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Incentives/Policies for Energy Efficiency

Printable Version
Energy Efficiency Goal   

Last DSIRE Review: 07/06/2012
Program Overview:
State: Texas
Incentive Type: Energy Efficiency Resource Standard
Eligible Efficiency Technologies: Unspecified Technologies
Eligible Renewable/Other Technologies: Solar Water Heat, Geothermal Heat Pumps
Applicable Sectors: Investor-Owned Utility
Electric Peak Demand Reduction20% reduction in annual growth in demand 2010 and 2011;
25% reduction in annual growth in demand 2012;
30% reduction in annual growth in demand 2013 and beyond
Web Site:
Authority 1:
Date Enacted:
Texas Utilities Code § 39.905
1999 (subsequently amended)
Authority 2:
Date Enacted:
Texas PUC Electric Rules §25.181
11/1999 (subsequently amended)
Authority 3:
Date Enacted:
Date Effective:
S.B. 1125

Texas is credited with being the first state to establish an Energy Efficiency Resource Standard in the United States.* Originally, the goal called for investor owned utilities (IOUs) to meet 10% of its annual growth in electricity demand through energy efficiency. The legislature updated those standards in 2008 (HB3693) and the Public Utility Commission of Texas (PUCT) finalized the goals and provided additional guidance on how to achieve them. SB1125 (2011) amended the goals again.

Options available to the IOUs to meet the energy efficiency goals include standard offer programs or market transformation programs. Standard offer programs include programs such as commercial and industrial energy efficiency incentives or incentives for "hard-to-reach" customers (among others). Market transformation programs include programs such as incentives for retro-commissioning, incentives for ENERGY STAR New Homes, or incentives for small distributed renewable generation (among others). Each utility, in turn, must develop Energy Efficiency Plans & Reports outlining specifically how the utility is implementing its programs, in accordance with the law to meet its goal.

Between the years 2003 to 2009, the IOUs have exceeded the energy efficiency goals. The 2010 results are available in the 2011 Energy Efficiency Plans & Reports, and available at the PUCT web site (search for control number 39105) for filings.

The Texas Energy Efficiency web site includes Energy Efficiency Plans and Reports for each investor owned utility since 2007. The utilities also complete an annual report highlighting accomplishments and provide detailed information about energy efficiency goals and implementation.

*Statistic provided by the American Council for an Energy-Efficient Economy (ACEEE). See ACEEE's State Energy Efficiency Resource Standard Fact Sheet for a quick reference guide comparing states with energy savings goals.

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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.