EISA) that will impact the lighting markets overall, the LED market more specifically, and how price reductions in this category will affect demand side management (DSM) programs.

Retail-based lighting programs have been the traditional workhorse for the energy efficiency industry for nearly a decade, contributing between 60% and 80% of savings for the majority of DSM residential portfolios nationwide. As a result, the implementation of the EISA and its impact on utility DSM portfolios has been a dominant conversation of late. The effects of EISA have been widely felt, with nearly 30% year-over-year reductions in the claimable savings for lighting measures. This reduction in savings has led to an erosion in portfolio level cost, and is further exacerbated by price volatility in the LED market.