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ACEEE Hot Water Forum February 23, 2016 Jennifer Parsons - UI, SCG, and CNG Energize CT Hot Water Program

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Page 1: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

ACEEE Hot Water ForumFebruary 23, 2016

Jennifer Parsons - UI, SCG, and CNG

Energize CT Hot Water Program

Page 2: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Energize Connecticut▪ Energize Connecticut is the state’s branding initiative to

help consumers save money and use clean, affordable energy.

▪ A partnership of the Energy Efficiency Fund, the Connecticut Green Bank, Department of Energy and Environmental Protection (DEEP), the state and local electric and gas utilities.

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Page 3: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Energy Efficiency in Connecticut

Objectives ▪ To advance the efficient use of energy ▪ To reduce air pollution and mitigate negative

environmental impacts ▪ To promote economic development and energy security

Created by legislature to provide cost-effective electric energy efficiency and

load management programs

Expanded to include natural gas programs; electric and gas

programs are fully integrated

2005

1998

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Page 4: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

CT Service Territory: Natural Gas

442,000 Residential Gas Customers

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Page 5: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

CT Service Territory: Electric

1,325,000 Residential Electric Customers

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Page 6: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Why Move Upstream?▪ Goals:

– Market transformation– Increase high efficiency equipment stocking– Improve program delivery: Eliminate rebate breakage Reduce market confusion Improve customer interest and understanding Improve historically low distributor and contractor

program understanding

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Page 7: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Moving CT’s Water Heating Program Upstream

Page 8: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Residential Upstream Incentives - 2016Eligible Equipment ▪ ENERGY STAR® Natural Gas Water Heaters:

– Tankless 0.94 EF+ = $300– Condensing 95% TE = $300

▪ Heat Pump Water Heaters: $400 or $300 at retail with $100 mail-in rebate to customer

▪ Specific space heating equipment also included

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Page 9: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Distributor/Retailer Enrollment Success- Program Pilot began October 2013- Statewide Rollout April 2014

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~ 99% distributor participation

Participating Distributors

Participating Branch Locations

52 139

Participating Retailers

Participating Locations

14 66

Page 10: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Distributor Participation Requirement▪ Sign agreement▪ Mark down eligible equipment when sold in participating

towns▪ Licensed installers only ▪ Collect end user information ▪ Send submission template and invoices to rebate

fulfillment vendor▪ Reimbursed mark down plus $5 - $15 processing fee

within 30 days

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Page 11: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Retailer Participation Requirements▪ Sign agreement▪ Mark down eligible HPWH’s ▪ Submit Point Of Sale (POS) monthly to rebate fulfillment

vendor▪ Reimbursed within 30 days▪ Placement of $100 mail-in rebate on displays

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Page 12: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Quality Assurance▪ Rebate vendor verifying against double-dipping▪ Counter day events▪ Gas territory placemats▪ Post inspections▪ Customer “thank you” postcard:

Customer Address Here

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Page 13: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Marketing▪ Point of Purchase (POP) Signage, Radio, Billboards, TV

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https://vimeo.com/channels/719455/93668883

Page 14: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Targeted Direct Mailer: Partnership with GE

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Page 15: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Email to Contractor Database ▪ 2,000 HVAC/plumber recipients

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Page 16: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Web Banner Ads

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Page 17: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Field Implementation▪ Circuit rider provides retail associate and distributor

training and support:– Provide handouts on proper application and installation

to maximize equipment efficiency and promote related trainings

– How to leverage the instant discount as a marketing tool to increase participation

– Educate on equipment sales reported procedure– Update POP signage and handouts

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Page 18: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Gas Water Heater Program Success

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160270

1502

3432

0

500

1000

1500

2000

2500

3000

3500

4000

2013 Mail‐In 2014 Mail‐In 2014 Upstream 2015 Upstream

Num

ber o

f Units In

centivize

d

Program Timeframe

2,045%

Page 19: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Heat Pump Water Heater Program Success

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217

1391

1087

0

200

400

600

800

1000

1200

1400

1600

2013 Mail‐in 2014 Upstream 2015 Upstream

Num

ber o

f Units In

centivize

d

Program Timeframe

541%

Page 20: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Fringe Benefits of Upstream▪ Strengthened relationship with HVAC community

▪ Reduction in rebate fulfillment costs – ($1.25/each reduction upstream)

▪ Reduction in paperwork flow (less trees)▪ Significant increase in C&I program participation

and other residential programs – paved the way for upstream C&I program launch 1/1/2016

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2013 Installation Contractor

Participation

2014 Installation Contractor

Participation176 481

Page 21: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Program Challenges▪ Propane equipment (natural gas availability)▪ Initial participation reluctance (submission collection)▪ Distributor submissions

– Eligible customers– Licensed installers– Using EXCEL

▪ Contractor passing along discount▪ Changing customer understanding of discount▪ Municipal electric territories▪ Initial shelf stocking vs demand

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Page 22: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Future Considerations▪ Enhanced QA ▪ Proper Installation Testing

– Training courses for installers▪ Enhanced Marketing▪ Federal hot water standard changes▪ Measure market transformation with sales data

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Page 23: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Internal Logistics▪ Cost splits for equipment in dual territory towns▪ Cost coverage in municipal towns + claim savings▪ Administrative Costs:

– Rebate fulfillment vendor– Circuit rider – Processing Fees– Marketing Team (split between utilities when possible)

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Page 24: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Things To Consider in Your State▪ Gather distributor, manufacturer and contractor

network contacts – for outreach and relationship building

▪ Simple program design▪ Accessibility of PA / Circuit Rider to answer

questions▪ Marketing to consumers needs to continue▪ Adequate budget▪ Utility collaboration

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Page 25: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

For a Distributor PerspectiveJen Ryan Operations, Sales & MarketingShelton Winnelson, A Winsupply Company740 River Rd, Shelton, CT 06484O: 203-402-2792M: 203-984-6592F: [email protected]

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Page 26: Energize CT Hot Water Program · 2020-02-03 · Residential Upstream Incentives -2016 Eligible Equipment ENERGY STAR®Natural Gas Water Heaters: –Tankless 0.94 EF+ = $300 –Condensing

Questions?Jenn Parsons – UI, SCG, [email protected]

Jesus Pernia – [email protected]

EnergizeCT.com/gaswaterheatingEnergizeCT.com/hpwh

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