Cool Choice - Commercial HVAC Northeast Energy Efficiency Partnerships

Transcription

1 Program Synopsis Cool Choice is a regional HVAC initiative organized by the Northeast Energy Efficiency Partnership (NEEP). The initiative's strategy is to engage HVAC installation contractors in the Northeast, encouraging them to upsell high efficiency units to their customers. Incentives are designed to cover 100% of incremental cost of energy efficiency AC systems, up to 30 tons. NEEP pulled over a dozen utilities together to participate in the program. NEEP developed a regional application form and coordinates and markets the program. Utilities primarily pay the incentives. The implementation contractor (which includes circuit riders) promotes the program to contractors, who in turn reach out to customers to identify leads and enroll customers in the program. Program Type Incentive PrescriptiveRebates CustomIncentivesSPC BillCreditsRateDiscounts Services DirectInstallation FinancingLoansLeasing FreeMeasures InHousePlusSubs IncentiveOther Information and Training GeneralEducation MailAudit TelephoneAudit OnSiteAudit OnLineAudit DesignAssistance FeasibilityStudies EndUserTraining TradeAllyTraining Program Focus Primary Market Events Targeted AllMarketEventsTargeted NewConstructionRenovation ExistingConstructionAll ExistingConstructionRetrofit ExistingConstructionNaturalReplac ExistingConstructionEarlyRetire Primary Program Focus EndUser SupplySide EndUserAndSupplySide Residential End User Target Markets ResidentialALL SingleFamily MultiFamily MobileHome - 1

2 LowIncome ResOther Commercial/Industrial End User Markets Commercial All Offices Retail Restaurant Public (govt.) Facilities Grocery Store Health Care Education Lodging (Hotels/Motels) Warehouses Industrial All Other Market Barriers End User Supply Side Information or Search Costs Performance Uncertainties Asymmetric Information and Opportunism Hassle or Transaction Costs Hidden Costs Misplaced or Split Incentives Product or Service Unavailability Externalities Non-Externality Pricing Inseparability of Product Features Access to Financing - 2

3 Bounded Rationality Organizational Practices or Customs Irreversibility Other End User Other Supply Side Supply Side Actors Targeted SupplySideActorNotProgFocus AorEFirms Manufacturers Realtors Developers Builders Contractors TradeAssociations WholesalersDistributors Retailers EnergyServiceCompanies NonProfitNotForProfitGroups Govt Other Types of measure/end use technologies ALL MEASURES HVAC High Efficiency DX/HP High Efficiency Chillers High Efficiency Room/Terminal Economizers Control Systems Variable Speed Drives Occupancy Sensors Duct Sealing and Balancing Equipment Testing/Tune-up Commissioning Lighting Compact Fluorescents Electronic Ballasts Reflector Systems Efficient Fluorescent Lamps (T-8, T-5, etc.) Lighting Controls Occupancy Sensors High Intensity Discharge Day lighting - 3

4 Retro-commissioning Space Heating Heat Pump Unitary AC & split systems Water Heating Load Control (Cycling) High Efficiency Insulation Blankets Low-Flow Showerheads Low-Flow Aerators Solar Assisted Motors High Efficiency Variable Speed Drives Industrial Process Compressed Air Motors Pumps Applicances Refrigerators Dish Washers Clothes Washers Clothes Dryers Office Equipment Plug Load Building Envelope Insulation Infiltration Control Glazing and Glazing Control Windows Refrigeration High Efficiency Controls Variable Speed Compressors Multi-Stage Compressors Commissioning Other (specify) - 4

5 Program Context Program started in 1998, began full-scale implementation in Since then, list of sponsors has changed but regulatory policies have not. Program Components Program Management Utilities have new construction, market transformation, and retrofit programs that piggy-back on Cool Choice with HVAC components. NEEP pulled utilities together and developed regional application form. NEEP's role is to coordinate sponsors, facilitate communication, host meetings re marketing materials, plans, etc. NEEP distributes application forms to vendors (mostly HVAC contractors and aequipment distributors) and conducts other marketing and outreach activities.marketing communications specialist (contractor) built the website and prepared marketing materials.neep manages the implementation contractor, who employs four circuit riders to provide outreach to contractors and distributors, along with technical support and sales training. One circuit rider deals with higher level people at chain accounts to inflence their decision making utilities partcipated in the program, serving customers in Connecticut, Massachusetts, New Jersey, Rhode Island, Vermont. Utiltities/administrators pay the incentives, do some outreach, may combine with broader programs. Individual companies use the CoolChoice logo and program info for their own mailings and marketing. Annual filings, approvals, etc. to their regulators are separate. Implementing Organization Utility Nonprofit Govt Private IOOther Implementation Structure InHouse TurnkeyContractor InHouseAndSubcontractors Other Reporting and Tracking Program uses tracking system information to monitor milestone accomplishments, expedite incentive payments, cut checks, and prepare reports for regulators and upper management. NEEP receives monthly report from implementation contractor, which he passes through to utilities. Utilities meet 3-5 times per year to review performance, make adjustments. Verification and Quality Control Individual utilities handle QC/verification, utilities inspect some or all sites. Participation Process Implementation contractor outreaches to contractors, who in turn outreach to customers. HVAC contractors and wholesalers/distributors identify leads, enroll customers in the program. Utiltiies do some marketing. McGrann does some outreach to national accounts, through trade shows, etc. Contractor and customer decide who fills out application, who gets rebate etc. - 5

6 Outreach, Marketing and Advertising Program is marketed to contractors and distributors through circuit riders. There is also a broader marketing effort involving mailings to customers and contractors, presentations, association meetings, and trade shows. Approximately three-fourths of marketing budget, goes to circuit riders and the remainder goes to broader marketing. Installation and Delivery Incentives are designed to cover 100% of incremental costs for purchasing and installing energyefficient air conditioning system, up to 30 tons. Energy efficiency tiers correspond to CEE specs. Tier 1 is now code in New Jersey. Program also offers a stocking incentive to distributors to encourage them to stock energy efficient models. Program Evaluation PA Consulting (2001) mentions lack of data to estimate program benefits, including lack of baseline data on the efficiency of equiopment that ould have been installed without the program, typical full load operating hours. Recommendation 1: regional market assessment.recommndation 2: expand existing marketing activities to cinlude more cooperative training with manufacturers and distributors amd more trade shows. Do not rely solely on one-on-one marketing.recommendation 3: target national chanisrecommendation 4: allow rebates to go to either the customer or the HVACcontractorRecommendation 5: increase promtion of the stocking incentive programrecommendation 6: develop and track performance indicators for the program that reflec the objectives of the program relative to market transformation and resource acquisitionrecommendation 7: place more emphasis on Tier 2, since Tier 1 is becoming coderecommendation 8: Review approach for targeting HVAC contractors and distributorsrecommendation 9: Review tracking system to streamline it Quantitative Data Participation rate is available Cost Breakdown is available Net Savings Breakdown is available Net-to-Gross is available Total Resource Cost Data is available Quantative Data Summary: Quantitative Data is available. List Of Key Sources - 6

7 Bebrin, David (Program Manager, Northeast Utilities) Best Practices In-Depth Interview, Cool Choice Program. October 30. Betkoski, John DPUC Review of The Connecticut Light and Power Company s and The United Illuminating Company s Conservation and Load Management Programs and Budgets for Year 2004 and New Britain, CT: State of Connecticut Department of Public Utility Control. Connecticut Energy Conservation Management Board Energy Efficiency: Investing in Connecticut s Future. Hartford, Ct.: Connecticut Legislature Energy & Technology Committee and Environment Committee Connecticut Light and Power Company, United Illuminating Company Conservation and Load Management Plan Years New Britain, Ct.: Connecticut Department of Public Utility Control. Consortium for Energy Efficiency CEE Commercial Air Conditioner and Heat Pump Equipment Database. Davis Energy Group Guidelines for Energy-Efficient Commercial Unitary HVAC Systems. Boston, Ma: Consortium for Energy Efficiency Energy Conservation Management Board Energy Efficiency: Investing in Connecticut s Future. New Britain, CT: Connecticut Department of Public Utilities. Fox, Jeanne M Annual Report: A Year of Achievement. Newark, NJ: New Jersey Board of Public Utilities. Lynn, Jonathan (Program Manager, Northeast Energy Efficiency Partnerships) Best Practices In-Depth Interview, Cool Choice Program. November Cool Choice High- Efficiency Commercial Unitary HVAC Initiative website. Contact Information Name Title Company Phone Dave Bebrin, Jon Linn Northeast Utilities, CL&P (0) 0 Ext. - 7