Problem: When subsidies and incentive programs are too broadly-based they can work against the goal by "locking in" inefficient equipment or subsidizing product purchases that would be made even if subsidies were not available e.g. LED lamps.
Incentives should be applied to advanced technologies only, that can provide true efficiency improvements, even if they have limited market share.
As it stands, incentives paid in certain provinces (e.g. Ontario) for variable speed drives attach no requirement to factory test the integrated solution and overall variable speed system to determine or confirm the energy savings impact. Additionally, there is no required monitoring of the equipment to ensure the savings are maintained over time to existing energy codes or practice. This lack of rigour and reliance on single component specification sheets from manufacturers is “locking in” inefficient equipment and actually paying building owners to do this. Meanwhile, the building owners believe that this solution must be optimal because the government has blessed it with a subsidy.