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NH Energy Efficiency Resource Standard2021-2023 Triennial Plan

NHSaves Program Enhancements for 2021-2023:Report-out from Working Sessions

VEIC Presentation to EERS CommitteeMarch 2, 2020

NHSaves Working Sessions

VEIC subject matter experts met with utility program leads for in-depth program planning sessions in Jan/Feb

Morning (9-12) Afternoon (1-4)14-Jan Small Business Municipal

21-Jan Large Business & Energy Rewards Portfolio Planning

28-Jan Home Energy Assistance Home Performance with ENERGY STAR

3-Feb ENERGY STAR Homes NA

4-Feb ENERGY STAR Products DR, Pilots, and Emerging Tech

11-Feb Marketing/Engagement Behavior Programs and Strategies

What We’ll Cover

For each program: What is working well What could be improved Additional stakeholder input, if applicable Priority program enhancements for 2021-2023 plan

Large Business: What’s Working Well Largest customers are account-managed with support from the

energy efficiency consultants

Plans reflect a push for more comprehensive measures beyond lighting (e.g., controls, HVAC, compressed air, motors. VFDs)

There are a mix of incentive models: prescriptive (Rx), custom, midstream incentives through distributors, MOUs for large customers, and turnkey installation vendors

Utilities are using a market approach, segmenting customers by large, mid-sized, small and municipal

MOUs enable programs to enter into long term planning with their largest users by committing to a target % savings goal

Eversource Energy Rewards Program awards fund cost-effective multi-year projects

Large Business: What Could Be Improved

Make it easier for mid-sized businesses and contractors to participate by standardizing incentive offers for repeatable measures

Better use of 15 minute interval data to identify customers with high baseloads for outreach for NH Saves programs

Increase adoption of control technologies & retro-commissioning

Provide more paths to participation and increased design assistance for new construction

Expand midstream offerings to HVAC and refrigeration market including High Efficiency Condensing Units & Evaporators

Large Business: Stakeholder Input

Allow budget flexibility across program years – creating long-term relationships with business customers is key

Offer additional pathways for new construction: Commissioning

Whole-building design support

Continue expanding midstream offerings

Large Business: Priorities for 2021-2023 NH’s shift to a 3-year plan should be a top priority to

enable long-term planning with the large businesses Consider Strategic Energy Management – wait for MA?

Develop “standard offer” incentives to target market segments and make it easier for customers to participate: Compressed air Industrial boilers LED fixtures and controls Motors, VFDs, and controls Retro-commissioning Low-energy snowmaking guns

Create multiple new construction pathways based on customer size and schedule

Small Business: What’s Working Well

Programs grew significantly from 2018 to 2019: Savings greatly grew on the electric side, number of customers

served greatly grew on the gas side Programs are achieving or exceeding targets

Multiple pathways for customers to participate: Turnkey vendors Customer-directed Midstream through distributors Support for national accounts

Main Street programs and community blitzes are a good way to engage with smaller businesses and be efficient with contractors and resource allocation

Small Business: What Could Be Improved

More flexible incentive structure: projects can't always meet payback criteria

Slow contractor response time and audit delays Hard to serve very small businesses, remote areas Lack of funding for small businesses that use oil/propane Current turnkey vendors primarily support installation of

LEDs and refrigeration

Small Business: Stakeholder Input

Support fuel-neutral incentives and energy optimization to help small business customers shift from oil/propane to heat pumps Current incentives for small commercial heat pumps are too low

Support expanded workforce training: Trade-specific trainings Case studies Outreach to HVAC and electrical contractors

Offer additional financing options (on-bill, low-interest loan)

Expand cost-effective approaches such as intelligent building controls, retro-commissioning, & demand-controlled ventilation

Small Business: Priorities for 2021-2023 Shift electric savings portfolio to increase portfolio

savings from non-lighting measures Support new measures (HVAC controls, ventilation, etc.) Increase incentives for non-lighting measures Expand turnkey vendors beyond LEDs and refrigeration Expand midstream offerings

Create systems to drive comprehensiveness over time: Improved use of data analytics Metered savings/P4P approach for control measures

Small Business: Priorities for 2021-2023 Increase flexibility to address screening issues

Focus on program rather than project level screening “Standard offer” incentives to improve predictability and make it

easier for the market to participate

Consider fuel-neutral incentives for small businesses Expand workforce training and engagement efforts

Consider trade ally network to improve engagement and quality Increase vendor training on non-lighting measures Support workforce development in remote areas

Municipal: What’s Working Well Generally similar to Small Business program Regularly exceeds MMBTU goals and participant targets Municipal program includes fuel-neutral incentives for

oil/propane upgrades and weatherization Performance contracting and turnkey vendor Installs are

popular 50% of installations are through turnkey vendors, compared to

30% for Small Business

On-bill financing – don’t have to go out for a bond vote. Wastewater treatment facility benchmarking working well Extensive partnerships: LES work group, etc.

Municipal: What Could Be Improved / Stakeholder Input

Contractor response time on certain projects is slow Some projects don’t pass cost-effectiveness screening

(low operating hours, seasonal use, etc.) Challenges serving remote municipalities Many towns have limited bandwidth to manage energy

projects

Municipal: Priorities for 2021-2023 Same recommendations as Small Business, plus… Enable longer-term projects (common in munis) by

moving vendors to 3-year goals Support turnkey vendors to install non-lighting measures

Expand popular instant savings measures to include time-of-day scheduling with controls, shut it down procedures for equipment and plug loads

Improve comprehensiveness over time through account management approach Strategic Energy Management Shared Energy Manager for towns

Municipal: Priorities for 2021-2023 Expand cost-effectiveness flexibility:

Pathways for uneconomic projects (low-operating hours, etc.) Better support for remote towns/contractors - enhanced

incentives, new contractors, bonuses

Expand Main Street initiative as a model for community engagement Consider focus on disadvantaged/underserved communities

Standardize community offerings Menu of presentations, workshops, and program offerings Small grants for Regional Planning Commissions to provide

technical assistance to towns

ENERGY STAR Products: What’s Working Well

Lighting Utilities achieved a rapid transition of the lighting program in 2019

from downstream mail-in rebates to markdown rebates Expanded to 29 retailer and smaller community/independent

partners (e.g. Goodwill, discount) Programs significantly exceeded 2018 targets; 2020 goals are

22% higher than 2018

Appliances Support for both ENERGY STAR and Most Efficient products 2020 launch of additional measures: dehumidifiers, room AC

Water Heating & HVAC Minisplit heat pump rebates are very popular

ENERGY STAR Products: What Could Be Improved

Lighting Assess/target specific lighting bulb types with lower LED market share

and retailers serving hard-to-reach customers

Appliances Assess alternative go-to-market strategies for increasing market share of

Most Efficient and targeting low cost, inefficient appliances Evaluate impact of low $ rebates on high cost appliances – assess

alternatives for streamlined delivery (e.g. RPP, point of sale)

Water Heating & HVAC Expand training and engagement for NHSaves contractor network Planned addition of midstream rebates for HPWH and air source /

ductless heat pumps with participating retailers and distributors

ENERGY STAR Products: Priorities for 2021-2023 Maintain residential lighting programs through 2021 with

transition in 2022 Reversals in federal standards for GSL lighting and recent (2020)

NH transition NH from mail-in rebates to retailer point-of-purchase markdowns support a delayed market transition

Focus residential lighting programs on targeting hard-to-reach customers and diversifying market strategies

Pursue Energy Optimization and fuel-neutral strategies for certain products Examples: smart thermostats, integrated heat pump controls Heat pumps are already a popular measure Popular NH Electric Coop program may be a model

Assess new Granite State test for reintroduction of high-efficiency natural gas water heaters

ENERGY STAR Products: Priorities for 2021-2023

Add new products: desk lamp, ceiling fans, advanced power strips, ES freezers, AC/dehumidifier recycling, water saving devices (expansion to electric),

Evaluate ENERGY STAR Retail Products Platform for midstream appliances sold at retail

Expand midstream distributor incentives for heat pumps, HPWHs, and pool pumps Include lessons learned from successful programs in CT and VT

Incorporate smart home energy management systems & connected products Industry now aligned on communication standards (CHIP) Utilities currently evaluating cost-effectiveness of SHEMS

ENERGY STAR Homes: What’s Working Well

The NH Saves Utilities have been offering a solid and well-received Residential New Construction program based on the national ENERGY STAR Homes program Over past 10 years, 15-35% of NH new homes achieved ENERGY

STAR certification

The program, as well as its participating raters and builders, regularly receive ENERGY STAR awards and recognition

Local program enhancements are responsive to the market Struggling builders can “drive toward” ENERGY STAR Drive to Net Zero competition for high performing builders

ENERGY STAR Homes: What Could Be Improved

Expand efforts to ensure energy code compliance and maintain savings over state energy code (IECC 2015): Additional trainings and prescriptive program requirements that

target near-term code requirements Conduct a baseline study to understand current construction

practices and compliance rates in order to inform training and program strategies

Consider whether it is appropriate to use energy code (currently 2015) as baseline - no grace period for compliance and enforcement

Consider a code adoption and/or compliance attribution program

Continue efforts to work with towns to get permit data to target program outreach

ENERGY STAR Homes: Priorities for 2021-2023

Revamp program tiers and incentives: Build on the Drive to ENERGY STAR “Code Plus” tier by offering

more prescriptive incentives, including measures that will soon be required by code (e.g. infiltration and duct blaster thresholds) and high-performing measures such as continuous insulation

Offer program tiers and bonus incentives for beyond ENERGY STAR: net zero, Passive House, EV-ready, Solar-ready, DR-Ready, electric-only

Encourage post-occupancy monitoring for high performance homes and/or P4P approach to encourage occupant behavior

Review current approaches and methodologies for code savings attribution, as well as lower cost options for conducting a baseline study (e.g., DOE Residential Field Study) Learn from activities in MA and CT

Home Energy Assistance: What’s Working Well

Participation and energy savings have met or exceeded targets the last couple of years

Received Exemplary Program Award from ACEEE Strong coordination with Community Action Agencies

(CAAs) and Office of Strategic Initiatives (OSI) helps align low-income energy efficiency program activities, making it easier to understand where to go for services Program is effectively leveraging multiple funding sources, such

as for heating system replacement

Home Energy Assistance: What Could Be Improved

CAAs have had trouble ramping up to achieve current goals, let alone ramping up more for 2021-2023 Challenges targeting customers: utilities don’t have visibility into

CAA waiting lists; electric utilities don’t know which customers receive fuel assistance

Lack of workforce capacity among CAAs and installation contractors to handle increased production volume

B/C requirements can limit the projects that qualify

Outdated data tracking systems – upgrades underway Program design challenges:

More projects are hitting the $8,000 cap Some projects, such as those needing health and safety repairs,

don’t pass B/C screening, which limits the measures they receive

Home Energy Assistance: Stakeholder Input

Top challenge is workforce capacity – need more resources to train and retain CAA staff and contractors

$8,000 rebate cap is insufficient; consider increasing Provide additional flexibility to address B/C constraints

and support health and safety repairs There is a lot of leaky rental housing – need to engage

landlords to support improvements

Home Energy Assistance: Stakeholder Input

CAAs need more advance notice of changes to funding and program expectations: “blind budgeting” prevents them from investing in capacity in advance of need Current requirement of flat SBC across all utilities causes budgets to be

adjusted throughout the year as another territory spends more/less A single high-saving multifamily building project can throw off an annual

budget – multi-year budgets would increase flexibility

Some inconsistencies across utilities: Some fund measures that others are not open to funding Some take longer to pay invoices, or hold invoices due to internal

budgeting issues Some are not as communicative Some want to hit aggressive production goals, but are not open to funding

certain measures that may be needed to complete the entire project

Home Energy Assistance: Priorities for 2021-2023 Support workforce development

Support training for CAAs and contractors Allow NHSaves funds to be use to hire staff and buy equipment “Unbundled” SBC rate and multi-year budgeting would support

market growth

Address program design constraints Increase or eliminate rebate cap Add new measures: clothes washers, dryers, AC, dehumidifiers,

HPWHs; consider heat pumps and PV Ease B/C requirements to allow more projects to quality Create program manual/standard guidelines across utilities

Improve data sharing and data tracking systems Expand data sharing and referrals between CAAs/OSI and utilities Implement improved data tracking system

Other Low-Income: Priorities for 2021-2023 Create a comprehensive low-income portfolio with

programs that are both broad and deep Deep programs could include:

Home Energy Assistance Review and consider expanding moderate-income pilot Count low-income SF and MF new construction and gut rehabs in the

low-income portfolio Consider mobile home replacement program Consider major appliance retrofit program for those with high electric

energy use/burden

Broad programs could include: Deliver efficient products through food banks and community partners Appliance replacement voucher Direct-install in multifamily buildings or disadvantaged communities

HPwES: What’s Working Well Received Exemplary Program Award from ACEEE High level of accuracy between energy savings expected

and achieved, according to most recent evaluation Increased prescriptive pricing for contractors is

improving business outcomes; should result in increased contractor participation in program

Expansion of visual audit with direct-install offering to provide an option for customers that don’t qualify for HPwES based on the Home Heating Index (HHI)

Streamlined HHI tool and application process

HPwES: What Could Be Improved

Outdated energy audit and data tracking software – upgrades are underway

HHI screening tool supports cost-effectiveness, but is a narrow path for participation with many customers not qualifying As the program grows, it will be important to create more pathways

for customer participation

$4K project cap is placing a ceiling on improvements that customers will invest in More projects hitting the cap after price increase Health and safety measures are not incentivized

Workforce is inadequate to meet needs of growing program

Engaging gas customers is a struggle due to low gas prices

HPwES: Stakeholder Input

Consistent and predictable program budgets and customer incentives are key to support market growth Some utilities have waiting lists while others do not

Need to better support the workforce and make EE a true career path: Significantly increase support for auditor & crew training Continue to increase pricing Consider options to open up program to additional contractors,

for example those who don’t agree to the fixed price list

There is competition for contractors between HEA and HPwES, and contractors have to juggle different work standards for each program

HPwES: Stakeholder Input

Too much emphasis on selling HPwES to reluctant gas customers and not enough to oil/propane customers who are much more eager

B/C test perceived as a “secret formula” – some projects and measures don’t screen

Make it easier to include HVAC measures in comprehensive projects

Clunky software is a major challenge for contractors

HPwES: Priorities for 2021-2023 Increase program participation and savings by expanding

pathways to participation for customers and contractors Prioritize workforce training Ease project-specific screening; focus on portfolio-level screening Expand light/visual audit options so that all customers have a path to

participate, even if they don’t qualify based on HHI Explore options for DIY customers and non-program contractors

“Unbundled” SBC rate and multi-year budgeting would enable flexibility to manage budgets, avoiding stop/start of programs

Roll out new audit and tracking software

Implement program design changes that reduce barriers Increase or eliminate the cap on customer incentives Allow some health & safety costs to be included in incentives Add new measures: appliances, heat pumps, HPWH

Behavioral Programs: What’s Working Well

Shift towards integrating behavioral science across the portfolio to more effectively engage and nudge customers

Home Energy Reports (HERS) have produced reliable savings and customer satisfaction remains relatively high

Interest in piloting innovative approaches to drive behavioral savings

Eversource Customer Engagement Platform (CEP) may enable more customized customer engagement – “the right offer to the right customer at the right time”

Behavioral Programs: What Could Be Improved

Inconsistency in utility behavior offerings: Eversource has paused HERS after a decade due to concern

about savings decay and desire to move to CEP

Liberty and Unitil plan to continue HERS at least to 2021-2022

NH Electric Coop does not offer HERS

Eversource may not be able to claim savings for behavior changes from Customer Engagement Platform Eversource will need to articulate the value of the CEP if it isn’t

measured in savings

Need to find alternative sources of cost-effective electric savings

Behavioral Programs: Priorities for 2021-2023

Consider “crop rotation” of HERS to support continued savings

Eversource will need to find alternative sources of residential electric savings

Customer testing and pilots will be key as NHSavesdefines its approach to behavioral savings – a human-centered design approach will be useful Particularly important in the roll-out of the MyHeat program, a

new program design untested in rural New England markets

Pilots & Emerging Tech: Priorities for 2021-2023

Demand Response DR is funded by EE program funds in MA and CT and utilities are

gaining valuable experience scaling DR

Avoid lost opportunity of layered benefits for high-impact, high efficiency, connected appliances (e.g. HPWH, smart thermostats) to build capacity for flexible load management

Support for consistent statewide approach for active demand management (ADM) and behind-the-meter (BTM) demand response programs in EERS NHSaves portfolio vs. separate distribution dockets for each utility

Risk to NH of being left behind with a higher share of regional ISO/network costs as neighboring states move forward aggressively

Pilots & Emerging Tech: Priorities for 2021-2023

Emerging Technology Develop consistent processes to support innovation, and

participate in regional and national collaboratives

Fund ET out of core portfolio: need flexibility to quickly onboard new prescriptive and custom measures to respond to changing market conditions

Fund pilots/demonstrations separately: identify a few key pilots that represent new program models to fund outside of core portfolio

Energy optimization: need to determine scope and what NH wants to test (controls, DR, load growth) given that heat pumps are already in the core program

Marketing: What’s Working Well

Evidence from recent customer surveys indicate strong brand awareness of NHSaves

Customer segmentation work conducted in the last year will help NHSaves better target customers with programs and products

A new logo and recent brand work includes a social media strategy, engaging images and captivating messaging

Most customers associate the NHSaves with their utility, a trusted ally who can support action towards energy efficiency

Marketing: Priorities for 2021-2023

NHSaves will focus on moving customers from awareness to action Insights from behavioral science can strongly support this effort

Program-specific offers may be more effective than general brand awareness campaigns

Test engagement strategies like gift buying guides, blogs and plain black and white letters to target customers

Continue improving the NHSaves website NHSaves branding alongside utility brands is important,

but has the potential to raise questions about funding sources and confuse customers – refining this approach will be crucial

Cross-Cutting Topics Overarching observations:

Fixed SBC charge and one-year program plans/budgets have real on-the-ground impacts: stop/start of programs, lack of market certainty for workforce, inability to support long-term customer engagement

Shift from a scarcity to abundance mindset: many NHSavesprograms were designed to limit participation to only the most cost-effective projects. Now more customer and market-friendly options (standard offer incentives, ease of B/C requirements, etc.) are needed to increase participation

For further discussion at future EERS meetings: Cost-effectiveness & impact of shift to Granite State Test Workforce development Marketing and outreach