Rural Energy Efficiency Programs
By Ayla Kanber, Earth Forward Group
Published June 6, 2023. Updated April 29, 2024.
Photo by Annie Spratt on Unsplash
Access to energy efficiency programs poses greater challenges for rural communities compared to their metropolitan counterparts. The 2018 ACEEE report titled “Reaching Rural Communities with Energy Efficiency Programs” delves into the underlying causes of this issue, shedding light on the barriers faced by rural areas and offering valuable insights into potential solutions. By exploring the report, rural communities can gain a deeper understanding of the factors hindering their access to energy efficiency programs and discover pathways to broaden their availability and participation in these crucial initiatives.
The report highlights a multitude of contributing factors that present challenges in delivering energy programs to rural communities:
Low population density. Rural customers are located farther apart and in more remote locations, making it challenging to inform customers about programs, access communities to install energy efficiency measures, and keep program delivery costs low.
Lack of broadband access. Many rural Americans lack broadband access, limiting efficiency program marketing opportunities and broadband-enabled energy efficiency measures.
Customer reluctance. Some rural customers are unfamiliar with energy efficiency programs and are skeptical that their utility would want to help them reduce energy usage. Farmers in particular may have other priorities.
Shortage of qualified local energy efficiency workers. Program implementers may have difficulty finding local, well-trained workers for rural efficiency projects.
Financial constraints. Smaller utilities such as co-ops and small munis are often unable to allocate sufficient funding and capacity to meet the efficiency needs of their communities.
High costs. IOUs and co-ops may have high program delivery costs due to long driving distances for contractors to get to customers.
Insufficient outcome data. Most munis and co-ops have limited resources and are not regulated at the state level; therefore their efficiency program performance data are often less robust and accessible.
However, delivering energy efficiency to rural areas is on the rise and there are already programs that exist that can serve as examples to communities that may be falling behind. The report highlights 6 case studies throughout the US that depict how energy efficiency programs could be implemented. For example, Oncor’s MainStreet Efficiency is a direct-install program for small businesses with demand less than 200 kW in rural areas or small towns in Texas. The program provides limited measures, including high-efficiency lighting and refrigeration. Though the program still faces challenges from lack of customer knowledge about energy efficiency, difficulty attracting contractors, and limited customer information, the initiative represents a step in the right direction.
Oncor Electric Delivery Service Territory in Texas — Image Source
Other case studies from the report focus include the Southern Minnesota Municipal Power Agency which serves the residential sector; the Florida Office of Energy’s Farm Energy and Water Efficiency Realization Program and Florida Renewable Efficiency Demonstration; the Sierra Nevada Energy Watch Local Government Partnership Program which serves the municipal and small commercial sectors; the SmartHub and Take Control & Save programs which serve residential, commercial, and industrial sectors in Missouri and; the Efficiency Vermont’s Targeted Communities program which serves the municipal and small business sectors. The report highlights the challenges and successes of each case study, which can be utilized to improve current and future energy efficiency programs for rural communities.
According to the report, the implementation of rural efficiency programs has witnessed a notable upward trajectory, driven by several positive factors. State policies have increasingly prioritized energy efficiency initiatives in rural areas, accompanied by a surge in programs specifically tailored to meet the unique needs of rural communities. The availability of higher program funding has further bolstered these efforts, while enhanced community engagement and partnerships have fostered impactful collaborations.
Additionally, improved program marketing strategies, coupled with the expansion of broadband access and economic development in rural regions, have contributed to the successful deployment of energy efficiency measures. The growth of energy efficiency workforce development programs and the introduction of direct-install programs have provided additional avenues for progress, while an emphasis on customer education and assistance has empowered rural residents to actively participate in and benefit from these initiatives.
USDA Releases $1 Billion to Incentivize Rural Renewable Energy Grants — Image Source
Based on data from the 2015 US Department of Housing and Urban Development (HUD) American Housing Survey (AHS), ACEEE research shows that the median energy burden for rural areas in 2015 was 4.4%, representing 42% above the median metropolitan energy burden and one-third higher than the overall national rate of 3.3%. This means that now more than ever, rural communities need access to energy efficiency programs to save on costs and reduce the percentage of income that is spent on energy bills.
To encourage improvement and continued implementation of energy efficiency programs in rural areas, ACEEE provides the following recommendations in the report:
States should enact policies that drive rural energy efficiency investments.
State energy offices and program implementers should use state, federal, and utility resources to fund programs.
Implementers should engage local partners to help develop and carry out programs.
Program marketers should use a variety of online and traditional channels depending on customers’ access to broadband.
Implementers should consider local economic development when designing programs and integrate efficiency into broader community development efforts.
Implementers should develop a pool of contractors to carry out energy efficiency projects and join with state energy offices and utilities in training them.
Co-ops should consider deploying broadband to their members and developing customer energy management platforms.
Programs should offer water conservation and renewable energy measures alongside energy efficiency.
Co-op and muni associations should consider hiring staff and combining resources to offer efficiency programs on behalf of their members.
Implementers should bundle low-cost efficiency measures with ones that achieve deeper energy savings. Regulators should consider exempting rural programs from cost-effectiveness tests.
Implementers and evaluators should quantitatively evaluate program performance even when state law does not require them to do so.
While the challenges of implementing energy efficiency programs in rural areas still exist, there is a promising trend of diminishing obstacles as additional resources and support become available. With an increased focus on addressing the specific needs of rural communities, the barriers that once hindered the expansion of energy efficiency programs are gradually being overcome. This positive shift signifies a growing recognition of the importance of promoting energy efficiency in rural areas and highlights the ongoing efforts to ensure equitable access to these programs for all communities.
Click here to read the 2018 ACEEE report “Reaching Rural Communities with Energy Efficiency Programs”.