der customer insights · future projects. 2. what motivates the type of target customer and what...

DER CUSTOMER INSIGHTS: VALUES & MOTIVATIONSJULY 2020

2DER Customer Insights: Values & Motivations

1.0 EXECUTIVESUMMARY 4

2.0 INTRODUCTION 6

2.1 CUSTOMERSAREKEYTOTHESUCCESSFULDEPLOYMENTOFDER 6

2.2 DERCUSTOMERVALUES&MOTIVATIONS 6

3.0 CHARACTERISTICSOFARENA’SPROJECTS&CUSTOMERS 7

3.1 APPLESANDORANGES:PROJECTSTARGETEDCUSTOMERSINTHREEWAYS 10

3.2 THEOPPORTUNITYTOUSEAVALUES-BASEDFRAMEWORK 11

3.2.1 VALUESMODESOFFERASIMPLEMETHODFORUNDERSTANDING MANYCUSTOMERS 12

3.2.2 MAPPINGVALUESMODESTOEXISTINGARENAPROJECTS 14

3.2.3 CAVEATSTOFOCUSINGONVALUES 15

4.0 THEMOTIVATORSOFDERCUSTOMERS 16

4.1.1 MOSTDERCUSTOMERSWEREDRIVENBYFINANCIALBENEFIT,WHICH ISAMOTIVATORTHATCUTSACROSSVALUESMODES 17

4.1.2 SETTLERSAREMOSTCONCERNEDABOUTSECURITY,EXPRESSED ASADESIREFORRELIABILITYAND“MAINTAININGTHESTATUSQUO” 19

4.1.3 PROSPECTORS,WHOOFTENLEADMAINSTREAMINVESTMENT INNEWTECHNOLOGY,AREEXCITEDBY‘GETTINGAHEAD’ 20

4.1.4 PIONEERSWILLWANTFAIRNESSANDTOSUPPORTTHE‘GREATERGOOD’ 21

4.2 ONTRUST 23

5.0 CONCLUSION 24

6.0 APPENDICES 25

6.1 APPENDIXA:VALUEMODES 25

6.2 APPENDIXB:THECOHORTOFARENA-FUNDEDDERPROJECTS ANDTHEIRCUSTOMERS 26

TABLE OF CONTENTS

ABOUTTHISREPORTThisreportispartoftheAustralianRenewableEnergyAgency(ARENA)‘DERCustomerInsightsSeries’whichinvestigatestheexperiencesofcustomersinvolvedintwentyARENA-fundedDistributedEnergyResources(DER)projects(‘projects’).AsummaryoftheprojectsthatweresystematicallyanalysedisinAppendixB

TheAnalysiswasundertakenbyUTSInstituteforSustainableFutures,whopreparedthereportinconjunctionwithARENA.

TheInstituteforSustainableFutures(ISF)isaninterdisciplinaryresearchandconsultingorganisationattheUniversityofTechnologySydney.ISFhasbeensettingglobalbenchmarkssince1997inhelpinggovernments,organisations,businessesandcommunitiesachievechangetowardssustainablefutures.Forfurtherinformationvisit:www.isf.uts.edu.au

ISF Research Team

› DaniAlexander

› DrScottDwyer

› DrChrisBriggs

› ProfessorChrisRiedy

DisclaimerTheauthorshaveusedallduecareandskilltoensurethematerialisaccurateasatthedateofthisreport.ISFandtheauthorsdonotacceptanyresponsibilityforanylossthatmayarisebyanyonerelyinguponitscontents

ThisreportispartofARENA’s‘DERCustomerInsightsSeries’whichinvestigatestheexperiencesofcustomersinvolvedinARENA-fundedDERprojects.Customerinsightsweredrawnandanalysedfromalmostone-hundredreportsfromtwentyprojects.

ThisreportaimstounderstandDERcustomervalues.Itdoesthisbyexamining:

1. The types of customers targeted in the projects,andhowtofindtherighttypesofcustomersforfutureprojects.

2. What motivates the type of target customerandwhatengagementstrategiescouldencouragecustomerstoparticipateinfutureprojects.

TheoverarchingfindingofthisreportisthatfutureDERprojectscanbenefitfrombetterunderstandingtheirtargetcustomerbasebeforedevelopingandcommunicatingtheproductoffering.

Thereportproposesavalues-basedapproachasaneffectivewaytoengageandtailormessagestomanytypesofcustomers.Valuesarestablepsychologicalstructuresthatmotivatebehaviour,cuttingacrossdemographiccharacteristics.WhileappealingtocustomervaluesmaynotdirectlyaddressallbarrierstoDER–suchascost,locationfactorsand/orenergyuseconstraints–theydoallowprojectstounderstandcustomermotivationsbetter.

Asimplewaytosurveycustomers’valuesistousea‘valuesmodes’method.Thiscategorisesthemainsetofcustomervaluesintothreemodes:Settlers,ProspectorsandPioneers:

VALUESMODESARECATEGORIESOFVALUESEXPRESSION.THEREARETHREEVALUESMODES: SETTLERS,PROSPECTORSANDPIONEERS.

TheresearchmappedeightoftheninemotivatorsofDERcustomersagainstthevaluesmodes:

1.0EXECUTIVESUMMARY

Security

Family

Escapist

Solidarity

Community

Thrifty

Comfort

Fearful

SETTLERSJet-setting

PROSPECTORS

Wealth

Appearance

Keeping up with the Jones’

Importance

Position

Glamour

Rightneighbourhood

PIONEERSValue

Knowledge

Discerning

Individuality

Quality

Information

Contacts

People-focused

Risk takers

Settlersaresustenancedriven,needingsafety,securityandbelonging.

Prospectorswantsuccess,includingtheesteemofthemselvesandothers.

Pioneers arefocusedonnewideasandself-actualisation.

MOTIVATORSOFDERCUSTOMERS

SETTLERS PROSPECTORS PIONEERS

Financial/securitybenefits Financial/securitybenefits Financial/securitybenefits

Securityofsupply Securityofsupply EnergyIndependence

Maintainingthestatusquo Newtechnology Environmentalbenefit

Communitybenefit Aesthetics/statussymbol Communitybenefit

Trust EnergyIndependence Trust

ValuesmodesalignwithMaslow’shierarchyofneeds1andcanbeusedtotargetmessagestoparticulargroupsofcustomers:

1. We all ‘have a Settler inside of us’.Tomaximiseuptakeinthisgroup,productsshouldminimisetheirthreattoacustomer’senergyandfinancialsecurity.

2. Two strategies for targeting Prospectorsincludeshowing1)howtheDERoptionwillbeasmartinvestment,and2)howitcanbeshowcasedasastatussymbol.

3. Promoting the environmental and community benefits of DER projects or innovation of the DER product and/or service itself can help engage Pioneers,howeverthisshouldnotcomeattheexpenseofcustomer’ssecurity.

Projectsapproachingthemassmarketarelikelytobemoresuccessfuliftheycommunicatetheirproductinmultiplewaystoappealtoallthreevaluesmodes.Thisshouldbeapproachedfromthebottom(Settler)tothetop(Pioneer)ofthehierarchy.

Buildingtrust,includingensuringfairness(orsocialequity),throughdesignandimplementationwillhelpprotectfutureprojectsfromcustomerbacklashandmovethesectorclosertoacustomer-centredenergyfuture.

NB:Thisresearchhasonlyconsideredasub-setofARENAprojects,whicharemostlyfocusedonon-gridresidentialsolarandstorage.Thoughthesecoreinsightsarelikelytoholdtrueinothersituations,itisimportanttoconsiderthenuancesofothercontextssuchasthoselivinginremote(off-grid)locationsthatcanbeislanded,DERsthatdonotrequireanyextraequipment(e.g.loadmanagement),andthecharacteristicsofrentersandapartmentdwellersandcommercial&industrialcustomers.

1 Maslow’shierarchyofneeds(1943)istheoryofhumanmotivationwhichstatesthattherearefivesetsofbasicneeds(physiological,safety,love,esteem,andself-actualisation)thatarearrangedinahierarchymeaningthathigherneedsemergeaslowerneedsaresatisfied.

2.1CUSTOMERSAREKEYTOTHESUCCESSFULDEPLOYMENTOFDER

ThisreportformspartofARENA’s‘DERCustomerInsightsSeries’whichinvestigatestheexperiencesofcustomersinvolvedintwentyARENA-fundedDistributedEnergyResources(DER)projects(projects).AsummaryoftheprojectsthatweresystematicallyanalysedisatAppendixB.

TheDERprojectsthatARENAfundsarecuttingedge.Theytypicallyfeaturesophisticatedtechnologythatisnewtocustomersandinstallers,oftenwithinherentcomplexityintheequipmentandbusinessmodels.BecauseDERarerenewableenergyunitsorsystemscommonlylocatedinhomestoprovidetheoccupantspower,theyrelyoncustomerspurchasing,owning,andoperatingthem.CustomersarethereforekeytothesuccessfuldeploymentofDER.

2.2DERCUSTOMERVALUES&MOTIVATIONS

Onthesurface,thecustomersparticipatingintheprojectsreviewedforthisreportaresimilar.Mostcustomersarehomeownersandmosthaveenoughdisposableincometomakesubsidisedinvestmentse.g.inbatterystorage.However,thesesharedtraitsmaybeartificial,drivenbythenatureofARENA’scurrentinvestmentportfolio,whichhasbeenlargelyresidentialsolarand/orstoragedemonstrations.

AsmarketforcesdriveAustraliatowardsamoredecentralisedenergysystem2,itisimportanttomoredeeplyunderstandthecustomersthatDERproductsandprojectsareseekingtoserve.LookingmorecloselyattheARENA-fundedDERprojects,thecustomersarequitedifferentwithdiverse:geographicalrepresentation;energyneeds;reasonsforparticipating;andvaluesthatwilldrivetheirbehaviournowandintothefuture.

Thisreportseekstointerrogatethesedifferencestodetermine:

1. The types of customers that were targeted in the projects,andhowtofindtherighttypesofcustomersforfutureprojects.

2. What inherently motivates the type of target customerandwhatengagementstrategiescouldencouragethesecustomerstoparticipateinfutureprojects.

Theresearchusesavalues-basedframeworkthatisawell-acceptedmethodforunderstandingandmotivatingdifferentgroupsofpeople.ThisreportcanbeusedasaguidebyfutureproponentsseekingtodesignmoreeffectiveDERprojects.

2 BloombergNewEnergyFinance(BNEF)forecaststhatapproximatelyone-thirdofAustralia’selectricitycapacitywillsitbehind-the-meterby2035(BNEFNewEnergyOutlook,2019)

2.0INTRODUCTION

WhileARENA’sDERprojectsaregeographicallydiverse(representedacrossallstatesandterritoriesapartfromtheNorthernTerritory),theyareoftensolvingasimilarproblem.Mostprojectsweretryingtoresolveelectricitydistributionissues(e.g.peakloadandpowerquality)withresidentialsolarandbatteries.Allbutoneproject3thattrialednewtechnologiesorbusinessmodelson-the-ground(eitheratpilotordemonstration-scale)wereconnectedtotheelectricitygrid.Ofthesetrials,therewasanevensplitofurbanandregionaltrials,whichprovidedusefulcomparisonsbetweendifferentdemographicsconnectedtodifferentnetworkconfigurations.AsummaryofthecharacteristicsoftheprojectsandthecustomerstheyengagedisprovidedinTable1.

Thetypeoftargetcustomerforthetrialstendedtobethesame.Projectslookedforhouseholdsthathadsmoothorconsistentenergydemand(‘load’),andanabilityand/orinteresttoshiftorshapeit(‘loadflexibility’).Inmanycasesthisinvolvedinvestinginbatterystoragesystemsthatcouldberemotelycontrolledbyathirdparty–e.g.anetworkbusiness,energyretaileroranindependentaggregator–toprovidearangeofgridservices.ThisloadflexibilitywasoftenusedtooptimiseorimprovesolarPVsystems,fromboththecustomerandthenetwork’sperspective.Italsomeantthatthecustomersneededtobeabletoafford(generally>$1,000)andaccommodateanewbatteryunit,whichwasnotalwayspossible.Thus,itwasoftenchallengingtorecruitthetargetnumberoftargetcustomersand,insomecases,keepthemfullyengagedandresponsiveoverthelifeofthetrial.

Mostprojectsexperienceddelaysincustomerrecruitmentandmanydidnotreachtheiroriginalparticipanttargets4.DERproductsneededtobecommunicatedmorebroadlyanddeeplythananticipated,forexamplebyholdingcommunityeventsandone-on-one(andsometimesface-to-face)conversationswithprospectivecustomers.Thisisunderstandable,giventhenatureofthenewtechnologiesandbusinessmodelsonoffer.However,itwastimeconsumingandbudgetintensive,whichisunlikelytosucceedinacommercialcontext.Itwasalsoapparentthatfew(<6)projectsformallysegmentedtheircustomerbasepriortodevelopingtheproductandengagingthetargetmarket.DER projects stand to achieve better outcomes by better understanding their target customer base (for example, by customer segmentation) before developing and communicating the product offering.

ThesectionsbelowseektosupportDERprovidersfindingabetterapproach,facilitatingabetterunderstandingthetargetcustomerbaseby:

› Analysing the different targeting approaches taken by the existing projects,tomoredeeplyunderstandthecustomertypes.

› Outlining the opportunity to use a value-based approachforsegmentingandengagingcustomersinfutureprojects.

Bytakingthesemeasurestodevelopacustomer-centricproduct,itislikelythatfutureDERprojectswillbemoreefficient(i.e.benefitfromfasterrecruitment)andeffective(i.e.enablebiggerimpact).

3 TheCarnarvonDERtrialswereoff-grid,withafocusonahighsolarcommunityandaspecificfeeder(detailin Table 1andAppendixB).

4 Fordetailonchallengesfacedbyprojectsinengagementandacquisition,seeDERCustomerInsights:The Customer Journey

3.0CHARACTERISTICSOFARENA’SPROJECTS&CUSTOMERS

“ThecustomerloadprofilewhichpresentsthebesteconomicvalueforthenetworkfromaSolarStorageperspectiveisonewhichisrelativelyconsistentoveragivenpeakperiodandisnotlumpy.”–UnitedEnergy,PeakDemandReductionusingSolarandStorageTrial

PROJECT (LOCATION) LEAD PARTNER TECHNOLOGY STAGE NO. CUSTOMERS TARGET POPULATION TARGET GROUP AND/OR SEGMENTATION STRATEGY

SolarandStorageTrialatAlkimosBeach(WA)

Synergy(energyretailer) Solar&storage(microgrid)

Studyanddemonstration

60-100with17onthetrial(ongoingandin-flux)

Residential

On-grid

Mosaicgroups:

–B.Knowledgeablesuccess(commutingcommunities)

–F.Newhomesandhopes(familyconnections,newbubs/newburbs,tykesandtakeaways)

LatrobeValleyMicrogridFeasibilityStudy(VIC)

LO3Energy(communityorganisation)

DERandDRwithblockchain

(microgrid)

Feasibilitystudy 81(37resi,23farms,21comm)

Residential+C&I5

Regional

On-grid

SoughttoapproachallmembersofLatrobeCity,SouthGippslandShire,BawBawShire,andWellingtonShire

IndraMonashSmartCity(VIC)

IndraAustraliaPtyLtd(propertydeveloper)

DERandDR(microgrid)

Demonstration 1 Residential+C&I

On-grid

Customer-led(MonashUniversity)

IntelligentStorageforAustralia’sGrid(ACT)

RepositPowerPtyLtd(energystart-up)

Storage

Pilot 6 Residential

On-grid

TargetedentireACTpopulation,assumingonlyearlyadopterswouldexpressinterest,throughmediaadvertisements

DistributedEnergyMarket(AUS)

AustralianPhotovoltaicInstitute(APVI)(researchorganisation)

(market/regulation)

Feasibilitystudy 61focusgroups,2463surveys

Residential

On-grid

Australia-wideengagement,seekingacross-sectionofcommunity

HigherRenewablePenetrationinNewLand&HousingDevelopments(NSW)

BrookfieldEnergyAustraliaPtyLtd(propertydeveloper)

Microgrid Feasibilitystudy 7,500homes Residential

Regional

Off-grid

Customer-led–existingandprospectivemembersofHuntleeCommunity.NB: further segmentation may have been undertaken, however the referenced customer report was confidential and not provided for analysis.

CONSORTBrunyIslandBatteryTrial(TAS)

ANU(researchorganisation)

Solar&storage[Reposit]

Demonstration 34 Residential

Regional

Fringe-of-grid

Drivenbyanetworkconstraint(NB: TasNetworks uses a customer segmentation model).AllhomeownersonBrunyIslandwereofferedtheopportunity,andfinalparticipantsselectedwithapointsassessmentincluding:location,propertytype,residentialstatus,vacancy,connectivity,solar.Theywerenottypicalearlyadopters.

IncreasingtheUptakeofSolarPVinStrataResidentialDevelopments(WA)

CurtinUniversity(researchorganisation)

Solar&storage(microgrid)

On-grid

Customer-led–existingmembersoftheWhiteGumValleycommunitywithmedium-densityhousing:GenY,SHAC(SustainableHousingforArtistsandCreatives)andEvermore

NetworksRenewed(NSW,VIC)

UTS(researchorganisation)

Solar&storage(VPP) Demonstration 98

(41NSW:57Vic)

(44PV:54PVstorage)

Residential

Urban+regional

On-grid+fringe-of-grid

Targetedconstraintondistributionnetworkfeeders

5 C&I:Commercial&industrial

8DERCustomerInsightsSeries:Values&Motivations

PROJECT (LOCATION) LEAD PARTNER TECHNOLOGY STAGE NO. CUSTOMERS TARGET POPULATION TARGET GROUP AND/OR SEGMENTATION STRATEGY

AGLVirtualPowerPlant(VPP)(SA)

AGLEnergyLimited(energyretailer)

Solar&storage(VPP) Demonstration 1,000 Residential

On-grid

Mosaicgroups:

–A.ExclusiveEnvirons(24%-overrepresented)

–B.Knowledgeablesuccess(19%-overrepresented)

–D.AffluentAcreage(15%-overrepresented)

–G.MiddleAustralia(12%)

PeakDemandReductionusingSolarandStorage(VIC)

UnitedEnergy(electricitynetworkbusiness)

Solar&storage(VPP)

[Reposit]

Urban+regional

On-grid

Targetedconstraintondistributionnetworkfeeder

TriallingaNewResidentialSolarPVandBatteryModel(QLD)

ErgonEnergy,(electricitynetworkbusiness)

Solar&storage(VPP) Demonstration 33 Residential

Regional

On-grid

CarnarvonDistributedEnergyResources(DER)trials(WA)

HorizonPower(electricityretailandnetworkbusiness)

Solar&storage

[WW & Reposit]

Demonstration 82(incl.16batteryandPVsystems)

Residential+C&I

Regional

Off-grid

Drivenbynetworkconstraintwithafocusonahighsolarcommunityandaspecificfeeder(GibsonSt)–NB: further segmentation may have been undertaken, however the referenced customer report was confidential and not provided for analysis.

BatteryStorageSystemPerformanceStandard(AUS)

DNV-GL(energyconsultancy)

Batterystorage Study n/a Residential+C&I Residentialandsmallcommercialstoragesystemconsumers(massmarket)

SimplyEnergyVPP(SA) SimplyEnergy(energyretailer)

Solar&batterystorage(VPP)

Demonstration 191committedparticipants,48inpipelineand19cancellationsinlastreport

Residential+C&I Residential+C&IcustomersofSimplyEnergy

SolarAnalytics:MonitoringforBetterEnergyOutcomes(AUS)

SolarAnalyticsPtyLtd(energystart-up)

Solar&batterystorage,control&monitoringequipment

Demonstration owncustomerbase Residential ResidentialhouseholdsthathaveinstalledsolarPVintheircustomerbase(massmarket)

DecentralisedEnergyExchange(deX)(AUS)

GreenSync(energystart-up)

Solar&batterystorage Demonstration A‘selectionofcustomers’(numberunspecified)

Residential+C&I ResidentialhouseholdsthathaveinstalledsolarPVintheircustomerbase

Buildingtheworld’sfirstconsumerownedsolarretailandservicescompany(NSW,VIC,QLD,SA)

DCPowerCo(energystart-up)

Solar&batterystorage, Demonstration 17,000investors(crowdsourceequityfundingcampaign)

Residential ResidentialhouseholdsthathaveinstalledsolarPV,andespecially‘prosumers’(massmarket):originallytargetingearlyadopters(e.g.throughonlinemarketing)untilreceivedfeedbackthattheproductwasmoreattractivetomainstreampopulation(changedmediatoolse.g.totelevision)

9DERCustomerInsightsSeries:Values&Motivations

3.1APPLESANDORANGES:PROJECTSTARGETEDCUSTOMERSINTHREEWAYS

Weallseetheworldfromourownlivedexperience,andthesameistruefororganisations.Theresearchfoundthatenergyretailers,distributionnetworkbusinesses(‘networkbusinesses’)andcommunitiestookdifferentapproachestocustomerengagement.However,withineachgroup,therewasalotofcommonground.Commonapproachesusedbythesekeystakeholdersareoutlinedbelow.

TABLE2.DOMINANTGROUPSOFCUSTOMERSINDERTRIALSLEDBYENERGYRETAILERS(ADAPTEDFROMAGLANDSYNERGY)

KNOWLEDGEABLE SUCCESS

MIDDLE AUSTRALIA EXCLUSIVE ENVIRONS AFFLUENT ACREAGE NEW HOMES AND HOPES

Welleducatedfamilyandcouplehouseholdsinsuburbanareasofmajorcities

Mixedfamilyformslivingontheoutskirtsofmetropolitanareas

Familieslivinginthemostprestigiousandaffluentaddressesinthecountry

Affluentretireesandoldercoupleslivinginsoughtaftercoastalandregionallocation

YoungfamilieswhohaverecentlymovedintonewhomesinthefastestgrowingsuburbsinAustralia

Network businesses were solutions-focused and approached the mass market.Inthesetrials,thelocationdrovetheengagementstrategymostlytoaddressanetworkconstraintontheelectricitydistributionnetwork.Thisoftenrequiredhighlevelsofuptake(sometimesover20percent)inaspecificarea7.Networkbusinessestargetedtherighttypeof“energyuser”ratherthantherighttypeofpersonalitye.g.earlyadopters.Theyrarelytailoredmessagesandinsteaddeliveredastandardmessageinavarietyofformatsorforumssuchasonline,phone,door-knockingandcommunityevents.

6 Experien’sMosaicisaproprietarysegmentationtoolthatdefines,measures,describesandengagestargetcustomers.ItsegmentstheAustralianpopulationinto14groupsand15types:https://www.experian.com.au/mosaic

7 Mostnetworkssoughtimpactatthedistributionfeederlevel,whichisthemost-granularlevelofnetworkmanagementbeforethehouseitself.Eachhouseisconnectedtothedistributionfeederbyaservicecable.Theamountofhouseholdsonaparticularfeedervariesdependingonthelocationonthedistributionnetwork.

Figure1:AGLandSynergydiscoveredfivemajorcustomersegmentsintheirDERtrials Source:AGLandSynergy

Energy retailers are customer-focused and can easily (and formally) segment their target populations.BothAGL(Adelaide,SA)andSynergy(AlkimosBeach,WA)usedtheMosaicmarketsegmentationtoolthatwasdevelopedbyExperian6,classifyinghouseholdsintooneof13“consumerlifestyle”groups.Withintheareasofthesetrials,fivegroupsdominated:KnowledgeableSuccess;MiddleAustralia;ExclusiveEnvirons;AffluentAcreage;andNewHomesandHopes.Theretailersusedthisinformationtomoredeeplyunderstandthemotivationsofpotentialparticipantswhowereoriginallyattractedtotheprojectvialaunchmedia(Table2).

Communities have a deep understanding of customers and their needs.Projectsledbycommunitiesorpropertydevelopershadastronggraspoftheneedsoftheircustomers.Theseprojectsofteninvestigatedmoreinnovativebusinessmodels,whichalignedwiththeuniquecontextthroughdifferentmicrogridandenergy-sharingapproaches.Thecustomerswithinthesecommunitiesweremoreheavilyinvolvedinthedesignprocess,whichimprovedcustomersatisfaction.

3.2THEOPPORTUNITYTOUSEAVALUES-BASEDFRAMEWORK

The‘goldstandard’inunderstandingcustomersissegmentation,howeveritiscostlyandtimeconsuming.Customer-facingenergyretailers,suchasAGLandSynergy,areexperiencedwithsegmentationtechniquesbutthiskindofmarketingislessfamiliaroravailabletootherbusinessessuchasthosethatmanagedistributionnetworks.

Avalues-basedmethodmayofferaneffectivetargetingapproachforfutureprojectsthatdonothavetheresourcestoformallysegmenttheircustomerbase.Valuesarestablepsychologicalstructuresthatmotivatebehaviour.Valuescutacrossdemographicssothisapproachcanbemorerelevantwhenprojectsneedtoappealtothemassmarketandacquireahighproportionofcustomersinaparticulararea.

Researchshowsthattherearetenbasic‘universalvalues’andthewayapersonranksthesewillguidetheiraction8:

8 Schwartz,S.H.(2012).AnOverviewoftheSchwartzTheoryofBasicValues.OnlineReadingsinPsychologyandCulture,2(1).https://doi.org/10.9707/2307-0919.1116

Mostnetworkbusinesseseventuallyreachedtheirtargetuptake,afteralonger-than-expectedrecruitmentprocess(see:TheCustomerJourneyreport).

KEY INSIGHT:

Face-to-faceengagementcanyieldstronguptakewithoutformalsegmentation;howeveritoftencomesatahighresourcecostandmaynotbesuitableforcommercialofferings.

KEY INSIGHT:

Astrongunderstandingofcustomerscanachievegreateruptakewithlesseffortandhigherlevelofsatisfaction,particularlywhentheyinvolvedareinprojectdesign.

Figure2:Network-ledprojects(AusNetServicespictured)needcustomerstomeettheirneed,whilecustomer-ledprojects(Huntleepictured)canbuildtheirownideal

KEY INSIGHT:

Valuesthatcutacrossdemographicscanbeaneffectiveapproachforengagingandtailoringmessagestomanytypesofcustomers.

› Self-direction: seekingindependentthoughtandaction.

› Stimulation:seekingexcitement,noveltyandchallengeinlife.

› Hedonism:seekingpleasureorgratificationforoneself.

› Achievement:seekingpersonalsuccessthroughdemonstratedcompetence.

› Power:seekingsocialstatusandprestige,controlordominance.

› Security:seekingsafety,harmonyandstability.

› Conformity: seekingrestraintofactionslikelytoharmothersorviolatenorms.

› Tradition:seekingrespect,commitmentandacceptanceofcustomsandculture.

› Benevolence:seekingpreservation/enhancementofthewelfareofone’sgroup.

› Universalism:seekingtounderstand,appreciateandprotectthewelfareofall.

3.2.1VALUESMODESOFFERASIMPLEMETHODFORUNDERSTANDING MANYCUSTOMERS

Avalues-basedapproachtoengagementisanacceptedstrategytodrivechange,particularlyforenvironmentalandsocialjusticeorganisations(e.g.thosewhopartnerwithCommonCause9).Asimplewaytosurveycustomers’valuesinaparticularplaceistousea“valuesmodes”method.Thismethodoutlinesthemainsetofvaluesthatarepresent,easilycategorisedintothreemodes:Settlers,ProspectorsandPioneers:

Figure3.Valuesmodesframework(Rose,C.(2011))10

9 CommonCauseisanetworkworkingwithenvironmentalandsocialjusticeorganisationstoengageculturalvaluesformoreeffectivepublicengagement.CommonCauseAustralia’swebsitecanbefoundhere:http://www.commoncause.com.au

10 Rose,C.(2011),WhatMakesPeopleTick:TheThreeHiddenWorldsofSettlers,ProspectorsandPioneers.Troubador Publishing Ltd.FurtherdetailisatAppendixA:ValuesModes.(NOTE:theARENAdesignteamwouldneedtoredotheseimageswhicharecopyright

Prospectorswantsuccess,includingtheesteemofthemselvesandothers.Theprospectorvaluesmodesare:

GoldenDreamers–witha“tryanything”mentalitybutuncertain

HappyFollowers–optimisticandambitious,seekingrespect

NowPeople–“lifeisapartytobeenjoyed”

TomorrowPeople–“mostindividualisticandflexible,yetfocused”

Pioneersarefocusedonnewideasandself-actualisation.Thepioneervaluesmodesare:

Transitionals–lookingtoexploreboundaries,butsafely

ConcernedEthicals–“needtolivealifewithasenseofpurpose”

FlexibleIndividualists–“mostextremeformofself-reflectiveindividualism”

Transcenders–“pushingfarther,faster,yetwithalightness”

Settlersaresustenancedriven,needingsafety,securityandbelonging.Thesettlervaluesmodesare:

Roots–“survivalisthemarkofsuccess”

SmoothSailing–routinesandrulesand“ifitain’tbroke,don’tfixit”

BraveNewWorld–“attractedtobigideasbutactinsmallways”

CertaintyFirst–“attractedtostrong,simpleexplanationsoftheirreality”

Security

Family

Escapist

Solidarity

Community

Thrifty

Comfort

Fearful

SETTLERS

Jet-setting

PROSPECTORS

Wealth

Appearance

Importance

Position

Glamour

Rightneighbourhood

PIONEERSValue

Knowledge

Discerning

Individuality

Quality

Information

Contacts

People-focused

Risk takers

Mappingvaluesmodescanbeusefultobetteralignprojects,andthecommunicationoftheseprojects,withthetargetpopulationandtheirpriorityvalues:

Figure4.ValuesmodesmappedtoSchwartz’suniversalvalues11

*BasedonSchwartz’suniversalvalues(1992)andRose’svaluesmodes(2011)

11 Peet,J.G.(2016)Charitycampaigningbasedonpeoples’unconsciousmotivationalvalues:https://medium.com/william-joseph/how-to-get-people-to-do-what-you-need-them-to-based-on-their-unconscious-motivational-values-fa715da2a8f2)

Achievement

PROSPECTOR

Hedonism

Security

Stimulation Self Direction

Conformity SETTLER

Tradition

Benevolence

PIONEER

Universalism

VALUES

3.2.2MAPPINGVALUESMODESTOEXISTINGARENAPROJECTS

Anexampleofwhatthismaylooklikefortheexistingprojectsbasedonprojectreportsisbelow,notingthatevaluationislimitedsincenocustomershavebeendirectlyapproachedtomeasurevalues:

PROJECT TARGETING STRATEGY POSSIBLE VALUES MODES

SolarandStorageTrialatAlkimosBeach(WA)

Mosaicgroups:B(Knowledgeablesuccess)andF(Newhomesandhopes)

Settlers(F)

Prospectors(B,F)

LatrobeValleyMicrogridFeasibilityStudy(VIC)

SoughttoapproachallmembersofLatrobeCity,SouthGippslandShire,BawBawShire,andWellingtonShire(massmarket)

Settlers,Prospectors,Pioneers

IndraMonashSmartCity(VIC) Customerled(MonashUniversity) Pioneers

IntelligentStorageforAustralia’sGrid(ACT)

TargetedentireACTpopulation,assumingonlyearlyadopterswouldexpressinterest,throughmediaadvertisements

Pioneers

DistributedEnergyMarket(AUS) Australia-wideengagement,seekingacross-sectionofcommunity

HigherRenewablePenetrationinNewLand&HousingDevelopments(NSW)

Customerled–existingandprospectivemembersofHuntleeCommunity

CONSORTBrunyIslandBatteryTrial(TAS)

Targetedconstraintondistributionnetwork-approachedentirecommunitywhowerenotalltraditionalearlyadopters

IncreasingtheUptakeofSolarPVinStrataResidentialDevelopments(WA)

Customerled–GenY,SHAC(SustainableHousingforArtistsandCreatives)andEvermore

Prospectors(GenY,Evermore)

Pioneers(GenY,SHAC)

NetworksRenewed(NSW,VIC) Targetedconstraintondistributionnetworkfeeder

Prospectors,Pioneers(Collombatti)

Prospectors,Pioneers(Melbourne)

Pioneers(Yackandandah)

AGLVirtualPowerPlant(VPP)(SA) Mosaicgroups:A(ExclusiveEnvirons),B(Knowledgeablesuccess),D(AffluentAcreage),G(MiddleAustralia)

Settlers(G)

Prospectors(A)

Pioneers(B,D)

PeakDemandReductionusingSolarandStorage(VIC)

Prospectors,Pioneers

TriallingaNewResidentialSolarPVandBatteryModel(QLD)

Targetedconstraintondistributionnetworkfeeder:customershadlargehousesandlargebills

Prospectors

CarnarvonDistributedEnergyResources(DER)trials(WA)

Targetedconstraintondistributionnetworkfeederwithafocusonahighsolarcommunity

Prospectors

BatteryStorageSystemPerformanceStandard(AUS)

N/A–nocustomerstargetedasthiswasastandardsstudy

SimplyEnergyVPP(SA) Customerled–existingandprospectiveconsumers

SolarAnalytics:MonitoringforBetterEnergyOutcomes(AUS)

N/A–nocustomerstargetedsincetheprojectwasfocusedondataanalysis

DecentralisedEnergyExchange(deX)(AUS)

Customerled–existingandprospectiveconsumers

Buildingtheworld’sfirstconsumerownedsolarretailandservicescompany(NSW,VIC,QLD,SA)

Originallytargetedearlyadoptersthen,basedonmarketfeedback,changedtargetgrouptomainstreamaudience

Settlers,Prospectors

LISTENING FOR SIGNPOSTS TO A PERSON’S VALUES MODEYOUCANROUGHLYIDENTIFYVALUEMODESBYLISTENINGTOWHAT CUSTOMERSSAYWHENCONSULTED.

Examplesofphrasesthatsignpostaperson’smode:

SETTLERS:

“AndIjustcan’tbebotheredlookingatitbecauseI’mnotinterestedinit.Ifit’sdoneit’sdone,Igetpaidsomuch,butIcan’tbebotheredjustcheckingit.”–CONSORTtrialparticipant

“IguessI’vereliedonTasNetworkandtheReposittomakeitfairandequitablesothatthey’recallingonallthebatterytrialparticipantsinapproximatelythesameway”–CONSORTtrialparticipant

“Well,ifI’mstoringmyday’sexcess,I’mthenutilisingandhaving–yeah,becauseitfeelsmoretrulyefficientbecauseI’musingintheeveningwhatI’vemadeintheday,andthenI’vegotlessriskonthegrid…”–CSIROfocusgroupparticipant

“…Idon’tlikeothercompaniescontrollingmydevicesandmoney…”–CSIROfocusgroupparticipant

PROSPECTORS:

“I’musingthesolarfromhybridtopowerotherhalfofhouse.NothappywithrecommendationtoleaveinBypassuntiladvisedotherwise.IfIcan’tuseitinasituationlikethisthenwemightaswellremoveitasthisisreallytheonlytimeit’sneeded”–ErgonEnergytrialparticipant

“Ithinkit’sclumsyandIwouldhopethatinthenot-too-distantfuturethat’llbecomealotmorerefined.SoIthinkthatIwouldbeoutofthemarketatthemoment.Itseemstometobesomethingthat’sinitsinfancyandisdevelopingrapidly.Ithinkthere’sgoingtobefarbetteroptionsinthenot-too-distantfuture.”–CSIROfocusgroupparticipant

“JusttheindependenceandI’dknowit’smine.It’smyhome,myownelectricity.There’sarealsenseoffamilyandlookingafterourselves,basically.”–CSIROfocusgroupparticipant

PIONEERS:

“[I’m]attractedtotheholisticallysustainableandwellthoughtthroughdesignofthebuilding”–GenYmemberofWhiteGumValleytrial

“ImeanBruny’sgotaverystrongcommunity,andIthinkit’sgoodtogivebacktoit.Idon’tseeit’samajorissueatall”–CONSORTtrialparticipant

“AndIguessourinterestprobablyinreducingelectricityconsumptionismoreenvironmentalthancost,Iwouldsay,withourfamily.”–CSIROfocusgroupparticipant

3.2.3CAVEATSTOFOCUSINGONVALUES

Understandingcustomer’svaluesisnotgoingtoanswerallthequestions.TheuptakeofDERisinfluencedbyotherfactorsthatmustbetakenintoconsideration:inparticular,cost,technologyreadiness,locationalfactors(e.g.thetypeofgrid,telecommunicationsconnectivity),andthewaycustomersneedtouseenergy.Forexample,renterscannotyeteasilyinvestinrooftopsolaranddairyfarmscannotshifttheirmilkingtodifferenttimesoftheday.However,outsideofthesefactors,valuesareausefulwaytopredictmotivations,whichisexploredinthefollowingsection.

KEY INSIGHT:

Cost,technologyreadiness,location,andenergyprofilearefactorsnotrelatedtovaluesthatmayalsoprecludecustomersfrominvestinginDER.

Deeplyunderstandingcustomervalueswillrevealtheirmotivations.Thissectioninvestigateshowcustomers’motivations,derivedfromtheirvalues,directlyinfluencetheiractionswithinDERprojects.Byunderstandingthesemotivations,futureprojectsmaybemoresuccessfule.g.byrecruitingagreaternumberofcustomersmoreefficiently.Determiningvalues-basedmotivationsalsohelpstoexplainthefindingsoftheexistingprojects,forexample:

1. CSIRO’s six key influencing factors for DER preference12–infrastructure-related,lifestyle,financial,information,environmentalconsiderations/impacts,benefitsforindependence,and

2. The University of Tasmania’s exploration of DER customers’ emotions13towards(e.g.relaxationandenthusiasm)andagainst(e.g.angerandhostility)DERprojects.

Theresearchfoundninecommonmotivatorsforparticipationintheprojects.Wehavelistedthesebelow(Table3)andmappedeightofthemagainsttheuniversalvaluesandvaluesmodesthattheycorrespondto.

TABLE3.EIGHTOFTHENINEMOTIVATORSOFDERCUSTOMERSCANBEMAPPEDAGAINSTTHEVALUESMODES

MOTIVATORS OF DER CUSTOMERS UNIVERSAL VALUES PRIMARY MODE

1 Financialsecurity/benefits Security,power*,universalism*

Settler2 Securityofsupply Security,power,self-direction*

3 Maintainingthestatusquo Conformity,tradition

4 Newtechnology StimulationProspector

5 Aesthetics/statussymbol Achievement

6 Energyindependence Self-direction*

Pioneer7 Environmentalbenefit Universalism

8 Communitybenefit Benevolence*

9 Trust N/A N/A

*isalignedtoanothervaluemode

12 CSIRO’ssixfocusgroupswith61participantsacrossBrisbane,MelbourneandSydneyfoundthatthesewerethemostimportantfactorsinfluencinghouseholderpreferenceforacceptingdistributedenergyoptions(Householderinterestinactiveparticipationinthesolardistributionenergymarket,2012)

13 TheUniversityofTasmaniafocusedontheemotionsofhouseholdersthroughouttheCONSORTTrialbecause“thereiswellestablishedresearchthatdemonstratesthatemotionsandethicalintuitionsareequally,orinsomecasesevenmoreimportantthanreason,inmakingmoraldecisionsabouttechnology”(CONSORTSocialScienceReport,2019)

4.0THEMOTIVATORSOFDERCUSTOMERS

“Householdsarediverse,andgreaterawarenessandappreciationofthecontextinwhichhouseholdsmakedecisionsabouttheirenergyiscrucialtounderstandingtheirreceptivenesstoDER,andtheirDERpreferences.–UniversityofTasmaniaSocialScienceReport

4.1.1MOSTDERCUSTOMERSWEREDRIVENBYFINANCIALBENEFIT,WHICH ISAMOTIVATORTHATCUTSACROSSVALUESMODES

Financialbenefit(includingreducingcostsandincreasingrevenue)wasdescribedasthestrongestmotivatorforcustomersinallprojectsbarone.14However,financialmotivationscancutacrossthevaluemodes.Forexample:

› Settlersvaluecostsavingsasafinancialsecuritymeasure

› Prospectorsseesmartinvestmentsasasignalthattheyaresuccessfuland‘gettingahead’

› Pioneersaremotivatedbyfairness,expecting‘goodvalueformoney’andfaircompensationfortheirefforts.

Asinglemessageonfinancialbenefitsisunlikelytoappealtoallgroups.Projectsshouldcarefullyconsiderthemotivationsofeachgrouptocommunicateamessageeffectivelytothetargetcustomergroup.Aprojectmaymoreeffectivelyreachthemassmarketifthefinancialmessageisphrasedinthreewaysthatalignwiththethreevaluesmodes(asabove)

However,thereisachancethatthetypeofDERproduct,orthewayitwasinitiallycommunicated,mayhave‘primed’customers’valuestowardsfinancialfactors.Inotherwords,mostprojectspromotedthecost-benefitsaspartoftheinitialengagement,whichmayhaveprioritisedcostastheprimarymotivatorforthosecustomers.Primingfinancialmotivationmayleadtotwomissedopportunities:

(a) The chance that customers may be prepared to pay morefor(orasklessfrom)participatinginprojectsiftheyfeelitalignswiththeirmorealtruisticvalues.

(b) Turning away customers who are strongly motivated by conflicting values(e.g.benevolence)andareturned-offbyproductsthatpromotecostbenefits,particularlyiftheyareperceivedtocomeatacosttoothers.

14 Thecasewherecostwasrankedasthesecond-highestmotivatorwasaninvestigationofCitizenUtilities(sharedownershipofsolarandstorage)inWhiteGumValley.Thisdevelopmentdescribesitselfas“amodern,innovativeandsustainablecommunity”.Therewasuniversalagreementthattheprimarybenefitofsolarinthiscasewasenvironmentalsustainability,describedas“fightingclimatechange”,“cleanerenergy”,“notburningfossilfuels”,“emissionsneedtobereduced”or“betterfortheenvironment”.

Thekeyfindingsexploredinthesectionsbeloware:

› Financial benefit is a core motivator for DER customers,howeveritcutsacrossvaluesmodesandshouldbecommunicatedinmultipleways.

› Settlers are motivated by security,expressedasadesireforreliabilityand‘maintainingthestatusquo’.

› Prospectors who will be driving the first wave of mainstream DER adoptionareexcitedby‘gettingahead’or‘makingasmartinvestment’.

› Pioneersdesirefairnessandarewillingtosupport‘thegreatergood’.

› Trust also cuts across the values modesandiscriticaltosuccessfullyachieveacustomer-centredenergyfuture.

“…costsavingsarethemostimportantfeature…”

“…inadditiontoreducingelectricitycosts,forsomeparticipants,environmentalimpact,levelsofself-sufficiency,andlevelsofcontrolandsafety,arealsoimportantconsiderationswhendeterminingtheirpreferencesforacceptingdistributedenergyoptions…”

“…respondents,whofeelresponsibleforenergyproblems,havestrongerpersonalnormsandaregenerallymoresupportivetowardsdistributedenergytechnologies…”–Householderinterestinactiveparticipationinthesolardistributionenergymarket(CSIRO,2012)

KEY INSIGHT:

Valuepropositionsarelikelytobemoresuccessfuliftheyarecarefullydesignedwiththetargetcustomerinmindand,ifapproachingthemassmarket,arecommunicatedinthreewaystoappealtoeachvaluesmode.

Theprimingoffinancialmotivatorsislikelytohavebeenexacerbatedbythehigh-costnatureoftheprojects.Mostoftheon-the-groundtechnologytrialsrequiredsignificant(>$1,000)customercontributions.Thereweremanyreferencestocustomersnotparticipatingintheprojectssincethelevelofinvestmentwasprohibitive.Forthosecustomerswhochosetoparticipate,thesignificantupfrontcostmayhavealsoincreasedthefocusonareturnoninvestment.Futureprojectscouldaddressthisby:

› Investigating alternative DER technologiesandbusinessmodelse.g.loadmanagement,solargardensandcommunitybatterysharing,

› Including an in-depth design phase,restructuringproductofferingsand/orvaluepropositionsafterthoroughlyinvestigatingtheneedsofthetargetcustomers.

“Wejustdon’thavethefundsavailabletopaythatupfront.I’dratherpayanextrafewhundreddollarsonmybillsthantopaythousandsofdollarsupfrontatthispointintime.”-APVIFocusGroupParticipant

KEY INSIGHT:

Assumingthecoremotivationsoftargetcustomerscanberisky–e.g.byprimingparticularmotivators–leadingtomissedopportunities.ThiscouldbeaddressedbyinvolvingcustomersatthedesignphaseoftheDERproductoffering.

PRIMING:

Researchhasshownthatraisingamotivefromaperson’smemorycanincreasethatperson’sdrivetowardsthatmotive.Thisisknownas‘priming’.Primedmotivationscanalsocomeattheexpenseofotheropposingmotivations.Forexample,priming“money”candecrease“helpfulness”.(Maio et al. 2009; Vohs, Mead & Goode, 2006)

4.1.2SETTLERSAREMOSTCONCERNEDABOUTSECURITY,EXPRESSED ASADESIREFORRELIABILITYAND“MAINTAININGTHESTATUSQUO”

Settlersaredrawntoseekoutsafety,security,tradition,identityandbelonging.Settlersareconservative,risk-avoidantandwaryofchange,withatendencytobelievethattheworldchangesthem,notthattheycanchangetheworld.EffectivecommunicationwithSettlerscouldemphasisetraditionalpractices,thriftinessandthesecuritythatcomesfrombeingabletomanageyourownenergy.

TheoryassumesthatpeopletendtostartasSettlersandthen,asbasicneedsaremet,moveontotheothervaluesmodes.Evenwhenweexpresshigher-levelvalues,westill“allhaveaSettlerinsideofus”.

Security–acommontraitofSettlers–wasacommonlyexpressedvalueofcustomers.Thetwomainsecuritymotivatorsweremaintainingorincreasing‘securityofsupply’,and‘maintainingthestatusquo’.Thesesecuritymotivationswerefoundtosometimestrumpthefinancialbenefits(i.e.customerschosetoforgofinancialupsideiftheyfeltthattheirenergysecuritywasbeingthreatened).

ThemostcommonDERtypethattriggeredsecuritymotivationswasbatterystoragetodelivermorereliableenergysupply.Thiswasparticularlyrelevantinfringe-of-gridandregionallocations,wherethereweregenerallymoreoutages.Forexample,customersinSouthAustraliaandBrunyIslandvaluedreliabilitymorehighlyandalsoexperiencedmoreregularpoweroutages(plannedandunplanned)thanmoreconnectedregionsoftheNationalElectricityMarket(e.g.inner-citySydneyandMelbourne).Bycomparison,thecustomerslivinginAlkimosBeach,45kmnorthofPerthwithlessregularoutages,rankedthereliabilitybenefitsofabatteryafterthebenefitsoflowerenergybills.

Evenincaseswherereliabilityofsupplywasnotchallenged,somecustomersstillpreferredtoforegofinancialbenefitstomaintainthestatusquo(e.g.theirexistingbillingarrangements_.Threeprojects(CONSORT,NetworksRenewedandUnitedEnergy)involvingRepositPower,anaggregatorofnetworksupportservices,experiencedthisinrelationtotariffchanges.Tosupportitsenergyarbitragebusinessmodel,presentedinauser-friendlyappinterface(Figure5),RepositPowerrequirescustomerstomovetoatime-of-use(ToU)tariff.CustomersfoundthatmovingtoaToUtariffwascomplexandopaque,leadingmanytochoosenottomakethemoveevenaftertheywereshownthatitwouldreducetheirbills.Thissometimesmutedtheimpactofthesetrialssince:customerscouldnotalwaysbecalleduponaseasilytodelivertheservicestheprojectsweretesting;and/orthenetworkbusinessdidnotseeasmuchday-to-daybenefitofcustomersmovingtoaToUtariffi.e.customersonToUtariffsarebetter‘gridcitizens’sincetheymovetheirusagetooff-peaktimes.

KEY INSIGHT:

Weall“haveaSettlerinsideofus”.Therefore,tomaximiseuptakeacrossabroadaudience,itisimportantthatallproductofferingsminimisetheirthreattoacustomer’ssecurity,includingenergyreliabilityandfinancialrisk.

“Reliabilitymaybeafactorthatistakenforgrantedandnotwellunderstood”(SynergyAlkimosBeachEnergyStorageTrial:CustomerInsightsResearch,2019).

“ReliabilityofsupplywasabigissueforCONSORTparticipants.GridoutagesareaboveaverageonBrunyIslandandmanyhouseholdsintheTrialwerereallyfocusedonmanagingoutages.”(CONSORTTrial:partnercommentary)

Figure5:RepositPower’senergyarbitrageappishowcustomerscanseeandactonfinancialopportunities

4.1.3PROSPECTORS,WHOOFTENLEADMAINSTREAMINVESTMENTINNEWTECHNOLOGY,AREEXCITEDBY‘GETTINGAHEAD’

Prospectorsyearnforsuccess,thesearchforesteemofothers,andself-esteem.Theyliketoacquireanddisplaysymbolsofsuccess,bethebestatwhattheyaredoingandlookgoodwhiletheyaredoingit.Theyaretrendy,fashion-consciousandalwaysonthelookoutforopportunities.Prospectorsmaybemotivatedbybeingabletodisplaythelatesteco-productandtalkaboutitwiththeirfriendsandcolleagues.

ProspectorsaremainstreamadopterswhoarewillingtomakeinvestmentsinnewDERtechnologiesiftheyseeanopportunityto‘getahead’,financiallyorsocially.Thisisanattractivesegmenttotargetsincethereisahigherappetiteforfinancialriskinordertogetareward.

WhentargetingProspectors,itisimportantthattheproductisattractivetodrivethefirstwaveofmainstreamadoption.Thisisespeciallyimportantiftheproducthasahighcost,sinceitislikelytobesoughtafterasastatussymbol.Forexample,RepositPowerfoundthatbatterystoragesystemsshouldhave“similaraestheticstoacommonhouseholdappliance(refrigerator,storagehotwaterheater,indoorheateranddishwasher)fromahigh-qualitybrand”and“easilyaudiblenoisefrompowerconversionwasdeemedtobebroadlyunacceptable”.Thiscangobeyondpersonalpreferenceandberelatedtoincreasingaproperty’svalue.

However,emergingtechnologiesthatarerapidlyimprovingcanalsobeademotivatorforsomeProspectors(e.g.batterystorage).Prospectorshaveacloseeyeonsocialnormsandwanttobeinvolvedintrendsthataresociallypopular.Theymightwaituntilatechnologyismorematurebeforeinvesting.Itisuncleartheextenttowhichthisimpactedtheprojectsandtheindustry’scurrentdevelopment(i.e.howquicklyadoptionwillramp-upwhenthetechnologyisperceivedasmature).Thisisanareathatcouldbemorefullyexploredbycustomerresearch.

“Itseemstometobesomethinginitsinfancyandisdevelopingrapidly.Ithinkthere’sgoingtobefarbetteroptionsinthenot-too-distantfuture”–APVIfocusgroupparticipant

KEY INSIGHT:

TwostrategiesfortargetingProspectorsincludeshowing1)howtheDERoptionwillbeasmartinvestment,and2)howitcanbeshowcasedasastatussymbol.

4.1.4PIONEERSWILLWANTFAIRNESSANDTOSUPPORTTHE‘GREATERGOOD’

ForPioneers,theconstantdriveisfornewideas,thequestforconnectionswaitingtobemade,andlivingalifebasedonethics.Theyhaveafocusonaestheticandcognitiveneeds,andself-actualisation.Pioneersliketoexploreideas,experimentandfeelthattheiractionsareethical.Thismakesthemtheclassic‘earlyadopters’,willingtotryatechnologyforethicalreasonsbeforeitnecessarilymakesgoodfinancialsense.Theywanttounderstandthebigpictureandarethemostconcernedaboutenvironmentalandsocialissues,fairness,justiceandequality.Theygenerallyembracechangeandbelievethattheycanmakeadifferenceintheworld.

PioneersareintrinsicallymotivatedbyaltruismandDERprojectscanappealtothemwithmessagesofemissionsreductionandfairness.Synergy’scustomerresearchsupportsthisapproach,findingthatcustomers(oncetheirbasicfinancialneedsaremet)seemtobewillingto‘dotherightthing’overconvenienceandcomfort.Thisalignswiththevaluesmodestheory,whichexpectspeoplemoveuptheirhierarchyofneeds15fromSettlerstoPioneers.‘Doingtherightthing’mightbeinvestinginrenewablestoreduceemissions,butalsomightmeansupportingabusinessmodelthatisperceivedas‘fair’.ModelsormessagesthatmayappealtoPioneersincludereaching‘100percentrenewables’targetsandcommunitysolarand/orbatteries,wheremoreindividualscaninvestwithintheirmeans.

Community-mindednesswasapparentinprojectsthatwerecommunity-led.ItwasofmuchhigherimportanceintheLatrobeValley,whichhasahistoricaleconomicdependenceoncoal-firedgenerationandparticipantswerekeentocontinuebeingamajorelectricityproducerinthecleanenergytransition.ItwasalsoamajormotivatorforYackandandah,wherethecommunityischampioningrenewableenergyvia‘TotallyRenewableYackandandah’.But,eveninthesecases,theDERoptionneededtobecheapertobeattractive.Thisconfirmstheconceptthat“weallhaveaSettlerinsideus”andthat,eveninprogressivecommunities,projectscannotignorecustomers’needsforfinancialand/orenergysecurity.

Fairnesswasnotoftenreferencedinthenetworkandretailer-ledprojects,whichmayhaveledtosomenegativecustomerexperiences.Severalprojectsexperiencedminorcustomerbacklashwhenaspectsofthetrialwereperceivedas‘unfair’.Examplesincludedwherearecruitmentprocesswasnotconsideredequitable,orwherethecustomerhadmisunderstoodthebenefitsofferedbythetrial(e.g.didnotrealisethatthebatterystoragewouldnotprovideback-uppowerwhenthegriddisconnected).Themostexplicitexampleofsocialequitybeingconsideredinanetwork-ledtrialwasintheCONSORTtrial16,whichinvestigatedamodelof“value-reflectivepricing”thatwaspartiallyimplementedwithcustomersonBrunyIsland.

15 Maslow’shierarchyofneedsisatheoryinpsychologythatdescribesmotivationsintheformofapyramid.Thebaseofthepyramidarephysiologicalneeds(food,water,shelter),followedby:safety/security;belonging;esteemand,finally,self-actualisation.ThisalignswiththeprogressthroughthevaluesmodesfromSettlerstoProspectorstoPioneers.

16 ThekeyinnovationoftheCONSORTtrialwastheNAC(NetworkAwareCoordination),whichdevelopedameansofcoordinatingDERthataddressedconstraintsatleastcosttothecustomerandnetwork.TheNACconsistsofalgorithms,techniquesandsoftwaretoachieveoptimalpowerflow.Thetechnologyisstillunderdevelopmentforwidespreadimplementationacrossothernetworks.

“…respondents,whofeelresponsibleforenergyproblems,havestrongerpersonalnormsandaregenerallymoresupportivetowardsdistributedenergytechnologies…”–(CSIRO,2012)

KEY INSIGHT:

PromotingenvironmentalandcommunitybenefitscanhelpengagePioneers,howeverthisshouldnotcomeattheexpenseofcustomers’financialorenergysecurityifmassmarketadoptionisneeded.

KEY INSIGHT:

Ensuringfairness(socialequity)inthedesignphasewillhelpprotectaprojectfromcustomerbacklash.

HOT BUTTONSSEGMENTIFYOUCANBUT,IFYOUCAN’T,HITA‘HOTBUTTON’FOREACH GROUPINTURN.

Itisdifficulttounderstandcustomervaluesataglance,thereforestrategiesthatmaximisecustomermotivationwithoutisolatingpotentialtargetgroupscanbeuseful.Fromapsychologyperspective,itisperceivedtobesafesttomoveupMaslow’shierarchyofneedsfromSettlerstoPioneers(Rose,2011).‘Hotbuttons’arephrasesthatalignwithparticularvalues.Whentryingtoreachallthreegroups,trynottooverusehotbuttonsfromanyparticulargroup,astheothersmaystarttotuneout.Whenseekingoutaparticulargroup,don’tusemotivatorsfromtheothergroups,whichwillturnthemoff.

Whilethisresearchdidnotfullyinvestigatethemostsuccessfulhotbuttonsfordifferentvaluesmodes,examplesofwhatthesemaylooklikeareprovidedbelow.Furthertestingofthesephrasesisrecommended(e.g.throughfocusgroupswithtargetcustomers).

“Makeasmartinvestment/choosethebestenergyoption”

“Getahead,beawinner”

“Havethissymbolofsuccesstoshowothersthatyouhavethelatestthing”

Celebrityendorsements

“Choosethefairest,mostethicaloption,thatwillhelpothersinthecommunity”

“Mostenvironmentallyfriendly”

“Anew,excitinginnovation”

“Anopportunityforenergyindependence,todoyourownthing”

“Takecontroloveryourenergyforlessexposuretorisks,orsafeandreliablesupply”

“Reduceyourelectricitycoststotakecareofyourfamily”

“Dowhatisnormal/whateveryoneelseisdoing”

“Doyourduty,helpthecountry”

Security

Family

Escapist

Solidarity

Community

Thrifty

Comfort

Fearful

SETTLERS

Jet-setting

PROSPECTORS

Wealth

Appearance

Importance

Position

Glamour

Rightneighbourhood

PIONEERSValue

Knowledge

Discerning

Individuality

Quality

Information

Contacts

People-focused

Risk takers

4.2ONTRUST

Sociallicencedependsontrust.Trustcutsacrossthethreevaluemodesiscriticaltopublicacceptanceandadvocacyofnewtechnologies,includingDERuptake.

DERprojectswillhavetoworkhardtogaintrust.Customers’trustinourenergymarketisalreadylow17–only32percentofhouseholdsbelievethatthemarketisworkingintheirinterests,whichhasbeenstablesince2016(EnergyConsumersAustralia,201918).ThisisexacerbatedforDERprojectsthathavecomplextechnicalofferingsandmayencounterunforeseenissueswhendevelopingandtestingnewtechnology.Therearealreadynegativeperceptionstoovercome,forexamplethebeliefthatoneneedstolookoutfor‘cowboy’or‘rogue’installers.Thus,buildingtrustmustbeacoreobjectiveforDERprojects.

Tobuildtrust,projectsmaywanttoconsidermodelssuchasthe“TrustEquation”19.TheTrustEquationusesfourobjectivevariablestomeasuretrustworthiness.Thesefourvariablesarebestdescribedas:Credibility,Reliability,IntimacyandSelf-Orientation.Howthesevariablesmayalignwiththevaluesmodesapproachisdescribedbelow:

› Credibilityisaboutexpertiseandfeelingthatthepeopleyouareengagingwithknowtheirsubject.Valuesarelessrelevanttobuildingcredibility.

› Reliabilityisabouttrackrecord.Havetheyperformedwellbefore?Ifcustomershavehadbadexperienceswithfaultsthenthiswillbelow.Again,thisisnotinfluencedstronglybyvalues.

› Intimacyisaboutsafetyandsecurity,whichisstronglylinkedtothevaluesmodes.First,thisislikelytobeamoreimportantvariableforSettlers,whoaremorefocusedonsafetyandsecurity.Second,customersaremorelikelytofeelsafeandsecurewithpeoplethatsharetheirvalues.

› Self-Orientationisaboutwhetheracustomerfeelsliketheorganisationhastheirinterestsatheartorisbeingself-serving.Valuesisrelevantintwoways.First,thedifferentmodesvaluedifferentthings,sotheirinterestsvary.Settlerswillfeelmoretrustiftheutilityshowsitisfocusedonsafetyandsecurity.Prospectorswillfeelmoretrustiftheutilitytalksabouthelpingthemmakemoney.Pioneerswillfeelmoretrustiftheutilitytalksaboutenvironmentalgoalsorinnovation.Second,self-orientationwillbereduced(andtrustincreased)ifutilitiesexpressintrinsicvaluesthatare‘biggerthanself’ratherthanself-focusedextrinsicvalues.

17 However,thismayalsobeanopportunityforfutureprojectstocapitaliseonthenewdesiresforenergyindependence.

18 EnergyConsumersAustralia(2019), Energy Consumer Sentiment Survey Findings: December 2019.

19 Green,CH(2000),The Trusted Advisor

“Iwanttogetsomethingwithabitofqualityaboutit.Andsomeofthequotestoodon’tincludetheinverterandit’sinfineprintonceyoureadtheircontract.That’sdishonesttobeginwith.Youhaven’tevenstartedandthey’renotbeingupfrontwiththeirinformation.Howcantheyearnyourtrust?Youcouldn’tdobusinesslikethat.AndIhearthattheirafter-salesservicetoo,theirmaintenanceservice,fallsreallyshortfromwhereitshouldbe.” – CSIROfocusgroupparticipant

AkeyquestionforfutureDERprojectsis:“Howdoesthisprojecthelpbuildcustomertrust?”

Ifthiscanbeansweredpositively,ingoodfaith,wewillbemovingclosertoacustomer-centredenergyfuture.

Avalues-basedframeworkmayofferaneffectivetargetingapproachforfutureDERprojects.Valuesarestablepsychologicalstructuresthatmotivatebehaviour,cuttingacrossdemographics.ThisreporthasanalysedthevaluesofDERcustomersandtheirmotivations,whichareconsolidatedintofivekeyfindingsbelow.ThiscanservetohelpinformfutureDERprojects,andotherorganisationsinterestedintheseprojects.

DER projects can benefit from better understanding their target customer basebeforedevelopingandcommunicatingtheproductoffering.Face-to-faceengagementcanstillyieldstronguptakewithoutformalsegmentation;howeveritoftencomesatahighresourcecostandmaynotbesuitableforcommercialofferings.

Values cut across demographics and can be an effective approach forengagingandtailoringmessagestomanytypesofcustomers.Listeningcloselytocustomersduringtheengagementphasecangivecluestotheirvaluesbaseandwhatwilldrivetheiraction.Assumingthecoremotivationsoftargetcustomerscanberisky(e.g.byprimingparticularmotivators),potentiallyleadingtomissedopportunities.

Value propositions are likely to be more successful if they are communicated in multiple waystoappealtoallthreevaluesmodes(fromSettlertoPioneer),whilerememberingthatweall“haveaSettlerinsideofus”.Tomaximiseuptakeinthisgroup,productsshouldminimisetheirthreattoacustomer’senergyandfinancialsecurity.TwostrategiesfortargetingProspectorsincludeshowing1)howtheDERoptionwillbeasmartinvestment,and2)howitcanbeshowcasedasastatussymbol.PromotingenvironmentalandcommunitybenefitsofDERprojectscanhelpengagePioneers,howeveritisimportanttobemindfulofcustomersecurityneeds.

Some factors may preclude customers from investing in DER,regardlessoftheirvalues(e.g.cost,location).

Buildingtrust,includingensuring fairness(socialequity),throughdesignandimplementationwillhelpprotectaprojectfromcustomerbacklashandmove the sector closer to a customer-centred energy future.

5.0CONCLUSION

6.1APPENDIXA:VALUEMODES

TheValuesModeframeworkisaproprietarymotivationalapproachdevelopedbyacompanycalledCulturalDynamicsStrategyandMarketing(CDSM)andappliedbycampaignstrategistsandmarketresearchersincludingChrisRose,KSBRandFuterra(Rose,2011).ItdrawsonsurveyresearchthatmapsindividualvaluesonthecircularmotivationalcontinuumproposedbySchwartz(Rose,2011).ItalsodrawsonMaslow’shierarchyofneeds(Maslow,1987).Maslowproposedthathumanmotivationsderivefromourdominantneeds,andthatneedsdevelophierarchicallyastheyareprogressivelysatisfied.Ourmostbasicneedsarethephysiologicalneedsforfood,water,sleepandwarmth.Oncetheseneedsaresatisfied,webecomemotivatedbythesatisfactionofsafetyneeds,thenneedsforbelongingandlove,esteemneeds,aestheticandcognitiveneedsandtheneedforself-actualisation.

TheValuesModeframeworkidentifies12values-basedmarketsegments(or‘valuesmodes’),groupedintothreeprimarymotivationallevels–labelledasSettlers,ProspectorsandPioneers(Rose,2011).Thesegroupscanbethoughtofasthreedifferentworlds,withfundamentallydifferentvaluesandmotivations.AllpeoplestartasSettlers,butiftheymeettheirbasicneeds,theymaymoveontobecomeProspectorsandthenPioneers.

Settlersaredrawntoseekoutsafety,security,tradition,identityandbelonging.Settlersareconservative,risk-avoidantandwaryofchange,withatendencytobelievethattheworldchangesthem,notthattheycanchangetheworld.EffectivecommunicationwithSettlerscouldemphasisetraditionalpractices,thriftinessandthesecuritythatcomesfrombeingabletomanageyourownenergy.

Prospectorsyearnforsuccess,thesearchforesteemofothers,andself-esteem.Prospectorsliketoacquireanddisplaysymbolsofsuccess,bethebestatwhattheyaredoingandlookgoodwhiletheyaredoingit.Theyaretrendandfashionconsciousandalwaysonthelookoutforopportunities.Prospectorsmaybemotivatedbybeingabletodisplaythelatesteco-productandtalkaboutitwiththeirfriendsandcolleagues.

ForPioneers,theconstantdriveisfornewideas,thequestforconnectionswaitingtobemade,andlivingalifebasedonethics.Theyhaveafocusonaestheticandcognitiveneeds,andself-actualisation.Pioneersliketoexploreideas,experimentandfeelthattheiractionsareethical.Theywanttounderstandthebigpictureandarethemostconcernedaboutenvironmentalandsocialissues,fairness,justiceandequality.Theygenerallyembracechangeandbelievethattheycanmakeadifferenceintheworld.Pioneersareintrinsicallymotivatedtoadoptpro-environmentalbehaviourssocommunicationscanappealtoethicalreasonsforaction.

6.0APPENDICES

WA3 projects ~132 customers

SA2 projects >1,000 customers

VIC4 projects~100 customers

TAS1 project 34 customers

NSW/ACT2 projects 47 customers

QLD1 project 33 customers

The analysed projects are mostly on-grid residential solar and storage trials therefore it is important to consider the nuances of other contexts when applying these findings.Presentation to ARENA I Institute for Sustainable Futures

19 ARENA projects* across almost all states and territories hosted ARENA-funded projects. The demonstration projects involved over 1,300 customers who chose to have DER systems installed in their homes.

*13 demonstration projects and 6 non-demonstration projects (including feasibility studies, standards development and market testing).

6.2APPENDIXB:THECOHORTOFARENA-FUNDEDDERPROJECTS ANDTHEIRCUSTOMERS

PROJECT DESCRIPTION

SolarandStorageTrialatAlkimosBeach

LendleaseCommunities,Synergy,DevelopmentWA

2014 TheSolarandStorageTrialatAlkimosBeachResidentialDevelopmentprojectinvolvesdeveloping,deployingandtestingthecommercialfeasibilityofanewenergyretailmodel.Itwillcombinecommunityscalebatterystorage,highpenetrationrooftopsolarPVandenergymanagementwithinanewresidentialdevelopmentatAlkimosBeach,WesternAustralia.

LatrobeValleyMicrogridFeasibilityStudy

LO3Energy 2018 TheLatrobeValleyMicrogridFeasibilityStudywillassesstheviabilityofcreatingalocalenergymarketplacefordairyfarms,residentialparticipantsandcommercial/industrialcustomersintheLatrobeValley.Participantswillsellexcessenergygeneration,demandresponsecapabilitiesandnetworksupportservicestoimproveintegrationofDistributedEnergyResources,suchasrooftopsolar.TheProjectwillincorporatePV,storage,demandresponseandLO3Energy’sExergyplatformtodeliveranoptimaldistributedenergymodelintheregion.

IndraMonashSmartCity

IndraAustraliaPtyLtd

2018 TheIndraMonashSmartCitywilldemonstratehowsmartandrenewabletechnologiescanbeintegratedattheMonashUniversityClaytonembeddednetworktomaintainpowerqualityandtestmarketdrivenresponsesandbusinessmodels.Indra’sActiveGridManagement(InGRIDAGM)platformwillprovidereal-timemonitoringandcontroloverthegrid-connectedassets,andbeoptimisedtoaddvaluetocustomers,marketparticipantsandtheelectricitygrid.

IntelligentStorageforAustralia’sGrid

RepositPowerPtyLtd

2014 TheIntelligentStorageforAustralia’sGridprojectinvolvespilotingGridCredits,abatterystoragecontrolmodulethatallowsconsumerstomonitorelectricityusageandaccesstheirsolarpowerovernightandatpeaktimes.Repositwillofferthe‘GridCreditsSystem’tovolunteerhouseholdsinCanberra.ThepilotwilldemonstratethevalueofsmartstorageandalsoincreasetheunderstandingofhowresidentialsolarandenergystoragesystemscanoperateinAustralia’selectricitygrid.Theprojecthasthepotentialtoincreasetheuptakeofrooftopsolarandmayallowmorerenewableenergytobeconnectedtothegrid.

PROJECT DESCRIPTION

DistributedEnergyMarket

AustralianPhotovoltaicInsitutute(APVI)

2012 TheDistributedEnergyMarketprojectassessedarangeofwaysinwhichcustomersandelectricityutilitiesmightparticipateinadistributedenergymarket.

HigherRenewablePenetrationinNewLand&HousingDevelopments

BrookfieldEnergyAustraliaPtyLtd

2015 Thisprojectaimstoexplorethecommercialviabilityandimpactofrenewableenergyforlargenewhousingdevelopmentswithoff-gridmicrogrids.BrookfieldEnergyAustralia,throughFlowSystems,willworkwithSiemens,KinesisandCSIROtodeterminewhetherrenewables,batterystorageandenablingtechnologiescanreliablyandcosteffectivelypowernewsuburbs.

CONSORTBrunyIslandBatteryTrial

ANU,TasNetworks,RepositPowerPtyLtd,UniversityofSydney,UniversityofTasmania

2016 TheCONSORTBrunyIslandBatteryTrialsuccessfullydevelopedanddemonstratedaninnovativeautomatedcontrolplatformthatenablesconsumerswithbatterysystemstoprovidesupporttoaconstrainedelectricitynetwork.Itcontinuestodosoinawaythatisofmaximumbenefittoboththeconsumerandthenetwork.AttheheartofCONSORTisaplatformcalledNetworkAwareCoordination(NAC).TheNAC’sprimarytaskistoautomaticallycoordinatehouseholdenergysystems(inanonintrusiveway)enablingthemtoadheretoandalleviatenetworkconstraints.Thetrialeffectivelydemonstratedtheuseofthisapproachtomanagehighrenewablepenetrationandotherconstraintsatamuchlowercostthanisconventionallypossible.

IncreasingtheUptakeofSolarPVinStrataResidentialDevelopments

CurtinUniversity,LandCorp,ElectricityNetworksCooperation,CRCforLowCarbonLiving,CityofFreemantle,BalanceUtilitySolutions

2016 TheIncreasingtheUptakeofSolarPVinStrataResidentialDevelopmentsprojectwilldevelopgovernancemodelstoallowsharedsolarphotovoltaics(PV),batteryandmonitoringsystemstobeusedinmediumdensityapartments.Thegovernancemodelswillbetestedat50unitsoftheWhiteGumValleydevelopmentinPerth.Thegovernancemodelsdevelopedwillexaminethesharedbenefits,risksandcostsbetweendevelopers,owners,tenants,stratabodiesandutilities.Themodelswillalsoincludetheenergysystemdesign,billing,legaladdendumsfordwellingpurchasersanddwellingleases.Thefinancialaspectsofthegovernancemodelswillbestudied,testedanddemonstratedinthreedifferentstratalotdevelopments.Themodelsdevelopedareexpectedtobeadaptableandscalabletosuitdifferentdevelopmenttypes.

NetworksRenewed

UTS,RepositPowerPtyLtd,EssentialEnergy,UnitedEnergy,AusNetServices,APVI

2016 TheNetworksRenewedprojectinvestigatedpathwaystoincreasetheamountofrenewableenergyinAustraliabypavingthewayforsmall-scalesolarphotovoltaic(PV)andbatterystorageinstallationstoimprovethequalityandreliabilityofelectricityinAustralia’sdistributionnetworks.Twodemonstrationsfocussingonvoltagemanagement,recruited90customersinthreelocationsacrossNSWandVictoriaundernewcommercialmodelsfornetwork-relatedbusinesses.Akeyoutcomeoftheprojectisapracticalunderstandingofthecommercialvalueofnewsmartinvertertechnology.

AGLVirtualPowerPlant(VPP)

AGLEnergyLimited

2017 TheAGLVirtualPowerPlantisaworld-leadingprototypeofavirtualpowerplants(VPP)createdbyinstallingandconnectingalargenumberofsolarbatterystoragesystemsacross1000residentialandbusinesspremisesinAdelaide,SouthAustralia,tobemanagedbyacloud-basedcontrolsystem.Thebatterieswillbeableto‘talk’toeachotherthroughacloud-basedplatformusingsmartcontrols,formingaconnectedsystemthatwillbeabletooperateasa5MWsolarpowerplant.

PeakDemandReductionusingSolarandStorage

UnitedEnergy 2017 ThePeakDemandReductionusingSolarandStorageprojecthassuccessfullydemonstratedareductioninpeakdemandasanalternativesolutionfordeferringnetworkaugmentation.UnitedEnergy:developedoperatingmodesforthesystemsincludingautomatedcontrolalgorithms;andinvestigatedbusinessmodelsthatcouldfacilitatethedeploymentofstoragetoaddressnetworkissues.Theoutcomesfromthedispatcheventswerecomplementedbyongoingmarketresearchinordertofacilitatetheprovisionofnon-networksolutionstosystemplannerswherenetworkconstraintsareidentified,andtofeedintoongoingassetstrategydevelopmentregardingtheapplicationofenergystorageinanetworkcontext.

TriallingaNewResidentialSolarPVandBatteryModel

ErgonEnergy,Sunverge,SunPower

2015 TheTriallingaNewResidentialSolarPVandBatteryModelprojectinvolvesQueenslandenergyproviderErgonRetailundertakingapilotdemonstrationtotestacommercialandoperationalmodelforprovidinggrid-connectedsolarphotovoltaic(PV)andbatterystoragesystemstoresidentialcustomers.

Thedemonstrationwillinvolveinstallingandtesting33systemsinCannonvale,ToowoombaandTownsville.

PROJECT DESCRIPTION

CarnarvonDistributedEnergyResources(DER)trials

HorizonPower 2017 Thisprojectaimstoresolvethetechnical,operationalandtransitionalbarrierstoahighpenetrationDERbusinessfuture.ItalsoaimstoleverageHorizonPower’sexperienceandpioneeringuseofdistributedenergystoragetobuildcapabilitiesinthemanagementandoptimisationofhighpenetrationrenewableenergygenerationinremotemicrogrids.Heldoverthreeyears,theDistributedEnergyResource(DER)trialswilltestdistributedenergysystemsthroughavarietyofbehind-the-meterenergysystemstests,withtheaimofbetterunderstandinghowtomanagethevariabilityofrenewableenergyanditsimpactonthenetwork,andultimatelyincreasingPVsystempenetrationthroughoutourremotenetworks.

BatteryStorageSystemPerformanceStandard

DNV-GL 2018 TheBatteryStorageSystemPerformanceStandardprojectaimstoproduceaproposedAustralianBatteryEnergyStorageSystem(BESS)PerformanceStandard(ABPS)forbatteriesconnectedtoresidentialorsmall-scalecommercialsolarphotovoltaic(PV)systems.TheintentionisforthisproposedABPStobesubmittedtotheStandardsAustraliastandardcreationprocess.AGuidelinebasedontheproposedABPSwillalsobeproducedforusebyindustrystakeholderspriortoafinalABPSbeingagreedandfinalisedviaStandardsAustralia.

SimplyEnergyVPP

SimplyEnergy,GreenSync,SAPN,AEMO,Tesla,Flextronics

2018 TheSimplyEnergyVirtualPowerPlant(VPP)projectwilldeliverupto1200TeslaPowerwall2batteriestoAdelaidehouseholds.Thisrepresents6MWofresidentialenergystorage,whileafurther2MWofdemandresponsecapacitywillbedeployedacross10commercialbusinesses.

SolarAnalytics:MonitoringforBetterEnergyOutcomes

SolarAnalyticsPtyLtd,APVI

2016 TheprojectaimstoacceleratedeploymentofanAustralian-developedtechnologydesignedtomonitortheperformanceofresidentialsolarPVsystemsandprovidelowcostanalyticsandfaultdiagnostics.Thetechnologycomparesenergygenerationagainstperformanceexpectations,reportingsystemdatabacktotheresidentialuser,whilealsoidentifyingfaultsandprovidingcorrectiveactions.

DecentralisedEnergyExchange(deX)

GreenSync,UnitedEnergy,ANU,MojoPower,ACTEnvironmentalPlanningDirectorate,VictorianDELWP,ActewAGL

2017 DecentralisedEnergyExchange(deX)isaprototypeonlinemarketplacethatwillprovideawayforhouseholdsandbusinesseswithrooftopsolarandbatterystoragesystemstobepaidforallowingelectricitynetworkbusinessestoaccesstheirrooftopsolarandstoredelectricitytostrengthenthegrid.

Buildingtheworld’sfirstconsumerownedsolarretailandservicescompany

DCPowerCo 2018 DCPowerCo.isadisruptivebusinessplanningtolaunchtheworld’sfirstsolarfocused,customerownedenergyretailerandservicescompany.Takingaccountofthe1.8m+Australianhomeswithrooftopsolarthatareripefordisruptioninthecurrentenergyretailmarket,theDCPowerCo.modelproposestodeliver:

› Adisruptiveelectricityretailsolutionfocusedonsolarprosumers

› Customerengagementthroughownership

› Enhancedsavingsbydivorcingprofitsfromconsumption

Furtherinformationisavailableatarena.gov.au

AustralianRenewableEnergyAgencyPhone+611800804847

Postal Address GPOBox643CanberraACT2601

Location 2PhillipLawStreetNewActonACT2601

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