TRC's Juliann Summerford and Mark Lorentzen discussed multifamily energy efficiency programs at the 2014 AESP Conference.They addressed expanding upon existing multifamily program channels to encourage deeper and ongoing energy savings by incrementally expanding post-construction program offerings.
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Deep and Continuous Savings: Engaging the Multifamily Market throughout the Building Lifecycle
1. Deep and Continuous Savings:
f
Engaging the Multifamily Market throughout the
Building Lifecycle
Julieann Summerford
Mark Lorentzen
TRC Energy Services
January, 2014
2. Discussion Points
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State of the multifamily market
Why we must serve multifamily?
Current multifamily market offerings
Program barriers to deep energy savings
Framework for deeper energy savings
Framework for continuous engagement
Emerging building technologies
Where to next?
4. State of the Multifamily Market Sector
Multifamily
23%
77%
Multifamily
25 million
Single Family 87 million
Total Homes 112 million
5. State of the Multifamily Market Sector
Multifamily Buildings (5+ units ) Density
Source: ACEEE Engaging Partners in Energy Efficiency: A Primer for
Utilities on Energy Efficiency Needs of Multifamily Buildings and Their
Owners
6. Diverse and Complex Market
Ownership
• Non-profit
• Large
corporation
• Mom and pop
• Condos and
coop
Meter
Structure
• Master metered
• Individually
metered
• Advanced submetering
MULTIFAMILY
HOUSING
Rental
Market
Building
Type
• For rent
• Market rate
• Affordable
Building
Size
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• Low-rise
• Mid-rise
• High-rise
Garden style
Townhouses
Apartments
Dorms
Assisted Living
Transitional
8. Why Important to Serve Multifamily?
Under-served market
•
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40% of metropolitan areas do not offer programs
Program investment disproportionate
Lower transaction costs
•
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Economies of scale compared to single family
Serve numerous households in one transaction
Potential Savings
•
Potential energy savings by 2020:
– 51,000 GWh of electricity = 20 average size coal power plants
– 2,800 million therms of natural gas = non power plant therm usage of
California, Oregon, and Washington
– $9 billion in savings for property owners and tenants
Energy Efficiency and its Relationship to Housing Income in Multifamily Rental Housing,
University of Arizona
Scaling Up Multifamily Energy Efficiency Programs, ACEEE
US Multifamily Energy Efficiency Potential by 2020, Energy Foundation
10. National Multifamily Program Study
NYSERDA Multifamily Program Research and Comparative
Analysis
Data on 50 multifamily-specific energy efficiency programs
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Research Categories:
- Program characteristics
- Performance data, as available
Sources: Program websites, marketing materials, published
program data, evaluation reports, and third party reports (e.g.
ACEEE)
Emphasis on larger, more sophisticated programs
11. National Multifamily Program Study
Study Reviewed 50 Programs
Puget Sound Energy •
Energy Trust of Oregon •
Focus on Energy • Energy
Outreach Colorado •
Resource Smart •
Ameren • Indianapolis
Power & Light Company •
ComEd • Nicor Gas • CNT
Energy • Illinois Dept. of
Commerce & Economic •
MD Dept. of Housing &
Community Development
Opportunity • DC
Sustainable Energy Utility
• Seattle City Light •
Efficiency Vermont
• AEP SWEPCO • AEP Ohio • DTE
Energy • Consumers Energy • Alliant
Energy • Connecticut Energy
Efficiency Fund • Georgia Power •
Questar Gas• NH Saves • PECO
NYSERDA • ConEd •
RG&E / NYSEG •
National Grid • Mass
Save • PSE&G • NJ
Green Homes Office •
Efficiency Maine •
Arizona Public Service •
PPL • Entergy Arkansas
• MidAmerican Energy •
Black Hills Energy •
Austin Energy • Oncor •
BayREN • SoCalREN •
PG&E • SDG&E • SoCal
Edison • SoCal Gas •
SMUD • PA Housing
Finance Authority
*Note: green shading mark states where a program included in study is located; those programs may not be
state-wide
12. National Multifamily Program Study
Program Categories
• Direct Install – free installation of basic measures
• Rebates –individual, a la carte upgrades
• Whole Building – minimum savings requirement
and/or a mandate to upgrade a substantially all
systems in building
• Other – alternate delivery methods
13. National Multifamily Program Study
Distribution of 50 Programs, by Program Type
8 program offer
rebates only
(16%)
14 programs offer a
combination of
rebates and direct
install (28%)
11 programs offer
whole building,
rebates, and direct
install options (22%)
14. National Multifamily Program Study
Whole Building Programs
• Many whole building programs are offered for new
construction only
– % over baseline: ENERGY STAR, energy code
• Whole building programs for existing buildings gaining
traction
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NYSERDA
– Austin Energy (launching Whole
Building Retrofit option fall 2013)
Efficiency Maine
– MD Department of Commerce &
Focus on Energy (WI)
Economic Opportunity (Whole
California utilities - PG&E, SCE,
Building focus to achieve 15% savings,
SCG, SDG&E, SMUD
unclear if this is a mandated target)
– Mid-American Energy (Iowa)
– Energy Trust of Oregon (Affordable
Housing only)
15. National Multifamily Program Survey
Trends
• New multifamily-specific programs launched
• Predominantly single measure rebates
• Direct install common
• Few require minimum savings levels
• Whole-building gaining traction
17. Barriers to Deep Savings
Program Silos
• Limit funding to serve either in-unit or common area (rarely both)
• Deter property owners from engaging in more than one program
– Time and hassle to owners
– Differing requirements (applications, tools, building simulation, etc.)
Market Confusion
• Multiple programs compete for the same customer
• Owner or their agent forced to navigate through offerings
Cost Effectiveness Requirements
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Measure level or package level that may make no sense
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•
TRC test not designed to be used at the measure level
Prohibit from investments in measures needed
18. Barriers to Deep Savings
Split Incentive
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Owner invests, tenant benefits - 90% individually metered
Lack of Available Data
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Billing data informs investment decisions
Lack of Confidence in Estimated Savings
Dwindling Cost Effectiveness
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New construction: evolving codes, fewer cost-effective options
Retrofit: diminishing returns – baseline code vs. existing conditions
Changing Programs or Short Program Cycles
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Do not align with capital planning and construction timeframes
Trade allies concerns about changing programs
20. Framework for Deeper Savings
Offer a Full Service, Customer-Solution Oriented Program
Integrated, full suite of solutions via single entry point
– Weatherization, direct install, prescriptive, customer, whole-building,
renewables, benchmarking, operations and maintenance, tenant behavior
– Consumers Energy (MI) Multifamily Energy Solutions
• Direct install, prescriptive, custom, and whole-building options
• Single entry point: energy advisor
– San Diego Gas and Electric (SDG&E®)
• Single entry point for prescriptive and whole-building
• Coordination with low-income, direct install program
– Puget Sound Energy Comprehensive Multifamily Retrofit
Program
– Mass Save Multifamily Buildings Programs
21. Framework for Deeper Savings
Offer a Progressive Incentive Structure
– Escalating incentives commensurate with savings/ investment
• Owner, builder, partner, rater, energy consultant, trade ally
– Multi-measure bonuses
– Incentives for achieving actual savings targets
– NYSERDA Multifamily Performance Program
• Baseline incentive for 15% savings
• Tiered performance payments in relation to savings
• Incentive for achieving actual proven savings
– PG&E California Multifamily New Homes Program
• Escalating incentives from 15% ($/unit energy savings)
• Energy consultant incentives ($50/unit),HERS ($60/unit)
22. Framework for Deeper Savings
Offer Bundling or Multi-Measure Options
• Hybrid whole building and prescriptive
– Provide upfront transparency of measures, savings,
incentives
– Enable deep savings through streamlined property
assessment
– Encourage prescriptive projects to deeper savings
24. Why Continuous Engagement?
The average business spends six times more to attract new
customers than it does to keep old ones
Efficiency Program Managers / team tend to be focused on winning new customers.
Why? Because if cost effective work is already done we move on.
• Why should we be focused on existing customers?
• What products can we sell to our current customers?
• What are some examples? Now? Future?
• How do we sell to our existing customers?
• What is the sales process? message? infrastructure?
25. Framework for Continuous Engagement
What products are offered after project completion?
1. More of the same - Multifamily buildings owners and property
management firms tend to own / manage multiple buildings
2. Operations and maintenance training
3. Performance Incentives for increased savings
4. Behavioral programs / technology
5. New emerging technology
26. Strategies for Continuous Engagement
Selling the same program to existing customers
– NYSERDA Multifamily Programs (NY)
• Aggressive campaign to sell to owners / managers of portfolios
• Using a key accounts strategy
• “Key account reps” have CRM with detailed customer data
“Mr. Jones, we are seeing that your property at 123 Main Street
is saving $145,000 per year. Are there any other properties…”
• Employing a typing tool to tailor messaging
– SCE Multifamily Audit Program – Energy Upgrade CA
• Aggressive campaign to owners / managers of portfolios
• Initial triage of portfolio – rank and prioritize
• Direct properties to best program fit– from direct install to
prescriptive to whole building
27. Framework for Continuous Engagement
Offer Operations and Maintenance Training
• Offer training or certification incentive
– Bay Area Regional Energy Network (CA)
• Offers BPI MFEEBO training, which counts toward Green Business
Program
• Provides $5,000 incentive to earn Green Business Program
Property Management Certification, which counts toward green
building programs
– Pepco Operations and Maintenance Training Incentive
(MD)
• Provides incentive for completion/certification of approved
building training courses
• Covers up to 80 percent of tuition costs, at a maximum of
$1,000/course
28. Strategies for Continuous Engagement
Benchmarking and Performance Incentives
• Promote benchmarking as critical component of energy efficiency investing
• Prioritize investments, identify problems, track post investment usage
– Focus on Energy Multifamily Energy Savings Program (WI)
• Savings over 12 month period greater than projected
– $100 per additional peak kW energy saved
– Efficiency Maine’s Multifamily Efficiency Program (ME)
• Free benchmarking for 5-20 unit properties
– Energy performance report, recommended upgrades, incentives
– NYSERDA Multifamily Program (NY)
• 12 month post retrofit performance incentives $150-$300 / unit
– EPA ENERGY STAR® Multifamily High Rise (US)
• Requires benchmarking for two years
29. Strategies for Continuous Engagement
Offer Procurement Standards and Procedures
• Influence all purchases
• Provide procurement standards and protocols
– SDG&E Energy Roadmaps
• Local housing authorities: San Diego Housing Commission and County
of San Diego Housing and Community Development
– Adopt procurement policy requiring all energy-related purchases meet or meet or
exceed SDG&E energy specifications and EPA’s ENERGY STAR standards
– Avoid purchases without first investigating utility standards, incentives, and
programs
30. Strategies for Continuous Engagement
Offer Tenant Education and Behavior Programs
• Apply concept of “people use energy, buildings don’t”
• Suppliment existing programs
– Energy Trust of Oregon’s MPower Oregon
– On-going tenant engagement and education programs
– Support for implementing operations and maintenance best
practices
– County of San Diego Energy Upgrade CA Multifamily
• Tenant educational newsletter with call to action
• Interactive lobby display featuring behavior strategies to reduce
lighting, plug load, and water use
36. Emerging Building Technologies
Technology Solutions for Improved
Operations and Benchmarking
• Building Automation Systems (BAS)
– Centralizes remote monitoring and
control of all building facilities
• Ex: Siemens Facility To Go, Use Mobile
App, AT&T Digital Life
• Real Time Data Collection
– IBIS®, Lucid Building Dashboard, US
Energy Group Building Energy
Management System
USE Mobile® App
38. Emerging Building Technologies
Technology Solutions for
Increased Tenant and
Owner Participation
• Education and
Awareness
– CloudApps, Tripos
• Social and Community
Networking
– Lucid Competition
App, Opower,
Facebook?
Lucid Building Competition App
41. Where to Next?
• Reconsider one-size-fits-all program
– Full service programs
• Breakdown silos and restructure programs to offer full suite
of customer-focused solutions
– Single entry, many solutions
– Eliminate customer confusion and competing programs
• Design incentive structure to drive deeper investments
• Identify key trigger points and when to influence
investments
• Implement emerging technologies to achieve continuous
engagement
42. Where to Next?
• Look beyond construction / installation
– Operations and maintenance
• Shift from being reactive to proactive
– Encourage benchmarking
• Increase visibility of energy data to tenants
– Provide procurement standards and protocols
– Leverage property manager / tenant
communication channels for behavior and
education