overcoming hurdles to multifamily energy efficiency programs
DESCRIPTION
Learn about Puget Sound Energy's success with Multifamily Energy Efficiency Programs.TRANSCRIPT
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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
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Puget Sound Energy
Serves Approx: 1.1 million electric 750,000 natural
gas customers 240,000 apartment units
in utility service area
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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
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National Multifamily Savings Potential
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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
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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
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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
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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
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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
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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
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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)
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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
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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
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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
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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
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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
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Thank You