Understanding Demand for Energy Efficiency in Your Community
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- Pearl Manning
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1 Understanding Demand for Energy Efficiency in Your Community Christine E. Boyle, PhD Post-doctoral Fellow Western NC Energy Training February 28, 2012 Lake Junaluska, NC
2 What is Energy Efficiency? And why should I care?
3 Energy Efficiency Video
4 YOUR CITIZENS MAY NOT REALIZE US Energy Consumption by Sector Source: US Energy Information Administration statistics
5 Why is Energy Efficiency Important? Helps utilities manage increasing energy costs Provides customers with tools to control and lower bills Helps meet the continued growth in electricity demand May help avoid or delay construction of new generation
6 Small municipal utilities face unique challenges in achieving energy efficiency Financial sustainability Managing peak demand Affordability Limited staffing resources
7 KNOW THY CUSTOMERS
8 Your sectors Residential Commercial Municipal Institutions (schools hospitals)
9 Benson, NC Case Study A small municipally owned public utility in Johnston County, eastern North Carolina
10 Population: 3,374 Average age: 37.5 Renter occupied homes: 44.08% Median household Income: $33,029 Main industries: polymer and sheet metal manufacturing Town of Benson Demographics Source: American Community Survey ; Town of Benson Chamber of Commerce
11 Town of Benson Public Works: Electricity System Profile
12 Residential High Users
13 Commercial Electricity Consumption Commercial Parcels FY09 FY10 Number of commercial bills 4,633 4,406 Mean Usage (kwh) 2,591 4,007 Standard Deviation (kwh) 5,807 94,367 Median Usage (kwh) **From billing record statistics for the entire fiscal year
14 Lessons Learned Residential users have overall low consumption, but high user groups are driving up demand Commercial is a highly diverse stock dominated by retail (small commercial) and manufacturing (medium/large commercial); Increasing energy efficiency in commercial and higher user residential and help load management and shave the peak demand in Benson
15 ASSESSING DEMAND: ENERGY EFFICIENCY UPGRADE FINANCE PROGRAMS
16 Case Study:
17 Goals in Supporting CharlestonSAVES TM Residential Energy Efficiency and Renewable Energy (EERE) Loan Program Gauge the potential demand for energy efficiency upgrades Identify areas within city that possess higher demand Outline potential EERE improvements and payback
18 Gauging demand for EERE retrofits Using parcel-level housing characteristics, we assess two determinants of demand per parcel: 1) Energy efficiency/energy expenditure 2) Energy retrofit upgrade project potential Housing characteristics Year of home construction Total square feet of home Type of heating system Fuel for heating & cooling
19 We use publicly available data sources (and so can you) Charleston County Auditor (2010) Parcel-level property data for City of Charleston; Energy Information Administration (2005) Office of Energy Markets and End Use Forms EIA 457 A-G of the 2005 Residential Energy Consumption Survey ; LEED for Homes Rating System, Version 2008; US Census Bureau (2000) Decennial Census. Accessed at: US Department of Energy (2010) Home Energy Saver calculator, Environmental Energy Technologies Division, Lawrence Berkeley Laboratory
20 Rating system Each of the 4 housing characteristics have specific thresholds contributing to retrofit upgrade potential. The following rating system is used:
21 Determinant #1: Year of construction Newer homes, especially those built within last decade, are more likely to be energy efficient, while very old buildings may be difficult to retrofit. Source: Charleston County Parcel Level Property Records (2010)
22 Putting it all together End Result: Our analysis enables a granular look at zip code or block level EERE retrofit loan potential
23 Potential retrofits for high demand homes Representative High Green Demand Household in Charleston 2500 sq. ft. home built in 1973, Electric heat pump for heating/cooling system Source: DOE Home Energy Saver calculator
24 Key findings for Charleston Zip codes and represent top targets identify customer segments with high potential demand for E.E. upgrades Three core zip codes provide opportunity for focused rollout Focusing marketing and rollout in specific areas to increase positive spillover and homeowner participation. Heat pumps present great opportunity for residential retrofits Identify structural characteristics in the locale for contractors to highlight during home assessments
25 DRIVING DEMAND FOR ENERGY EFFICIENCY IMPROVEMENT PROGRAMS
26 What Drives Demand for Home Improvements? Retrofits are a Tough Sell Lessons from Behavioral Research Engage Trusted Messengers Work Closely With Contractors Identify the Target Audience Sell Something People Want Language Matters Design and Evaluate Programs to Learn What Works Research by Merriam Fuller and the Lawrence Berkeley Laboratory.
27 Group Activity
28 Christine E. Boyle, PhD (910) Environmental Finance Center at the University of North Carolina School of Government CB #3330, Knapp-Sanders Building Chapel Hill, NC