Driving Demand For Retrofits Through Neighborhood Outreach

Can demand for residential retrofits be driven by targeted neighborhood outreach? Here’s what we’re doing to find out.

Locations: Stockton, Sonoma and Los Angeles, California

By Mark Berman, Alliance for Residential Building Innovation

       

                     

               

                 

                   

                          

                            

Relevant BAP Gaps & Barriers

1. Difficulty in recruiting homeowners to participate in home evaluation upgrade programs. (Recruitment)

2. Need to develop sustainable retrofit business models (Biz Models) – Review business models in Better Buildings Program & other

programs

3. Lack of attractive financing options (Financing Options) – Which options gain traction?

4. Need to develop a method to identify savings potential at community level (Community Savings Potential)

5. Data mining – need to analyze utility bills to get a sense of whole‐house efficiency (Aggregate Results)

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Overview: Stockton CA

• Locally branded: “The StocktonEnergy Challenge”.

• Targeting neighborhoods of similarhomes to create economies of scale.

• Single‐contractor model: fulfillingboth assessment and retrofit functions.

• Customized marketing approachand tactics to reach targetneighborhood/homeownersaudience.

• Co‐funded by California EnergyCommission.

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Overview: Sonoma

• Single‐contractor model. • Targeting twoneighborhoods: RohnertPark and Santa Rosa.

• Incentive strategy to attract“early adopters”: pricereductions for first ten homes.

• In coordination with EnergyUpgrade California program. – Part of the Better BuildingsProgram.

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Overview: L.A. County – Contractor Pilot

• Working with two contractors. • Neighborhoods: Palmdale (4

subdivisions). • Enlisting “Energy Champions”:

non‐profit groups (HOAs, faith‐based org) who receive $ forevery completed retrofit.

• In coordination with EnergyUpgrade California. – Part of the Better Buildings

Program.

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Overview: L.A. County – Marketing Pilot

• Open to multiple contractors. • Neighborhood targets:

Walnut and Diamond Bar • Enlisting “Energy

Champions”: non‐profitgroups (HOAs, faith‐based org) who receive $ for everycompleted retrofit.

• In coordination with EnergyUpgrade California. – Part of the Better Buildings

Program.

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Commonalities

• Financial incentives for homeowners: rebates and CHF state loan program: 100% financing at 3% for limited time.

• Traditional marketing collateral: brochures, flyers, direct mail.

• Door‐to‐door canvassing (Stockton & Sonoma)

• State Program/Energy Upgrade California partnerships.

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Commonalities (cont.)

• Battling the strong headwinds of debt aversion and perception of homes as toxic assets.

• Facing the challenge of conveying long‐term rewards (reduced utility bills, cleaner indoor air, increased comfort).

• Mitigating fear of upfront investment.

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Program Differences

• City participation: strong inPalmdale (L.A.) and Sonoma,weak in Stockton.

• Hosting kickoff event (Stockton)v. focusing energy on findingearly adopters (Sonoma andPalmdale).

• Collaborating with non‐profitEnergy Champions (L.A.).

• Different housing styles: dealingwith mixed types (Stockton) v.production congruity (Walnutand Diamond Bar).

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Program Differences (cont.)

• HOA involvement: concerted effort in Sonoma, unfruitful in Stockton, not available in L.A.

• Levels of partnership with Energy Upgrade California: lead role/co‐branding (LA, Sonoma) v. background support (Stockton).

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Program Differences (cont.)

• Incentives disparities: different utility‐rebate programs. +$2K per house in L.A. (before Labor Day), $300 for early adopters and PACE opportunities in Sonoma, ½ off assessment in Stockton.

• Contractor participation: One or two vs. open market, and the challenges of controlling quality and process.

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Status of Programs

• Stockton – Program kick‐off event May 1, 2011. – Initial home energy upgrades underway.

• Sonoma and L.A. County – Soft Launch late‐July

• Tracking Systems – In beta testing.

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What Might We Learn?

GAP 1 ‐ RECRUITMENT • The usefulness of Energy Champions? • Techniques for motivating early adopters. • State‐wide branding vs. local branding?

GAP 2 – BIZ MODELS

• Small Contractor Group vs. Open Market? • Where can economies of scale be

generated? – Are they passed along to the

homeowners?

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What Might We Learn? (cont.)

GAP 3 – FINANCING OPTIONS

• The effectiveness of different funding/financing models.

GAP 4 – COMMUNITY SAVINGS POTENTIAL

• Is there a “community effect” that can be leveraged?

• The value of HOA/municipal government involvement.

GAP 5 – AGGREGATE RESULTS

• Usability of Earth Aid for community‐wide assessments.

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More Gaps & Barriers

• How can high participation rates be achieved in targeted neighborhoods? – Can retrofits go viral?

• Where can economies of scale & efficiencies be developed? – Assessments – Modeling

– Package Design

– Bulk Purchasing

– Installation

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More Gaps & Barriers (cont.)

• How can the retrofit industry develop financing models as attractive as PV leasing? – Guaranteed utility bill savings – Secondary market for financial instruments – Credible savings in light of “take‐back”

• Need a new metric

• Develop the metric – Based on cooling and heating energy per degree of OA to IA delta?

– Pre‐retrofit vs. post‐retrofit.

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Questions?

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