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DER CUSTOMER INSIGHTS: THE CUSTOMER JOURNEY JULY 2020

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Page 1: DER CUSTOMER INSIGHTS · analysing the insights derived along the DER customer journey, 6 key ‘ingredients’ were identified that contribute to creating a happy DER customer: 1

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DER CUSTOMER INSIGHTS: THE CUSTOMER JOURNEYJULY 2020

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2DER Customer Insights: The Customer Journey

TABLE OF CONTENTS

1.0 EXECUTIVESUMMARY 4

2.0 INTRODUCTION 6

2.1 THEDERCUSTOMERJOURNEY 6

3.0 ENGAGEMENTANDACQUISITION 7

3.1 ENGAGEMENT 7

3.1.1 ENGAGEMENTMETHODS 7

3.1.2 KEYCONSIDERATIONSFORSUCCESSFULENGAGEMENT 8

3.1.3 SEEKINGALOCALCHAMPIONINGEOGRAPHICALLY-FOCUSSEDPROJECTS 8

3.2 ACQUISITION 9

3.2.1 THECHALLENGEOFCUSTOMERACQUISITION 9

3.2.2 ENGAGEMENT&ACQUISITION:WHATWORKED,ANDWHY? 9

3.2.3 ENGAGEMENT&ACQUISITION:WHATDIDN’TWORK,ANDWHY? 10

3.2.4 ASSESSINGCUSTOMERSUITABILITY 11

4.0 INSTALLATION 12

4.1.1 INSTALLATION:WHATWORKED,ANDWHY? 12

4.1.2 INSTALLATION:WHATDIDN’TWORK,ANDWHY? 13

5.0 OPERATIONANDMAINTENANCE 15

5.1.1 OPERATION&MAINTENANCE:WHATWORKED,ANDWHY? 15

5.1.2 OPERATION&MAINTENANCE:WHATDIDN’TWORK,ANDWHY? 16

6.0 RETENTION 17

6.1.1 RETENTION:WHATWORKED,ANDWHY? 18

6.1.2 RETENTION:WHATDIDN’TWORK,ANDWHY? 18

7.0 CONCLUSION 19

7.1 THESIXKEYINGREDIENTSTOAHAPPYDERCUSTOMER 19

8.0 APPENDICES 21

8.1 APPENDIXA:SUMMARYOFKEYLESSONS 21

8.2 APPENDIXB:THECOHORTOFARENA-FUNDEDDERPROJECTS ANDTHEIRCUSTOMERS 23

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3DER Customer Insights: The Customer Journey

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.

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4DER Customer Insights: The Customer Journey

ThisreportispartoftheARENA‘DERCustomerInsightsSeries’whichinvestigatestheexperiencesofcustomersinvolvedinARENA-fundedDERprojects.Customerinsightsweredrawnandanalysedfromalmostone-hundredreportsarisingfromtwentyofARENA’sDERprojects.

Thisreportfeaturesinsightsdrawnfromthecustomerjourney.TheDERcustomerjourneywasassessedacrossalltwentyprojectsasfourseparatestages,documentingapproaches,experiences,issuesandkeylessons.Thesefourstagesweredefinedas:

› Engagement and acquisition:involvingallstepsintheleaduptoproduct’sinstallation,includingallawarenessraisinguptothepointofthefinancialtransactionandsigningofcontracts.

› Installation:involvingallthestepsdirectlyrelatedtotheinstallation,includinganypre-installationsitevisit.

› Operation and maintenance:coversallongoingactivitiesrelatedtotheoperationoftheDERsystem(firmwareandhardware),includinganyscheduledorunscheduledmaintenance.

› Retention:thepost-installationphasethatensurescustomerscontinuetobesatisfiedwiththeirproductandservice,leadingtoon-goingengagementandthecustomerbecominganimportantadvocateofDER.

1.0EXECUTIVESUMMARY

THEDERCUSTOMERJOURNEYILLUSTRATESTHESTEPSTHATCUSTOMERSGOTHROUGHINENGAGINGWITHADERPRODUCTORRELATEDSERVICE.

Installation

Engagement& acquisition

All steps in the lead up toproduct's installation,including all awarenessraising up to the point of thefinancial transaction andsigning of contracts.

Operation &maintenance

All steps related tothe installation,including any pre-installationsite visits.

All ongoing activitiesrelated to operation of the DER system,including any scheduledor unscheduledmaintenance.

Retention

Part of the post-installationphase thatensures customerscontinue to be satisfiedwith theirproduct/service, leading to continuedengagement advocacy

Figure1:TheCustomerJourney

Note:Thecustomerjourneydepictedheretakesintoaccounttheproductlifecycleexcludingtheend-of-lifephase.Whileanimportantaspecttoconsiderintermsofsustainability,thiswasoutsidethescopeofthisproject.

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5DER Customer Insights: The Customer Journey

Characterisingthecustomerjourneycanfacilitatebetterunderstandingofthecustomerfortheorganisationsinvolvedintheprojects,andleadtocontinualimprovementofthevalueproposition.FromanalysingtheinsightsderivedalongtheDERcustomerjourney,6key‘ingredients’wereidentifiedthatcontributetocreatingahappyDERcustomer:

1. Customer knowledge & understanding:knowwhoyourcustomersareandthevaluesthatdrivethem.

2. Clear value proposition:thecustomervaluepropositionandthebenefitsareclearlyarticulated.

3. Smooth customer experience: Providedthroughouttheentirecustomerjourney.

4. Market-ready product: theDERproductsareofsufficientcommercialmaturity.

5. ‘Super installers’:Installationisacriticalmoment–enlistwell-trained,knowledgeableinstallerswhoknowtheircustomers.

6. Earned trust: trustiscriticalinpublicacceptanceandadvocacy.Thisshouldbeearnedalongtheentirecustomerjourney.

UltimatelythiswillhelpacceleratetherateatwhichDERisdeployedbythesectorandmaximisethepotentialbenefitstocustomersandtheenergysystem.

Earned trust

'Super installers'

Smooth customer experience

Customer knowledge& understanding

Clear value proposition

Market-ready products

Figure2:SixkeyingredientstoahappyDERcustomer.

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6DER Customer Insights: The Customer Journey

2.1THEDERCUSTOMERJOURNEY

CharacterisingandcriticallyassessingthejourneythatDERcustomersgothroughcanfacilitatebetterunderstandingofthecustomer,whileleadingtocontinualimprovementfororganisationsinvolvedinthissector.ItcanalsoleadtobettercustomeroutcomesandhelpmaximisethebenefitsofDERtobothcustomersandtotheenergysystem.Acustomerjourneyillustratesthestepsthatcustomersgothroughinengagingwithaproductorservice.

ForARENA’sDERCustomerInsightSeries,thisencompassesthephasesfromwhenacustomermaybecomefirstawareofaDERproductorserviceoffering,throughthetransactionalpurchase,andbeyondaspartofanongoingrelationshipthatistheresultofthecontinuedservicingofthatcustomer.

ManyoftheARENAprojectsemphasisedtheneedforprovidingasmoothcustomerexperiencealongtheentirecustomerjourney.Aspartofthis,listeningto-andactingon-customerfeedbackwasseenasessentialforensuringcontinualimprovementofthecustomerexperienceacrosstheentirejourney.

ForthepurposesofthisCustomerInsightsSeries,theDERcustomerjourneyhasbeensimplifiedintofourmainsteps.ThecustomerjourneywasassessedacrossthesefourseparatestagesfortwentyARENADERprojects,documentingapproaches,experiences,issuesandkeylessons.

ThefollowingsectionsaddressstepsonetofourinthecustomerjourneydetailedinFigure1.Eachsectioncontainsmoredetailsofeachstep,resultingfromtheanalysisofalmostone-hundredreportsthatweregeneratedbytwentyDERprojectsfundedbyARENAanditsindustrypartners.

ENGAGEMENTANDACQUISITION

INSTALLATION

OPERATIONANDMAINTENANCE

RETENTION

2.0INTRODUCTION

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7DER Customer Insights: The Customer Journey

TheacquisitionandengagementstepinthecustomerjourneyinvolvesallstepspriortoinstallationoftheDERproduct.Thisincludesanyawarenessraisingonthepartoftheproviderviamarketingandcommunications,aswellasthecustomeracquisitionprocessitself.

3.1ENGAGEMENT

AwiderangeofengagementmethodswereemployedbyprojectpartnersinthetwentyARENA-fundedprojectsanalysed.Engagementactivitieswereundertakenthroughavarietyofonlineandofflinemethodsinordertoreachpotentialcustomersand/orthetargetedcommunities.

3.1.1ENGAGEMENTMETHODS

Thevarietyoftheengagementmethodsusedacrossthedifferentprojectsisdetailedinthetablebelow.

TABLE2:OFFLINEANDONLINEENGAGEMENTMETHODSEMPLOYEDBYARENA-FUNDEDPROJECTPARTNERS

1 A‘LocalChampion’isanindividual,group,ororganisationwhoistrustedamongthetargetcustomergroup/communityandsupportstheoffer/project.

OFFLINE ONLINE

Directmail Emailcampaigns

Public/townhallmeetings Projectpartnerwebsites

Communityworkshops Otherwebsites(includingnews)

Homevisits Socialmedia

Marketingmaterial,bannersandsignage Mediareleases

Traditionalmedia(radio/tv/newspapers) Webinars

Surveys Surveys

Communitygroups/Localchampions1

3.0ENGAGEMENTANDACQUISITION

Figure4:Synergy’scommunitybatterysignagefromAlkimosBeach.

Themarketingsignagewasdesignedtocreateabuzzinthecommunitywithsimplebutenticingmessagingforthecommunitybatteryinstallation.

Source:Synergy

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8DER Customer Insights: The Customer Journey

Synergy & partners community battery trial (at a new residential development at Alkimos Beach). ANU & partners

Consort Trial (on Bruny Island, Tasmania)

UTS & partners Networks Renewed VPPs' (centred on Collombatti in NSW and Yackandandah in Victoria).

United Energy & partners residential solar storage trial (at a number of network constrained locations east of Melbourne).

3.1.3SEEKINGALOCALCHAMPIONINGEOGRAPHICALLY-FOCUSSEDPROJECTS

Identifyingandengagingalocalchampionwasconsideredcriticalwhereaprojecthadageographicfocus,suchasaspecifictown,area,orhousingdevelopment.Thecriticalstepforthesetypesofprojectsistoidentifytrustedagentsasearlyaspossibleinaprojectandpriortoanypubliccommunicationtakingplace.

Projectsthathadaparticularlystronggeographicfocusandwereassessedaspartofthisresearchwere:

› UTS and partners‘NetworksRenewed’VirtualPowerPlant(VPP)trialthatwascentredonCollombattiinNSWandYackandandahinVictoria.https://arena.gov.au/projects/networks-renewed/

› Synergy and partnerscommunitybatterytrialthattookplaceatanewresidentialdevelopmentatAlkimosBeach,WA.https://arena.gov.au/knowledge-bank/alkimos-beach-energy-storage-trial-customer-insights-2019/

› ANU and partners‘CONSORTBatteryTrial’thatwasundertakenonBrunyIsland,Tasmania.https://arena.gov.au/projects/consumer-energy-systems-providing-cost-effective-grid-support-consort/

› United Energy andpartnersresidentialsolarstoragetrialthatfocussedonanumberofnetworkconstrainedlocationseastofMelbourneCBD.https://arena.gov.au/projects/united-energy-distribution-demand-response/

3.1.2KEYCONSIDERATIONSFORSUCCESSFULENGAGEMENT

Anumberofconsiderationsemergedaskeywhenitcametosuccessfulengagementactivities.Theseweredrawnfromacrossthedifferentprojectsandwerearesultofexistingknowledgeandexpertisethatpartnersbroughttotheprojects,aswellfromlessonslearnedthroughfromtheprojectengagement.

Keyconsiderationsfor successfulengagement

Communicate the offerand pricing simply

Address customerenquiries quicklyand effectively

Maintain resourcesthat are accessible,

relevant and up to date

Use the engagement to create excitement in

the community for the offer

Identify and work with a ‘Local Champion’

(where relevant)

Figure5:MapofARENA-fundedDERprojectswithastronggeographicfocus.

Theseprojectswerefocussedonaparticulardevelopment,town,orareainordertoaddressanidentifiedelectricitynetworkconstraintatthatlocation.

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9DER Customer Insights: The Customer Journey

3.2ACQUISITION

Acquisitionisthephasewhenthecustomerconsiderstheoffer.Keyactivitiesofthecustomerwouldinclude:

› Undertaking their own researchthroughaccessingonlineandofflineinformation,engagingwithemployeesoftheprojectpartners(in-person,onthephone,orviaemail),andspeakingwithfriends,family,orneighbours(word-of-mouth).

› Facilitating any pre-installation suitability assessment andsiteinspections.

› Participating in the actual transaction and purchase itself,whichisinitiatedthroughreviewandsigningofacontract,payingthesupplier,andagreeinganinstallationandactivationdate.

3.2.1THECHALLENGEOFCUSTOMERACQUISITION

CustomeracquisitionwaschallengingforthemajorityofDERprojectsstudied.Thistypicallyresultedintheprocesstakinglongerthanexpected,orrecruitinglesscustomersthanwasoriginallytargeted.Thosethathadmoresuccesswiththispartofthecustomerjourneyhad:

› Undertook detailed customer research in advance tobetterunderstandtheneedsoftheirtargetcustomers2.

› Targeted communities that they were already familiar and/or had high-levels of engagementonenergyissuesalready(suchastheANU-ledBrunyIslandtrial,ortheUTS-ledYackandandahtrial).

› More conservativecustomeracquisitiontargets

3.2.2ENGAGEMENT&ACQUISITION:WHATWORKED,ANDWHY?

Engagementandacquisitionofcustomersrepresentsakeystageinthecustomerjourney.Belowsummariseswhatworkedinparticular,andwhy.

› Thorough planningofallcommunicationandengagement–ensuringthatmessagingwasconsistentandavoidingconfusionormisinformationspreading.

› Careful consideration of which partner’s branding to use–themorefamiliar,welltrustedbrandwillhavethemostpositiveimpactonacquisition.

› Understanding which communication channel works bestfordifferenttypesofcustomers–allcustomersaredifferentandmakingassumptionsaboutpreferredmethodsofcommunicationcanmeanmissingengagementwithalargesectionofthemarket.

› Ensuring that all partners and key stakeholders have the relevant and up-to-date information (e.g.scripteddescriptionsoftheproject,propositionandbenefits,andanswerstofrequentlyaskedquestions)–thisensuresthatallpartnersarepreparedtodeliveraccurateandconsistentinformationandmessaging,avoidingcustomerconfusion.

› Updating information in response to developments as part of a constant feedback loop–thisensuresthatthecustomerjourneyandtheirexperienceiscontinuallyimproved.

› Increasing publicitythroughlaunchevents,communityforums/events,andwordofmouthwerefoundtobeanimportantwaytoacquirecustomers.

2 For more information see ARENA’s DER Customer Insights Report on Customer Values.

CASE STUDY: THE CONSORT BRUNY ISLAND BATTERY TRIAL

Background BrunyIslandisaTasmanianislandandpopulartouristdestination.Itcomprisesfarmsandsmalltownshipscomprisingsuburbanhousing.Whilemostoftheislandhasmainssuppliedelectricity,theelectricitydistributionnetworkmustdeliverpowertothewidelydispersedpopulationthatcanposechallengesforreliabilityandresilience.

ProjectDetails TheaimoftheBrunyIslandBatteryTrialwastouseresidentialsolarPVandbatteriesinthehomesof34oftheisland’sresidentstoreducerelianceondieselgenerators.TheprojectinvestigatedwhethersolarPVandbatteriescouldmanagehouseholdenergydemandwhilealsosupportingtheisland’selectricitynetwork.Consumersandtheirexperienceswereanimportantfocusforthetrial.

TheCustomerJourney

Followinginitialawarenessraisingthroughvariouschannels(e.g.communityandindustryforums,anduptoatleast50mediaitemsacrossvarioustypes),interestedparticipantswererequiredtosubmitanexpressionofinterest,whichhelpedselectthosethatmetabasiccriteriafortrialparticipation.Thoseexpressionsofinterestthatqualifiedwerethenenteredintoarandomballot.Thoseselectedwereofferedtheopportunitytoparticipateinthetrialandwereallowedtoselectaninstallerfromapre-selectedlist(intendedtomimica“real-worldsituation”).

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10DER Customer Insights: The Customer Journey

› Trusted platforms(suchasthewebsitesofgovernmentagencies)werefoundtobeanimportantsourceofinformationpotentialcustomersturnedto.

Publicity surrounding launch events, community forums/events, and word of mouth were found to be an important way to acquire customers.

Trustedplatforms(suchasthewebsitesofgovernmentagencies)wereanimportantsourceofinformationpotentialcustomersturnedto.

Personalisedemailcommunicationwasfoundtobethepreferredmethodofcommunicationinsome(butnotall)projects,althoughdifferentresponseratescouldbeexpecteddependingonwhenemailsweresent.Forexample,inGreenSync’sdeXConsumerInsightsReport3,8amonaSundaywasfoundtoworkbestcomparedwitheveningorweekdaymailings.Thishasimplicationsforincreasingthemarketingleadsintosales.

› Working with local championswhoaretrustedwithinthecommunityareparticularlyimportantincertaincases-theyplayamajorroleinhowaprojectisperceivedandacceptedsotheirbuy-iniscrucial.

› Providing detailed information on benefits(e.g.savings)incommunicationmaterial(includingoptimalsizingforacustomer’sspecificsystem,andthelikelyimpactontheirbillsunderdifferentscenarios)providedtransparencytothecustomeronthelikelybenefits.

Focusing on a simple proposition and avoiding jargon

Inonetrial,inresponsetofeedbackfromcustomers,theterm‘smart’wasremovedfromthedescriptionoftheiroffer.Insteadthiswasreplacedwithadescriptionofasimplevaluepropositionbasedonaspecificfinancialreturnoverafixedtimeperiod(i.e.earn$5,000over2years).Thisresultedinanincreaseinthecustomeracquisitionrate.

› Minimising the number of customer stepsforregisteringinterestandsigningup–fewerstepsandasimplifiedsalesprocesscontributestoalowerattritionrateduringthecustomeracquisitionprocess.

› Timely and effective follow-up of leads–afast,wellmanagedsalesprocesscontributestoalowerattritionrateduringthecustomeracquisitionprocess.

› Early determination of customer eligibility–reducescustomeracquisitioncosts,andminimisesthetimeinvestment(andsubsequentdisappointment)ofpotentialcustomers.

› Ownership models tailored to the target customergroup–earlyadopters(whowerewell-representedwithintheprojects)highlyvaluedtheirenergyindependencesodidnotfindthird-partyownershipmodelsappealing.

3.2.3ENGAGEMENT&ACQUISITION:WHATDIDN’TWORK,ANDWHY?

Initialapproachestoengagementandacquisitionweren’talwaysfoundtobesuccessful.Belowsummariseswhatdidn’tworkinparticular,andwhy.

› Complexmessagingorprovidingtoomanyoptions–leadingtocustomersnotunderstandingtheofferandthebenefitstothemresultinginlowacquisitionrates.

Too many options are daunting for customers who preferred simple brochures and products

ANU’sConsortTrialfoundthatprovidingasuiteofchoicesoftechnologytypesandbillingoptionswasdauntingforcustomers.Othertrialsalsofoundthatsimplebrochuresthatfocusedonthebenefitsweremosteffective,and“simpleproducts”werepreferredbycustomers.

› Slowand/orcumbersomeacquisitionprocesses(e.g.delaysduetonetworkconnectionapprovals,orwheretherewasarelianceonpostaldeliveryinareaswherethiscouldbesloworinfrequentlychecked)–leadingtoalowerrateofcustomeracquisition.

› Anirregularorimpersonalpointofcontact–thesebarrierstoeffectivecommunicationledtolowerlevelsoftrust,thespreadofmisunderstandingsormisinformation,andlowerratesofcustomeracquisition.

3 https://arena.gov.au/assets/2019/03/dex-consumer-insights-report.pdf

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11DER Customer Insights: The Customer Journey

3.2.4ASSESSINGCUSTOMERSUITABILITY

Duringtheacquisitionandengagementprocess,itiscriticaltoidentifyasquicklyaspossiblethesuitabilityofaprospectiveDERcustomerforinstallation(i.e.thenextstageinthecustomerjourney).Forexample,havingenoughroofspaceforsolarPVorhavingasuitablelocationtohouseabattery.

Severalprojectsconductedthorougheligibilitychecksandpre-inspectionsbeforeattemptinginstallationtospeedupcustomerrecruitmentwhileminimisingcustomeracquisitioncosts.Asharedsentimentacrossallprojectswasthatinstallationwasoftenmorecomplex,timeconsuming,andcostlythanexpected.

Ifthecustomerisdeemedsuitable,andthetransactionproceeds,the‘potentialcustomer’becomesan‘actualcustomer’andtheirjourneyadvancesintotheInstallationphase.

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12DER Customer Insights: The Customer Journey

4.0INSTALLATION

TheinstallationofanyDERproductisakeymomentwithlastingimpactsonthecustomerandtheirviewofthetechnologyandtheprovider.Thisphaseinvolvesallthestepsdirectlyrelatedtotheinstallation,includinganypre-installationsitevisits.

Iftheinstallationisnotplannedwell,itcanbeasourceoffrustrationforbothinstallersandcustomerswithmultiplecommunicationsandrepeatvisitsneeded.

Thisstepinvolvesdirectcontactwiththecustomer,withwhomtheinstallermayormaynothavebeenincontactbefore(dependingoniftheywereinvolvedintheengagementoracquisitionprocess).Anumberofprojectsemphasisedstronglytheneedtoenlistwell-trained,knowledgeableinstallerswhodeeplyunderstandcustomers,theirrequirements,andtheproduct.

4.1.1INSTALLATION:WHATWORKED,ANDWHY?

Belowlistswhatworkedwhenitcametotheinstallationphase,andthereasonsconsideredbeingbehindthis.

› Including installers in the project design phase–earlyinvolvementhelpedgetinstallers’buy-intotheprojectanditsoverarchingobjectives.Itislikelytoalsohavehadapositiveimpactonimprovedcostestimation,planning,andmanagementofcertainrisks.

› Investing resources in the installation process(e.g.pre-installsiteinspections,technicalsupportforinstallers,knowledgetransfer)–thishelpedensurehigherqualityinstallationswithfewerreturnvisitstoremedyissues.

› Comprehensivetrainingofinstallersincludingupskillingandembracingtheircapacitytobe‘knowledgebrokers’–customerslooktotheirinstallersforadviceandarewillingtoplacetheirtrustinthem.Therefore,theyhaveamajorinfluenceontheoverallcustomerexperience.

› Quick, effective installation with a single site visit–thisminimisescostandtimefortheinstaller/provider,whileleadingtoamorepositiveexperienceforthecustomer.

Figure6:TypicalcustomerinstallationsfromUnitedEnergy’sresidentialsolarandstorageprogram.

UnitedEnergyreviewedanumberoftechnologyprovidersfortheirtrialbeforeselectingapreferredinstallertoundertakethework.

Source:UnitedEnergy

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13DER Customer Insights: The Customer Journey

› Providing an early indication to customers if they are likely to need non-standard installations(longer,morecostly,moreintrusive)–managingtheexpectationsofcustomerswillavoidthechanceofanegativecustomerexperience.

› Providing firm pricing options with no hidden costs–addingtoamorepositivecustomerexperiencewhenthecostsaretransparent.

› Planning for internet connectivity issues(e.g.installerswereabletoconfirm3/4Gcoverageatacustomer’shomepriortovisitingthehomefortheinstallation.Thiswasthecasewiththe“RepositBox”thatwasdeployedacrossmanysitesinanumberoftheprojects)–thiswouldavoidpotentialfrustration,additionalcosts,anddelaysforthecustomerandinstaller.

Internet connectivity could pose a challenge but could be mitigated with forward planning

Someprojectswereawarealreadyofthechallengestosetupdevicesandmaintaininternetconnectivityonhomenetworks.Gatheringinternetproviderandconnectiondetailspriortoasitevisithelpedidentifyandaddressissuesinadvanceoftheinstallervisit.

Customers(ortheirfamilymembers/co-inhabitants)withthelowestleveloftechnicalexpertiseshouldbeexpectedandbeabletobecateredfor.DERtechnologiesshouldideallybeabletocopewithfrequentinterruptionsininternetconnectivity.

› Survey customer emotions before and after installation–thiscangiveanindicationofanydeeperissuesorproblemsthathaveemergedinthecustomerjourneyuptoandincludingthecrucialinstallationphase.

› Timely, effective response to any issues–leadingtoamorepositivecustomerexperience.

4.1.2INSTALLATION:WHATDIDN’TWORK,ANDWHY?

› Underestimating the time, complexity and cost in planning the installation of a new technology–inparticulartheelectricalinfrastructureandphysicallayoutofhomescanvarywidely.Thiscanmeanadditionalwork,fromlayingconcreteplinthsandupgradingswitchboards,tofixingcrackedrooftilesandtrimmingsurroundingvegetationtoreduceshading.

Many homes needed some form of upgrade to the infrastructure to accommodate a residential battery

ForAGL’sSouthAustralianVPPproject,78%ofsitesneededavariationduetocertaincharacteristicsofthehome.Thiswasduetotherequirementsofinstallingthebatterystoragesystem.Thishadimplicationsfortheamountofwork,cost,andcomplexityoftheinstallation.

› A drawn-out, “diffuse” processthatwasslowwithmultiplevisitsrequiredcanleadtonegativesentiments,suchasfrustration,anxietyandanger.Repeatvisitstofixtechnicalissueswereacommonissue.

› Cashflow for installers was an issue that delayed installs significantly.Thisisparticularlytruewhenmostinstallsneededsomerectificationandinstallerswereonlypaidwhentheseissueswererectified

› Pre-suitability checksareingeneralausefultoolfortheinstallationphasebutissuescanstillarise-theycanimproveprocessefficiency,minimisecosts,andaddressanysafetyissuesinadvance.However,evenwhentheyareemployed,unexpectedissuescanstillleadtolowerthanexpectedcustomeracquisitionrates.

Pre-suitability checks can be a useful tool but unforeseen issues can still arise

Synergy’sAlkimosBeachprojectfoundalargenumberoftheirtargetcustomersweren’teligibleastheyhadreversibleairconditioningunitsthatdidn’tmeetwiththerequiredstandardfordemandresponsecontrol.

› Over-stretched supply chains or those covering large areascanbeslowertorespond.Addressingcustomerissuesquicklycanbeamajorchallengewhereinstallerscoveralargearea,forexampleinregionalareaswithlowerpopulationdensities.

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14DER Customer Insights: The Customer Journey

Stringent management of supply chains critical to a positive customer experience

In2015,ErgonEnergytestedahybridenergysystemwith33customersinToowoomba,Cannonvale,andTownsville.Thenetworkfoundthat“stringentmanagementofsupplychainswascritical”toapositiveconsumerexperienceaswellasacost-effectiveservice.

› Variable installer quality,includingvaryinglevelsofservice,ability,knowledgeandtechnicalcompetence–leadingtoapoorexperienceforsomecustomers.

› Poor aestheticsofinstalledequipment–notfittingwithanexistinghome’slookandfeelaffectedthesatisfactionlevelsofcustomers.

Aesthetics as a barrier to DER uptake

CSIRO’sstudy,‘Householderinterestandactiveparticipationinthesolardistributedenergymarket’,foundthataestheticswereabarriertoDERuptake,particularlyaroundthesizeofbatteriesandwheretheywouldneedtobelocated.Newindustrystandardsrequirethatbatteriesbemountedona“non-combustiblesurface”(oftenacementblock)andextracementsheetingmaybeneededtolinethewallwherethereisa“habitableroom”ontheotherside.

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15DER Customer Insights: The Customer Journey

Thisstepinvolvesallactivitiesrelatedtothescheduledandunscheduledoperationandmaintenance(O&M)oftheDERequipmentoveritslifetime.Thiscanincludeinteractionwithboththehardwareandfirmware.

MostcustomersinvolvedinARENA-fundedDERprojectsreceivedatleastoneadditionalhomevisitafterinstallationandthisisakeystageofthecustomerjourney.However,therewasnotthesamewealthofinsightsthatwerefoundinthepreviousstages.Onereasonmayhavebeenbecausetheprojectswerefocusedonreportingoutcomesoncustomerrecruitment/acquisition,installationandearlyoperation.AnothermayhavebeenbecausepositiveexperiencesofO&Minthefirst1-2yearsarelesslikelytobeasreportedcomparedtonegativeones(thereisabase-levelexpectationthattheproductwillwork).

Mostprojectsacknowledgedtheimportanceofprovidingtimelyandeffectivesupporttocustomers.Keepingcommunicationchannelsopenisawaytoensureintegrityoftheinstalledtechnologyandbuildtrust.Aswithinstallation,customerscaredabouthavingaccesstowell-trainedandknowledgeablepersonnel.

5.1.1OPERATION&MAINTENANCE:WHATWORKED,ANDWHY?

Belowprovidesasummaryofwhatwasfoundtohaveworkedwithregardstotheoperationalandmaintenancestageofthecustomerjourney,aswellasthereasonswhy.

› Effective, fast follow ups to customer issues–thiswascoretoachievingahigherlevelofcustomersatisfaction.

› Providing detailed and accessible technical documentation to the customer-allowingthemtoeithertroubleshootissuestosolvecommonproblems,orunderstandwhenexternalsupportwasneeded.

› Comprehensive technical and customer engagement trainingforinstallersandsupportservicepersonneltoreduceissuesforthecustomerfurtherdowntheline.

› Keeping online resources (e.g. product manuals, user guides) current and up to datetoresolvecommonissuesmoreeasilyandquickly.

› Providing clear, end-to-end processesfortheentireprojecttoallprojectpartners,stakeholdersandsubcontractorsinthesupplychaintoensureasmoothprocessforthecustomer.

Half of post-installation issues avoided for one project by investing in the installation process

Ergon’sResidentialSolarPV+Battery(HybridEnergyService)Pilotfoundthat50%ofpost-installationissuescouldbeavoidedwithacombinationofbetterdocumentation,training,andthroughtheestablishmentofend-to-endprocessesthatwereeasyforcontractorstofollow.

5.0OPERATIONANDMAINTENANCE

Figure7:TheLO3mobileappforDERcustomers.

TheappprovidedcustomersinLO3’strialwithanoverviewoftheelectricitybeinggeneratedbytheirDER,aswellaschoosingwhatdevicestoenactfordemandresponse.

Source:LO3

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16DER Customer Insights: The Customer Journey

5.1.2OPERATION&MAINTENANCE:WHATDIDN’TWORK,ANDWHY?

Belowprovidesasummaryofwhatwasfoundtohavenotworkedwithregardstotheoperationalandmaintenancestageofthecustomerjourney,aswellasthereasonswhy.

› Gaps in processes and a lack of documentationthatincludedadescriptionoftherolesandresponsibilitiesofeachactorinthesupplychain–thiscouldleadtoconfusionandincreaseinpost-installationissues.

› Lack of training for key customer-facing rolesincludinginstallers(whomayneedtoreturntothepremisestoremedyissues)andsupportservicepersonnel(whowillhavetodealwithcustomercallstofieldqueriesandcomplaints)–thiswouldleadtoapoorercustomerserviceandexperience.

› Issues with DER functionality,particularlyforinverterconnectivitythatwasdisrupted(e.g.bynetworkvoltageissues).Theseinterruptionswouldthenimpactonthecustomereconomicsandtheirperceptionofthetrialandtechnology.

Some operational issues were linked to wider energy system challenges

AGL’sVirtualPowerPlanttrialfoundthataroundaneighthoftheenergystoragesystemsinitsprojectexperiencedhighvoltagesthatwouldleadtodisconnectionfromthegrid.ThismeantthattheywouldbecomeunavailableassetswithintheAGLfleetattimesofhighgridvoltage.

Thesehighvoltagescanbeexacerbatedbylowelectricitydemandandhighsolargeneration(e.g.duringthemiddleoftheday),andisachallengeforAustralia’snetworkbusinessestoremedy.AnotherofARENA’sprojects(theUTS-ledNetworksRenewed)wasfundedtolookatwhetherofferingnetworksupportservicesthroughacustomer’sconnectedDERcouldaddressvoltageissues.Thetrialprovedthatbothsolarandbatteriescansupportnetworkvoltageinthisway.

› Issues or discomfort with third-party ownership or control of the DER–ForsomecustomersintheDERtrials,greatercontrolandindependenceovertheirenergywereimportantmotivators,sometimesevenmoreimportantthanthefinancialbenefitsonoffer.

A majority of customers in some trials valued control over any additional financial benefits

Oneprojectsaidonly16%oftheircustomerswerecomfortablewiththis,althoughitwasfeltthatthiswasaddressableifframedinadifferentway.

Anothersaidthatitexpectedthatifconsumerswereremuneratedwell-enough,thentherewouldbegreatereaseovertheirbatterysystemsbeingcontrolled.Instead,itwasfoundcustomersputamuchhigherpremiumonback-uppowerthanwasassumedandwerewillingtoforegotheadditionalfinancialbenefitstomaintaincontrol.

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17DER Customer Insights: The Customer Journey

Thisstepinvolvesthepost-installationphasethatensurescustomerscontinuetobesatisfiedwiththeirproductandservice,leadingtoon-goingengagementandthecustomerbecominganimportantadvocateofDER.

Thisincludesanypotentialinteractionsbetweenthecustomerandtheirsystem.Forexample,controllingtheirdevice,visitinganonlineportal/smartphoneapptoreviewenergyusageandanysavingsmade,proactivelycontactingthesupplier/operator/installeroftheirDERsystem(andhavingqueriesorcomplaintsansweredquicklyandeffectively),orpassivelyreceivingalerts(viaemail,text,oramobilephoneapp).

Theimplementationofongoingcommunicationplansaspartofaretentionstrategycancontributetomaintainingagenerallypositivesentimenttowardsthetechnologiesandtheproviders.

ThetwentyARENA-fundedDERprojectsweremainlydemonstrationsthatsoughttoshowhowtheeffectiveuseofdistributedenergyresourcescanhelpAustraliatransitiontoasecureandreliablegridwithahighshareofrenewables.Theseweretypicallyinnovativeapplicationsoftechnologiesand/orbusinessmodelsthattookplaceoveradefinedperiodoftime.Aswouldbeexpected,theprojectreportsthatweregeneratedcontainedlesscustomerinsightsontheretentionphase.Someindividualfindingsarereportedbelow.

ACUSTOMERPERSPECTIVEONARENADERTRIALPARTICIPATION

DERSharonfromOsbornesFlatinYackandandahsharesherperspectiveonwhyitwasgreattobeinvolvedinanARENA-fundedDERtrial.

YackandandahisasmallformergoldminingtowninNorthEastVictoria.In2014,itsetitselfatargetof100%renewablesforthetownby2022.TotallyRenewableYackandandahisthelocalcommunitygrouprunbyvolunteersthathasestablishedaroadmapforachievingthistarget.Forthisreason,itisanidealcommunitytotargetforDERprojects.

AswellasthelocationforoneoftheARENA-fundedNetworksRenewedtrials,italsohasseveralmicrogridsfundedbyvariousagenciesincludingtheVictorianGovernmentthatseekstohelpittowardsits2022target.

Source:UTS

6.0RETENTION

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18DER Customer Insights: The Customer Journey

6.1.1RETENTION:WHATWORKED,ANDWHY?

Theretentionphaseisthefinalstageinthecustomerjourney.Belowprovidesasummaryofwhatinparticularworkedandthereasonswhy.

› Ongoing certainty was preferred,evenifgreatersavingswereonoffer–forsomecustomersintheDERtrials,greatercontrolandindependenceovertheirenergyweremoreimportantmotivators.

Lower capped earnings were preferred to higher variable ones

Oneprojectfoundthata$2adayofferwithacappedpriceprovedmorepopularevenifitwasshownthattheycouldbebetteroffonavariablerate.

› Ongoing and planned engagementfortheyearsbeyondinstallationthattheprojectislikelytolast(e.g.communityforumsandevents,onlineforumsand/orsocialmedia‘communities’)–directedatcustomerretentionandbuildingadvocacy.

› Influencing changes in consumer behaviour–fromparticipatinginthetrials,customersdecidedonmovingtoatime-of-usetariff.Thisshowedcustomerswereabletoadapttheirbehaviorasrequired.

› Offering ongoing support–helpingcustomersoptimisetheirDERovertime,notingthatsomecustomerswishto“setandforget”,whileotherspreferregularnotifications.Thisongoingsupportwasabletoimprovethechancesofretainingthosecustomersforwhomthiswasanimportantrequirement.

Customer knowledge and understanding will help inform engagement for retention

Possessingagoodunderstandingofthecustomersisalsoimportantforunderstandinghowdifferenttypesofcustomersprefertoengageandbeengagedwith.ThismayrequirethedevelopmentofdifferentmodelsforcustomersdependingonhowtheyprefertoengagewiththeirDERasset.

Forexample,regularnotificationswouldassistthe‘optimisers’getmostvalueoutoftheirDERassetsbutswitchingoffofthenotificationswouldbethepreferenceofthe‘set-and-forget’typecustomers.

6.1.2RETENTION:WHATDIDN’TWORK,ANDWHY?

Belowprovidesasummaryofwhatwasfoundtobelesssuccessfulwiththeretentionphaseofthecustomerjourneyandthereasonswhy.

› Complex pricing structures or value propositions that change over time–leadingtoconfusionanddisengagement

› Designing optimisation algorithms without customer participation–leadstosystemsthatlacktheabilitytoadapttotheoperationalschedulesanddemandsofthedifferenttypesofcustomers.

A need for greater consumer input into the design and refinement of algorithms for DER control

Anumberoftrialsfoundtheneedforgreaterconsumerinputindesigningandimprovingthealgorithmsthatcanreturnpositiveoutcomesforbothsupplierandcustomer.Thereisaroleformachinelearningandartificialintelligenceifitcandeliverbetterongoingoutcomesforcustomers.

› Not planning for legacy–itisunclearhowcustomerswillbesupportedattheconclusionofeachtrial,whichmayaffectthelong-termtrustandinterestinfutureDERprojects.

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19DER Customer Insights: The Customer Journey

7.0CONCLUSION

Thecustomerjourneycanfacilitatebetterunderstandingandleadtocontinualimprovementfortheorganisationsinvolvedintheprojects.ItcanalsoleadtobettercustomeroutcomesandhelpmaximisethebenefitsofDERtothemandtotheenergysystem.

AwealthofcustomerinsightsarecontainedwithinthereportsthataregeneratedbytheARENA-fundedDERprojects.Thishasbeencondensedintosevenbroadkeyfindings,aswellassixkeyingredientsforahappyDERcustomer.ThiscanservetohelpinformfutureARENA-fundedDERprojects,aswellasbeusedbyotherorganisationswithinterestsinDERrelatedproductsorservices.

7.1THESIXKEYINGREDIENTSTOAHAPPYDERCUSTOMER

CharacterisingandcriticallyassessingthejourneyDERcustomersgothroughwillfacilitatebetterunderstandingfortheorganisationsinvolvedintheseprojects,encouragingcontinualimprovementaswellasleadtoabetteroutcomeforcustomers.UltimatelythiswillhelpacceleratetherateatwhichDERisdeployedandmaximisethepotentialbenefitstocustomersandtheenergysystem.

Thesixkeyingredientswereformedbasedonthecustomerinsightsanalysedfromthealmostone-hundredreportsgeneratedbytwentyARENA-fundedDERprojects.Thesearesummarisedbelow:

Earned trust

'Super installers'

Smooth customer experience

Customer knowledge& understanding

Clear value proposition

Market-ready products

Figure6:KeyingredientstoahappyDERcustomer.

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20DER Customer Insights: The Customer Journey

CUSTOMERKNOWLEDGE&UNDERSTANDINGKnowwhoyourcustomersareandthevaluesthatdrivethem-throughcustomersegmentation,customerresearch,andcustomerfeedback.Tailorcustomerpropositionandengagementaccordingly.

CLEARVALUEPROPOSITIONThecustomervaluepropositionandthebenefitsareclearlyarticulatedforthecustomer.Communicatethecostandbenefitinsimpleandtransparentwaythatappealstotheindividualcustomerandtheirvalues.Costisacrosscuttingmotivatorsoensurethefinancialaspectsarealignedwiththecustomer’svalues.

MARKET-READYPRODUCTSTheproductworksandisreadyforbeingdeployedwithcustomers.Thismeansacertainlevelofcommercialmaturityhasbeenreached.Thesupplychainknowshowtoinstallandhowtoovercomecommoninstallationandoperationissuesquicklyandeffectively.

SMOOTHCUSTOMEREXPERIENCEProvideasmoothexperiencealongtheentirecustomerjourney,withakeyandknowledgeablepointofcontactforwhensupportisneeded.Thismeansminimizingtouchpointsaspartoftheacquisitionprocessaswellasmakingtheinstallationasshortandnon-intrusiveaspossible.

‘SUPERINSTALLERS’Installationisacriticalmoment–enlistwell-trained,knowledgeableinstallerswhounderstandcustomersandtheproductsbeinginstalled.Involvethemintheoverallprojectdesignprocessasearlyaspossible,trainthemwell,andprovidesufficientresourcesfortheinstallationphase.

EARNEDTRUSTTrustiscriticalinpublicacceptanceandadvocacy.Thismaybeearnedalongtheentirecustomerjourneythroughregularandappropriatecommunicationandengagementwithcustomersandotherstakeholders(suchascommunitygroupsorlocalgovernment)Seektoworkwithpartnerswhoarealsotrusted.

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21DER Customer Insights: The Customer Journey

8.1APPENDIXA:SUMMARYOFKEYLESSONS

What worked The Customer Journey

What didn’t work

› Undertakingdetailedcustomerresearchandsegmentation.

› Carefullyplanned,regularcommunicationandengagement.

› Communicatingyouroffer,options,andpricingsimply.

› Providingcustomerswithasingle,accessible,pointofcontact.

› Respondingandaddressingfrequentlyaskedquestionsquicklyandeffectively.

› Maintainingonlineresourcesthatarerelevant,accessible,andup-to-date.

› Creatingexcitementoftheofferwiththetargetcustomergroup/community.

› Workingwithtrustedpartners/localchampions.

› Establishedandsmoothprocessforacquiringcustomers

Engagement & Acquisition

Thisstageinvolvesallstepsinthelead

uptoproduct’sinstallation,includingall

awarenessraisinguptothepointofthefinancial

transactionandsigningof

contracts.

› Complexmessaging.

› Providingtoomanyoptions.

› Slowand/orcumbersomeacquisitionprocesses.

› Anirregularorimpersonalpointofcontact.

› Includinginstallersinthedesignphaseofthemainproject.

› Investingsuitableresourcesintheinstallationprocess.

› Providingcomprehensivetrainingandupskillingofinstallers.

› Quick,effective,non-intrusiveinstallationwithasinglesitevisit.

› Considerationofhomeaesthetics.

› Transparencyoverfinalinstallationrequirementsandcost.

› Planaheadforcommonpitfalls,suchasinternetconnectivityissueswhererequired.

› Respondingandaddressinganyinstallationissuesquicklyandeffectively.

› Customerresearchbeforeandafterinstallationtoidentifyanyconcernsearly.

Installation

Thisstageinvolvesallthesteps

directlyrelatedtotheinstallation,

includinganypre-installationsite

visit.

› Underestimatingthetime,complexityandcost.

› Aslow,drawn-outand“diffuse”processrequiringmultiplesitevisits.

› Over-stretchedsupplychainsthatcanbeslowtorespond.

› Variableinstallerquality,someofferinglowerlevelsofservice,ability,knowledgeandtechnicalcompetence.

› Pooraestheticsofinstalledequipmentthatdoesn’tfitwithanexistinghome’slookandfeel.

8.0APPENDICES

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22DER Customer Insights: The Customer Journey

What worked The Customer Journey

What didn’t work

› Respondingandaddressinganyoperationalissuesquicklyandeffectively.

› ProvidingaccessibletechnicalinformationandupdatedFAQstoallowcustomertroubleshooting.

› Comprehensivetechnicalandcustomerengagementtrainingforinstallersandsupportservicepersonnel.

› Providingallprojectpartners,stakeholdersandsubcontractorsinthesupplychainwithclear,endtoendprocesses.

Operation and Maintenance

Thisstagecoversallongoing

activitiesrelatedtotheoperation

oftheDERsystem(firmware

andhardware),includinganyscheduledorunscheduledmaintenance.

› Poorlymanagedprocesses,andundefinedsupplychainpartnerrolesandresponsibilities.

› Lackoftrainingforcustomer-facingroles.

› IntermittentissueswithDERfunctionalityandcontinuityofoperation.

› Issuesanddiscomfortwiththird-partyownership/controloftheDER.

› Certaintyoffinancialcostsandreturnspreferredtovariablerates,evenifthosevariableratesoffergreaterbenefit.

› Ongoingandplannedengagementdirectedatcustomerretentionandadvocacy

› Changingconsumerbehaviour,suchasthroughtime-of-usetariffs.

› Tailoredengagementdependingoncustomerpreferences,suchasthroughdifferentdegreesofcontrolofferedforoptimisingtheirDER.

Retention

Thisstagecoversthepost-installationphasethatensurescustomerscontinuetobesatisfiedwiththeirproductand

service.

› Complexpricingstructuresorvaluepropositionsthatchangeovertime.

› Designingoptimisationalgorithmswithoutcustomerparticipationoracknowledgingdifferentthetypesofcustomers.

› Notplanningforlegacyandhowcustomerswillbesupportedattheconclusionofeachtrial.

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23DER Customer Insights: The Customer Journey

8.2APPENDIXB:THECOHORTOFARENA-FUNDEDDERPROJECTSAND THEIRCUSTOMERS

PROJECT DESCRIPTION

SolarandStorageTrialatAlkimosBeach

LendleaseCommunities,Synergy,DevelopmentWA

2014 TheSolarandStorageTrialatAlkimosBeachResidentialDevelopmentprojectinvolvesdeveloping,deployingandtestingthecommercialfeasibilityofanewenergyretailmodel.Itwillcombinecommunityscalebatterystorage,highpenetrationrooftopsolarPVandenergymanagementwithinanewresidentialdevelopmentatAlkimosBeach,WesternAustralia.

LatrobeValleyMicrogridFeasibilityStudy

LO3 Energy 2018 TheLatrobeValleyMicrogridFeasibilityStudywillassesstheviabilityofcreatingalocalenergymarketplacefordairyfarms,residentialparticipantsandcommercial/industrialcustomersintheLatrobeValley.Participantswillsellexcessenergygeneration,demandresponsecapabilitiesandnetworksupportservicestoimproveintegrationofDistributedEnergyResources,suchasrooftopsolar.TheProjectwillincorporatePV,storage,demandresponseandLO3Energy’sExergyplatformtodeliveranoptimaldistributedenergymodelintheregion.

IndraMonashSmartCity

Indra Australia Pty Ltd

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

IntelligentStorageforAustralia’sGrid

Reposit Power Pty Ltd

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

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).

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24DER Customer Insights: The Customer Journey

PROJECT DESCRIPTION

DistributedEnergyMarket

Australian Photovoltaic Insitutute (APVI)

2012 TheDistributedEnergyMarketprojectassessedarangeofwaysinwhichcustomersandelectricityutilitiesmightparticipateinadistributedenergymarket.

HigherRenewablePenetrationinNewLand&HousingDevelopments

Brookfield Energy Australia Pty Ltd

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

Curtin University,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)

AGL Energy Limited

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

PeakDemandReductionusingSolarandStorage

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

TriallingaNewResidentialSolarPVandBatteryModel

Ergon Energy,Sunverge,SunPower

2015 TheTriallingaNewResidentialSolarPVandBatteryModelprojectinvolvesQueenslandenergyproviderErgonRetailundertakingapilotdemonstrationtotestacommercialandoperationalmodelforprovidinggrid-connectedsolarphotovoltaic(PV)andbatterystoragesystemstoresidentialcustomers.

Thedemonstrationwillinvolveinstallingandtesting33systemsinCannonvale,ToowoombaandTownsville.

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25DER Customer Insights: The Customer Journey

PROJECT DESCRIPTION

CarnarvonDistributedEnergyResources(DER)trials

Horizon Power 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

Simply Energy,GreenSync,SAPN,AEMO,Tesla,Flextronics

2018 TheSimplyEnergyVirtualPowerPlant(VPP)projectwilldeliverupto1200TeslaPowerwall2batteriestoAdelaidehouseholds.Thisrepresents6MWofresidentialenergystorage,whileafurther2MWofdemandresponsecapacitywillbedeployedacross10commercialbusinesses.

SolarAnalytics:MonitoringforBetterEnergyOutcomes

Solar Analytics Pty Ltd,APVI

2016 TheprojectaimstoacceleratedeploymentofanAustralian-developedtechnologydesignedtomonitortheperformanceofresidentialsolarPVsystemsandprovidelowcostanalyticsandfaultdiagnostics.Thetechnologycomparesenergygenerationagainstperformanceexpectations,reportingsystemdatabacktotheresidentialuser,whilealsoidentifyingfaultsandprovidingcorrectiveactions.

DecentralisedEnergyExchange(deX)

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

2017 DecentralisedEnergyExchange(deX)isaprototypeonlinemarketplacethatwillprovideawayforhouseholdsandbusinesseswithrooftopsolarandbatterystoragesystemstobepaidforallowingelectricitynetworkbusinessestoaccesstheirrooftopsolarandstoredelectricitytostrengthenthegrid.

Buildingtheworld’sfirstconsumerownedsolarretailandservicescompany

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

› Adisruptiveelectricityretailsolutionfocusedonsolarprosumers

› Customerengagementthroughownership

› Enhancedsavingsbydivorcingprofitsfromconsumption

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Furtherinformationisavailableatarena.gov.au

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Postal Address GPOBox643CanberraACT2601

Location 2PhillipLawStreetNewActonACT2601

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