driving scale and adoption in the small business sector · reduce costs they flow profits back ......

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We make energy efficiency easy.

Driving Scale and Adoption in the Small Business Sector

Steven MeyersEnerPath

Colorado Utility Efficiency ExchangeAspen, CO

13 October, 2010

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We know

efficien

cy is th

e lowest‐cost re

source.

Energy

Efficiency

• “$130 billion in annual savings from unrealized energy efficiency

opportunities”

McKinsey 2009• The lowest‐cost opportunities exist in homes and small businesses (emphasized in darker shading).• Sample technologies include LED lighting, commercial lighting efficiency, and insulation.• But this only tells the “what”

and not the “how”!

3

Market characteristicsThe mass market segments (homes and small businesses) do not yet

have well‐defined

delivery solution for energy efficiency. Any solution will need

a highly scalable model.

Source: EIA 2007 data and CBECs building data.


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• Large portion of energy usage (>50%)

• High impact and visibility within

communities

• Market can be penetrated quickly

• When small businesses and homes

reduce costs they flow profits back

into local communities

• An untapped energy reserve

• Existing labor force can be easily

trained to address these customers

• BUT, we can’t think like engineers…

Homes35%

Small Businesses

17%

Large Businesses

16%

Industry32%

US Electricity Usage(2007 $344 billion)

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Two approaches for driving adoption

EnerPath Programs

Best Practice Programs Make Energy Efficiency Easy

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Find ReliableContractors

Install New

Technologies

Evaluate Costs

and Benefits

Pay for Efficient

Technologies

Verify Energy Savings

Figure Out What to Do

Common barriers are well known1.

Lack of information

2.

Complicated process3.

Mis‐aligned stakeholders

4.

Lack of financing5.

High transaction costs

6EnerPath © Confidential

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High‐touch, multi‐tiered engagment

EnerPath © Confidential www.EnerPath.com 7Optim

izing

a Com

plex Sup

ply Ch

ain Drives Ado

ption

LADWP Small Business Lighting Program

8

• Total program budget: ~$50M• Utility paid: ~$940 per customer• Employment created employment: over 250

local contractors and auditor personnel (15%

Women and Minority‐Owned business)

• Managers tracked progress & results by zip

code

• 26,000 small businesses upgraded in 24 months• Results per site (total program):– Peak reduction ~1kW

(27MW)– Annual savings 3,326 kWh (92M kWh/year equivalent

~11,000 homes)

• Levelized costs: ~4¢

/ kWh saved• High customer satisfaction: (>99%)• High participation rates: (as high as 90%)• Positive spillover• Technology‐enabled delivery with real‐time

program tracking

Real‐time program tracking

c

• Real‐time

Web‐based

tools

show

results

(e.g.

percent

of

participating

businesses)

by

zip

code. This

allows

program

managers

to

track

real‐

time

progress,

ensures

a

more

fair

distribution

of

program

resources,

and creates competition among neighborhoods.

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• Set to Save goal: Save 30% citywide in 5 years by 2012.

($40M/year)– 215 M kWh/yr.– 50 MW peak demand– 6 M Therms NG

• Efficient technologies include gas, water, and electricity ECMs

(e.g. lighting, AC‐tune‐ups, pool pumps, shower heads,

gaskets, night‐lights, exit signs, etc…)

• Partnerships with schools, senior centers, Chamber of

Commerce, HOA’s

• Funded through utility funds, loans, and customer payments

• Just last year…– 6,100 homes annually save ~2,000 kWh per customer– 958 small business annually save ~5,000 kWh each

Palm

Desert

pledged

to

reduce energy consumption

by

30

percent

by

2012.

Energy Partners

10

0

1,000

2,000

3,000

4,000

5,000

6,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2008

‐20

2008

‐22

2008

‐24

2008

‐26

2008

‐28

2008

‐30

2008

‐32

2008

‐34

2008

‐36

2008

‐38

2008

‐40

2008

‐42

2008

‐44

2008

‐46

2008

‐48

2008

‐50

2008

‐52

2009

‐01

2009

‐03

2009

‐05

2009

‐07

2009

‐09

2009

‐11

2009

‐13

2009

‐15

2009

‐17

2009

‐19

Total H

omes Participating in Parogramm (C

umulative)

Weekly Energy Efficiency In

vestments ($

)

Delivering a $14M Residential Efficiency Program

Customer Funds ($1M)

Customer Loans ($7M)

Program Funds ($6M)

5,532 Homes

Weekly Program Performance (Trailing 52 weeks)

Leverage and Scale


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Wed. Oct. 13, 2010Total: 35kWh: 238,368Costs: $70,057Levelized: $0.29/kWhConversion: 52%

Real‐tim

e dashbo

ards optim

ize perform

ance. Small Business Audits (Daily)


Real‐tim

e dashbo

ards optim

ize perform

ance. Small Business Audits (Cumulative) Wed. Oct. 13, 2010

Total: 3,160kWh: 18.98 millionCosts: $5.84 millionRec. Cost: $0.31/kWhConversion: 34%

Conclusions

• Small business are an important untapped market• High‐touch engagement with simple, tiered offering

• Offer something simple at no cost• Give customers a positive experience with energy efficiency• Give them a path

to buy more efficiency

• This must be a technology‐enabled process• Experiment and adapt• Manage all the little details• Drive supply‐chain efficiency• Drive high‐customer satisfaction

• Capture a peak, pollution‐free, profitable, popular energy resources while strengthening our communities


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Steven MeyersVice President of [email protected]

CONCLUSION

Mass markets represent a critical market segment under‐served by

traditional efficiency programs.

Incredible results are possible when we think holistically (1+1 = 10)

and include the four key Best Practice Elements.

Reduce barriers to link motivated customer with green

technologies and various funding sources in a hassle‐free manner

Now represents a unique opportunity to build the skills and

infrastructure required to deliver scalable, transparent, evolving,

and cost‐effective programs to this market segment.


“The most environmentally sound, inexpensive and reliable power plant is the one we don't have to build...''

Jim Rogers, Duke Energy CEO

Energy Efficiency must be easy for customers.1.Broad range of desirable efficient equipment that customers like2.Easy methods of paying for efficiency3.Delivered through an adaptive and scalable technology‐enabled

platform

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Driving Scale and Adoption

NYSE Market Trades

1818

2

1

3

56

4

7

8

9 11

10

15

14

12

13

1.

Efficient interior lighting2.

Furnace and AC tune‐ups3.

Efficient faucets4.

LED nightlights5.

Occupancy sensors6.

Programmable thermostat7.

Water heaters8.

EnergyStar Appliances9.

Exterior pumping10.

Attic insulation11.

Window caulking12.

Wall insulation13.

Glazing upgrades14.

Chimney leaks15.

AC replacements16.

Solar PV system

Equipment: Tiered Energy Solutions


Set goals

Training

Educate Customers

Manage Installation

Performance Tracking

Transparent Reporting

Customer Service

Customer Satisfaction

DRIVE ADOPTION!

Site Assessment &

Customer Enrollment

Procure Materials

Quality Control

Financial Settlement

1.

Direct payments from utilities2.

Net Settlements with

customer and multiple

utilities3.

Utility rebates and rebate

assignments4.

Direct customer co‐payments

(CC, Check, ACH)5.

PACE Financing6.

PayPal7.

3rd‐Party Financing8.

Micro‐lending organizations9.

Receivable‐Financing

All Auditable, Compliant,

Transparent!www.EnerPath.com 20

Flexible and Diverse Payment Methods

Sample Settlement Diagram for Large Scale EE Program

• Total program budget: ~$50M• Utility paid: ~$940 per customer• Employment created employment: over 250

local contractors and auditor personnel (15%

Women and Minority‐Owned business)

• Managers tracked progress & results by zip

code

• 26,000 small businesses upgraded in 24 months• Results per site (total program):– Peak reduction ~1kW

(27MW)– Annual savings 3,326 kWh (92M kWh/year equivalent

~11,000 homes)

• Levelized costs: ~4¢

/ kWh saved• High customer satisfaction: (>99%)• High participation rates: (as high as 90%)• Positive spillover• Technology‐enabled delivery with real‐time

program tracking

Real‐time program tracking

c

• Real‐time

Web‐based

tools

show

results

(e.g.

percent

of

participating

businesses)

by

zip

code. This

allows

program

managers

to

track

real‐

time

progress,

ensures

a

more

fair

distribution

of

program

resources,

and creates competition among neighborhoods.

22enerpath.com

LADWP Small Business Lighting Program

What’s different with best‐practice programs?

Build a coalition

with cities, states, utilities, contractors,

and community organizations to help market program and

align all incentives.

Streamline implementation via web‐based mobile‐

computing platform . Improves customer experience,

builds a social network connecting multiple programs and

stakeholders

Improved the business process integrating financing,

education, and programs. Make it easy

to become energy

efficient.

Measure

program goals in real‐time and take actions

to

improve results. Mine field data to add more measures

and funding sources. Let program evolve.

23

STRONG COMMUNITY

COALITIONS

IMPROVED BUSINESS

PROCESS

TECHNOLOGY

ENABLED

CONTINUAL

MEASURABLE

FEEDBACK

24

Homes35%

Small Businesses

17%

Large Businesses

16%

Industry32% 107 million

Homes

4.6 million Small Commercial

Buildings

254,000 Large Commercial

Buildings

US Electricity Usage(2007 $344 billion)

US Building Stock(113 million buildings)

Market characteristicsThe mass market segments (homes and small businesses) do not yet

have well‐defined

delivery solution for energy efficiency. Any solution will need

a highly scalable model.

Source: EIA 2007 data and CBECs

building data.

EnerPath’s Target End-Customer

EnerPath

© Confidential

www.EnerPath.com

driving scale and adoption in the small business sector · reduce costs they flow profits back ......

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