What you need to know about the 2025 refrigerant transition.
Big changes are coming to the air conditioning world in 2025, and we’re here to help you make sense of them!
In broad strokes, the Environmental Protection Agency (EPA) has issued a mandate to “phasedown” hydrofluorocarbons, and it goes into effect on January 1, 2025. In this post, we’ll dive into the reasons behind the mandate, what it means for you and what we’re doing to help make upgrading your air conditioner more affordable.
What are hydrofluorocarbons (HFCs) and why is the EPA mandating a phasedown?
Hydrofluorocarbons are powerful greenhouse gases developed as replacements for the even more potent chlorofluorocarbons (CFCs), which were banned in the 1980s. Although HFCs may not be as detrimental as the CFCs they replaced, they’re still bad for the environment. That’s why the EPA is phasing down their production and consumption.
What are the costs and benefits of the HFC phasedown?
According to the EPA, “The projected emission reductions of the HFC Allocation Program from 2022 to 2050 are equivalent to 4.6 billion metric tons of carbon dioxide — equal to approximately three years of U.S. power sector emissions at 2019 levels. A global HFC phasedown is expected to avoid up to 0.5°C of global warming by 2100.”
The EPA went on to calculate that the societal benefits between 2022 and 2050 would add up to $169.9 billion (in 2020 dollars).
What does the mandate do?
Basically, it calls for a phaseout of the refrigerant seen in most existing air conditioning units. The refrigerant, R410A, is being replaced by refrigerants that are less harmful to the environment. These new refrigerants are known as R-454B and R-32, and HVAC manufacturers will begin manufacturing equipment that accommodates these new refrigerants.
What are the benefits of the 2025 refrigerant mandate?
The new refrigerants have a much lower Global Warming Potential (GWP). The GWP is a metric developed by the EPA to measure the amount of heat trapped in the atmosphere from greenhouse gases. The new lower GWP refrigerants have a 78% lower GWP than R-4120A and will help the U.S. achieve an 85% HFC phasedown by 2036.
Do I have to replace my existing air conditioner?
No, you can continue to use your existing air conditioner! This new rule restricts products that use R410A from entering the market or entering operation. In fact, you’re welcome to use and repair your system as long as it lasts. However, the availability of HFCs may be harder to find as the phasedown progresses. You can find information about substitute refrigerants here.
To extend the functional life of your heating and cooling systems, be sure to schedule a tune-up in the fall and/or spring. You can find a TVA-vetted contractor here, and save $50 with our HVAC tune-up rebate. You may want to discuss your options with your contractor while they’re taking care of your system.
Tip: Upgrade to a high-efficiency HVAC system, and you could save up to 20% on heating and cooling costs.
If your system must be replaced, be sure to check out all of our rebates on heat pumps, mini splits and central air conditioners.
SEER2 FAQ
To help you see the savings light, we covered the SEER2 basics in “What’s a SEER2 rating?” Read on for a deeper dive into some frequently asked questions about SEER2.
What is SEER?
SEER stands for Seasonal Energy Efficiency Ratio. It measures how efficiently an air conditioner or heat pump cools your home. The higher the number, the more efficient the system is.
Essentially, SEER2 ratings are your heating and air conditioning systems’ version of miles per gallon (MPG) or miles per gallon equivalent (MPGe).
What’s the difference between SEER and SEER2?
Since the SEER system started in 1992, there have been a lot of changes in the technology we use to heat and cool our homes. Plus, our understanding of how things like ductwork and external static pressure can affect efficiency has improved. That’s why the SEER2 standards are now in effect. The new standards more accurately measure system efficiency in real-world conditions.
The calculation is similar to SEER: it measures the cooling output over a season divided by the energy used. However, the testing procedures are stricter, so SEER2 ratings are typically lower than SEER for the same system — not because the system got less efficient, but because the new test is more accurate.
To go back to our car analogy, imagine you’re testing a gas-powered car’s fuel efficiency, but instead of smooth highway driving, you’re towing a boat or you’re stuck in stop-and-go traffic with a trunk full of kitty litter and six cases of water. Your mileage is going to suffer from the added exertion and weight — but it’s likely how you spend a lot of your time behind the wheel! SEER2 does something similar by simulating more realistic conditions for your home’s HVAC systems.
As of January 2024, all new heating, ventilation and air conditioning (HVAC) systems had to have a SEER2 rating. You may notice that new products may be marked with a SEER and SEER2 rating for a few years as manufacturers adopt the new standards.
The SEER2 rating is slightly lower than the original SEER. This accounts for energy leakage in air ducts. For example, a unit with a SEER of 15 will typically have a SEER2 of 14.3. The federal tax credit is determined based on the SEER2 rating. When combined with the new increase in minimum SEER ratings, the energy savings are significant.
Simply put, SEER2 is the total heat removed from a conditioned space during an annual cooling season. Visit SEER2.com for a more detailed dive into testing requirements and procedures.To calculate an air conditioner’s SEER2, for example, we add up all the cooling the system produces during a typical cooling season and divide it by the total electricity it uses during that same time.
How is SEER2 calculated?
Higher SEER2 means the system is more efficient, just like a car that gets more MPGs or MPGes saves you money on gas or electricity.
Just as you’d divide the number miles you drove by the amount of gasoline you put in a gas-powered car to determine your miles per gallon (MPG), SEER2 is calculated by dividing the cooling output of your unit by the watt-hours of energy it consumes.
For example, if your unit produces 10,000 BTUs of cooling power and consumes 1,000 watt-hours it would have a low SEER rating of 10.
What’s the difference between SEER2 and EER?
The efficiency of window air conditioners and portable air conditioning units is generally measured as EER rather than SEER2. SEER2 measures a system’s average efficiency over an entire cooling season, while EER measures efficiency under specific testing conditions. Smaller, single-room window units are less affected by environmental conditions (they don’t have ducts!) than central cooling systems, so EER is a better measure of efficiency for them.
What’s a good SEER2 rating?
As of 2024, the U.S. Department of Energy requires that central air conditioning systems in the seven-state Tennessee Valley region have a minimum SEER rating of 15 and a minimum SEER2 rating of 14.3. The higher the SEER2 number, the more efficient your unit will be. The more efficient your unit, the more money you’ll save over the system’s lifespan.
Typically, ENERGY STAR-certified units have a SEER2 rating of 15.2 (16 SEER) or higher.
Where can I find the SEER2 rating of my unit?
Look for a bright yellow and black EnergyGuide label. If your unit is older, the label may have faded, but it should be there. Not all appliances have this sticker, but most heating and cooling units do. The SEER and SEER2 ratings will be clearly labeled.
If you don’t see the sticker, you can do an online search using the manufacturer, model number and unit size to determine your system’s rating.
What makes an air conditioner high efficiency?
It’s all about the compressor and condenser. Air conditioners with SEER2 ratings between 14 and 16 use the same basic technology. AC units with a SEER2 rating of 17 and higher use a different type of compressor and condenser fan to achieve maximum efficiency.
What products are affected by SEER2 regulations?
- Air conditioner condensing units
- Heat pumps
- Single packaged units
- Evaporator coils
- Gas furnaces
Are there rebates available on SEER2 air conditioning units and heat pumps?
Yes! You can find rebates from TVA EnergyRight here. Federal tax credits are also available.
What’s a SEER2 rating?
Sorry to spoil your fun: Your HVAC contractors aren’t all-seeing masterminds, peering into your energy-savings past, present and future. SEER stands for seasonal energy efficiency ratio. When it comes to your heat pump, mini split or air conditioner, it indicates the unit’s maximum energy efficiency.
Fun Fact: Since the SEER system started in 1992, there have been a lot of changes in the technology we use to heat and cool our homes — and our understanding of how things like ductwork and external static pressure can affect efficiency have also improved. That’s why the SEER2 standards are now in effect. The new standards more accurately measure system efficiency in real-world conditions.
Basically, the higher the SEER2 rating, the more efficient the unit is. In this post, we’ll share the information you need to understand SEER2 ratings and how they apply to our Valley region. For a deeper dive into SEER2 ratings, check out our SEER2 FAQs.
What are the benefits of higher SEER2 ratings?
If you’re in the market for a new heating and cooling system, choosing a unit with a higher SEER2 rating has some notable benefits:
#1 — Energy savings
Higher-efficiency air conditioners and heating systems can cost more up-front; however, you will save money on energy costs in the long run. You can easily determine the lifetime savings for different SEER2 ratings using a SEER savings calculator. Rebates from TVA EnergyRight and federal tax credits can help offset the initial higher cost of energy efficient air conditioners and heat pumps.
#2 — Quieter operations
Generally speaking, high-efficiency units are quieter than low-efficiency ones. Still, if you have a vote in your system’s location, keep it as far from a bedroom as possible.
#3 — Gentler on the environment
Lower your carbon footprint with high-efficiency heating and cooling systems that use less energy. All air conditioning units installed after 2025 will use a new refrigerant — R-454B and R-32 — to conform to the EPA’s hydrofluorocarbon phasedown mandate.
#4 — Rebates and tax credits
We already mentioned this one, but it bears repeating! TVA EnergyRight offers rebates up to $3,000 on heat pumps and a $400 rebate on central air conditioners with a 17 SEER2 or higher. As part of the Inflation Reduction Act of 2022, federal income tax credits of up to $3,200 are available to lower the cost of energy efficient home upgrades by up to 30%.
Home energy rebates are back and better than ever in 2025!
The home energy rebates that you know and love from TVA EnergyRight® and your local power company just keep getting better.
Geothermal heat pump rebate doubles to $3,000!
Replace your existing primary electric heat source with a geothermal heat pump and your TVA-vetted contractor will submit your $3,000 rebate claim to us for processing. You may also be eligible for a yearly $2,000 tax credit on your federal tax returns.
$500 limited-time-offer on attic insulation EXTENDED
Back by popular demand! Our attic insulation rebate was such a hit that we’re extending the offer. According to ENERGYSTAR.com you can lower your energy bill by up to 10% with home insulation and air sealing. Stay cozy and take us up on this LTO today.
Here’s how (most) of our home energy rebates work:
To help make sure the job’s done right, most TVA EnergyRight rebate-eligible upgrades must be completed by a member of the Quality Contractor Network. We’re helping you take the guesswork out of finding a vetted, licensed and insured contractor for your home efficiency upgrades.
Back in business for 2025!
Rebates on heating and air conditioning.
In addition to our new and improved geothermal heat pump rebate, we’re pleased to announce that rebates are still available on SEER2 mini splits, heat pumps and air conditioners. You can learn more about the benefits of higher SEER ratings right here. Or you can read up on our SEER FAQs!
$50 rebate on heating and air conditioning system tune-ups.
Our popular tune-up rebate is here for the taking! Schedule a tune-up for your heat pump or air conditioning system with a member of the Quality Contractor Network and get a check for $50!
Save up to $300 with our home envelope air sealing rebate.
A $300 home envelope air sealing rebate from TVA EnergyRight and your local power company can help make your home more comfortable — and more energy efficient.
Get your ducts in a row with a $300 duct sealing rebate.
Leaky ducts can reduce the efficiency of your heating and cooling systems by up to 20%. Improve efficiency and increase savings with a rebate on duct sealing.
Investing in home energy efficiency upgrades is a smart way to enhance comfort, reduce energy bills and contribute to a more sustainable future. Plus, it’s great for your home’s overall market value! Our rebates and financing options can help off-set the costs and keep you on-budget in 2025. Don’t forget to explore the federal Energy Efficiency Home Improvement Credit, for more ways to save!
Whether you’re sealing air leaks, upgrading insulation or investing in energy efficient appliances, investing in your home today is a great way to save in the future.
How do geothermal heat pumps work?
Everybody’s talking about them — especially now that we’re offering a $3,000 rebate on them — but what are geothermal heat pumps and how do they work? Let’s dig in! (Get it? No? Read on and you will, we promise!)
What’s a geothermal heat pump?
Even with seasonal temperature extremes — from summer scorchers to winter freezes — the ground remains at a relatively constant temperature year-round just a few feet below the Earth’s surface.1
A geothermal heat pump works by transferring heat to or from the ground surrounding your home and using it to heat and cool the inside of your home. The technology has been around for decades and can cut energy bills up to 50% compared to conventional fossil fuel systems2.
Here’s where the digging comes in: Geothermal heat pumps use a series of pipes or coils buried underground to work their magic. In the winter, the ground absorbs and stores heat from the sun, even if the surface air temperature is cold. (That’s why a gardener can yank a good carrot out of the ground well into the winter.)
During the winter months, a geothermal heat pump circulates a water-based solution through the ground loop, absorbing stored heat. Then, the heated solution is transferred to a heat exchanger, where it warms the air circulated through your home. Dig it?
The anatomy of a geothermal heat pump
A geothermal heat pump has three main components: an indoor unit, ground loop and a distribution system.3
What does the indoor unit do?
Think of this as the command center or the “brain” of your heat pump system. It contains the compressor, heat exchanger and system controls.
What does the ground loop system do?
If the indoor unit is the brains of the operation, then the ground loops are the veins and arteries. There are three different types of ground loop systems, and the geography of your property dictates which system will work best for your home.
In the summer, the process reverses and heat is extracted from your home and transferred to the cooler ground around it, using the same loop system. This not only cools your home but also lowers humidity levels, further enhancing comfort during the heat of the summer.
Horizontal loops are installed in shallow trenches and are often used for residential or small commercial properties.
Drilled deep into the ground, vertical loops are a good option for more heavily populated areas or for urban homes.
If you’re lucky enough to live near a pond or a lake, water loops use nearby bodies of water for heat exchange.
What does the distribution system do?
If you guessed that it’s the “heart” of the operation, then we’re on the right path. Once your indoor unit captures or releases heat, the distribution system pumps it throughout your home through a network or ducts or radiant floor heating. If you’re retrofitting your home, existing ductwork can usually be enlisted to do the job.
How are geothermal heat pumps installed?
Installing a geothermal heat pump is a complex process that requires professional expertise. To help make sure the job’s done right, all TVA EnergyRight rebate-eligible geothermal heat pumps must be installed by a member of the Quality Contractor Network.
Generally speaking, here’s how the process works:
Step 1: Site assessment
Your selected member of the Quality Contractor Network will evaluate your property to determine if it’s suitable for a geothermal system. They’ll consider soil conditions, land area and the proximity of your home to any underground water sources. This initial assessment helps determine which ground loop configuration is best for your system.
Step 2: Estimating and scope of work
Your contractor will provide you with a detailed estimate and a clear scope of work.
Step 3: Excavation and ground loop installation
For horizontal or vertical loops, trenches or wells are dug to install the pipes. This part of the process may take a few days, depending on the type of loop and property size.
Step 4: Indoor unit installation
This part of the process is pretty much like installing a conventional furnace and connecting ductwork.
Step 5: Connecting the system
Once the ground loop and heat pump are connected, the system is filled with a water-based solution that circulates through the loop to transfer heat to and from the ground and into your home.
Step 6: System testing
Your contractor will carefully check for any leaks, verify temperature settings, and explain how to operate and maintain the system.
How long do geothermal heat pumps last?
They’re more costly than a conventional heating or cooling system, but they’re made to last. They’re also up to 65% more efficient than a traditional unit and pay themselves back over time in energy savings — typically within 10 years.
With good routine maintenance, you can expect your geothermal heat pump’s indoor components to last approximately 25 years, rather than the 10- 15-year lifespan of a conventional system. Your ground loops should last for 50-plus years.4
To make geothermal heat pumps more affordable, we’re offering a $3,000 rebate on qualifying systems and federal tax credits of up to 30% of the installed cost may also be available.
Why are geothermal heat pumps such a big deal?
A recent analysis from Oak Ridge National Laboratory (ORNL) and the National Renewable Energy Laboratory (NREL) found that, coupled with building envelope improvements, installing geothermal heat pumps in approximately 70% of U.S. buildings could save as much as 593 terawatt-hours of electricity generation annually. It could help the U.S. avoid seven gigatons of carbon-equivalent emissions by 2050.
“To put that in context, 593 terawatt-hours is about 15% of the current annual electricity demand in the United States,” said Jonathan Ho, lead NREL researcher for the analysis.
The report went on to note that “Widespread geothermal heat pump installations could also save 24,500 miles of new grid transmission lines from needing to be built (36.7 TW-mi) — the equivalent of crossing the United States eight times — because of a reduced need for generation capacity, storage, and transmission compared to other energy pathways. This means geothermal heat pumps could provide benefits to all electricity consumers, even those who cannot install geothermal heat pumps themselves.”5
1Energy.gov, “Geothermal Heat Pumps.”
2Energy.gov “5 Things you Should Know About Geothermal Heat Pumps.”
3The Old House, “Geothermal Heat Pump: How It Works”
4Energy.gov “5 Things you Should Know About Geothermal Heat Pumps.”
5NREL.gov, “New Analysis Highlights Geothermal Heat Pumps as Key Opportunity in Switch to Clean Energy.”
3 soups from around the Valley region to keep your kitchen cozy!
If the weather outside is feeling frightful, it’s time to cook up something delightful! Here are three warming soups to keep your kitchen cozy and your belly warm.
Kentucky Burgoo
This hearty, favor-packed stew will get the engines running! This rich, slow-cooked stew has earned a spot in many hearts and kitchens. Known for its versatility, Kentucky Burgoo traditionally includes a blend of meats like beef, chicken, pork or even venison, squirrel or rabbit, if you’re feeling the need for authenticity.
The beauty of Burgoo lies in its “whatever’s on hand” approach — families often made it with seasonal vegetables like tomatoes, corn, carrots, potatoes and lima beans. Each ingredient is slowly simmered until the flavors meld into a thick, hearty stew with a slight kick of spice.
Get your burgoo on!
The one thing everyone agrees on: You can’t rush a good burgoo. Get the recipe here.
Tennessee Doodle Soup
The good folks of East Tennessee know what’s up with this comforting, cold-killing concoction. Made up of chicken drippings, vinegar, cayenne pepper and flour, the dish even has a festival in its honor — Bradford Tennessee’s Dood Soup Days. According to the Tasting Table, “Locals eat the soup with crackers, while others serve steaming bowls with biscuits fresh from the oven.”
It’s a good day for doodle soup.
No two doodles are the same, but for a little more guidance, get the “recipe” here.
Alabama Camp Stew
A smoky and satisfying meal, Alabama Camp Stew is a great cold-weather beater. Made with a base of smoked meat and a variety of vegetables, this stew is both smoky and sweet. Ingredients like tomatoes, lima beans, corn and potatoes are slow-cooked with the meat until tender. The stew’s slightly thick texture and rich flavor make it an ideal meal to enjoy around a campfire or your kitchen table.
Just don’t call it Brunswick stew.
This beloved Southern staple has its origins in outdoor cooking, hence the “Camp Stew.” We recommend using your electric stove, naturally! Get the recipe here.
Five Key Takeaways from our Webinar, “Unlock Energy Savings: How Employee Engagement Drives Success.”
Sustainability and energy efficiency are no longer just buzzwords; they’re vital to successful business operations. Companies prioritizing these initiatives see significant improvements in their bottom line thanks to reduced operational costs and enhanced employee engagement.
In our recent webinar, “Unlock Energy Savings: How Top Companies Benefit from Employee Engagement,” industry experts Clay Hoover from TVA EnergyRight®, Jim Reese from Ashland Inc., and Kelley Whalen from Adtran shared their insights.
Here’s a preview of the five key takeaways you need to know.
1. With Strategic Energy Management, we’re all in.
2. When it comes to employee engagement, a little recognition goes a long way.
3. Boost your triple bottom line. People. Planet. Profit.
4. Community counts.
5. Together, we can do great things.
1. With Strategic Energy Management, we’re all in.
Strategic Energy Management engages everyone — from your senior leaders to your new hires—in the good work of saving energy, meeting sustainability goals and investing in people. Plus, our team is with you all the way.
Strategic Energy Management is a free two-year program designed to help industrial businesses cut energy costs and meet sustainability goals. Strategic Energy Managment is more than just a set of energy-saving tips—it’s a comprehensive, organization-wide strategy that embeds energy efficiency into the company’s culture.
Strategic Energy Management gives businesses the tools and expertise to create a tailored, long-term energy management strategy. It’s a win-win-win with innovative solutions that drive employee engagement, environmental stewardship and profitability.
By continuously improving energy performance, companies can reduce costs and gain a competitive edge in their industry. Kelley Whalen, Energy Manager at Adtran, says, “Joining Strategic Energy Management had the most significant impact on our sustained energy savings because it involved all employees. This combination has been a game-changer for us.”
Takeaway: With 24 months of free strategic coaching valued at $100k, no capital investments and a 15% savings on energy costs — Strategic Energy Management will help you transform your business.
2. When it comes to employee engagement, a little recognition goes a long way.
When employees are actively involved in energy-saving programs, companies not only experience better outcomes and save more, but they also boost morale and foster a stronger sense of purpose within the workplace. Energy efficiency is not only good for your bottom line; it’s great for your brand reputation. Sustainability initiatives build trust and authenticity with customers and employees.
Jim Reese, Senior Operations Manager, Ashland, Inc., says, “You have to ask yourself what’s in it for your employees? Then you’ll have the buy-in you need for a successful program.”
Reese recommends involving employees in energy-saving initiatives through recognition programs, incentives and active participation in energy teams.
“You can foster a culture of responsibility and innovation by involving employees as valuable contributors to your company’s sustainability goals,” adds Reese.
Companies like Ashland Inc. have seen successful by turning even the most reluctant employees into advocates for energy efficiency. This approach connects employees to a bigger purpose and also drives long-term savings. Plus, companies that invest in employee engagement are more likely to attract and retain top-notch talent.
Takeaway: A little recognition can make a difference. Building a culture of engagement is not necessarily about big incentives; it’s about consistent recognition and empowering employees to contribute ideas.
3. Boost your triple bottom line. People. Planet. Profit.
Strategic Energy Management is designed for industrial businesses. It gives you the tools to manage energy in a coordinated and strategic way across your organization. Enjoy increased profitability and create a competitive advantage, while reducing environmental
impact and supporting your community.
“Balancing the triple bottom line — people, planet and profit — when implementing energy-saving strategies is the key to success,” says Whalen. “This approach has led to significant energy savings at Adtran.”
Takeaway: Successful energy management requires aligning the interests of employees (people), environmental responsibility (planet), and financial performance (profit). By doing so, companies can create a sustainable and profitable business model. 
4. Community counts.
TVA EnergyRight for Business & Industry partners with local power companies, contractors and businesses to strengthen the communities we serve. We do that by ensuring that companies and industries in our communities have access to the energy information and resources they need to thrive.
To help support the places we live, we offer incentives for energy upgrades, revitalization programs and more. That’s why Strategic Energy Management participants can choose to “save it forward” by making an optional tax-deductible donation with a portion of their verified energy savings.
Reese explains,“ It’s not just about saving energy; it’s about making a long-term impact on the community.”
TVA EnergyRight’s Small Business Uplift initiative assists small businesses in underserved communities with energy-related upgrades and resources. Our School Uplift supports public schools in the region by offering energy efficiency training and grants that reduce energy costs and improve the quality of the learning environment.
Takeaway: For more inspiring stories from the communities we serve, visit The Current, where you can see firsthand how energy efficiency makes a real difference in the lives of people in our communities.
5. Together, we can do great things.
Here are some other resources available to help businesses cut costs and save more energy.
Compressed Air Training
Air compressors are energy-intensive and costly. Our free online training sessions can help companies lower costs by 15-25% annually.
Incentives
In partnership with your local power company, we offer financial incentives on qualifying technologies to help businesses reach their energy goals.
Demand Response
Qualified Business & Industry customers can earn credits or incentives while making sure the Valley has the power it needs.
Takeaway: Your business could enjoy incentives for qualifying energy projects of up to $3 million per TVA fiscal year. Learn how at EnergyRight.com/incentives.
These insights remind us just how important employee engagement can be for a company’s bottom line. With an energy efficiency program, businesses can unlock significant energy savings, enhance employee satisfaction and contribute positively to the environment and community.
Ready to transform your business?
Explore how TVA EnergyRight® can help you achieve your energy goals. Contact us today.
Q&A with Clay Hoover, Jim Reese and Kelley Whalen: How Employee Engagement Drives Energy Savings
In our webinar, “Unlock Energy Savings: How Top Companies Benefit from Employee Engagement,” industry experts discuss innovative energy-saving programs and incentives available to businesses.
Here are some of the key insights that came out of this conversation with Clay Hoover, PE, Senior Program Manager, TVA EnergyRight® for Business and Industry, who recently sat down with Adtran’s Kelley Whalen and Ashland’s Jim Reese to discuss employee engagement.
Read on to learn more practical tips and real-world examples to help your business achieve its energy goals:
- The benefits of Strategic Energy Management
- Ideas for how to engage employees through recognition programs, incentives and active participation
- How Strategic Energy Management helps businesses secure capital for energy efficiency projects
- The community connection: reinvesting energy savings to support local initiatives
This interview has been edited for length and clarity. The views and opinions expressed throughout belong to the interviewees and do not necessarily reflect the official policy of the Tennessee Valley Authority.
Q: Clay, what is TVA EnergyRight’s Strategic Energy Management program, and how does it work?
A: Strategic Energy Management is a free two-year program that helps industrial businesses cut energy costs, boost profits and meet sustainability goals through expert-guided efficiency improvements. It gives you the tools needed to manage your energy in a coordinated way across your organization, helping your company increase profitability, create a competitive advantage, reduce environmental impact and support your community.
Q: Jim, what strategies have you used to engage your employees in energy efficiency?
A: Energy management can be a tough job, but it’s a whole lot easier when you build a team and get employees involved. Progress in energy efficiency is incremental — one step at a time. Over the years, we’ve tried different things, like employee incentive and recognition programs. When it comes to getting employees to support your program, you have to find your most stubborn naysayer and make that employee your ally. It comes down to this — what’s in it for your employees?
Q: Kelley, how does your team approach employee engagement?
A: At Adtran, we’ve had an energy program in place since 2005 that focused on employee awareness, but it was nothing like what we have now since joining the Strategic Energy Management program. Previously, we relied on infographics and word of mouth, and that was about it. However, once we became involved in Strategic Energy Management, we took our efforts to another level. We began using digital signage, corporate emails, banners and blogs to communicate more effectively and build credibility.
We also make sure to send out corporate emails that build confidence by sharing our successes. Sharing success is one of the most important things you can do to engage employees. People like to be part of a winning team. It resonates with employees when you have success, make improvements and demonstrate energy savings without making people uncomfortable.
Q: Kelley, what’s the most essential key to success for an energy-saving program?
A: To me, the triple bottom line — people, planet, profit — needs to be balanced. I refer to this as the sustainability zone, where all three aspects align to make sense. For instance, on a 90-degree day, I could use my control system to set everyone’s temperature to 80 degrees, which might be good for profit and the planet, but it wouldn’t be good for those working in those conditions. All three — people, planet, and profit—must align for a strategy to be effective. When we build credibility, we get the engagement and buy-in we need for the program to succeed.
Q: Jim, what about incentives for employees? Has that strategy worked for you?
A: We introduced an energy incentive program that worked pretty well. There was a fundraiser in this part of Western Kentucky, where they built a house and sold raffle tickets for $100 each, giving people a chance to win the house. We decided to tie this to our energy program. Anyone who submitted a viable energy-saving suggestion that could save at least $500 would receive a $100 gift card and a chance to win a house worth $300,000. Although nobody from our program won the house, it was an effective way to encourage participation.
Ultimately, we learned that the most important factor is not always significant incentives but small, incremental recognition. A simple pat on the back and a “thank you” can be very motivating.
We have a safety recognition program tied to environmental goals, including energy savings, which is integral to our sustainability goals. If an employee makes an energy-saving suggestion, they earn points. These points can accumulate toward extra vacation time, recognition items or even donations to charity. Last year, we donated over 1,500 meals to the community through this program.
Q: We saw the infographic you presented earlier, Kelley. Could you share a little bit about its origin? Did you build it yourself, or was it a collaborative effort with your energy team?
A: I was inspired by other infographics that I had seen at industry events, and I wanted to see if we could also use an infographic to convey our message. So, I involved our marketing team early on. I told them I wanted an infographic, and they helped create it.
Now, we update it yearly. It’s an easy way to convey our message. For example, in the top right corner of the infographic, you can see that we’ve saved 186 million kilowatts since 2005. In dollar terms, that’s about $14 million of energy costs that Adtran didn’t have to spend, all because we made small changes and implemented energy projects.
Q: Jim, what are some of the challenges you’ve encountered securing capital for energy efficiency projects, and how has Strategic Energy Management helped?
A: Securing capital for energy projects can be challenging, but Strategic Energy Management has helped us justify these projects by coupling energy savings with sustainability goals to make our case. For example, we had a project using Strategic Energy Management to show the environmental benefits of reducing greenhouse gas emissions, which helped us secure the necessary funding. It’s all about finding the right opportunities and building a strong case for investment.
Q: Kelley, how do employees at Adtran contribute to identifying energy savings?
A: Initially, it was just me, but after joining Strategic Energy Management, we engaged an energy team of everyday employees who provided valuable input. For example, one team member suggested creating an internal energy connect page, which has become a central hub for our energy policy, infographic and live energy data. Another example is when we moved a lab to a new location, reducing the number of cabinets from 40 to 12, thanks to the energy team’s involvement. These contributions have been crucial to our success.
Q: Jim, how do you encourage employees to share their ideas for energy savings?
A: We have a cross-functional energy team that meets regularly, and we also conduct audits with employees. By involving employees directly in these audits, they often come up with valuable suggestions. For example, one operator came up with a simple solution to prevent hoses from freezing in the winter, which ended up saving a lot of energy. It’s about going to the employees and actively soliciting their ideas.
Q: Jim, how does Ashland incorporate community involvement into its energy-saving initiatives?
A: We believe in reinvesting our energy savings back into the community, particularly in local schools. We’ve partnered with TVA to provide educational opportunities for at-risk students, helping them pursue careers in STEM fields. For example, one student who attended our diversity celebration is now working with us after completing an engineering degree. It’s not just about saving energy; it’s about making a long-term impact on the community.
Q: Kelley, how does Adtran use its energy savings to support the community?
A: We’re part of the Save It Forward initiative through Strategic Energy Management, where we commit to donating a portion of our energy savings to a local school. In our first year, we saved 1.9 million kilowatts, translating to about $95,000; half of that will go toward the school. They’ll use the funds for an energy or air quality project to benefit students. We’re happy to give back and help improve the community.
Q: What has been the most impactful project for your energy savings, Kelley?
A: Joining Strategic Energy Management had the most significant impact because it involved all employees. We could combine all these efforts with our demand load shed project, which built our energy dashboard. The load shed project automatically skims the peak off our energy use without employees even noticing, and the energy dashboard allows everyone to see our live energy data. This combination has been a game-changer for us.
Let’s talk.
Do you want to learn more about how employee engagement can be a powerful tool in driving energy savings?
Contact us here to start the conversation.
Clay Hoover, PE, Senior Program Manager, TVA EnergyRight® for Business and Industry
Clay has been with TVA for more than 15 years. In his current role, he leads the design and operations of Strategic Energy Management programs for TVA’s commercial and industrial customers. Clay builds innovative programs that leverage energy efficiency to improve schools and communities in the Valley.
Jim Reese, Senior Operations Manager, Ashland, Inc.
Jim is the Senior Operations Manager with Ashland, Inc., in Calvert City, Kentucky. With more than 40 years of experience, Jim has a wealth of operations and energy management knowledge. He’s been with Ashland for nearly 28 years, where he started an energy program 25 years ago. Ashland is now a global chemicals company with a significant focus on energy efficiency and sustainability. Over the years, the company has saved nearly 12 trillion BTUs and over $42 million in energy costs and reduced CO2 emissions by 58,000 tons.
Kelley Whalen, Energy Manager, Adtran
Kelley is the Energy Manager for Adtran in Huntsville, Alabama. He’s a recognized leader in the field, having won multiple AEE awards, including International Energy Manager of the Year. Kelley brings more than 31 years of experience in energy management and a unique approach to engaging his employees in energy efficiency. Since 2005, he’s helped Adtran reduce energy consumption on campus by nearly 50%.
People, planet, profit: Boosting your bottom line through employee engagement
By managing resources responsibly, you can reduce waste, boost efficiency and save money. Sustainability in business isn’t just about being a good neighbor to the planet—it’s also about making your business run better. While you’re streamlining your operations, you’re not just helping the environment; you’re also saving on energy costs..
Read on to discover the key ways our Strategic Energy Management (SEM) program can help your business gain a competitive advantage, plus:
- Potentially increase profitability by lowering energy costs.
- Achieve sustainability goals by lowering your carbon footprint.
- Improve employee engagement.
A program with purpose
Brought to you by TVA EnergyRight® and your local power company, SEM is a free, two-year program helping industrial businesses cut energy costs, boost profits and meet sustainability goals through expert-guided efficiency improvements. Strategic Energy Management provides your business with tools to manage energy in a coordinated and strategic way across your organization — helping your company increase profitability, create a competitive advantage, reduce environmental impact and support your community.
Employee engagement is another significant benefit of sustainability initiatives like Strategic Energy Management. We’ve seen the impacts firsthand. When employees are actively involved in energy-saving programs, not only do companies experience better outcomes and save more, but they also boost morale and create a stronger sense of purpose within the workplace.
And that’s what Strategic Energy Management is all about — offering businesses innovative solutions that can drive employee engagement, environmental stewardship and profitability, creating a win-win-win for everyone.
“When we build credibility, we get the engagement and buy-in we need for the program to succeed,” says Kelley Whalen, the Energy Manager at Adtran and panelist in our webinar, “Unlock Energy Savings: How Employee Engagement Drives Success.”
The power of strategy: How does Strategic Energy Management work?
Think of Strategic Energy Management as your personal energy advisor—here to help you harness the power of strategy. At its core, Strategic Energy Management is more than just reducing energy bills; it’s about embedding energy efficiency into your company’s culture.
Instead of one-off projects or quick fixes, Strategic Energy Management focuses on creating a comprehensive, long-term strategy tailored to your business’s unique needs. This approach helps you uncover hidden inefficiencies, set meaningful goals and continuously improve your energy performance over time. Plus, TVA EnergyRight provides Strategic Energy Management consulting services valued at over $100k to qualifying companies at no cost.
Jim Reese, Senior Operations Manager for Ashland, Inc. and webinar panelist says, “Securing capital for energy projects can be challenging, but Strategic Energy Management has helped us justify these projects by coupling energy savings with sustainability goals to make our case.”
The benefits: More than just lower bills.
Sure, saving money on energy bills is a big win—but it’s just the beginning. By participating in Strategic Energy Management, you can also:
Improve operational efficiency.
Uncover inefficiencies and streamline your processes for better performance.
Boost and sustain employee engagement.
Getting your team involved in energy-saving initiatives improves morale and fosters a culture of sustainability.
Reduce environmental impacts.
Cutting down on energy waste makes a positive contribution to the environment, which also appeals to eco-conscious customers.
Strengthen your brand.
Energy efficiency is good for your bottom line and your brand reputation. Sustainability initiatives build trust and authenticity with customers and employees.
Ongoing support and expertise.
We’re all in this together. You’ll have access to expert guidance every step of the way. Our team of energy professionals will work closely with you to identify opportunities, set achievable goals and track your progress.
We can also help you save money and meet efficiency goals with energy incentives for businesses from TVA EnergyRight® and your local power company. These financial incentives on qualifying technologies can help businesses reach their energy goals.
Callout box:
FREE energy assessments for customers using one or more megawatts.
Link to energy assessments contact form.
Celebrate the wins — big and small.
One of the best parts of the Strategic Energy Management journey is celebrating the milestones along the way. Whether it’s a significant reduction in energy consumption or a small tweak that leads to unexpected savings, every win is worth celebrating. And we’re here to celebrate with you—because every step forward is a step toward a brighter, more sustainable future.
Ready to transform your business?
Take control of your energy use and unlock the benefits of energy savings with Strategic Energy Management. Together, we can create a more efficient, sustainable and profitable future for your business.
Let’s continue the conversation.
Connect with us and learn more about resources available to your business. Start the conversation here.
Email: Hoover, George Claiborne gchoover@tva.gov
8 reasons why seasonal residential HVAC maintenance is a good idea.
It seems like only yesterday we were sharing tips and suggestions for preventing an AC emergency. (Spoiler alert: spring AC tune-ups are also a great way to keep your system in peak cooling form). We know you’re enjoying a break from the heat but before you know it, it’s going to be time to break into the heating season.
It’s just as important to take care of your heating system as it is to take care of your AC. If it’s not already on your fall to-do list, now’s the time to perform — or schedule! — a routine residential HVAC maintenance service for your furnace or heat pump.
Need a nudge in the right direction? Here are 8 reasons why seasonal HVAC system tune-ups are a smart move.
#1 — Avoid costly emergency calls.
October is the perfect time to make sure your heating system is in tip-top shape before the first frost knocks on your door. Licensed and insured heating and cooling contractors not only clean your system, but they’ll also make sure it’s in good working order. Preventive care can help you avoid costly emergency calls in the heart of winter.
If you’re a DIY type, and you plan on performing your own mini check-up, check out our HVAC checklist before you get started!
It’s worth noting that a professional tune-up typically includes all the above, plus an examination of electrical connections and wiring, thermostat calibration, part lubrication, safety inspection, burner assembly (for combustion systems) inspection, defrost cycle and reversing valve (for electric heat pumps) inspection, and system airflow and efficiency measurements.
Not sure who to call for your tune-up? Check out our Quality Contractor Network to search for TVA-vetted HVAC pros in your area.
#2 — Improve energy efficiency.
Heating systems that aren’t properly maintained can be less efficient and may be driving up your energy bills. During a routine residential HVAC maintenance call, technicians inspect, clean and optimize your system to make sure it’s running as efficiently as possible. It’s better for the environment and it’s better for your wallet.
#3 — Enhance indoor air quality.
Typically, fall maintenance includes checking and changing air filters. Clean air filters help your system run more efficiently and they can help keep dust, allergens and other particles from circulating around your home, leading to a healthier indoor environment.
Changing the air filter inside your home frequently is an easy way to help your system and improve indoor air quality. Plus, it’s easy to do it yourself! If you’re not sure how to do it, ask your contractor, they’ll be happy to show you what you need to do. For more tips on improving your indoor air quality, check out this article. Or, you can take a quick peek at our DIY videos for a quick how-to.
#4 — Extend the lifespan of your heating system.
Regular maintenance is a great opportunity to identify small concerns before they become major emergency problems. Tune-ups can minimize the likelihood of costly emergency service calls and help ensure that your system keeps you warm when you need it. When your system is running efficiently and smoothly, it’ll last longer, too.
#5 — Ensure safety.
Heating systems, especially older models, can pose health and safety risks. Fall residential HVAC maintenance is a great opportunity for your heating and cooling experts to look for leaks or check electrical connections, inspect heat exchangers and make sure that all safety mechanisms are working properly.
#6 — Take advantage of our rebates.
If you have an electric heat pump, you may be eligible for a $50 rebate from TVA EnergyRight and your local power company.
#7 — Peace of mind.
If your heating and cooling equipment is more than 10 years old, and your utility bills are going up, a professional inspection is the way to go. Get advice you can trust from a member of the Quality Contractor Network. If it is time to consider a new system, be sure to ask your contractor about our HVAC rebates! For more information on whether or not it’s time to replace your home’s HVAC system, check out this guide from ENERGY STAR.
#8 — Save money.
Heating system tune-ups are the perfect example of spending money to save more money. Avoiding emergency service calls, improving energy efficiency and prolonging the functional lifespan of your heating system are all great ways to save money. When you add a $50 rebate into the mix, the savings are even sweeter. Plus, the peace of mind is priceless.
Looking for more free and easy fixes to keep your home warmer for less? This blog has you covered.
Terms and conditions apply. All TVA EnergyRight rebate-eligible upgrades must be installed by an approved member of the Quality Contractor Network and meet TVA Standards effective on installation date. All measures, except window replacement, are eligible for program financing. Mini split 17 SEER2 or higher must replace the existing primary electric heat source or be installed in a newly finished area of the home (e.g., bonus room, addition, sunroom). Duct sealing, repair, insulation or replacement must be for existing or replacement HVAC systems. Window replacement must replace existing unit(s). Attic insulation upgrades eligible for the $500 rebate must be completed and the rebate submitted by your QCN member by September 30, 2025.