youtilbill - a fresh look at residential energy efficiency
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Private & Confidential
A Fresh Look at
Residential Energy Efficiency
February 2010
GET YOUR ENERGY
BILL DOWN!
1 confidential – yoUtilBill llc 2009© - all rights reserved
Government recognizes the energy reduction imperative
Source: McKinsey & Company, yoUtilBill
Example: Sonoma County’s ‘Climate Action Plan’
Goal is to reduce greenhouse gas (GHG) emissions 25 percent
below 1990 levels by 2015
• All nine Sonoma cities and the County established this goal in 2005
Over 90 percent of electricity and natural gas is used by the
County’s approximately 200,000 homes & 30,000 businesses
Action plan is for an aggressive efficiency retrofit program – 80%
adoption rate
150,000 residential accounts
20,000 commercial accounts
2 confidential – yoUtilBill llc 2009© - all rights reserved
Total in California – 492 Millions Tons of Carbon Emissions
Of course, less consumption lowers emissions; residences are key
By 2020, the residential sector will
consume 29% of energy in U.S.
• Growth of 0.4% driven by population
growth, larger homes, and more electrical
devices in homes
Over 28% of energy could be saved
with positive economic returns
• Energy Savings: If enacted all positive
NPV changes, could save $41Bn a year
and 360 million tons of CO2 emissions
• Upfront Investment: $229 Bn incremental
which leads to overall NPV savings of
$395 Bn
The U.S. average annual residential
energy bill is $2,000, but it could be
$1,200
Emissions in United States
Transportation
(32%)
Residential
Buildings
(21%)
Industrial
(25%)
Other
Buildings
(22%)
Source: California Energy Commission, The Economist, yoUtilBill
3 confidential – yoUtilBill llc 2009© - all rights reserved
And efficiency is comparatively cost effective
Cost of Cutting Carbon By Opportunity
Source: Wall Street Journal, McKinsey & Company
4 confidential – yoUtilBill llc 2009© - all rights reservedSource: California Energy Commission, yoUtilBill
Even homes built after 1978 have poor energy efficiency
• Most homes still have little insulation, low performance windows, leaky duct
systems, and inefficient HVAC units
• This is despite huge government spending on energy conservation
awareness and direct subsidies and grants – and mandates!
The answer; good citizenship is a good goal – but homeowner
pocket book and market forces are the real motivators
• Most citizens espouse responsible ethics and wishful conservation intentions
• But the real driver of most homeowner actions is inspired by homeowner
economics
• BUT NO MARKET-BASED APPROACHES HAVE BEEN DEPLOYED TO
DATE TO ALTER CONSUMPTION PATTERNS
After 30 years, why not more progress??
5 confidential – yoUtilBill llc 2009© - all rights reserved
$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
Jan-0
4
Jan-0
5
Jan-0
6
Jan-0
7
Jan-0
8
Jan-0
9
Base
101-130%
131-200%
201-300%
>300%
Problem: Bills are rising, but home prices
are down; everyone focused on bottom line
PG&E Electricity Prices Greater Bay Area Home Prices
Price
Dollars per kWh
Source: PG&E, yoUtilBill
6 confidential – yoUtilBill llc 2009© - all rights reserved
How should homeowners prioritize energy efficiency actions?
Source: yoUtilBill
Inadequate insulation
in attic & walls
Leaky ducts
Inefficient light bulbs
Lack of programmable thermostat
Plug load from small appliances
Inefficient kitchen appliances
Inefficient washer & dryer
Inefficient furnaces &
water heaters
Problem: Most homeowners have no idea on home energy consumption economics
7 confidential – yoUtilBill llc 2009© - all rights reserved
• Identify all ways to save you energy
Source: yoUtilBill
• Calculate the energy savings of each action
• Determine the equipment & installation cost to
perform action
• Determine the cost to finance each action
• Identify all rebates, tax credits, & recycling opportunities
• Evaluate your current energy usage
as well as the prices you pay
Problem: The economics are complex
Only Actions That Save Money Should Be Performed
Calculating the Economics
8 confidential – yoUtilBill llc 2009© - all rights reserved
If homeowners know what actions will be economically wise, they will respond…
1Based on cost of energy consumed in last 12 months; under today’s pricingSource: Equipment specifications, customer interviews, yoUtilBill analysis
$1,292
$684
$159 $48 $115 $40 $334
$254 $97 $146 $44 $27 $55
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
Ba
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oa
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Lig
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Wall
Insu
lation
Att
ic In
su
lation
Cra
wls
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In
su
lation
Air S
ea
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Wate
r H
ea
ter
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Re
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1
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Clo
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Old annual bill:
$6,0331
Expected new annual bill:
$3,4211
Do these Don’t do these
Actual example of savings - $2,500 every year
9 confidential – yoUtilBill llc 2009© - all rights reservedSource: yoUtilBill
Problem: Most homeowners don’t want to invest, they want flexibility to move in 1 yr
Options are emerging that allow homeowners to invest in their home’s energy systems without carrying the liability if they choose to move anytime in the future
• California Assembly Bill (AB) 811 enables local governments to offer energy efficiency loans to homeowners
– Sonoma County has launched this program with $100m in funds
– Improvement projects must be tied to the home (e.g. duct work, windows, boilers)
– Loans are payable twice a year through property taxes; 7% now, to 3%?
• Utilities are considering on-bill financing for residences
– Include loan repayments on monthly bill
– Ongoing obligations stay with the meter, not the individual
Without the ongoing obligation to pay for improvements after moving house, customers are now inspired to invest as efficient homes have higher valuations
10 confidential – yoUtilBill llc 2009© - all rights reserved
($20,000)
($15,000)
($10,000)
($5,000)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Efficiency (Plus Solar if Cost Effective)
Solar - Top 2 Tiers Solar - All Electricity
PV solar must be evaluated as part of a whole house view
Ove
rall
En
erg
y S
avin
gs
Ove
r T
ime
(Do
llars
)
Example Customer View of PV Solar;
A Preliminary Look At Overall Savings
Source: yoUtilBill LLC analysis
11 confidential – yoUtilBill llc 2009© - all rights reserved
The environmental impact of such
efficiency measures is significant
Example of the Annual CO2
Savings of One Home... Would Be Similar To…
Driving 4,500 fewer miles
Flying 11,400 fewer miles
Source: yoUtilBill, Chevron, Department of Energy
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Today With Just Efficiency Measures
If 1000 People Joined You,
The Energy Savings Could…
Provide power in Sonoma County for -
1,180 houses for 1 year
a hospital for 6 years
a school for 13 years
Be equivalent to taking 375 cars off the
road a year
An
nu
al
Ca
rbo
n E
mis
sio
ns
Pounds