Programs for Small and Medium-Sized Manufacturers

The industrial sector represents a diverse grouping of companies that very significantly in their size and how they use energy. Industrial programs have tended to focus their efforts on customized incentives that capture large energy efficiency opportunities at each facility. While this approach works well for larger firms, the transaction costs of identifying and proposing projects for small and medium-sized manufacturers (SMM) is frequently prohibitive. As a result, programs have tended to focus on prescriptive rebates for equipment that do not address a significant portion of the energy use in these firms. However, number of innovative approaches exist, including quasi-prescriptive rebates, funding in-house energy managers, working through supply chains, and working through trade groups and market allies to provide services through trusted networks. This paper will summarize recent research on energy efficiency programs targeting SMMs and provide recommendation for program design to maximize energy savings for small and medium manufactures.