Customers favor onsite generation as demand response incentive. (News).(a survey finds that payments or rate reductions are not the only incentives that may convince customers to participate in demand response programs)

BOULDER, CO--Payments or rate reductions are not the only incentives that may convince customers to participate in demand response programs, according to results of a Primen survey of 298 business establishments. Five types of businesses that have relatively high energy bills were surveyed: food stores, educational facilities, fabricated metal manufacturers, hotels, and restaurants and bars.

"We found that although rate reductions or payments for kilowatt-hours reduced can be effective incentives, utility-owned and maintained onsite generation got a more positive response from customers than purely financial incentives," says Karen George, director of the Primen Customer Insights Strategic Service.

Energy companies that are willing to spend capital upfront may find that installing or upgrading equipment at the customer's site proves popular, says George.

Of the financial incentives tested, a 20% rate reduction or a payment of 15 cents per kilowatt-hour elicited interest from approximately 20% of the businesses surveyed. However, when respondents were asked if they would participate in a demand response program in ...