How Do Electricity Pricing Programs Impact the Selection of Energy Efficiency Measures? - A Case Study with U.S. Medium Office Buildings: Article No. 110267

Building owners usually select energy efficiency measures (EEMs) by referring to return on investment (ROI). Current studies tend to apply static energy price to estimate ROI. However, more and more buildings are adopting dynamic electricity pricing programs. To understand how electricity pricing programs impact the selection of EEMs, this paper presents an analysis of the ROIs of EEMs under different pricing programs using U.S. medium office buildings as an example. Eight EEMs in four typical cities are selected as case studies. Considering five electricity pricing programs scenarios (one static program and four dynamic programs), EEMs are selected based on their ROIs. The main findings are: (1) The ROIs of EEMs change under different pricing programs. (2) In Honolulu, Buffalo, and Denver, replacing interior fixtures with higher-efficiency fixtures has a significantly higher ROI than the rest EEMs under all five pricing programs. However, the ROI of this EEM in Honolulu ranges from 28% to 47% for different pricing programs. (3) Similarly, in Fairbanks, replace heating coil with higher-efficiency coil produce higher ROI than the rest under all five pricing programs. (4) For other EEMs, their ROI rankings vary according to electricity pricing programs.