Efficiency Long IslandEfficiency Long Island

Save Money. Save Energy. Save the Planet

Efficiency Long Island is a 10-year, $924 million energy efficiency program that will make a wide array of incentives, rebates and initiatives available to LIPA’s residential and commercial customers to assist them in reducing their energy usage and thereby lowering their bills.

LIPA is committed to providing its customers with the most reliable service at the lowest practical price. To meet this goal, LIPA must ensure that it always has enough generation resources to serve customers’ electrical needs with a margin in case of equipment failure or unexpected increase in customer demand. Based upon our evaluations, Efficiency Long Island is the first step we should pursue as it is the most economic.

View a listing of press releases dedicated to Efficiency Long Island.

Frequently Asked Questions

Why is LIPA implementing Efficiency Long Island?
LIPA is committed to providing its customers with the most reliable service at the lowest practical price. To meet this goal, LIPA must ensure that it always has enough generation resources to serve customers’ electrical needs with a margin in case of equipment failure or unexpected increase in customer demand. Based upon our evaluations, Efficiency Long Island is the first step we should pursue as it is the most economic.

How does Efficiency Long Island compare to LIPA’s current energy efficiency program?
Many of LIPA’s existing programs will still be available in Efficiency Long Island, along with several new initiatives for businesses and homeowners. They include:

For Residential Customers

  • Efficient Products – Purchases of lighting, appliances, in-wall air conditioners, dehumidifiers and other consumer electronics by residential customers from retail outlets
  • ENERGY STAR Labeled Homes – includes building shell upgrades, HVAC, hot water, duct seals, lighting and high efficiency appliances
  • Existing Homes – duct sealing and tune-ups for central air conditioners, whole house retrofit assistance and installation services, Residential Energy Affordability Program, and properly installed higher-than-code efficiency central air and heat pump equipment
  • Learn more

For Commercial Customers

  • Commercial & Industrial (“C&I”) New Construction – targets all new buildings and major renovations
  • C&I Existing Buildings – addresses equipment purchases stemming from natural replacement at the end of useful life and retro-fits (discretionary replacement of functioning inefficient equipment)
  • Learn more

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What are the program costs?
Efficiency Long Island’s 10-year program costs are expected to be $924 million. The majority of such funds would be paid out to customers and contractors in rebates and incentives to encourage the purchase and installation of energy efficiency products and measures.

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How will the Efficiency Long Island program be funded?
LIPA anticipates adding a new and separate Energy Efficiency fee on customers’ bills, similar to the Systems Benefit Charge that the Public Service Commission imposes on all private utilities for efficiency measures. Public notice of this fee will be made when LIPA initiates its tariff change process, which is anticipated to occur in the summer of 2008. As part of this process, customers will have the opportunity to learn more about the fee and to participate in hearings before LIPA’s Board of Trustees considers the change. LIPA will also continue to identify ways to bring additional funding sources to the program to offset the costs to customers.

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How do LIPA customers participate in Efficiency Long Island?
Beginning in early 2009, all of LIPA’s residential and commercial customers will be eligible to participate. LIPA will post on its Web site a list of all programs that are available and how a customer may participate. For those customers who do not have access to the web or who prefer obtaining information about the program via telephone, an 800 information line will also be available for customers. Using either means of communication, a customer will be able to obtain direct information on how to obtain energy efficient products, qualify for rebates, schedule energy audits for commercial facility(ies), and/or to obtain efficiency design assistance on new commercial construction projects. Customers may also participate by contacting their contractor or architect. Additionally, incentives and rebates will be at all participating retailer locations and through all participating contractors. But note, the clean energy initiative programs will all remain in full force and effect until the end of 2008 and customers should be encouraged to participate now.

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How will participation in Efficiency Long Island benefit me?
The benefit depends upon what energy savings initiatives the customer chooses to purchase and install. For example, a customer may choose to participate by simply purchasing energy efficient compact fluorescent lights (CFLs) to replace existing incandescent light bulbs. In this case, the customer may purchase the CFLs wherever he or she chooses for a few dollars each and receive a point-of-sale rebate from LIPA. For example, a residential customer who participates at a moderate level might purchase six CFLs, have their central air conditioner tuned-up and have their ductwork inspected and sealed and would expect to spend approximately a few hundred dollars. However, incentives from LIPA for these actions will bring the net customer cost down to $15 -$20 and the customer should see a payback within a few months and then see continued savings for the next several years.

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Will LIPA provide financing to assist customers participation in Efficiency Long Island?
LIPA will be partnering with banks that have expertise in providing loans to customers purchasing energy efficient products. Bank financing is just one component of this program which offers a range of services, including analysis, presentation of cash flow benefits to customers, training and certification, and financial incentives.

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What effect will Efficiency Long Island have on air emissions?
LIPA estimates that by implementing Efficiency Long Island it will reduce CO2 emissions by about 12 million metric tons compared to the CO2 emissions that would be produced from new power plants burning natural gas. This is equivalent to removing 2.5 million cars from Long Island roads.

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If I were to participate in Efficiency Long Island, what do you believe the anticipated impact would be on my overall LIPA bill if I were a residential or commercial customer?
A typical residential customer participating at a moderate level – for example, replacing six incandescent bulbs with CFL’s, having your central air conditioning unit tuned up and your duct work sealed by a participating contractor should recoup his or her investment in a few months and save around $90 on the annual bill. If you are a commercial business under rate code 281 and using around 62,000 kWh per year ($11,200) and you replace your lighting, convert your equipment to new ENERGY STAR equipment and install some lighting and cooling controls, you can recoup your investment in less than two years and should see an annual savings of around $2,500.

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Will LIPA’s customers achieve demand savings as a result of Efficiency Long Island?
Yes. The initiative is expected to reduce LIPA’s peak electric demand by 500 MW by 2018. Such reduction will result in the deferral or elimination of the equivalent of one large or two, medium-sized power plants from LIPA’s capacity expansion plan and the avoidance of high-cost, on-peak energy production equivalent to saving 2.2 million barrels of oil. The deferral or elimination of two medium size power plants is estimated to save LIPA customers about $800 million (2009 NPV) in capital, fuel, and emission costs.

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Will Efficiency Long Island benefit the Long Island economy?
Yes. Efficiency Long Island will be very beneficial for the Long Island economy as the program relies on Long Island contractors and retail stores to sell and install the energy efficiency products contained in the program. This means more “green collar” jobs for Long Islanders and more money in the local Long Island economy, instead of creating jobs in other states or overseas and exporting dollars to buy more natural gas and other fossil fuels.

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