overcoming hurdles to multifamily energy efficiency programs
DESCRIPTION
Learn about Puget Sound Energy's success with Multifamily Energy Efficiency Programs.TRANSCRIPT
Overcoming Hurdles to Multifamily Energy Efficiency Programs: How Puget Sound Energy Simplified Design to Maximize Results
Hosts: John Forde, Residential B2B Market Manager, Puget Sound Energy Janice Boman, Utility Solutions, EcovaFebruary 5, 2014
Puget Sound Energy
Serves Approx: 1.1 million electric 750,000 natural
gas customers 240,000 apartment units
in utility service area
National Multifamily Savings Potential
Housing Stock 16 million renter-occupied
apartments & condos with 5+ units
Consuming 15.6% of US energy annually
Building owners & tenants spend $22 billion in 2009 on energy costs
Average cost of $1,141 per household
National Multifamily Savings Potential
Internal Barriers
Traditional utility program silos do not fit the hybrid residential-commercial reality of the multifamily marketplace
Utility rate schedules complicate weatherization with split tariffs
Program complexities range from directly installing lamps to engineering analysis
External Barriers
Multifamily property owners lack capital to invest in energy efficiency
There is confusion regarding energy efficiency options & where to begin
They hesitate to invest without direct benefit (split incentive – owner invests & tenants realize the benefits)
Trade Allies frustrated with utility program silos
Building a Seamless Customer Experience – Internally
First, PSE needed to improve internal utility collaborations
To do this we:
− Established a single utility point of contact
− Consolidated multiple programs into one approach to better fit the customer needs & increase results
• Measures often crossed between commercial, industrial & residential groups creating confusion for the customer
• Utility program structure was addressed to create a more unified approach to customers & maximize savings
Building a Seamless Customer Experience – Externally
Next, PSE needed to change regulatory rules
To do this we:
− Created a single tariff that included both commercial & residential multifamily measures
• This streamlined everything from extra paperwork to meter servicing
− Utility legislative-liaison staff supported the argument that complex measures will only make ratepayers feel they are getting inadequate utility service
− Commercial customer-interest group buy-in was key to getting the changes off the ground
Direct Install Measures:• CFLs/LEDs• Energy-efficient
showerheads• Faucet aerators• Pipe wrap• Refrigerators• Clothes washers
From Direct Install to Capital Improvements
PSE hired Ecova to assist in design & implement the program
Together we identified measures & incentive levels to simplify owner, contractor & tenant participation
New program allows for a better overall customer experience
Direct install measures opens the door to greater savings potential
Relationships are Key!
We earn trust with property owner as a result of the site assessment & direct install measures & that opens the door to more comprehensive measures
Teaming with Trade Allies
We rely on contractors as our sales arm for the program Breaking down utility silos to unite our program offerings
also required a shift in our contractor network collaboration
We did this by:− Involving utility program managers & contractors to develop an
approach to better serve customers − Developing a system for contractors to collaborate across industries
to prepare a simple, consolidated & (faster!) bid for the customer− Improving the overall customer experience to gain more savings
while impacting the bottom line for our ally network− Launching the Contractor Trade Ally Network (CAN)
Tier 1 Tier 2
Participating contractors have increased revenue potential through a more streamlined customer experience!
Contractor Alliance Network
Must attend PSE training Must provide PSE customers
with instant rebates Can receive PSE referrals Eligible for PSE co-branding
& marketing opportunities Must meet PSE performance
criteria
Must attend PSE training May provide PSE customers
with instant rebates Will not receive PSE referrals Eligible for PSE co-branding &
marketing opportunities Must meet PSE performance
criteria
Barriers Addressed with Comprehensive Multifamily Retrofit Program
Weatherization & EE upgrades now bundled into one comprehensive program
Single utility point of contact
Regulator program support for one tariff
Trade-ally partnerships across industries
Contractor Alliance Network development
Puget Sound Energy Results
94,333,000 kWh
291,664 therms
4,463 projects completed
1,310 properties served
76,297 units with direct installed measures
900,000 CFLs installed
Results cont…
42,000 pieces of water heater pipe wrap installed
1.1 million sq. ft. of windows replaced
10 million sq. ft. of installed attic, floor & wall insulation
56 boilers replaced
10,000 advanced power strips distributed
Bigger Goals, Broader Challenges
For the 2014-15 biennium, the utility plans to achieve more than 45 million in kWh savings & 224,000 in therms
Adding new measures with a customer education component
To achieve this, we plan to continue our “one-touch” visit to maximize savings for the program, contractors & our customers
In addition to high customer satisfaction rates, the program achieved a rate of
35% multifamily market saturation
Thank You