BayREN Small Business Program Achieves 257% Increase in Completed Energy Projects

The City of San Francisco is set to enhance energy efficiency for small businesses through a successful program that has shown significant growth and impact since its launch in mid-2023. The initiative, which employs a data-driven pay-for-performance model, ensures that public funds are only used for verified energy savings, protecting taxpayer investments while promoting sustainability.

In 2024, the program reported a remarkable 212% increase in applications and a 257% increase in completed projects compared to the previous year. A total of 218 projects were completed, resulting in energy savings equivalent to powering 142 homes and removing 1,100 cars from the road. On average, participating businesses saved approximately $2,800 annually on their utility bills, with an estimated incentive of $15,000 per project.

The program targets hard-to-reach small businesses across various sectors, including food service, grocery, and retail. However, challenges remain, particularly in the North Bay counties of Marin, Napa, and Sonoma, where participation has been low due to the absence of disadvantaged communities. To address this, the program plans to implement targeted outreach and marketing strategies to boost engagement in these areas.

Looking ahead to 2025, the program aims to build on its successes by improving contractor support and streamlining the application process. A dedicated consultant will focus on increasing participation in the North Bay, while efforts will also be made to enhance cost-effectiveness and maximize energy savings.

The BayREN program exemplifies a collaborative approach to addressing energy efficiency and climate action, demonstrating tangible benefits for small businesses throughout the Bay Area. As the initiative continues to evolve, it remains committed to fostering equitable access to energy savings and supporting local economies.