LIGHTING IMPACTS AND OTHER DRIVERS FOR RESIDENTIAL PROGRAM INNOVATION IN 2019-2021 AND BEYOND - Presentation to the Energy Efficiency Advisory ...

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LIGHTING IMPACTS AND OTHER DRIVERS FOR RESIDENTIAL PROGRAM INNOVATION IN 2019-2021 AND BEYOND - Presentation to the Energy Efficiency Advisory ...
LIGHTING IMPACTS AND
 OTHER DRIVERS FOR
 RESIDENTIAL PROGRAM
 INNOVATION IN 2019-2021 AND
 BEYOND
 Presentation to the Energy Efficiency
 Advisory Council
► September 20, 2017
LIGHTING IMPACTS AND OTHER DRIVERS FOR RESIDENTIAL PROGRAM INNOVATION IN 2019-2021 AND BEYOND - Presentation to the Energy Efficiency Advisory ...
THE MASS SAVE® RESIDENTIAL PROGRAMS
ARE A TREMENDOUS SUCCESS

                              • MA ranked #1 on ACEEE’s State EE Scorecard
          Top Ranking           since 2011

                              • Numerous awards for products and new
             Awards             homes programs from ENERGY STAR®

                              • $1 billion in benefits on $325 million in
            Benefits            spending for 2016

                              • Saved 4 million lifetime MWh and 176 million
             Savings            lifetime therms in 2016

                              • Provided 348,572 full Home Energy
         Assessments            Assessments/audits in 2013‐2016

                              • Major role in transforming the lighting
  Market Transformation         market

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LIGHTING IMPACTS AND OTHER DRIVERS FOR RESIDENTIAL PROGRAM INNOVATION IN 2019-2021 AND BEYOND - Presentation to the Energy Efficiency Advisory ...
LIGHTING HAS BEEN A KEY FACTOR IN
 RESIDENTIAL PROGRAM SUCCESS
► Retail lighting program
  provided incentives for more
  than 30 million units in 2013-
  2016
► Promoted to customers in HES
  and multi-family marketing
► Comparatively inexpensive
  (next slide)
► Increasing lighting standards
  and introduction of LED
  technology dramatically
  accelerated transformation of
  lighting market

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LIGHTING IMPACTS AND OTHER DRIVERS FOR RESIDENTIAL PROGRAM INNOVATION IN 2019-2021 AND BEYOND - Presentation to the Energy Efficiency Advisory ...
RESIDENTIAL LIFETIME COST TO
 DELIVER BY ELECTRIC INITIATIVE 2016
                                $0.25
► At $0.02/kWh, the
  retail lighting
  initiative has the            $0.20
  lowest cost to
  deliver lifetime              $0.15
  savings of any
                        $/kWh

  residential
                                $0.10
  electric initiative
► The low delivery
                                $0.05
  cost at the sector
  level ($0.05/kWh)
  is largely the                $0.00

  result of this

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LIGHTING IMPACTS AND OTHER DRIVERS FOR RESIDENTIAL PROGRAM INNOVATION IN 2019-2021 AND BEYOND - Presentation to the Energy Efficiency Advisory ...
PERCENT OF ELECTRIC SAVINGS
          FROM LIGHTING
 Residential Lifetime Savings (MWh)                          Portfolio Lifetime Savings (MWh)
                 2016 Evaluated                                               2016 Evaluated
                         9%   Total Lighting = 82%
           18%       19%      (3,326,595 MWh)
                                                                               5%             Total Res Lighting = 23%
     3%
                                                                                        17%

                                                                                                 1%

                   60%

                 2017‐2018 Planned
                                                               77%
           17%
                         9%
                   13%
2%

                              Total Lighting = 83%
                              (7,080,515 MWh)
                   68%

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LIGHTING IMPACTS AND OTHER DRIVERS FOR RESIDENTIAL PROGRAM INNOVATION IN 2019-2021 AND BEYOND - Presentation to the Energy Efficiency Advisory ...
RISING BASELINES ARE ERODING THE
PAs’ ABILITY TO CLAIM RESIDENTIAL
LIGHTING SAVINGS
► Most of current in-place residential lighting is already efficient
 − 51% in 2016
 − 12% LED saturation
► Rapid commercialization of LED technology
► Federal standards have increased

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LIGHTING IMPACTS AND OTHER DRIVERS FOR RESIDENTIAL PROGRAM INNOVATION IN 2019-2021 AND BEYOND - Presentation to the Energy Efficiency Advisory ...
RESIDENTIAL SECTOR LIGHTING
    SPENDING IN 2016
              Lighting vs. Non‐lighting
           Residential Initiative Spending
                                                      ► Lighting   spending was $72
                        (2016)                          million in 2016 (incentive
                                                        costs only--include direct
                                                        labor)
                        Other                          − Unable to isolate some
                                                          lighting-related costs (e.g.,
              HES                                         marketing
Lighting

                                                      ► 33% of electric residential
                                    Non‐
                                  lighting
                                                        sector spending
                                                      ► 13% of total electric
              Retail
                                                        portfolio spending

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LIGHTING IMPACTS AND OTHER DRIVERS FOR RESIDENTIAL PROGRAM INNOVATION IN 2019-2021 AND BEYOND - Presentation to the Energy Efficiency Advisory ...
RESIDENTIAL GAS PROGRAM
   SAVINGS WILL NEED TO BE FURTHER
   ASSESSED AS WELL
  2018 Planned Lifetime Gas Savings                       ► No  single source of
                                                            savings comparable to
        (Eversource and National Grid)
                                                            lighting
                Water Behavior                            ► Expect negligible market
               Heating 4%
                 6%                                         and regulatory impacts
                                                            on savings in 2019-2021
   New                                                    ► Lighting loss could also
Construction                            Envelope            affect gas programs and
   17%                                    32%
                                                            savings given integrated
                                                            program delivery models

                   HVAC
                  Controls
                                   HVAC
                    18%
                                 Equipment
                                    23%

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BEYOND SAVINGS: PROGRAM DESIGN
IMPACTS OF NO LIGHTING

                  Impact to retail supply chain?
                  • $34 million in incentive costs in 2016

                  Impact to customer?
                  What is the significance of no cost lighting as a driver of HES customer
                  participation?

                  Impact to contractor?
                  • 1.4 million bulbs installed in electric audits in 2016; 40 bulbs avg. per audit
                  • Lighting is 73% of electric audit direct install (DI) incentive (includes labor
                    but not audit fees) costs ($385 electric DI/ $527 all DI)

                  Impact to multi‐family retrofit?
                  • See Consultants’ July EEAC presentation

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NOTE ON LIGHTING SAVINGS
 ASSUMPTIONS
► PAs and Consultants are in agreement that impacts
  on lighting in 2019-2021 will be dramatic
 − It is unlikely that claimable lighting savings will completely
   zero out starting in 2019
    • EM&V research indicates that certain parts of the market will
      likely still need support after 2018
 − For purposes of discussion related to program design only
   we assume that lighting savings will essentially be zero in
   2019-2021 to focus discussion on program design issues
   and a post- (or negligible) claimable lighting savings future
► The actual timeline and level of savings decrease will
  be time consuming and necessarily speculative and
  will need to be undertaken in coming months as
  savings goals are set

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RESIDENTIAL PROGRAMS ARE AT
A TURNING POINT

                                                        OR

                  ?
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OTHER FACTORS (BEYOND LIGHTING)
  DRIVING TIMELINESS FOR INNOVATION

► Need   for broader
  approaches to
  energy
  conservation and                        Market                Technology
  management                              Driven                 Enhanced
► Evolving customer
  approaches to
  capture energy        Customer                                                     Cost
  efficiency in whole    Centric                                                   Effective
  buildings                                           Potential
► Emergence of a                                       Vision
  technology-driven
  consumer
  marketplace

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JOINT GOALS/DESIRED OUTCOMES
 FOR MA RESIDENTIAL PROGRAMS
► While meeting the Green Communities Act mandates to achieve
  all cost effective energy efficiency and demand reduction:
 − Build off existing infrastructure of service providers where possible
 − Engage businesses and service providers across the supply chain in
   ways that address their value proposition, combining direct delivery of
   services with business to business relationships
 − Engage customers via multiple channels and across all home energy
   related transactions and be responsive to their desires and value
   proposition
 − Enable customers to understand, take control, and optimize their own
   energy use
 − Create a technology-enhanced engagement experience for customers
   and business partners
 − Maintain Massachusetts’ #1 ACEEE ranking for energy efficiency

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EVOLUTION OF WHOLE BUILDING
  APPROACHES
  • In the cycle of installing energy                                            • Fewer steps
    efficiency and improving their                                               • Expedite
    homes                                                                          approval process
  • Supports those preferring                                                    • Options for
    incremental improvements                                                       customers to
                                        Framework                                  choose own path
                                        that meets
                                                            Clearer path
                                        customers
                                                            for customer
                                        where they
                                        are

                                        More
                                        consistent
                                        rules,               Single path
                                        policies, and          option
• Esp. between HES and HVAC             procedures                               • Vendor providing the
• For customers and                                                                energy audit is also
  contractors                                                                      capable of delivering
• Includes incentives, delivery                                                    the full range of services
  channels, etc.

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NEW MEASURES/STRATEGIES:
 FUEL SWITCHING
► Broadly defined, and subject to DPU approval, could
  include switching from unregulated to regulated fuels:
 − Strategic electrification
 − Oil and propane conversions to natural gas
 − Replacement and displacement opportunities

            Heat pumps
            • Displace propane and maybe fuel oil                   Heat pump water heaters
            • Possible full replacement
              opportunities for furnaces                            • Replace propane and oil domestic
            • Need to consider summer and                             hot water
              winter peak impacts for both electric
              and gas

                                       All electric package option
                                       for new construction

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NEW MEASURES/STRATEGIES:
 ACTIVE DEMAND MANAGEMENT
► Wi-Fi thermostats
 − Focus on cooling: Central AC and heat
   pumps
 − Apply lessons learned to date from in-field
   PA demos and in-field programs across the
   country
► Control of other loads
  − Water heating, pool pumps,
    dehumidifiers and dryers
  − Promotion of demand enabled HVAC and
    appliances
► Storage and electric vehicles
 − Significant public and private investment in
    development of battery storage for active
    demand management purposes
 − Electric vehicles represent a new load that
    is growing quickly Lighting Impacts and Other Drivers for Innovation in 2019-2021
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TECHNOLOGY PLATFORMS AND
  INTERFACE MODERNIZATION
► Potential      benefits:
  − improve consistency in project and                         Tennessee Valley
    pipeline tracking                                       Authority Results in 1st
  − ease customer access by to user-                                  Year:
    specific data and information                              83% decrease in time
  − supply more self-service options to all                 spent on call center intake
    end users                                                    80% decrease in
  − support targeted marketing and                           incomplete applications
    outreach                                                         received
  − reduce administrative burden and                           25% decrease in time
    costs                                                    spent on assessments in
                                                                    the home
► Development already underway at
  Eversource and National Grid                                76% decrease in admin
                                                                 processing time
  − How can all customers benefit?
  −www.ma-eeac.org
     How can experience be  consistent?
                         Lighting Impacts and Other Drivers for Innovation in 2019-2021   | 17
MEASURE AND END USE-SPECIFIC
 IMPROVEMENT OPPORTUNITIES
► What challenges and opportunities exist within each
  that could be addressed in a revised program
  model? What innovations could go farther to remove
  silos?
 −   Heating and cooling equipment
 −   New construction
 −   Consumer products/appliances
 −   Lighting
 −   Behavior
 −   Underserved customers (renter, moderate income, other
     including HEAT Loans)
► To be addressed more fully at 10/24 workshop and in
  supporting briefing materials

 www.ma-eeac.org       Lighting Impacts and Other Drivers for Innovation in 2019-2021   | 18
SCHEDULE OF RES RELATED
    WORKSHOPS
Workshop Sector/#             Residential #1               Residential #2               Residential #3            Cross‐Cutting Issues
Workshop Date                    26‐Sep                       24‐Oct                        5‐Dec                  January/February

                       New Approaches in the Face                                New Approaches in the Face
                                                  Advancing/Enhancing
                       of Rising Baselines and                                   of Rising Baselines and    Drill Down on Cross‐Cutting
Main Topic                                        Existing Initiatives,
                       Other Trends: Challenge                                   Other Trends: Challenge    Issues
                                                  Approaches, & Measures
                       and Innovative Options                                    and Innovative Options

                       Potential Innovative         Potential Enhancement        Potential Innovative
                                                                                                              Potential Cross‐Cutting
Subtopic               Options to Explore in        Opportunities in Products    Options to Explore in
                                                                                                              Topics
                       Residential:                 and Service Delivery:        Residential:

                       Whole Home/Building          Heating & Cooling            Whole Home/Building          Data Collection &
                       Approaches                   Equipment                    Approaches                   Management
                       New Measures/Strategies:                                  New Measures/Strategies:
                                                    Serving Underserved
                       Renewable Heating/Fuel                                    Renewable Heating/Fuel       Active Demand Management
                                                    Populations
                       Switching                                                 Switching
                       New Measures/Strategies:                                  New Measures/Strategies:
                       Active Demand                Retail Lighting & Consumer   Active Demand
Discussion                                                                                                    Multifamily
                       Management, Storage,         Products                     Management, Storage,
                       Electric Vehicles, & Solar                                Electric Vehicles, & Solar
                       Data‐Driven Customer                                      Data‐Driven Customer
                       Acquisition and Engagement Behavior Programs              Acquisition and Engagement
                       Strategies                                                Strategies
                                                    New Construction
                                                                                 Low Income Programs

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QUESTIONS AND
DISCUSSION

                | 20
EXTRA RESOURCE SLIDES

                        | 21
RESIDENTIAL ANNUAL COST TO
DELIVER BY ELECTRIC INITIATIVE 2016

              $2.00
              $1.80
              $1.60
              $1.40
              $1.20
      $/kWh

              $1.00
              $0.80
              $0.60
              $0.40
              $0.20
              $0.00

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LIGHTING IMPACT ON COST TO
  DELIVER KWH SAVINGS
0.6                 2016 Cost To Deliver (CTD) HES Scenarios
0.5
0.4
                                                                             Retail Lighting
0.3
                                                                             HES With Lighting
0.2
                                                                             HES Without Lighting
0.1
 0
$/kWh     2013         2014           2015               2016
 − The HES CTD electric savings would increase 317% from
   $0.082/kWh to $0.27/kWh if lighting were eliminated from 2016 results
 − Residential sector CTD would increase from $0.05/kWh to $0.17/kWh
 − Portfolio impacts are much less increasing CTD by less $0.005/kWh
 − HES cost to deliver could increase further if other direct install
   measures were eliminated
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BROADER APPROACHES TO
 ENERGY EFFICIENCY
► Policymaker       and
 consumer
 attitudes,
 supported by new
 products and
 services, are
 driving new ways
 to address energy
 management

                               Example: ORNL’s AMIE demonstration project
                                   http://web.ornl.gov/sci/eere/amie/
                            Trending Ideas
    Beneficial Fuel Switching  Active Demand Management 
   Energy Storage  Renewable Generation  Integrated Electric
        Vehicles  Strategic Electrification  Resiliency 
  www.ma-eeac.org         Lighting Impacts and Other Drivers for Innovation in 2019-2021   | 24
EVOLVING CUSTOMER
 APPROACHES
► Customer  approaches and engagement strategies
 are evolving
− Performance-based
  options (California,
  DOER)
− Enhanced market
  engagement over
  entire supply chain
  (Tennessee Valley
  Authority)
− Incremental and
  staged energy
  improvements               Example: U.S. DOE’s Home Improvement Catalyst
                                          www.energy.gov/hicat

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TECHNOLOGY DRIVEN MARKET
► Intoday’s marketplace, technology supports a culture where
  consumers count on 24/7, on-demand, self-service options

             Past & Present                                            Future

              Example: SDG&E’s Energy Efficiency Business Plan 2018‐2025
   https://docs.wixstatic.com/ugd/0c9650_52c02da4469c4213b0974b412b3f85ad.pdf
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