DTE Energy Launches New Incentive Program.

23 Sep 2011

On Monday, DTE announced a new first-of-its-kind incentive and reward program for its large commercial and industrial (C&I) customers.  Over the next two years, qualifying C&I customers who can demonstrate measured energy savings as a result of process improvements or other energy-efficiency projects will receive financial compensation for their conserved energy.  Sterling Planet, an Atlanta-based energy marketer, will measure and validate the energy savings using the company’s proprietary software and provide up to 125,000 White Tags or energy optimization credits (similar to renewable energy credits or RECs) to DTE.  DTE can then, in turn, use the credits to comply with the State’s energy efficiency mandates.

The White Tag credits are an alternative to RECs and can be traded and sold in a similar fashion.  Unlike RECs; however, which are tied to creating and delivering renewable power and are measured by meter readings, White Tags are created by reductions in energy usage and are measured through software and control technology.  1 White Tag = 1MWh of electricity savings or 1MCF of natural gas savings.

The environmental benefits of this new program are estimated to be significant. According to DTE’s press release, 25,000 White Tags from electric energy and natural gas savings will compare to about a 25,870-pound reduction in carbon dioxide emissions or the equivalent of taking 4,600 cars of the roads for a year.

Seems like a good program – unique in the fact that it is performance based rather than providing rebates for the purchase of energy saving equipment.  Another tool in the savvy business’ toolbox to bring in new revenue and reduce energy costs.

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