DSM Programs - What Are They and How Can They Benefit Your Company?

The understanding that energy efficiency is good forprovider profits by receiving midstream financial
the environment has become balanced by theincentives and increasing its business; and the
realization that it is financially beneficial to companies.customer profits by implementing energy efficient
However, in order to save money throughdesign in an affordable fashion. In many cases,
energy-efficiency, you have to spend money toretrofitting a building through a DSM program can
implement it, and the cost can be significant. Becausereduce implementation cost by 70 percent or more.
energy efficiency retrofits can reduce companies'Companies that implement energy-efficiency retrofits
yearly utility costs by 35-60 percent, they typicallythrough DSM programs may not have the same range
deliver an impressive ROI that makes their upfrontof choices as companies that implement energy
cost seem negligible. Even so, there still are manyefficiency retrofits without DSM. But one of the retrofit
companies that cannot pay for energy efficientoptions commonly chosen by DSM customers and
technology upfront, and traditionally these companiesnon-DSM customers alike is lighting retrofits. When a
have been left without options. Today, however,company opts for energy-efficiency lighting, an
energy efficient design is becoming increasingenergy-efficiency consultant performs a technical and
affordable through the outgrowth of Demand Sidefinancial analysis of it lighting system and presents a
Management (DSM) programs.comprehensive lighting solution. Because the goal of
Demand Side Management Programs-also known asenergy efficiency is to reduce energy usage as much
energy demand management-are programs thatas possible, the solution will pertain to every aspect of
encourage energy users to incorporate energya company's lighting, from desk lighting to corridor
efficient design. DSM programs typically involve fourlighting to exterior lighting. In addition to implementing
parties: an energy supplier, an energy efficiencyenergy efficient lighting fixtures, the consultant will also
provider, a government organization and the customer.suggest implementing automated lighting controls that
The energy supplier acts on a state mandate thatcan adjust lighting according to work schedules,
says that a certain percentage of energy users mustsecurity measures, the presence of natural light, etc. If
use energy efficient solutions by a certain date. Theyour company has an old lighting system that needs to
energy efficiency provider helps the energy providerbe replaced but you don't have the budget to pay for
accomplish this by offering attractive financing or otherthe changes in full, contracting with an energy
financial incentives to the customer. When the programefficiency provider through a DSM program may be
is successful, the energy provider profits by receivingthe answer.
upstream financial incentives; the energy-efficiency