September 2011 -The overall goal of this study was to determine baseline and efficient measure costs for a series of energy efficiency measures of interest to the Subcommittee and the incremental costs of moving from baseline to efficient measures. Phase 1 of the Incremental Cost Study (ICS) determined the cost of material/equipment for baseline and efficient measures, the cost of baseline labor and, where appropriate, incremental costs of labor. This report describes the methods and results of the ICS to investigate and update incremental costs for a number of common measures employed in energy efficiency programs. The objectives of this study were to develop electric and gas efficient measure incremental cost assumptions that will improve the ability of efficiency program planners, program administrators, program evaluators and regulators to:
- Retrospectively assess program cost-effectiveness.
- Prospectively estimate potential program cost-effectiveness to inform which measures and/or programs should be part of efficiency program portfolios.
- Inform program design, particularly financial incentive levels.