The LBNL Energy Efficiency Revenue Analysis (LEERA) model helps governments with electricity subsidies design low- and no-cost incentive programs to promote the purchase of energy efficient appliances.

In countries where the government subsidizes the price of electricity for consumers, the LEERA model helps policymakers design revenue-neutral incentive programs. These programs pay for themselves by generating revenue from the energy savings achieved through efficiency improvements. Revenue comes in the form of reduced costs for government electricity subsidies.

The LEERA model calculates:

  • Projected efficiency improvements for select appliances
  • Energy savings from incentive programs
  • Financial savings from avoided subsidies

LEERA-designed incentive programs help policymakers reduce energy consumption while lowering government spending on electricity subsidies. They do so without raising energy standards or reducing subsidy levels, both of which could raise costs for consumers.

Real-World Case Study: If the Mexican government replaces all analog TVs with more efficient LCD models, they can reduce energy consumption by up to 3.5 TWh a year. According to LEERA analysis, even if the government gives away 14 million superefficient TVs for free, they could still generate up to US $877 million in profit as a result of reduced payouts for electricity subsidies.

If you are interested in using the LEERA model to evaluate the energy- and cost- savings potentials of incentive programs in your country, contact us.


The SEAD Initiative uses the LEERA model to inform the development of country- and product-specific energy efficiency incentive programs.


The SEAD Initiative supports the creation and implementation of incentive programs for energy-efficient products.

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