Energy Incentive Programs, Arkansas

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Updated June 2015

Arkansas utilities collectively budgeted over $80 million for energy efficiency programs in 2014.

What public-purpose-funded energy efficiency programs are available in my state?

Arkansas has no public-purpose-funded energy efficiency programs; however, the Arkansas Public Services Commission requires utilities to include provisions for demand-side resources through an energy efficiency resource standard (EERS).

What utility energy efficiency programs are available to me?

Entergy Arkansas offers several programs through its Business Solutions initiative that may be of interest to federal customers:

  • The Small Business Energy Solutions program offers financial incentives and technical support to customers with peak demand of less than 100 kW. Incentives include $0.18/kWh of first-year savings for lighting and lighting controls and full cost coverage for direct-install projects. Additional incentives are available for converted residences.

  • The CoolSaver Residential and Commercial AC Tune-Up program provides small commercial customers (demand of less than 100 kW) with an up-front discount for cleaning of AC evaporator coils, outdoor condenser coils, and blowers, as well as for adjusting refrigerant charge to manufacturers' specifications. The discount depends on capacity and systems above 25 tons require pre-approval.

  • The Large Commercial & Industrial program offers both prescriptive and custom incentives with amounts ranging from $0.15 to $0.23 per kWh of first-year savings, depending on the number of qualifying measures implemented. Projects related to the following may qualify: lighting, HVAC systems and controls, chillers, motors, VFDs, data centers, commercial refrigeration and kitchen equipment, and compressed air systems. New construction incentives are also available for buildings that exceed required energy codes. A number of direct-install measures are 100% paid for by the program and include low-flow aerators, pre-rinse spray values, and occupancy controlled vending machine controls.

OG&E offers the following energy efficiency programs:

  • The Commercial Lighting program usually covers 10-20% of the cost of installing energy-efficient indoor and outdoor lighting, controls, and LED exit lights in both retrofit and new construction. Actual payment amounts are based on first-year kWh savings.

  • The Commercial/Industrial Standard Offer program is a flexible program that offers an incentive of $0.12/kWh of first-year savings for projects that significantly decrease energy use.

  • The Geothermal program provides guidance on installation of ground-source heating and cooling systems. Some projects may be eligible for financial incentives.

AEP Southwestern Electric Power Company (SWEPCO), a unit of American Electric Power, offers its Commercial and Industrial Energy Efficiency program to customers with a peak load of 50 kW or greater. Incentive payments are made to customers or their contractors for reducing energy use and peak demand through energy efficiency upgrades including lighting, HVAC, air compressor, refrigeration and motors, as well as installation of renewable energy systems.

Center Point Energy offers a variety of rebates for the installation of high-efficiency natural gas equipment including the following:

  • Boiler system rebates of $1,400 to $2,000/MMBtu/h input (depending on efficiency level) for systems sized between 100,000 Btu/h and 12.5 MMBtu/h can cover up to 25% of equipment cost;
  • Boiler component rebates include burner, damper and control equipment;
  • Food service equipment rebates range from $250 to $1,000 per unit for a wide variety of Food Service Technology Center (FSTC) or EnergyStar certified equipment;
  • Heating system rebates range from $400 to $600 (depending on efficiency level) for primary forced air and hydronic equipment, with additional (smaller) rebates for back-up systems;
  • Water heater rebates are available for storage tank ($75) and tank-less ($500) equipment
  • The Commercial & Industrial Solutions Program provides technical assistance to identify no-cost natural gas and water-saving measures and financial incentives for a variety of measures that may include boiler improvements, roof and ceiling insulation, infrared heating, process efficiency improvements, and more. No-cost measures include low-flow spay valves and faucet aerators.

Other programs that may be relevant to federal customers in Arkansas include the following:

  • Arkansas Oklahoma Gas Company (AOGC) provides boiler equipment rebates and a financial incentive of $8.00/MCF of first-year savings for a variety of custom projects. Direct-install measures are also available for faucet aerators, pre-rinse spray valves, showerheads, door sweeps and weather-stripping.

  • Empire District Electric Company's Commercial and Industrial Energy Efficiency Rebate Program provides prescriptive incentives for installing high-efficiency lighting, air conditioning, chillers, motors, and variable frequency drives. Empire also offers custom incentives for other types of efficiency measures or comprehensive projects, and rebates covering 50% of the cost of a facility energy audit.

  • SourceGas offers rebates for installation of efficient natural gas equipment. Prescriptive rebates include boilers and boiler components for space heating and food service equipment. Custom incentives are available through the Commercial & Industrial Solutions program, which covers water heating and HVAC systems, controls, process efficiency improvements, building thermal improvements, and more.

What load management/demand response options are available to me?

Entergy offers several standard and custom demand response programs:

  • The Large Commercial & Industrial Demand Response program offers three options for customers who are able to shift or curtail load during peak pricing events. The Optional Interruptible Service Rider (OISR) is for customers who can interrupt at least 100 kW of load throughout the year during on-peak hours. Participants must have appropriate metering and communications equipment installed, and penalty charges apply if the agreed-upon load is not curtailed when requested. The Large General Service Time-of-Use Rate Schedule (GST) for customers with demand less than 1,000 kW and the Large Power Service Time-of-Use Rate Schedule (PST) (demand of 1,000 kW and greater) reward customers who can shift demand to off-peak periods. The first step toward participation is to meet with an account service manager and receive a detailed rate analysis as part of determining which program might be optimal.

  • The Market Valued Energy Reduction (MVER) Service Rider provides credits to customers for providing load curtailments of at least 1 MW. The rider has two options. The Market Valued Call Option provides customers with both a monthly reservation payment, which they receive regardless of whether any curtailments are required, and a performance payment based on actual load curtailments. In exchange, Entergy can make curtailment requests either the same day or one day in advance. Participants who do not curtail are assessed a penalty. The MVER Service offering is a bidding program in which customers can make day-ahead bids to the utility, indicating their curtailable load and price. Customers can make their bids via the internet.

  • The Experimental Energy Reduction (EER) Rider is open to customers that can curtail at least 150 kW. Entergy will notify participants on a day-ahead basis if they are accepting offers to curtail and at what price ($/kWh). Interested participants may respond, indicating the amount they are willing to curtail.

AEP SWEPCO offers two load management opportunities:

  • The Load Management Standard Offer program (SOP) provides incentives to energy efficiency service providers (e.g., ESCOS, retail electric providers or customers) for load curtailment on short notice (as little as one hour) during non-holiday weekday afternoon peak demand periods (between 1 and 7 p.m.). Customers must have a peak demand of at least 250 kW. Payments are based on verified demand savings.

  • The Experimental Curtailable Service Rider is available to customers with loads larger than 1 MW. As little as ten minutes' notice is provided for curtailments. This rider is available only in conjunction with the company's Lighting and Power or Large Lighting and Power rate schedules.

Electric Cooperatives of Arkansas, a generation and transmission utility providing power to 17 distribution cooperatives in the state, offers its distribution cooperative customers an interruptible rider that provides incentives or bill credits for participation. Check your local cooperative to see if this option or others are available to end-use customers.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewables and Efficiency (DSIRE) provides information on programs that offer incentives for renewable distributed generation. Arkansas currently has no programs of this type open to federal customers.

Are there energy efficiency programs sponsored by the state government?

No state energy efficiency programs are currently available to federal customers. For information about opportunities, contact the Energy Office within the Department of Economic Development.

What additional opportunities are available to me?

Federal customers whose utilities have area-wide supply contracts through GSA (e.g., Entergy and OGE) may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available in GSA's Energy Division Library. Federal facilities should contact their account executive to determine the level of each utility's participation.