E m e r g i n g Te c h n o l o g i e s S h o w c a s e December 19, 2012

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1 Smart Residential Thermostats E m e r g i n g Te c h n o l o g i e s S h o w c a s e December 19, 2012 Welcome. Today s webinar is being recorded and will be posted within days to: If you have any questions during the presentation, please submit them to us through either the Chat or Q&A windows on your screen. We ll go over these questions during the Q&A at the end of today s session. The webinar will begin momentarily. Thank you for attending!

2 Smart Residential Thermostats E m e r g i n g T e c h n o l o g i e s S h o w c a s e Gilbert McCoy, PE, WSU Energy Program Lee Hamilton, E Source Joel Smith, Puget Sound Energy December 19, 2012 S p o n s o r e d b y B P A s E 3 T P r o g r a m

3 Smart Residential Thermostats: Capabilities, Operability and Potential Energy Savings Gilbert A. McCoy, PE Energy Systems Engineer WSU Energy Program December 19, 2012

4 Northwest Building Stock Assessment Heating System Types Electricity is the primary source of space heating for 34.2% of the 4,023,937 single family homes in the Northwest. About 34.9% of all homes rely on wood or pellet stoves and fireplaces as a primary or secondary heating source. Heating System Type Percentage Forced Air Electric 6.1 Baseboard Electric 12.3 Air Source Heat Pump 11.4 Ground Source Heat Pump 0.8 Dual Fuel Heat Pump 1.2 Ductless Heat Pump 1.4 Plug-In Heater 1.0 (NEEA/Ecotope, 2012)

5 Northwest Building Stock Assessment Cooling Systems About 36.1% of homes in Zone #1 have cooling equipment while 85.4% of the residences in Zone #3 have cooling capability. Overall, 42.3% of homes have cooling equipment. Cooling System Type Percentage, all zones Package terminal air conditioner (PTAC) 5.7 Central AC 39.9 Air Source Heat Pump 31.6 Ground Source Heat Pump 1.7 Ductless Heat Pump 3.6 Evaporative Cooler 1.7 Window AC 15.7 (NEEA/Ecotope, 2012)

6 Energy Savings Vary Greatly (kwh) Electrical energy savings potential is greatest in households with central forced air heating and cooling systems that currently operate with a fixed temperature setpoint. Savings greatly decrease when the occupant correctly uses a programmable thermostat or manually sets back an old thermostat. Energy savings decrease when a backup wood stove is used. Energy savings are reduced when heat pumps are used. continued

7 Energy Savings Vary Greatly Electrical energy savings are reduced for homes with gas forced air heating but with cooling systems. Smart thermostats may not work well with zoned electrical baseboard heating systems. Electrical savings are not expected for residences with gas heating systems and no cooling system. Cost reductions are the electrical energy savings (kwh) times your local utility rate.

8 Energy Savings Dependencies Some studies show no statistically significant energy savings for households using programmable thermostats versus those using non-programmable models. Evaluations have shown that up to 2/3 of customers already practice conserving behavior by manually setting back their old thermostats. Source: Destined to Disappoint: Programmable Thermostat Savings are Only as Good as the Assumptions about their Operating Characteristics. ACEEE 2012

9 Northwest Building Stock Setpoints The average heating thermostat setpoint was 68.7⁰F. About 69% of the homes adjusted the thermostat down during sleeping hours (night setback) with the average setback being 6.5⁰F. The average cooling temperature setpoint was 73.5⁰F with an average temperature increase (setup) when the house is unoccupied of 9.6⁰F. Few households programmed in their cooling patterns. It is likely that most turn their air conditioning off during working or away hours. In addition to baseline temperature setpoints, energy savings would vary by square footage, climate zone, weatherization, solar gain, number of occupants and occupancy patterns.

10 The Baseline Technology The baseline technology for residential temperature control is a programmable thermostat. The WA state energy code requires: Seven day comfort control Four control periods per day (wake, day, evening, sleep) A minimum 5⁰F deadband between heating and cooling Vacation setback mode Auto-start with intelligent recovery Heat pump strip heat lockout capabilities

11 Barriers to Proper Use of a Programmable Thermostat Buttons/fonts are too small Abbreviations and terminology hard to understand Positioned in an inaccessible location Difficult to set time and date Poor feedback on programming Too technical LBNL, Thermostat Interface and Usability: A Survey, September, 2012

12 Barriers to Proper Use of a Programmable Thermostat (continued) Not enough pictures or diagrams Too time consuming, too detailed Unpredictable time at home makes programs useless Thermal feedback is delayed (thermal inertia) Special HVAC systems work differently than normal systems LBNL, Thermostat Interface and Usability: A Survey, September, 2012

13 Definition of a Smart Thermostat Has the capability to run programs for each day of the week and to specify temperature setbacks or setups during expected unoccupied periods Provide wireless external communications that may include internet connectivity with a PC and/or with mobile devices such as iphone, ipad and Android applications Surveys indicate that many users of smart thermostats desire automation features, weather information, and goal-setting assistance. Others want the thermostat to do the thinking for the owners and prefer a set and forget approach. E-Source, Can Smart Thermostats Rise from the Ashes of Their Programmable Predecessors, September, 2012

14 Smart Thermostat Features Interview-based programming (Honeywell Prestige 2.0, below) Self-learning (Nest) Displays trend information and provides energy tips Economizer functions/free cooling to minimize mechanical cooling (Venstar) Maintenance alerts Intelligent recovery/early on Humidity and outdoor temperature displays (ecobee) Energy optimization algorithms Interface with smart plugs, outlets, strips Provide home security benefits Interact with the Smart Grid Honeywell Prestige 2.0 voice-controlled thermostat

15 Maximizing User Interaction Thermostat designers are attempting to engage users through visual appeal and user friendly features. Venstar s ColorTouch WiFi smart thermostat (below right) allows users to download screensaver photos directly from an SD card. The thermostat can then serve as a digital picture frame. Ecobee offers accessories such as a scratch-resistant GelaSkin (below left) that allows purchasers to match the thermostat appearance with their home décor.

16 Web Portals Keeping the Homeowner Engaged The web portal is where the user goes to program their thermostat, change settings, view trends, and obtain energy tips. Programming is facilitated through offering of familiar drop-and-drag approaches. Nest (shown below) provides encouragement through the offering of green leafs when energy efficient setpoints are employed.

17 Built in Energy Savings Algorithms Ecobee s DataRhythm technology uses HVAC equipment type, historical run time, and weather data to make automated and optimized heating and cooling decisions. The result is additional energy and cost savings. E2MS s Emme (Energy Management Made Easy) Advanced Thermal Model is similar with their SmartZoning feature allowing users to separately set comfort control with a room-by-room display. The magnitude of additional energy savings due to the provision of these features is not known.

18 Information-Induced Behavior Change The EPA concluded that only the behavior saves, not the box. Opower provides a customer engagement platform for utilities with many (including SMUD, PSE, SCL) using their Home Energy Report services. Energy savings are in the range of 1.7% to 2.9%. Opower has partnered with Honeywell to motivate behavior changes and alter the way people think about energy.

19 Energy Management Services Delivery EcoFactor has developed a subscription service business model where they provide smart thermostats to utility customers. They don t entice customers to engage with their thermostat. They: Determine the thermal characteristics of a home and identify poorly performing HVAC systems. Automatically optimize performance for the customer Provide energy-savings recommendations, and document savings. A pilot program with NV Energy demonstrated peak demand reductions of 3 kw per household with cooling cost reductions of 13%.

20 Home Automation and the Smart Grid EnergyHub also works with households and utilities to provide demand side reductions and maximize energy efficiency benefits. Their Home Area Network can be used for whole house monitoring and individual appliance control. Smart thermostats can be integrated into home security systems, with alerts from occupancy sensors, glass break sensors, smoke and carbon monoxide detectors, door and window sensors, and video cameras with live streaming. Smart Grid capabilities include response to time of day pricing, and accommodating distributed generation, on-site energy storage, and electric vehicle charging.

21 Back to the Future Smart Thermostats Are Here Lee Hamilton, Senior Research Associate E Source

22 Let s Be Honest, We All Do This Source: Chris Bowyer

23 The Problem: No One Used Them Less than half of programmable thermostats are running setback programs Difficult to program Usability is poor Common misconceptions related to energy use Aesthetics Source: Andrew Zimmer

24 PCTs Hit Bottom Energy Star drops programmable communicating thermostat (PCT) labeling program in 2009 Utilities stop incentivizing programmable thermostats Source: Табуретка

25 The PCT Story Is Not Yet Over Energy Star exploring new Climate Control specification for thermostats Ability to create scheduled programs with four periods per day - morning/away/night/sleep Communications capabilities internet, mobile, etc. Utilities warming up to smart thermostats Reliant NV Energy National Grid Just Energy Gibson Electric Avista PG&E Mid-South Energy

26 The Players

27 Nest: The Media Darling Learns user s schedule Auto-away Energy-saving leaf Time to target Source: Nest Labs

28 Ecobee: The Canadian Contender Schedule-builder Usage history (15 months; full data if meter integration) Maintenance reminders Source: ecobee

29 Honeywell: Goliath s Entry Schedule-builder RedLINK Maintenance and diagnostic capabilities Source: Honeywell

30 Energy Hub: The Return of Mercury Cloud computing company Energy-saving motivators Strong demandresponse (DR) platform Source: EnergyHub

31 EcoFactor: The Optimizer Cloud computing company Constantly optimizes system performance Maintenance and diagnostics Strong DR platform Source: EcoFactor

32 What Can They All Do? Online connectivity Automatic programming Mobile apps Auto-switch between heat and cool

33 How They Stack Up: Demand Response

34 How They Stack Up: Energy-Saving Motivators

35 How They Stack Up: Usage History

36 How They Stack Up: Maintenance Alerts and Reminders

37 Results Product Demand response Energysaving tips Usage history Maintenance alerts Average Hardware Cloud Computing

38 Costs Product Cost Average Hardware $400 to 450 installed 1.00 $189 not installed 0.50 $500 to 700 installed 0.50 Cloud Computing $8 to 10 per month 1.50 $100 to 150 not installed 1.25

39 Utility Pilots Nest: Reliant EcoFactor: Reliant & NV Energy Energy Hub: Gibson Electric Membership Corp. and Mid-South Synergy Ecobee: National Grid, Avista, Just Energy, and Wisconsin Public Service Honeywell: Pacific Gas and Electric Co.

40 Summary There is no clear smart thermostat technology winner or best program delivery approach Products are fairly new and are rapidly evolving A huge advantage of the wireless approach is that thermostat software can be updated remotely when new enhancements become available Privacy and security issues are likely to arise as more smart thermostats are linked with the Smart Grid Consider smart thermostats that can easily be upgraded to respond to future end user requirements

41 Web-Enabled Programmable Thermostat Program Joel Smith Residential Energy Management Puget Sound Energy

42 Program Design Approximately 1,000 thermostat units to be monitored and verified for energy savings throughout the course of the program. 1,000 participants for Direct Installs 1,000 participants for Control Group Eligible Homes Dual fuel PSE customer Natural gas primary heat Single family home Broadband capability. Ineligible Homes Homes that heat with electricity Homes with electric 240 volt ( strip )heating Requires additional hardware Current Home Energy Report (Opower) customers

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44 Evaluation Approach Experimental design measurement and verification Rigorous surveys (web and phone) testing to: Track customer actions as a response to triggers and make modifications as appropriate to drive enhanced program results Assess overall customer engagement and customer satisfaction levels. Verify statistically significant therm savings

45 Support for Regional Opportunities PSE is open to additional exploration Regional approach Measure performance in electrically heated homes Preference for a retail model Please contact Joel offline if you have an opportunity or your utility is interested in exploring a new opportunity

46 Questions? Gilbert McCoy, PE Energy Systems Engineer WSU Energy Program Lee Hamilton Senior Research Associate E Source lee_hamilton@esource.com, Joel Smith Residential Energy Management Puget Sound Energy Joel.smith@pse.com,

47 Next Webinar Showcase January 23, 2013 at noon Pacific time More information about emerging technologies: E3T database: E3T Program: Conduit: