Getting Your Share of the Energy-Efficient Market
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1 2009 ALA Annual Conference September 15, 2009 Getting Your Share of the Energy-Efficient Market Paul Vrabel Michael Siminovitch Terry McGowan ICF CLTC ALA
2 2009 ALA Annual Conference Paul Vrabel, LC PMP Sept 15,
3 Opportunities multiply as they are seized; they die when neglected. Life is a long line of opportunities. - John Wicker 3
4 10 Actions to Take Now 1. Showcase the energy saving products already in your showroom 2. Merchandise the products front and center 3. Market the energy savings / environmental benefits 4. Get Smart! 5. Train Staff 6. Work with Builders 7. Know your local utility energy efficiency program 8. Apply for utility rebates on-behalf of your customer 9. Conduct training sessions for customers 10. Network with local green building programs 4
5 Ten Actions to Take Now 1. Showcase the energy saving products already in your showroom Start with ceiling fans if used correctly can save a lot of energy Promote ENERGY STAR, and ultra high efficiency (DC) fans. Fixtures, bulbs (CFLS), controls 5
6 Ten Actions to Take Now 2. Merchandise the products front and center Develop an educational display Hangtags and placards to show benefits Digital meters to compare wattage of incan vs fluorescent Seeing is believing Use mirrors Photo Courtesy of EPA ENERGY STAR 6
7 Photo Courtesy of Sea Gull Lighting 7
8 ENERGY STAR Logo EE and Incan Fixtures Side-by-Side Hangtags with Energy and $ Savings Energy Meter Variety of Fixtures indoor/outdoor/recessed Photo Courtesy of Sea Gull Lighting 8
9 Merchandise Seeing is believing quality display Mirror and CFL vanity Side by side to display quality Multiple switching in a kitchen Throughout the showroom so people can not tell the difference Up-sell by showing nearly all products as energy efficient. Demonstrate the savings Front and center Use visuals to get attention 9 Photo Courtesy of EPA ENERGY STAR
10 Use Visuals to Get Attention Photo Courtesy of Sea Gull Lighting 10
11 Ten Actions to Take Now 3. Market the energy savings / environmental benefits Calculate the energy savings and carbon savings Use manufacturer information Visit Market equivalents One ENERGY STAR light fixture = X number of trees planted Cars taken off the road Barrels of oil save Promote outside the store We have sold over XXX high-efficiency ENERGY STAR light fixtures, saving enough energy to power XXX homes for one year. Show the energy and money savings potential of each product Show the pollution / carbon savings (running tally) 11
12 Energy insert for tabletop dimmer displays Digital countertop display Digital readout shows how dimming saves energy and extends the life of halogen/incandescent bulbs Allows customers to see the direct results of dimming 12
13 Ten Actions to Take Now 4. Get Smart! Know energy efficiency products inside and out Energy savings potential, how it differs, value added, lamp type, ballast type, applications Know the terminology Know the benefits (long life, energy savings, quality) Know how to calculate the energy savings Know the latest legislation Resources: Manufacturers ALA Utility programs ENERGY STAR Photo Courtesy of EPA ENERGY STAR Program 13
14 Ten Actions to Take Now 5. Train Staff Training management, sales and other staff Use manufacturers educational and training materials Leverage manufacturer knowledge about changing codes Conduct initial and follow-up training Interactive sharing of success stories Get rid of misperceptions! 14
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16 Ten Actions to Take Now 6. Work with Builders Builders are looking for value added Energy codes will continue to get more strict (IECC) Many builders looking for ENERGY STAR options Show builders the energy efficient products Develop ENERGY STAR Advanced Lighting Packages Work with the builders to market energy efficiency Leverage what utilities are doing with builders Call local utility, visit website Leverage ENERGY STAR builders 16
17 Ten Actions to Take Now 7. Know your local utility energy efficiency program Over 50 utilities offer incentives for ENERGY STAR fixtures Visit for list of utilities and incentives Contact you local utility program manager Residential (new and existing construction) Multifamily Commercial Meet with utility program managers to: Understand program offering, eligibility and timeline Learn how to apply for rebates Train staff Leverage utility program Marketing materials Training Customer outreach and special events 17
18 Ten Actions to Take Now 8. Apply for utility rebates on-behalf of your customer Make it easy for your customer Meet with local utility program manager Walk through process of applying for rebates Bring real examples, and figure out how to apply for the rebates Understand which entity builder, showroom, homeowner gets the rebate Promote to your customers 18
19 Ten Actions to Take Now 9. Conduct training sessions for customers Hold lunch & learns, evening educational series Work with local utilities and ENERGY STAR to get training materials Co-sponsor with utilities, and the ENERGY STAR Program Work with manufacturers to show the latest products 19
20 Ten Actions to Take Now 9. Network with local green building programs Learn the program and how many points are given for energy efficient lighting Visit NAHB Contact local MBA Work with local utility 20
21 10 Next Steps 1. Develop a business plan with a long term vision Forget about what you have now. Start over, and get out of your old paradigm. 2. Become an energy solution center Compare various technologies Demonstrate proper applications with technologies Make it look familiar to your customer (like rooms of a house) 3. Offer other energy efficient products e.g. programmable thermostats. 21
22 10 Next Steps 4. Partner with Home Energy Raters Promote energy efficient products to builders List of raters: and 5. Become knowledgeable of and network with local and national green building programs NAHB: USGBC LEED: ENERGY STAR: 6. Get involved with ALA government affairs Becoming knowledgeable of the basics of pending code changes know when codes phase-in -- prepare for the right time to offer products, training, etc. 22
23 Legislation EPAct05 EISA07 New fed standard for linear fluorescent and incandescent reflectors (15 states adopting early) CA prop 65 (toxics in the fixture) CA AB1107 (RoHS lamps) New Title 20 (bulb in the box, incandescent standards, CFL standards) Title WA Code OR Code State and Local building energy codes 23
24 Energy Legislation Impacting Our Industry Torchieres General Service Incandescent Lamps (2012) 100 Watt (2012) 75 (2013) 60, 40 Watt (2014) Tier 2 (2020) 45LPW Incandescent Reflector Lamps General Service Fluorescent Lamps (2012) T12 is gone T8 moving towards 80+ CRI Changing local building codes expect many in the coming years. 24
25 The key to change is to let of fear. 25
26 Opportunities for Efficient Lighting Background, Technology and Policy Michael Siminovitch Professor, UC Davis
27 California Lamp Smugglers circa 2009
28 CLTC Established at UC Davis 1. Lighting R&D 2. Demonstrations 3. Training/education
29 Ideas to products Product Driven Market Driven Basic Research Product Visioning Laboratory Success Market Introduction Market Transformation Market Success Light Sources Materials Sensors Controls Industry Academia Utilities End Users Product R&D Prototype Development Concept Proof Application R&D Product Refinement End User Acceptance Demonstrations Outreach Education Training Policies Standards Codes PIER (EISG, BERG, LRP) Utility ET & Rebate Programs CALIFORNIA LIGHTING TECHNOLOGY CENTER
30 Industry partnerships Manufacturers CA Utilities Large End Users
31 State of the art lighting laboratories
32 Residential Lighting Design Guide
33 High Visibility Demonstrations State Agencies Campuses Private Sector lighting is the low-hanging green fruit
34 Buildings consume 39% of the total energy we use in the U.S., and 71% of all our electricity. Producing that energy generates almost half (48%) of our total carbon emissions.
35 Demand
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37 ZERO NET ENERGY EFFICIENCY RENEWABLES ZERO NET ENERGY
38 Is efficiency working?
39 14,000 Per Capita Electricity Sales (not including self-generation) (kwh/person) (2005 to 2008 are forecast data) 12,000 10,000 8,000 6,000 4,000 2,000 0 = 4,000kWh/yr = $400/capita California United States A. Rosenfeld California Energy Commission
40 Efficiency: 1st in the Loading Order California s Annual Annual Energy Energy Savings Savings from Efficiency from Efficiency Programs Programs and Standards and Standards 45,000 40,000 ~15% of Annual Electricity Use in California in ,000 30,000 GWh/year 25,000 20,000 Utility Efficiency Programs at a cost of ~1% of electric bill 15,000 10,000 Building Standards 5,000 Appliance Standards Source: CA Energy Commission / Art Rosenfeld / US DOE EIA
41 Bathroom lighting controls ~50% savings with Dual technology Sensors
42 Classroom/conference room lighting TYPICAL w/s.f. New design w/s.f. >50% energy saving including controls
43 Bi-level Stairwells 60% saving in State buildings
44 Bi-level daylighting and occupancy controls >50% saving
45 Efficiency is also a better investment
46 Energy efficiency improvements remain the fastest, cheapest, cleanest energy resource 2005 Cents per kwh Cost of New Generation vs Efficiency Wind Nuclear Coal Gas Combined Cycle Capital Costs O&M Costs Fuel Costs Transmission Costs Efficiency Sources: Annual Energy Outlook 2007 (EIA), Figure 56, and Five Years In: An Examination of the First Half-Decade of Public Benefits Energy Efficiency Policies (ACEEE, 2004), Table 5.
47 50% lighting energy savings opportunity in State offices Presentation to the Green Action Team Michael Siminovitch Professor, University of California, Davis Director California Lighting Technology Center
48 Office lighting typically 1 to 3 watts/sq.ft.
49 MAJOR TREND #1: Probably.65 to.50 watts / square foot LPD (W/Sq.Ft.) Title 24 Task Ambient Lighting % Drop 50% Drop 2005
50 However -Reducing light levels only is not a good option Aging Eye Light Requirement Title 24 Office LPD Gap Time in Years
51 Task Ambient Lighting Future for the California Office Place Moving from 1 watt/sq.ft. to.5 watt/sq.ft. (50% savings)
52 Optics for near environment Reflected glare Screen glare Direct glare Low glare lighting User control Increased quality
53 LED Task Lighting
54 Sensor based LED systems
55 President of University of California (Professor Siminovitch s s boss)
56 After High color temperature, super saver T8 lamps LED task lighting Power density, including task lighting, 0.97 w/ft 2, overall 44% energy savings Occupant surveys indicate an overall positive improvement in light quantity and quality Project cost: $21,000 Simple payback: 3.8 years
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61 California Residential Market One of the largest growth opportunities for LED s
62 Drivers what's making this happen Efficiency goals (market driven/product) Optics and controls new thinking doing new things with light Addressing Amenity (doing things we haven't done yet) Cost and maintenance
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65 System efficacy <10LPW
66 Source efficacy ~10 LPW (½ to 1.0 kw per kitchen)
67 Residential Lighting Survey Survey of builders Review of Market studies Building plans
68 Residential Lighting Survey CLTC survey of new 2007 homes (2-6 bedrooms / sq ft) Title 24 Highly Successful!
69 Opportunities for retrofit LED s * Calibrated using RLW Analytics CLASS Study
70 Residential Lamp Stock Breakdown Estimate of California Residential Market Estimates of as much as 15% CFL
71 2007 Title 24 Homes Survey ~10 dimmers per home >90% of incandescent hardwired fixtures on dimmers
72 Huffman Bill (AB 1109) reduce average statewide electrical energy consumption by not less than 50% from the 2007 levels for indoor residential lighting and not less than 25% from the 2007 levels for indoor commercial and outdoor lighting by 2018 (approved by governor 12 Oct 07)
73 RESIDENTIAL Huffman Bill (AB1109)- if we do nothing
74 RESIDENTIAL All lightpoints 40+lpw
75
76 LED s the next generation Directed Light Clear Optics
77 LED SPD
78 Spectral Distributions of Light Sources Natural Daylight Cool White Fluorescent Tri-Phosphor 3500K Incandescent Daylight Fluorescent Metal Halide
79 Glare Color Cost Longevity Significant design and Application issues efficacy
80 The Opportunity 700 watts incandescent pre-t24/05 ( watts post T24/05) watts LED High potential for added value: controls, optics, wiring, installation
81 LED kitchen system ( watts) ~50% over CFL
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86 Hidden LED cove lighting in kitchen/dining room/living room Dave Adams Photography
87 Huffman Bill (AB 1109) reduce average statewide electrical energy consumption by not less than 50% from the 2007 levels for indoor residential lighting and not less than 25% from the 2007 levels for indoor commercial and outdoor lighting by 2018 (approved by governor 12 Oct 07)
88 Road to Huffman
89 CFL Average Retail Price California and the Rest of the Nation, $16 $14 California US, excluding CA $12 $10 $8 $6 $4 $2 $
90
91 Residential Lamp Stock Breakdown Estimate of California Residential Market Estimates of as much as 15% CFL
92 Issues with CFL s (New York Times) light bulbs that make your entire family look like cadavers 5 of the 6 bulbs dead in less than 2 years I m waiting for LEDs as the savior for these problems
93 Incandescent lamps well defined performance and expectation
94 Color CFL typically represent a departure in key attributes Rendering CCT uniformity Dimming longevity
95 Young - Helmholtz color theory
96 Compact fluorescent CRI~ 80 Natural Daylight Tri-Phosphor 3500K Incandescent CRI ~80
97 15-47% of women maybe tetrachromats
98
99 When CFLs fail they may emit smoke, an odor, or a popping sound
100 Changes in product respond to need The question here is, whose need? Government agencies Utilities End users
101 CFL programs addressed efficacy and cost Cost efficacy Quality-Longevity Color amenity -dimming
102 Investment opportunity $16 $14 California US, excluding CA $12 $10 $8 $6 $4 $2 $
103 Road to Huffman Halogen incandescent isn't going to get us there Marginal increase in efficacy 15 lpw to 20 lpw Slow entry/phasing significant installed base Only practical method is to dramitcally increase penetration of CFL/LED
104 RESIDENTIAL Huffman Bill (AB1109)- if we do nothing
105 RESIDENTIAL All light points 40+lpw
106 Questions & Contact Information Professor Michael Siminovitch
107 Getting Your Share of the Growing Energy Efficient Lighting Market Taking Advantage of ALA Support Terry McGowan ALA Director of Engineering
108 Headlines ALA 2009 California Title 20 and Title 24 Federal Energy Legislation 2009 Natural Resources Canada (NRCAN) Lighting Summit UL/CSA UL1598 (Luminaires) New Edition UL 153 (Portable Electric Luminaires) UL 8750 (Light Emitting Diode Light Sources for Use in Lighting Products New Standard Mercury in CFLs
109 Headlines ALA 2009 ALA/NEMA Functional/Decorative White Paper (LEDs) Quality and Sustainability in Residential Lighting ALA Effort with the IES and the IALD Lighting for Tomorrow Program 2010 LED Luminaires Lighting Controls Residential Lighting Application Competition (Tentative) The GU-24 Socket Energy-Efficient Only
110 CFLs, remain the primary path to energy-efficient residential lighting.
111 Residential/Decorative Technology Time Line Now 5 Years Screw Base Sockets, Incandescent & Halogen Lamps Growth of CFLs (Medium Screw) SSL (LEDs) for Certain Applications GU-24 Socket Substantially Replaces Screw Base Full-Range Dimmers for CFLs and LED Systems SSL Applications Broaden Decorative Lighting SSL Costs Trend Downward Incandescent/Halogen Lamp Availability Impacted by State & Federal Legislation Practical LED Light Engines Available (Cost?)
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