Rebates Alone Won't Work: How to Engage Commercial Buildings in Utility Programs 

By Jennifer Farmer, Utility Program Manager

To effectively recruit commercial buildings into VPP programs, utilities must expand their approach beyond traditional financial incentives like rebates and credits. While these incentives have historically driven participation in residential programs, the commercial sector has more complex needs that go beyond immediate cost savings. Companies are increasingly driven by broader goals such as sustainability, operational efficiency, and tenant comfort. To engage commercial customers, utilities must position VPPs as solutions that help achieve these long-term objectives—offering benefits such as improved energy visibility, enhanced operational control, and contributions to environmental goals. By reframing the value of these programs, utilities can create a compelling case for participation that resonates with the unique priorities of commercial building managers.

Sustainability and Corporate Responsibility as Key Drivers

In the commercial sector, sustainability has evolved from a corporate goal to an operational necessity. With many of the 2030 carbon reduction targets rapidly approaching, buildings are seeking effective solutions to meet their environmental goals. At the recent CEE Industry Partners Meeting, many discussions centered around how utility programs can become a trusted partner to these corporations. This can be done through programs offering, energy consumption education, the addition of renewable energy generation options, and simplifying the process to participate in demand flexibility events. While carbon credits are still part of many sustainability plans, the shift toward prioritizing site level solutions remains. Utilities can use this alignment to recruit commercial participants aiming to demonstrate progress toward net-zero goals.

Prioritizing Data Visibility and Operational Control

Commercial buildings are increasingly focused on more than just cost savings—they want more visibility into facility operations. As many corporations continue to cite data quality and accuracy as a primary challenges to ESG reporting, the ability to provide expanded energy data can be highly beneficial​ (Deloitte 2024)​. Detailed site-level data can be used not only to optimize building performance but also to support complex emissions-based reporting. Advanced energy management technologies offer granular insights into energy consumption, enabling companies to make data-driven decisions that fine-tune systems, adjust settings across multiple locations, and prevent costly inefficiencies or downtime. This level of data also helps businesses track and verify their GHG emissions more accurately, ensuring compliance with regulatory standards and sustainability goals. By offering the ability to analyze and act on data from multiple facilities, VPPs can attract commercial participants who prioritize operational efficiency, sustainability, and performance optimization alongside financial savings.

Keeping Occupants Happy: Comfort, Air Quality, and Enhanced Operations

Commercial building managers are often drawn to the non-energy benefits that a utility program can promote. Energy costs will always be important, but considerations like occupant comfort, air quality, and operational efficiency often carry as much weight. For example, advanced control over HVAC systems not only reduces energy costs but can improve air quality and indoor comfort—factors that are critical for spaces like offices, hospitals, and educational institutions. Automated systems can maintain optimal temperatures and reduce reliance on less efficient, high-emission power sources during peak demand periods. By emphasizing how advanced controls contribute to healthier and more comfortable environments, utilities can appeal to commercial building managers’ broader operational goals, offering benefits beyond simple financial paybacks.

Being a Partner in Advancing Tech Integration

Most commercial buildings already operate Building Management Systems (BMS) to control essential functions like HVAC, lighting, and security. A program that easily integrates with existing BMS platforms offers a seamless transition, minimizing disruption and reducing implementation costs. The ease of integration can be a compelling argument, especially for the facility manager balancing the constant stream of new technology with the traditional needs of building operations. 

While advances in IoT and AI have led to smarter, more responsive buildings, these systems still depend on human oversight and management. Especially for facility managers with multi-facility portfolios, this quickly can become overwhelming, thus reiterating the common industry sentiment of ‘the next person can figure it out.’ Utility-backed programs can utilize their position as a trusted partner, specifically a partner who can help with the complicated integration process. By emphasizing VPPs as part of this technological transformation, utilities can attract both forward-thinking building operators as well as those less eager to incorporate new technologies into their facilities.

Edo equips utilities and buildings with technology and services needed to empower the ongoing transformation of commercial buildings into more efficient, sustainable, and responsive assets. By driving meaningful change and simplifying the integration of advanced technologies, Edo enables utilities to offer solutions that not only meet but exceed the evolving needs of their commercial clients—while ensuring minimal disruption to ongoing operations.

Conclusion

To successfully recruit commercial buildings into dynamic energy management programs, utilities should shift from a singular focus on financial incentives. Instead, including additional benefits can give commercial building managers the opportunity to fulfill multiple items on their ever-expanding list of priorities. By highlighting long-term operational, sustainability, and technological benefits, utilities can drive deeper participation in VPPs—building lasting, value-driven relationships with commercial customers that move beyond the scope of a utility bill.

About the Author

Jennifer Farmer is a Utility Program Manager, currently overseeing a [DOE] Department of Energy Connected Communities initiative focused on creating demand flexibility by utilizing energy-efficiency measures and Distributed Energy Resources [DERs]. With a background in corporate energy consulting, Jennifer specializes in energy portfolio optimization through data analytics, project management, and renewable energy integration. Outside of work, Jennifer enjoys spending time with her sphynx cats, watching mystery shows, and visiting the Washington coast.