The Evolution of Energy Savings Programs – Residential November 29, 2018

Connecticut Department of ENERGY & ENVIRONMENTAL PROTECTION

Shelton

Connecticut Department of ENERGY & ENVIRONMENTAL PROTECTION

Big Picture: What is driving energy policy in CT?

3

1. Public Act 11-80: An Act Concerning of the Department of Energy and Environmental Protection and Planning for Connecticut’s Energy Future • Reduce rates and energy costs• Increase clean energy and supporting technology• Ensure reliability and safety of energy supply • Develop the energy-related economy

2. Public Act 08-98: An Act Concerning Connecticut Global Warming Solutions • Reduce greenhouse gas emissions to 10% below 1990 levels

by 2020• Reduce GHG emissions to 80% below 2001 levels by 2050 • Interim target of GHG emissions reduction of 45% below 2001

level by 2030 set by Governor’s Council on Climate Change

Connecticut Department of ENERGY & ENVIRONMENTAL PROTECTION

Big Picture: What is driving energy policy in CT?

4

Connecticut Department of ENERGY & ENVIRONMENTAL PROTECTION

Comprehensive Energy Strategies

5

1. Ensure sustainable and equitable funding for energy efficiency.

2. Advance market transformation of the energy efficiency industry.

3. Grow and sustain renewable and zero-carbon generation in the state and region.

4. Expand deployment of all cost-effective distributed generation (“behind the meter”) in a sustainable manner.

5. Continue to improve grid reliability and resiliency through state andregional efforts.

6. Reduce transportation greenhouse gas emissions by accelerating theadoption of low- and zero-emission vehicles and strengtheningalternative-fueling infrastructure.

7. Increase mobility, connectivity, and accessibility by advancing smart-growth, mixed-use transit-oriented development, and innovativetransportation partnerships.

8. Modernize the grid.

Connecticut Department of ENERGY & ENVIRONMENTAL PROTECTION

Opportunities for Residential Energy Evolution

6

1. Ensure sustainable and equitable funding for energy efficiency.

2. Advance market transformation of the energy efficiency industry.

3. Grow and sustain renewable and zero-carbon generation in the state and region.

4. Expand deployment of all cost-effective distributed generation (“behind the meter”) in a sustainable manner.

5. Continue to improve grid reliability and resiliency through state andregional efforts.

6. Reduce transportation greenhouse gas emissions by accelerating theadoption of low- and zero-emission vehicles and strengtheningalternative-fueling infrastructure.

7. Increase mobility, connectivity, and accessibility by advancing smart-growth, mixed-use transit-oriented development, and innovativetransportation partnerships.

8. Modernize the grid.

Connecticut Department of ENERGY & ENVIRONMENTAL PROTECTION

1. Ensure sustainable and equitable funding for energy efficiency

7

Implement sustainable funding for energy efficiency

Find equitable solutions for oil and propane conservation

Reduce the energy burden of low-income households

Address health and safety barriers to further unlock efficiency and create healthier homes

Catalyze the competitiveness of Connecticut’s businesses with increased energy productivity

Connecticut Department of ENERGY & ENVIRONMENTAL PROTECTION

2. Advance Market Transformation of the Energy Efficiency Industry

8

Integrate energy efficiency with real estate market forces.

Develop a sustainable workforce to meet industry demand

Standardize efficiency with energy performance codes, standards, and certifications

Transition to cleaner thermal fuels and technologies

Connecticut Department of ENERGY & ENVIRONMENTAL PROTECTION

Modernize the Grid

9

Initiate grid modernization proceedings

Integrate efficiency, storage and renewables to manage peak demand

Ensure interoperability of demand response communications between buildings and the grid

Apply best practices from the federal Grid Modernization Lab Initiative

Evolution of Energy Savings Programs – Residential

(Single Family)

November 29, 2018

Diane Del Rosso, Eversource

Home Energy Solutions – Now

Insulation

Windows

LEDs (CFLs in the past)

Air Sealing & Duct Sealing

HVAC

Program metrics helped achieve greater savings per home

HES Visits Completed, Oil Prices& Contractors

1,226 961 1,210 1,282 1,186 1,142 995

3,472 3,221

4,147 3,169 3,633

4,410 3,480

9,668

8,091

10,599

7,277 6,505

6,832

4,334

520

488

756

623 571

628

480 24

25 25

19

43

40

36

0

5

10

15

20

25

30

35

40

45

50

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2012 2013 2014 2015 2016 2017 2018*

Electric Gas Oil Propane # of Contractors *2018 Estimated

Oil Price: $3.96 $3.81 $3.52 $2.42 $2.30 $2.67 $3.47

Co-payment, Project Costs& Annual Savings

$75 as of 2011

$99 as of 7/1/14

$124 as of 9/1/16$149 as of 9/1/17

$149 E & G,$174 O & P as of 6/1/18

Project Cost $1,000 with lighting

.

$200 Annual savings with lightingProject cost $750 without lighting

.

$115 Annual savings without lighting

Home Energy Solutions – Future

Insulation

Windows

Air Sealing & Duct Sealing

HVAC

SF Program Delivery

All qualified vendors deliver full weatherization assessment on first visit– Approximate 30% failure rate due MVG or other health

and safety concern– As vendor network increases, competition for services

increases

Homes that are older should be targeted for weatherization services– These homes also have health and safety barriers– Need to increase homes served

Customer Acquisition andthe Contractor Network Residential sector needs energy efficiency

– What services resonate with the customer?

Residential customers seek other home improvement services before energy efficiency– What’s the opportunity for more significant partnerships with

other industries to help drive demand?

Air sealing and duct sealing are important energy savings services– How do we evolve the current model to increase the

number of customers served?

Residential Solar Investment Program

RSIP Progress240 MW toward 300 MW target

18

CGB Launched

REFERENCESResidential Solar Investment Program (RSIP) Market Watch Report of June 21, 2018 by fiscal year (July 1 through June 30). Total System Cost per Watt figures include all reported installed costs without including those projects where financing costs for some third party ownership installers are included as part of the total system cost.

48.8 MW or 5971 projects approved in FY18

RSIP Incentive DistributionFY 2012-2018, Percentage and # of Projects

REFERENCE: RSIP data as of July 16, 2018, by fiscal year (July 1 through June 30)

Residential Solar PV in CTConnecticut is an income “parity” state for solar

REFERENCE: Residential Solar Investment Program (RSIP) Market Watch Report of July 16, 2018 by fiscal year (July 1 through June 30)

Mobilizing Investment for AllResidential Solar PV Markets by AMI

AMI Band # of Solar PV Projects

Owner Occupied HH

(1-4 Units)

% Projects in Owner Occupied

HH

<60% 2,339 60,769 3.9%

60-80% 3,453 99,220 3.5%

80-100% 5,091 165,331 3.1%

100-120% 6,485 187,463 3.5%

>120% 10,421 345,311 3.0%

Total 27,790 858,094 3.2%

RSIP has achieved more than income parity, with the highest penetration in the <60% AMI band at 22% more than the overall market, and 9% higher penetration in the 60-80% AMI band than the overall market

REFERENCE: RSIP data as of June 30, 2018, by fiscal year (July 1 through June 30)

21

Financing Solutions

▪ HES Micro Loan▪ Energize CT Heating Loan▪ Smart-E

– Contractor funded IRBs▪ Manufacture financing

Stories of Innovation

▪ Solar and efficiency▪ Home performance and heat

pumps▪ HVAC and Solar▪ Home Performance with a focus

on health and safety remediation