NEW APPROACHES IN THE FACE OF RISING BASELINES AND OTHER TRENDS

Transcription

1 NEW APPROACHES IN THE FACE OF RISING BASELINES AND OTHER TRENDS Challenges and Innovative Options Residential Planning Workshop #1 September 26, 2017

2 RESIDENTIAL WORKSHOPS Residen'al #1 Residen'al #2 Residen'al #3 26-Sep 24-Oct 5-Dec New Approaches in the Face of Rising Baselines and Other Trends: Challenge and Innova've Op'ons Advancing/Enhancing Exis'ng Ini'a'ves, Approaches, & Measures New Approaches in the Face of Rising Baselines and Other Trends: Challenge and Innova've Op'ons Poten'al Innova've Op'ons to Explore in Residen'al: Poten'al Enhancement Opportuni'es in Products and Service Delivery: Poten'al Innova've Op'ons to Explore in Residen'al: Whole Home/Building Approaches Hea?ng & Cooling Equipment Whole Home/Building Approaches New Measures/Strategies: Renewable Hea?ng/Fuel Switching New Measures/Strategies: Ac?ve Demand Management, Storage, Electric Vehicles, & Solar Data-Driven Customer Acquisi?on and Engagement Strategies Serving Underserved Popula?ons Retail Ligh?ng & Consumer Products Behavior Programs New Construc?on New Measures/Strategies: Renewable Hea?ng/Fuel Switching New Measures/Strategies: Ac?ve Demand Management, Storage, Electric Vehicles, & Solar Data-Driven Customer Acquisi?on and Engagement Strategies Low Income Programs 2

3 TODAY S AGENDA 9:00 Introduction and Overview 9:20 Whole Home/Building Approaches 9:45 New Measures/Strategies: Renewable Heating/Fuel Switching 10:15 New Measures/Strategies: Active Demand Management, Storage, EVs, and Solar 10:45 Data-Driven Customer Acquisition and Engagement Strategies 11:10 Break 11:30 Innovative Options Cross-Cutting Break-Out Discussions 12:30 Report Out and Discuss 1:00 Public Comment 1:15 Adjourn 3

4 APPROACH TO INNOVATIVE OPTION TOPICS-E.G. WHOLE HOME/BUILDING APPROACHES Short presentation on Whole Home/Building Approaches background and innovative options EEAC Q&A on Whole Home/Building Approaches background and innovative options Brief discussion about Whole Home/Building innovative options (including whether there are other potentially significant innovative options that should be considered) 25 minutes for this topic here, then further EEAC discussion during break-outs 4

5 BREAK OUT FACILITATED DISCUSSIONS ON OPPORTUNITIES To what extent, are all 3 broad areas of potential innovative options important to pursue? Do the innovative options related to Whole Home/Building Approaches identified seem promising to the Councilors, and any more so than others (and why)? Do the innovative options related to New Measures/Strategies (including Renewable Heating/Fuel Switching and Active Demand Management, Storage, EVs, and Solar seem promising to the Councilors, and any more so than others (and why)? Do the innovative options related to Data-Driven Customer Acquisition and Engagement Strategies seem promising to the Councilors, and any more so than others (and why)? What additional information regarding the options you see as most promising would be useful? 5

6 CHALLENGES OF RISING BASELINES AND NEED FOR INNOVATIVE OPTIONS September 20 EEAC presentation recap 6

7 LIGHTING IS A SIGNIFICANT CONTRIBUTOR TO ELECTRIC RES SECTOR AND PORTFOLIO SAVINGS 2016 Res Sector: Total Ligh'ng=82% (3,326,595 MWh) 2016 PorWolio: Total Res Ligh'ng=23% 3% 18% 19% 5% 17% 1% 60% 77% 7

8 RES LIGHTING SPENDING WAS $72 MILLION IN 2016 WITH A LOW COST TO DELIVER 2016 Evaluated Residen'al Ligh'ng Spending 2016 Cost to Deliver Life'me Savings $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $/kwh $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 $0 Other Direct Install HES Ligh?ng Retail Ligh?ng Total Ligh?ng Spending 8

9 2016 LIFETIME ENERGY RESIDENTIAL SAVINGS SOURCES (MMBTU) With Ligh'ng Without Ligh'ng 2% 11% 8% 29% 16% 3% 22% 59% Total MMBtu = 60,573,906 50% Total MMBtu = 30,053,726 9

10 RISING LIGHTING BASELINES WILL NOT ONLY IMPACT SAVINGS, BUT PROGRAM DESIGN AS WELL Retail (big boxes, hardware stores, and more) Channel partners Customers HES Mul?-family Single measure rebates Lead vendors HPCs & IICs HVAC Contractors 10

11 THERE ARE OTHER FACTORS (BEYOND LIGHTING) DRIVING TIMELINESS FOR INNOVATION Need for broader approaches to energy conservation and management Evolving customer approaches to capture energy efficiency in whole buildings Emergence of a technology-driven consumer marketplace Customer Centric Market Driven Poten?al Vision Technology Enhanced Cost Effec?ve 11

12 WHOLE HOME/BUILDING APPROACHES 12

13 OVERVIEW AND CONTEXT Present HEA oriented process Direct Install focused HEA Prescrip?ve offers Separate HVAC channels Mul?-step loan process Future? Customer profile oriented process Sales focused site assessments Customizable offers Integrated HVAC Simplified loan process Streamline and update the customer s experience to create new savings opportunities Capture savings via multiple points of entry 13

14 OPPORTUNITIES FOR INNOVATION In the cycle of installing energy efficiency and improving their homes Supports those preferring incremental improvements Framework that meets customers where they are Clearer path for customer Fewer steps Expedite approval process Op?ons for customers to choose own path with clear guidance Between HES and HVAC For customers and contractors Includes incen?ves, delivery channels, etc. More consistent rules, policies, and procedures Single path op?on Single vendor provides energy audit and full range of services Op?on for customer to reduce agri?on points 14

15 EXAMPLE: MEET CUSTOMERS WHERE THEY ARE Eversource demo using HVAC channel to capture customers Promoting more comprehensive future program participation, and Working with the HVAC contractor business model PAs new Renovations & Additions Initiative TVA s program design is also based on this concept Any energy-related consumer transaction is an opportunity to engage with the customer and keep them on the path to do more 15

16 EXAMPLE: CONSISTENT PROGRAM RULES, POLICIES, PROCEDURES SDG&E s Energy Efficiency Business Plan for California prioritizes Integration of programs Single pathway engagement model supporting personalized recommendations (including behavioral) Shift away from rebatedriven engagement and measure-oriented offers 16

17 EXAMPLE: CLEARER PATH FOR CUSTOMER TVA s Energy Right Solutions: Captures customer data near real-time to expedite submittal, approval, and data QC processes Uses customer profiles and a scoring system to guide customer decision-making as they invest in energy efficiency over time TVA re?red their original program design in 2013 to focus on a customer-centric model 17

18 EXAMPLE: SINGLE PATH OPTION DOER s Home Energy Market Value and Performance (Home Energy MVP) pilot program Contractor-driven program design process Market oriented, wholehouse solutions (including renewables and beneficial electrification) Performance-based incentives Home energy scorecards 18

19 KEY CONSIDERATIONS Cost effectiveness More flexible screening methods (e.g. beyond measure level prescreening) Market Readiness New delivery models, products, and services; re-training; shift to sales-oriented production, etc. Quality Assurance Market-based networks may require different QA approaches Policy issues Uniformity of program requirements 19

20 SUMMARY OF INNOVATION OPPORTUNITIES A clearer path for the customer requiring fewer steps, expediting approval processes, and offering single path and incremental options More consistent rules (incentives, delivery channels, etc.) between weatherization and HVAC work, helping customers take full advantage of program offers while meeting their own goals A sales-oriented model for HES contractors in which the audit is approached as a loss leader to generate more savings opportunities based on the customer s specific needs including customization and trade-offs Integration with the contractor s business model establishing business-friendly systems and incentive structures and rewarding innovative solutions that appropriately meet the customer s needs 20

21 NEW MEASURES/ STRATEGIES Renewable Heating/Fuel Switching 21

22 OVERVIEW AND CONTEXT Subject to DPU approval, the Plan will include support for some forms of fuel switching Recent changes to Residential Conservation Services regulations clarify that fuel switching is anticipated and not precluded by existing statute Discussions ongoing as to scope of fuel switching Strategic Electrifica?on Fuel Conversion Solar Hot Water 22

23 OVERVIEW AND CONTEXT (CONT.) Fuel switching provides many potential benefits: Customer cost savings Net site and source energy savings Meeting the Commonwealth s greenhouse gas reduction goals under the Global Warming Solutions Act 23

24 OPPORTUNITIES FOR INNOVATION Principal focus is on switching to space and water heating equipment that is less expensive to operate, more efficient, and/or less carbon intensive Replacement scenarios Water heating Furnaces Displacement scenarios Typical when using ductless heat pumps 24

25 OPPORTUNITIES FOR INNOVATION (CONT.) New Construction Opportunity to develop and promote a low load, all electric Residential New Construction Initiative offering 25

26 COMPLEMENTARY ACTIVITIES IN MASSACHUSETTS Residential Conservation Services regulations were promulgated this summer Include fuel neutral rewards The Massachusetts Clean Energy Center (CEC) offers incentives for the installation of efficient clean heating and cooling technologies Mass CEC s communitybased HeatSmart Program (offered in partnership with DOER) The alternative Portfolio Standard (APS) establishes energy supplier goals for alternative energy systems that are not renewables 26

27 EXAMPLES FROM OTHER PROGRAMS: OTHER STATES Vermont s Solar Bonus Program Efficiency Maine PVs Fuel Switching Incentives targeting fossil fuel displacement Thermal Shell Improvements Connecticut is proposing to develop an all-electric residential new construction package for

28 KEY CONSIDERATIONS Policy Issues Clarifica?on from DPU that fuel switching can be supported using efficiency funds Determina?on of what cons?tutes fuel switching ac?vi?es that can be PA supported Program Design and Implementa'on How cost effec?veness results will inform ini?a?ve offers Develop incen?ve levels consistent with measure TRC costs Determine which ini?a?ves fuel switching should be offered through, and how Coordinate with and leverage Mass CEC and other efforts 28

29 SUMMARY OF INNOVATION OPPORTUNITIES: RENEWABLE HEATING/FUEL SWITCHING Propane and fuel oil space heating conversions to heat pumps Propane and fuel oil water heating conversions to heat pump water heaters Propane and fuel oil to natural gas conversions for water and space heating Development of an all-electric Residential New Construction package option and incentive 29

30 NEW MEASURES/ STRATEGIES Active Demand Management, Storage, Electric Vehicles, and Solar 30

31 OVERVIEW AND CONTEXT Increased focus on addressing peak demand impacts and savings opportunities through potential PA programs for: Ac?ve Demand Management Storage (Bageries) Photovoltaics Electric Vehicles 31

32 OPPORTUNITIES FOR INNOVATION: SCALE PA DEMAND DEMONSTRATIONS PA Demonstration Year Of Initial Deployment Evaluated National Grid WiFi Tstat DLC (Central A/C) Nest Rush Hour Rewards DLC for electric hot water, dryers, dehumidifiers 2016 Y Scheduled for deployment in 2017, but manufacturer s technology was not ready Cape Light Compact WiFi Tstat DLC (Central A/C) 2016 Y Behavioral 2016 Y DLC on DMSHP 2017 N Unitil Additional field work will inform scaling of demos Differing customer experiences with different thermostats (National Grid) Customer responses during hotter peak days (National Grid) No savings from initial Cape Light central AC effort High opts; shorten control period in 2017 Battery Storage for Existing PV systems Pending DPU approval N 32

33 ADDITIONAL ACTIVE DEMAND MANAGEMENT OPPORTUNITIES FOR INNOVATION Examine other control opportuni?es Addressable plug-in module, e.g., United Illumina?ng Co. (Connec?cut) control of room AC Assess role of connected appliances, HVAC, and water hea?ng equipment ENERGY STAR specs but not requirements for connected products Co-delivery of ac?ve demand management with efficiency efforts Can increase par?cipa?on and cost effec?veness Water hea?ng, dehumidifiers, dryers, and pool pumps Small propor?on of current ENERGY STAR offerings, but expected to grow Offer/install WiFi thermostats through HES, mul?-family, new construc?on, and HVAC ini?a?ves 33

34 POLICY AND MARKET DEVELOPMENTS ARE CHANGING THE LANDSCAPE ENERGY EFFICIENCY INHABITS Storage and photovoltaics (PVs) already supported by Commonwealth s policies and funds 200 Megawatt hour (MWh) energy storage target to be achieved by January 1, 2020 DOER has planned or has underway active demand management demonstration projects that will investigate: Battery storage and PV integration Direct control of electric vehicle battery chargers in residential setting What will be impact of estimated electric vehicle sales of 100k-150k in MA in ? 34

35 EXAMPLES FROM OTHER PROGRAMS (STORAGE) Green Mountain Power (Vermont) is promoting battery storage (Tesla Powerwall 2) to: Maximize onsite use of solar PV Utility controllable load for demand response. GMP refers to this as Shared Access Up to 8-12 hours of whole house back up in case of power outages 35

36 EXAMPLES FROM OTHER PROGRAMS (CO-DELIVERY OF PV) SolarWise Rhode Island National Grid offers no cost solar assessment in support of RI Renewable Energy Growth incentives as part of an energy efficiency assessment Up to 10% bonus based on efficiency upgrades made when they reach a set level of energy savings and properly size their solar array to their new, smaller electric load 36

37 KEY CONSIDERATIONS Program Delivery Opportuni?es to co-delivery mul?ple solu?ons Coordina?on with Mass CEC Address/clarify customer value proposi?on for storage Cost effec'veness of proposed efforts Impacts of revised AESCs Ways to improve cost-effec?veness, e.g., incremental to current efficiency efforts Commercializa'on status Are all of these opportuni?es currently ready for prime-?me? If not now, then when? Grid moderniza'on proceedings Time-varying rates Advanced metering infrastructure 37

38 SUMMARY OF INNOVATION OPPORTUNITIES: ACTIVE DEMAND MANAGEMENT AND STORAGE Wi-Fi thermostat control of heating and cooling loads Control of additional equipment Storage and electric vehicles as described below Storage incentives for active demand management Preliminary storage (and PV) assessments during the HES home energy assessments A combined solar PV/storage offer in collaboration with MassCEC Storage as a custom measure in the multi-family initiative An all-electric RNC initiative offer integrating storage 38

39 SUMMARY OF INNOVATION OPPORTUNITIES: ELECTRIC VEHICLES AND SOLAR PV Incentives provided for EV infrastructure such as more efficient charging stations EV owners as a market segment for targeted promotion of energy efficiency services EVs and smart-charging strategies for active demand management An integrated PV/storage solution Co-delivery of energy efficiency services with PV installation 39

40 DATA-DRIVEN CUSTOMER ACQUISITION AND ENGAGEMENT STRATEGIES Technology Platform and Interface Modernization 40

41 OVERVIEW AND CONTEXT Today s technology 1990 s technology Today s technology and software can improve: Customer engagement Contractor/Project management Program management Today s consumers want: Self service and customization options Real time access to their own information Other opportunities: Enhanced marketing Improved QA/QC Reduced costs 41

42 OPPORTUNITIES FOR INNOVATION Engage and on-board customers more efficiently, using a variety of entry points Reduce administrative costs and contractor burden Easy access by customers and contractors to user-specific data Increase participation by simplifying the process, mitigating attrition points, engaging customers over time Reduce cost and time of data collection for EM&V 42

43 EXAMPLE: TVA S ENERGY RIGHT SOLUTIONS Holistic customer engagement platform Retail, contractor, and direct program channels Year 1 (2015) Results: 25% increase in installations 83% decrease in call center time on customer intake 25% decrease in time spent on home assessment 76% decrease in admin time due to incomplete applications Homeowner Report In-field App Retail Kiosk 43

44 KEY CONSIDERATIONS Scoping and development time and costs Coordination of platforms across PA s Development of a universal Mass Save interface Market readiness Contractor/vendor training and access to devices Engagement with retail partners Policy issues Distinction between real-time tracking and evaluated program data (MSD) 44

45 SUMMARY OF INNOVATION OPPORTUNITIES Stakeholder input on how and what use of technology could improve their experience with Mass Save Lessons learned from upgrade investments by National Grid and Eversource Best practices regarding use of technology from Tennessee Valley Authority, Arizona Public Service, and other PAs from outside Massachusetts Development and funding of comparable and consistent technology experiences for all Massachusetts ratepayers and PAs by completion of plan period 45

46 BREAK OUT FACILITATED DISCUSSIONS ON OPPORTUNITIES (10) To what extent, are all 3 broad areas of potential innovative options important to pursue? (15) Do the innovative options related to Whole Home/Building Approaches identified seem promising to the Councilors, and any more so than others (and why)? (20) Do the innovative options related to New Measures/Strategies (including Renewable Heating/Fuel Switching and Active Demand Management, Storage, EVs, and Solar seem promising to the Councilors, and any more so than others (and why)? (10) Do the innovative options related to Data-Driven Customer Acquisition and Engagement Strategies seem promising to the Councilors, and any more so than others (and why)? (5) What additional information regarding the options you see as most promising would be useful? 46