DSM Programs – What are they and how can they benefit your company?

The understanding that energy efficiency is good for the environment is balanced by the realization that it is financially beneficial for businesses. However, in order to save money through energy efficiency, you have to spend money to implement it, and the cost can be significant. Because energy efficiency retrofits can reduce companies’ annual utility costs by 35-60 percent, they typically offer an impressive ROI that makes their initial cost seem minimal. However, there are still many companies that cannot afford to pay for energy-efficient technology up front, and these companies are usually left with no options. However, today’s energy-efficient design is becoming more accessible to everyone through the growth of demand-side management (DSM) software.

Demand-side management programs – also known as DSM – are programs that encourage energy users to incorporate energy-efficient design. DSM programs typically involve four parties: the energy supplier, the energy efficiency provider, a government organization, and the customer. The energy supplier operates in accordance with the state mandate that states that a certain percentage of energy users must use energy-saving solutions by a certain date. An energy efficiency provider helps the energy provider achieve this by offering attractive financing or other financial incentives to the customer. When the program is successful, the energy provider profits by receiving the initial financial incentive; The energy efficiency provider wins by receiving financial incentives midstream and increasing its business; The customer benefits by implementing an energy-efficient design in an affordable manner. In many cases, modifying a building through the DSM program can reduce the cost of implementation by 70 percent or more.

Companies implementing energy efficiency retrofits through DSM programs may not have the same range of options as companies implementing energy efficiency retrofits without a DSM. But one of the retrofit options that DSM customers and non-customers alike choose is lighting modifications. When you choose an energy efficient lighting company, an energy efficiency consultant performs a technical and financial analysis of their lighting system and provides a comprehensive lighting solution. Since the goal of energy efficiency is to reduce energy use as much as possible, the solution relates to every aspect of the company’s lighting, from office lighting to corridor lighting to outdoor lighting. In addition to implementing energy-efficient lighting fixtures, the consultant will also suggest implementing automated lighting controls that can adjust lighting according to work schedules, security measures, presence of natural light, etc. If your company has an old lighting system that needs to be replaced but you don’t have the budget to pay for the changes in full, contracting with an energy efficiency provider through the DSM program may be the answer.

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