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Your ideas! How can energy efficiency help utility customers behind on their bills?

Posted By Adeline Lui, Monday, August 3, 2020

Millions of utility customers will be facing significant challenges as utility disconnection moratoria, which were put in place early in the COVID-19 pandemic, are now being lifted. Many utilities are providing a variety of arrearage management programs to enable these customers to repay their outstanding balances over time. The Southeast Energy Efficiency Alliance is soliciting ideas for energy efficiency measures, packages and related programs that can be rapidly deployed to customers who are enrolled in these programs, to provide sustainable bill savings. Ideally these measures:

  1. Would be comprised or accessible, "off-the shelf" or commonly used energy efficiency measures already delivered by many utility EE programs (so they can be rapidly deployed);
  2. Could be installed by customers themselves (especially if utilities are not permitting staff or contractors on site at customers' properties);
  3. Provide reasonably significant bill savings to the customer; and
  4. Enable the customer to maintain healthy and safe indoor temperatures during the cooling months.

Examples include enrolling customers in demand response programs that couple a rebate with a smart thermostat to help offset arrearages; or increasing incentives on window/room air conditioning units.

Please email your ideas to Cyrus Bhedwar, Director of Efficiency Policy, at the Southeast Energy Efficiency Alliance at cbhedwar@seealliance.org by Friday, August 14, describing how they meet one or more of the numbered criteria above.

 

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FRANKLIN ENERGY ANNOUNCES FOUNDER PAUL SCHUELLER MOVING TO BOARD OF DIRECTORS, INDUSTRY VETERAN JIM MADEJ NEW CEO

Posted By Jamie Delk, Monday, July 27, 2020

Franklin Energy and AM Conservation Group, the leading demand side management firm in the utility industry, announced today the appointment of Jim Madej as the company’s new chief executive officer. Madej succeeds founder Paul Schueller, who has served as CEO since Franklin Energy’s inception in 1994 and recently announced his transition to the company’s board of directors. Madej will guide the strategic direction and lead the executive teams of Franklin Energy and AM Conservation Group. With more than 30 years in the energy industry, Madej brings an extensive background in business transformation, operational leadership, energy efficiency and customer experience.

“Im happy to welcome Jim into our Franklin Energy and AM Conservation Group family,” said Schueller. “It was important for us to find someone with industry experience, who fits into our culture and could help our exceptional team continue to evolve. Stepping back isn’t easy, but I am confident that Jim will take the reins and continue to push this organization forward, while holding true to our core focus.”

Madej was most recently CEO at Vermont Energy Investment Corporation (VEIC), where he led the company through an extensive transformation, driving improvements in customer diversification, security, leadership, product development, and branding. Prior to that, Madej was the Chief Customer Officer at National Grid USA and the Director of National Sales and Service at Hess Corporation. He also held numerous leadership roles at General Electric, where he began his career. Madej currently sits on the Board of Vermont Public Broadcast System (VT PBS) and is an advisory board member of Custom Essence.

“I am excited to be joining a company with incredibly deep expertise and capabilities that can integrate people, platforms and products to better support the modern customer journey,” said Madej. “Growing and optimizing business for a sustainable energy future is my passion and it’s uniquely aligned with Franklin Energy and AM Conservation Group’s purpose. We’re at a critical point in our industry’s evolution and I believe we’re well-suited to deliver the innovative, customer-focused solutions our industry needs.”

Tags:  AM Conservation  AM Conservation Group  Energy Efficiency  Franklin Energy  Franklin Energy Services 

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Community Choice Aggregation Provides Opportunity for Enhanced EE Services: Frontier Energy Topic Brief

Posted By Chris Bradt, Thursday, February 6, 2020

Community Choice Aggregation (CCA) authorities, also known as Community Choice Energy, provide consumers with local control over their electricity supply. Through energy procurement activities, many CCAs are successful in lowering the cost of energy to their members and offering rate plans with greater renewable energy content than what the community’s traditional electric utility supplier offers. Some CCAs also run self- or third-party funded energy efficiency (EE) programs to help customers lower their energy bills.

Non-bypassable charge (NBC) fees built into utility rates are available to CCAs in California to run EE and low-income programs. CCAs can access NBCs either by applying or electing to administer programs; both options must comply with California Public Utilities Commission (CPUC) policies, and each has advantages and disadvantages.

Read more in the Frontier Energy topic brief: https://frontierenergy.com/cca

About Frontier Energy:

We are a professional consulting firm that specializes in energy efficiency and advanced energy solutions for residential and commercial buildings, food service, transportation, and next generation grid.

We work with CCAs throughout California to augment their technical and regulatory expertise. We help communities form their CCAs, and work with them to evaluate, choose, and implement EE programs that best serve their communities. Frontier Energy provides support on CPUC-related policies, procedures, auditing and reporting requirements; and helps CCAs conform to CPUC evaluation, measurement, and verification protocols.

Authors:

Do you have questions or insights on this topic? We’d love to hear from you. Contact us for more information on CCAs and energy efficiency.

Edgar Strawbridge, Program Consultant, estrawbridge@frontierenergy.com

Nancy Barba, Manager, nbarba@frontierenergy.com

Chris Bradt, Manager, cbradt@frontierenergy.com

Don’t miss Chris and Nancy’s panel on Electrification at AESP’s 30th Annual Conference this month. See you in Anaheim!

Tags:  administer  California  choice  communities  community  Community Choice Aggregation  energy efficiency  Frontier Energy  local  program 

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Sending Your DSM Measures Upstream: Popular Measures and Best Practices for Midstream and Upstream Programs

Posted By Sannie Sieper, Wednesday, September 4, 2019

In 2018, E Source performed a comprehensive review of 93 midstream and upstream demand-side management (DSM) programs administered by 69 organizations in North America. Our new report explores the new measures that program administrators are moving upstream.

Key findings:

  • HVAC measures—such as furnaces, air conditioners, and heat pumps—are playing a bigger role in midstream and upstream programs, surpassing lighting’s popularity as a measure within these program types.
  • Residential lighting programs typically incentivize manufacturers and retailers, while commercial lighting programs typically incentivize distributors and manufacturers.
  • Customer segments that must replace damaged or broken equipment quickly in order to keep the doors open are good candidates for midstream programs. These businesses, such as restaurants and grocery stores, rely on distributors to get them back up and running.
  • When considering whether to move a new measure upstream, look for established relationships between contractors and their supply chain; distributors and manufacturers can provide vital information to contractors on how to sell and install these high-efficiency measures.
  • Many programs feature measures that end users can easily install, such as lighting, residential appliances, and consumer electronics.
  • If customers can’t purchase an incentivized measure because it isn’t in stock locally, move the measure upstream to encourage stocking and up-sell practices.

Midstream programs give incentives to intermediaries, such as distributors or retailers; upstream programs give incentives to manufacturers. In this study, we included programs that have robust reporting protocols, which means we may not mention some new pilots and programs.

Lighting remains a dominant measure for midstream and upstream programs. Most residential lighting programs go through retailers and manufacturers, while commercial lighting programs go through manufacturers and distributors. As lighting markets transform and baselines rise, utilities are diversifying their midstream and upstream offerings to include several new measures.

HVAC measures are also popular for midstream and upstream programs. In fact, when including heat pumps within the HVAC category, there are more midstream and upstream programs for HVAC than for lighting.

Bar chart showing number of midstream and upstream programs containing a particular measure; base is 69 program administrators and copyright E Source. Lighting is included in 23 midstream programs and 2 upstream programs; retail products are included in 15 midstream and 0 upstream programs; Heating, ventilation, and air-conditioning is included in 12 midstream and 14 upstream programs; commercial kitchen equipment is included in 10 midstream and 0 upstream programs; water heaters are included in 8 midstream and 1 upstream programs; appliances are included in 3 midstream and 1 upstream programs; showerheads are included in 1 midstream and 0 upstream programs; pool pumps are included in 1 midstream and 0 upstream programs; variable-frequency drives are included in 0 midstream and 1 upstream programs; consumer electronics are included in 0 midstream and 1 upstream programs.

Read the full report for more insights on specific measures and technologies: https://www.esource.com/429191azeh/sending-your-dsm-measures-upstream

Tags:  demand-side management  DSM  E Source  energy efficiency  energy efficiency programs  HVAC  midstream  upstream 

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Can Energy Efficiency Be Measured From 4,000 feet In The Air?

Posted By Daygan Fowler, Thursday, August 29, 2019
In early 2017, a group set out to measure the behavioural response to personalized thermal imagery and traditional consumption comparisons. A municipally-owned utility in Alberta led the experimental pilot in partnership with Natural Resources Canada, a behavioural science academic team, and MyHEAT. 
 
Correlation between HEAT Ratings and Actual Consumption
While this pilot is currently in the final stages of evaluation, one of the early by-products was the connection made between MyHEAT’s proprietary data and actual consumption information. 

MyHEAT offers personalized information on a building’s heat loss to motivate behavioural change and consumer action. Thermal data for each rooftop in a city is grouped and categorized using proprietary machine learning techniques. The result is the creation of HEAT Ratings, a comparative ranking of how buildings are performing in relation to others in the neighbourhood and city on a scale of 1 to 10. Category 1 represents the least amount of measured heat loss and category 10 represents the highest amount of measured heat loss.
 


The evaluation, led by Dr. Nic Rivers and Dr. Maya Papineau, began by exploring the relationship between building thermal signatures and energy consumption data from single-family homes in the community with approximately 20,000 homes. 

Data for this exercise came from three sources:

  • MyHEAT’s aerial thermal data collected using a high-resolution sensor and proprietary HEAT Ratings,
  • 3 years of natural gas and electrical energy consumption data, and
  • Publicly available property tax assessment data.

When the thermal data and building size were considered, the results revealed that consumers used approximately 4% less energy for each incremental change in the HEAT Rating unit. 

However, many factors influence energy consumption. To address these influences, the academic partners continued with a regression-based analysis. When the academic team used property tax assessment data (such as building type, building age, neighbourhood, etc.) and energy consumption data, they estimated that each incremental change in the thermal signature represented a reduction in gas consumption of 3-5% and a reduction in electricity consumption of 1-1.5%.

Source: Papineau, M & Rivers, N (2019). Visualizing energy efficiency information: Evidence from a randomized controlled intervention. Unpublished raw data.

Key Takeaway

Thermal data can be collected for entire cities in a few nights from an aircraft 4,000 feet in the air and an accurate measure for thermal efficiency can be derived with machine learning. It is a very cost-effective method to acquire an indicator of thermal efficiency. Compared to a physical inspection, it’s orders of magnitude less.

This also means thermal remote sensing can be used to aid in energy efficiency efforts by providing a cheap thermal efficiency indicator that can be used to:

  • Identify focus communities for energy efficiency programming,
  • Measure the impact of energy efficiency programs year over year,
  • Display efficiency opportunities on a map, combining with other datasets, and
  • Model energy efficiency potential and opportunities for building stock improvements.
If you’d like to hear more about the results of the behavioural pilot, please send an email to hello@myheat.ca. Read more on the MyHEAT blog!

Tags:  customer engagement  Energy Efficiency  MyHEAT  personalization 

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Free Whitepaper: Utility Demand Response Programs: An Often-Overlooked Opportunity in Customer Experience

Posted By Brett Feldman, Wednesday, July 24, 2019

https://info.cpowerenergymanagement.com/WP_Navigant_Utility_DR_July_2019_LandingPage.html?utm_source=Navigant&utm_medium=Social%20Media&utm_campaign=WP_Navigant_Utility_DR_July_2019&utm_content=WP_Navigant_Utility_DR_July_2019

Utility customers have little choice in their power providers, particularly in vertically integrated energy markets. Accordingly, utilities acquire their customers less because of winning customer service, service offerings, or more general forces of competition, and more due to an inelastic demand for energy. Despite a relationship often born out of necessity, the utility still has the duty and the interest to provide reliable, affordable energy and excellent customer service to its customer base.

Demand-side management (DSM) is often overlooked as a mechanism to strengthen utility relationships with commercial and industrial (C&I) customers, yet it often aligns customer preferences for incentives and low energy costs with utilities’ desire to reduce peak demand and power generation costs. This white paper explores the mechanisms by which utilities can implement or improve upon existing DSM programs, with particular focus on the nuances of implementing demand response (DR).

This white paper highlights critical insights for utilities into the implementation of future customer-focused DR programs, given the rapidly changing and distributed energy grid. Utilities with existing DR programs that are either underperforming or otherwise failing to yield desired results may look to the considerations and case studies to strengthen their existing DR portfolio and meet customer needs.

DSM programs are not only overlooked by utilities, but also by utility C&I customers who seek to lower their electricity costs. Despite proactive action on the part of many C&I customers, there is still a profound absence of knowledge about value creation opportunities through participation in one or more DR programs. This white paper is also geared at C&I customers who would like to learn about different types of DR programs and how to maximize benefits through enrollment.

Tags:  customer engagement  demand response 

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Nexant's Grid360 and iEnergy Software Supports UK Power Networks in First Comprehensive Advanced Network Management System in the World

Posted By Katy McSurdy, Friday, July 5, 2019

SAN FRANCISCOJune 27, 2019 /PRNewswire/ -- Software designed by NexantSmarter Grid Solutions, and GreenSync are coordinating to create the world's most advanced electricity network management and control system. UK Power Networks supplies electricity to more than 8.3 million homes and businesses and is Great Britain's largest electricity distributor.

Through this combined software solution, UK Power Networks and its customers will receive the following benefits:

  • More Renewable Energy—Distributed energy resources (DERs) including solar, wind, and energy storage devices will be connected to the grid faster and at less cost, generating enough power for 250,000 homes.
  • Infrastructure Savings—Reducing the time to connect DERs will reduce the need to upgrade infrastructure and save money. The solution will defer other network upgrades and costs by shifting localized peak demand and providing power during planned and unplanned outages.
  • Efficiency and Safety—Artificial intelligence will be used to process big data and determine safe and efficient ways to run the network.
  • Innovative Control Schemes---The network can be seen from a complete view, providing perspective to make complex decisions and set autonomous processes that will optimize available power.
  • Real-time Control—The network will be able to handle and dispatch services for events such as DER non-compliance and communications failure.
  • Flexibility—Giving customers expedited flexible connections, enabling more solar and wind installations.
  • Big Platform Potential—Unlimited smart grid applications and emerging technologies can be applied to the platform, allowing the possibility for more insights via machine learning, AI, and big data analysis.

As part of the integrated platform, Smarter Grid Solutions' ANM Strata will allow UK Power Networks to smoothly make the transition to an active distribution system operator. Nexant is supplying the control center and planning analytics via Grid360 and a public-facing market interface through iEnergy. GreenSync's deX product is incorporated to provide a distributed energy marketplace.

Bob Currie, Chief Technology Officer at Glasgow-based SGS, said, "This is a watershed moment for the management of distribution networks and DERs. We are delighted to work with UK Power Networks to deliver flexibility services markets and innovative control schemes across its license areas to enable clean and distributed energy resources to connect to the grid and realize their full value."

John Dirkman, Vice President of Product Management at Nexant, said, "This cutting edge project broadly enables and revolutionizes decarbonization via electrification, distributed generation, demand response, and energy storage. It's a perfect example of how best-in-class applications can be combined to provide tremendous value to utilities around the world."

About Nexant
Nexant is a premier provider of technology enabled solutions to the Utility and Energy Industry focused on the next generation intelligent grid, distributed energy resources, and the digital customer experience. Nexant's clients include over 200 utility and software services customers and works with over 300 chemical and petroleum majors, financial institutions, and Fortune 500 companies.

About Smarter Grid Solutions
Smarter Grid Solutions (SGS) is a leading provider of distributed resource management system (DERMS) software with over 300 MW of generation and load under real-time control. With offices in New YorkGlasgow and London, SGS is a global solutions provider to distribution utilities, distribution network operators and distributed energy resource providers.

About UK Power Networks
UK Power Networks is the country's biggest electricity distributor, making sure the lights stay on for more than eight million homes and businesses across London, the South East and the East of England.

UK Power Networks is committed to providing excellent service to the over 18 million people who use their network every day. The company invests more than £600 million in its electricity networks every year, offers extra help to vulnerable customers at times of need, and is undertaking trials to ensure that electricity networks support the transition to a low carbon future.

In June, UK Power Networks won the 2019 EEI International Edison Award at a ceremony in PhiladelphiaUnited States, for its part in enabling Britain's low carbon transition. The award is billed as the electric power industry's most prestigious honor and the winner is chosen by a panel of former energy company chief executives.

Tags:  customer experience  decarbonization  DERs  electrification  smart grid  smart grid news  software 

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DSM Overview: Navigant Research estimates $57.6 billion in efficiency spending in 2028.

Posted By Jessie Mehrhoff, Friday, May 24, 2019

 

Navigant Research has published its inaugural Demand-Side Management Overview report. 

New distributed energy resource technologies and changing customer expectations have created opportunities for growth in the demand side management (DSM) market. Demand response (DR) and energy efficiency programs are an important component in meeting changing regulatory requirements, supporting distributed generation, and delivering new business models and revenue streams. Between 2019 and 2028, Navigant Research expects market growth of DR and energy efficiency programs worldwide; integrated DSM will also generate operational and capital savings for program providers in more mature markets. 

Growth in DSM is expected to take place in all regions of the world, with deeper savings in mature markets and new market share in regions with less program penetration. The integration of more intermittent renewables in specific regions is anticipated to look to DSM programs to provide local peak management and load shifting capabilities to the grid. Developments in more efficient, intelligent hardware and program management software are expected to offer streams of data that can be used to optimize both commercial and industrial (C&I) and residential energy ecosystems. Edge computing and data analytics will speed rates of actionable insights for program providers. 

This Navigant Research report provides a high level examination of the global DSM market in five major geographic regions: North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The study provides an analysis of market trends, including the drivers and barriers associated with global DSM development. Global market forecasts for electric DSM capacity, sites, and spending are segmented by region and extend through 2028. The report also examines technology issues and key industry players.

Tags:  demand response  demand side management  Energy Efficiency  Navigant Research 

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The UtilityXpert Series Part 2: Sustainable Energy Efficiency Program Implementation

Posted By Nishaant Sangaavi, Wednesday, March 27, 2019

In this week’s UtilityXpert roundup, we chat with Brett Bishop of Build it Green , Build It Green (BIG), an environmental nonprofit based in Oakland, California with a mission to create a world of healthy and sustainable home for all people. They are pioneering how homes are built and renovated in California and beyond.

In this article, we’ll talk about Brett’s experience helping energy providers implement sustainable, effective EE programs. Brett has a wealth of experience and his passion really comes through when discussing some of the industry’s most challenge issues, including aggressive energy targets, as well as implementation tactics.

1 You've had a variety of experience designing and implementing all different types of EE programs. Tell us about your approach at the beginning to ensure a holistic plan is built.

We are passionate about bringing innovation to the market and inspired to support consumers, professionals, private companies, and public agencies to achieve the greatest impact. We mainly focus on three goals:

  • Driving deep reductions in carbon emissions by connecting more homes to clean power and advanced energy technologies

  • Creating a real estate market that recognizes the value of these homes and ensuring that these benefits are accessible and affordable to all communities

  • Creating healthy and sustainable homes for people in low-income communities.

All these approaches combine for a holistic plan because having these specific goals in mind makes it easier to achieve and track our successes in our various programs.

2 Tell us about the different nuances of implementing different programs in different communities?

It really comes down to knowing what the community we are trying to help needs from multiple perspectives. For instance for our Cool Savers program, the first Pay-for-Performance programs of its kind, we really wanted the focus on customers that want to save more energy! That’s what it’s structured to emphasize, that’s why participants become a stakeholder in the success of the program, and that’s why we added the Cool Rewards bonus system to the program, which allows participants to earn cash bonuses for being a deep energy saver.

(Cool Savers participants who save the most energy over a 12-month period are eligible for a bonus incentive up to $1,000.)

With our Healthy Home Connect program, we structured the program to leverage multiple funding sources to deliver energy and healthy home upgrades simultaneously to benefit California’s most vulnerable or disadvantaged communities, with both energy burden and regional air pollution being factored from the outset.

The Healthy Home Connect (HHC) program has successfully expanded into new communities, thanks to generous funding from our partners like Peninsula Clean Energy and private equities such as Facebook, Inc. BIG is delivering health and energy upgrades to families faced with hardships in the Belle Haven community, and Menlo Park near Facebook’s HQ. These homes would otherwise not benefit from existing energy efficiency programs because they needed much more basic repairs first. For example, one home had their entire ceiling removed in the hallway, completely open to the attic space, all year round! She was over eighty years old and clearly needed more than just LED light bulbs and faucet aerators. Typically, program administrators are unaware of such egregious conditions because there is no budget for measures outside of demand reduction or they choose not to get close to the work.

There is a strong link between health and energy efficiency in homes: energy upgrades often provide health co-benefits and we are working to unlock both of these benefits homeowners.

Housing services are often siloed and delivered to meet program performance metrics alone. Energy efficiency and weatherization programs do not address home health conditions, which are often closely related. Furthermore, many homes are disqualified from receiving energy efficiency and solar PV improvements because of existing conditions in the home, such as mould, moisture, unsafe HVAC systems leaking carbon monoxide, or dilapidated roofs.

The result is that some of the most vulnerable families are left behind and must live in homes that exacerbate asthma and other health conditions, as well as homes that are inefficient with high utility bills, contributing to displacement and the affordable housing crisis. Healthy Home Connect addresses these problems by combining public funding sources with private philanthropy and delivering health and energy efficiency together, intentionally. Exactly like everything else in the efficiency field, it demands a conscientious front side to each project and detailed project management.

BIG also worked closely with their local, like-minded, non-profit builder/partner El-Concilio of San Mateo, to establish relationships, trust within the community, and help fulfill the work and mission of the Program.

3 How do you approach getting buy-in for your recommendations at every step of the implementation process (ex. IT teams, DSM teams)?

The billion dollar question! Ultimately, it is about having the right team lined up around a future state. Which begins with the client, their objectives, and design constraints. Once these conditions have been identified and communicated market analysis drives the conversation. Build It Green is always conscientious to bring our workforce into this part of the design process; ultimately, if the market does not buy into your value proposition you are going to have a difficult time getting your program off the ground.

Once the interventions are established as to technologies and engagement platforms, the marketing team can begin designing a narrative that is relatable. As with any organization, having the right team on your side is key. Having a team that is aligned with the vision of the company’s core objectives results in an effort that communicates consistency across different departments and specializations. To steal a phrase from the sports world, it’s about “building your bench” which has to begin long before a project is even dreamed of.

4 California has lofty energy efficiency savings targets for 2030. How will it get there?

We have visions for 2030 that are aggressive, it's true, 2045 is even more so with a target for net carbon neutrality across our entire economy. It’s going to be a large effort with a lot of stakeholders and factors that are dynamic. One example that illustrates this well is California’s Renewable Portfolio Standard, our grid is more and more decarbonized with every passing year, so energy storage and shifting consumption to times of the day when the sun is producing our power are a big part of shifting the economy away from dependence on fossil fuels.

Energy Efficiency is crucial to the effectiveness of these efforts because if consumption of energy is unchecked, then the cost to produce the energy tracks the demand curve. Think of it on a smaller scale, a house that is efficient may need twenty solar panels; the same home without efficiency measures may need thirty panels to achieve an energy bill of zero. Less is definitely more. One phrase I really enjoy it, “the cheapest electron is the one you don’t use.”

I think the biggest challenge is going to be psychological. People are attached to their habits and don’t necessarily perceive them as such. One example of this is induction cooking. The technology has far superior performance compared to gas. I love cooking a lot and eating good food even more! It took me a while to get to a place where I could install an induction rage because my home is older and was set up for gas, but once I got it done I found was that I had a much greater level of control over temperature and everything heats up dramatically faster. It’s super nice, easy to clean, it performs better, and doesn’t put exhaust into my kitchen. Going back would feel like making dinner in the garage with the door closed and the car running! But until consciousness around these shifts, people will be espoused to antiquated technology.

All that circles back to decarbonization because utilizing renewables effectively is dependent on multiple systems like space and water heating, cooking, laundry, etc. Efficiency allows us to do the same things as we were doing before, hopefully, better, while consuming fewer resources. That’s the value proposition we need to convey, “your quality of life will improve if you get with the program,” otherwise there’s no reason to do anything different than you did yesterday. The horse and carriage were replaced with the car, the landline replaced with cellular, we have superior and sustainable technologies today, so the question is not if, but how, and by when. That’s where California is rightly focusing today.

“We’d love to hit targets early, but even if we’re a little late, we’re still in much better shape than if we didn’t strive for it in the first place.”
— BRETT BISHOP, BUILD IT GREEN

Tags:  Cost reduction  customer engagement  Customer EngagementResidential Programs  Energy Efficiency  Energy Efficiency Experts of Tomorrow 

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Why Customers Who Are Moving or Selling Homes Are Most Likely To Participate in Energy Efficiency Programs

Posted By Nishaant Sangaavi, Thursday, March 21, 2019

Encouraging homeowners to make retrofits when they aren't thinking about them is difficult. What could be easier is doing so when energy efficiency (EE) is top-of-mind for them. 

The question is: "When are people thinking about energy efficiency?".

The answer? When they are moving into a new home. 

In fact, USA Today rates “Improving energy efficiency” as the number one upgrade you can make to increase the value of your home. For example, a Remodeling.com survey found that homeowners could recoup 116% of the costs of attic insulation.

Homeowners are increasingly aware that HVAC, water heaters and window upgrades are cost-effective changes that provide a solid ROI when it comes time to move or sell.

“While renovating the kitchen and updating the bathrooms are both great improvements that can increase property value, making energy efficient upgrades will give you more bang for your buck.”
— SACHA FERRANDI, FOUNDER OF SOURCE CAPITAL FUNDING, INC. A REAL ESTATE FINANCE COMPANY

Despite this interest, this is an issue for utilities. Even if people are willing to make energy efficient upgrades, this does not eliminate the big problem of free ridership rate among their customer base. Free ridership, is of course, the degree to which energy efficiency program participants take incentives for projects which would have been done with or without the program.

Getting more program participation while reducing free ridership rate. In fact, on their own, they are both issues that the utility world has not seemed to figure out yet. Of course, for some states, there’s less of an emphasis on free ridership, but the fact remains that utilities must get their customers to participate in energy efficiency programs.

So, how can utilities get more people to make energy efficient retrofits, while actually showing that they influenced those decisions?

Answer: By targeting homeowners who are likely to move or sell their home!

These homeowners are the perfect candidates for EE programming. Why? They recently bought a new house, and want to ensure their new asset is as valuable as possible. Their family is moving in, and they want to sure its comfort and livability. 

A disgruntled homeowner who's used to what they're living in? Not happy when you tell them about a $2,500 HVAC incentive.

A new homeowner who's told about a free Smart Thermostat? They'll be thanking you, because that’s could raise the value of their asset.

There are a plethora of ways utility program managers may be able to do this, and some of them are listed below:

  1. Digital Marketing: Online platforms such as Facebook and Google allow you to show your ads to specific people who are in your likely range of people who want to move. With Facebook, you can actually use Interest targeting and ask Facebook to show your ads to people who are most likely to be moving. The ad might say something like, “Selling your home or moving? Learn how a new HVAC can increase your home property value by XX%!”

    A message like this would really resonate with the homeowner who is moving or selling their home.

  2. Surveys and Direct Mail: Another way of knowing what your customers are doing? Ask them!

    Short online surveys done via SurveyMonkey, or paper mail ones are an easy, effective way of figuring out which of your customers are moving, or not. You know that any customers that identifies that they may be thinking of moving would likely be interested in energy efficiency retrofits. Therefore, these individuals would be great candidates for marketing efforts down the line.


    The drawback of this method? It is rather time consuming, low-tech and sometimes, people just don’t want to be bothered.

  3. Implementing New-Age Software-As-a-Service (SaaS) Products: SaaS. It's not as complicated as it sounds. People have long dismissed utility engagement tactics as dated and low-tech, but that is simply no longer the case. Technology solutions such as MyEnergyXpert are able to take data science and AI, and integrate them with online platforms to identify homes that are ripe for participation.

    The technology exists where people will now be able to target homeowners who are most likely to enrol and when they want to enrol.

Utility program managers can now look like geniuses - people are participating because of them, and they can easily track why and how.

It's time to flip the script on utility customer engagement for energy efficiency programs. 

Sending customers 50-page unwanted home energy reports? There's no need. 

Dealing with contractors for complicated home audits? Forget about that. Wasting marketing and customer care budget on campaigns that won't work? Those days are over.

Giving customers personalized recommendations right when they need it? Sign them, and us, up. 

 

Original article at energyxsolutions.com

Tags:  customer engagement digital  digital engagement  DSM  Energy Efficiency  energy efficiency programs 

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