Explorer

Energy Efficiency Surcharge

billing and meteringv0.4.0Updated 2026-07-10

Canonical Definition

An energy efficiency surcharge is a bill line item that recovers the costs of utility-administered energy efficiency and conservation programs, such as rebates, weatherization, and audits, from customers. It is typically assessed per kWh or as a percentage of charges, with amounts approved by the state regulator. Names and structures vary by jurisdiction; in some states it is folded into a broader public purpose or system benefits charge.

Explanations

An energy efficiency surcharge is a small charge on your bill. It funds programs that help customers use less energy. Examples include rebates on appliances, home energy audits, and help sealing up homes. The charge is usually based on how much energy you use. State regulators approve the amount. The name and size vary by utility and state. You may be able to use the programs it funds.

Analogy Bank

younger-audiences

An energy efficiency surcharge is like a small classroom supply fee that funds tools everyone in the class can use.

homeowners

It's like chipping into a building's shared maintenance fund that pays for upgrades any resident can request.

Do Not Say

  • Do not quote surcharge amounts or rates; they are approved by state regulators and vary by jurisdiction.
  • Do not promise rebate amounts or the availability of programs the surcharge funds; offerings vary by utility.
  • Do not describe the surcharge as optional or removable for individual customers.