Parks Associates - Business Models for Energy Services

7/29/2019 Parks Associates - Business Models for Energy Services

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Presented by:

Business Models for

Energy Services

Presented By:

Tom KerberDirector, Research, Home

Controls & Energy


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www.parksassociates.com | Parks Associates | [email protected] | 972.490.1113 | @ParksAssociates

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Recording Details:

Parks Associates Feb 7th webcast Business Models for Energy Services

Recording URL: https://www.livemeeting.com/cc/parksassociates/view

Recording ID: GN8KMP

Attendee Key: 8`4z!W2

2
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www.parksassociates.com | Parks Associates | [email protected] | 972.490.1113 | @ParksAssociates

We explain market trends, predict how consumers will react to

innovations, and recommend strategies for thriving in a changing

business environment.

Parks Associates Consumer Analytics

3

The Consumer Analytics team provides

quantitative market intelligence that guides

strategic business decisions.


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www.parks associates.com Feb 25-27 More Information atSES2013.com

Recent Survey Data

4


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Energy Efficiency Programs


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Utility Energy Efficiency Programs

6

8%

2%

5%

13%

47%

50%

50%

59%

81%

0% 20% 40% 60% 80% 100%

None of the above

I don't know

In home displays

Other

Rebates or other incentives for appliances, such as

refrigerator or clothes washing machine

Rebates or other incentives for lighting

Rebates or other incentives for water heaters

Rebates or other incentives for insulation, air or

heating

Energy education or energy audits

% Offering Specified Incentive

Current Energy Efficiency Incentive Offerings (Q3/12)

"Q313. Which of the following energy efficiency programs does your company currently offer to residentialcustomers?"

(Among US Electric Utilities, n=93, 10.2%)


7/43www.parks associates.com Feb 25-27 More Information atSES2013.com

Utility Energy Efficiency Programs

7

27%

17%

22%

12%

17%

12%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Tax rebates and other incentives for energy

saving systems, remodeling and repairs for your

home

Energy monitoring and management products

available in the market today

%SpecifyingFamiliar

ity

4Q/2010

4Q/2011

4Q/2012

Familiarity with Energy Programs 2010-2012

"Q3020/314/7255. How familiar are you with:"(Among All BB HHs)


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Consumer Focused Solutions

8


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Consumer Focused Solutions

9


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Baseline Comparisons

10


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Feedback on Energy Consumption

11


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Using Segmentation to Target Change

12

52%

44% 44%

39% 36%

0%

10%

20%

30%

40%

50%

60%

Solar panels

(n=65, 12.2%)

Controller for water

heater

(n=296, 5.70%)

Devices for light

automation

(n=217, 6.65%)

Plug-in back up

generator

(n=204, 6.86%)

Programmable

thermostat

(n=804, 3.46%)

%SpecifyingHighAppeal

Product Owners with High Appeal of Energy Monitoring (Q4/11)"Q200. How many of each of the following products are in use by anyone in your household?"

Percent of specified product owners with high appeal of Energy Monitoring.

(Among BB HHs Within Specified Ownership Groups)


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Feedback on Energy Consumption Green Button

13

Green Button

Empower customers

Facilitate innovation

Lower barriers to entry

Reduce integration costs


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14

Never, 12%

Less than once a

month, 42%

1-3 times a month,35%

1-3 times a week, 8%

Daily/almost daily, 3%

Frequency of Electricity Usage Monitoring (Q4/12)"Q7285. How often do you look at your home's daily electricity usage patterns?"

(Among the 12% of BB HHs Having an Electricity Usage Monitoring Feature, n=297, 5.69%)


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15

Never, 30%

Less than once a

month, 34%

1-3 times a month,

28%

1-3 times a week, 5%

Daily/almost daily, 3%

Preferred Frequency of Electricity Usage Monitoring (Q4/12)"Q7290. How often do you want to look at your home's daily electricity usage patterns?"

(Among the 88% of BB HHs Who Currently Have No Electricity Monitoring Feature, n=2,203, 2.09%)


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Feedback on Energy Consumption - Disaggregation

16


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Feedback on Energy Consumption - Disaggregation

17


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Demand Response Programs


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19

29%

10%

2%

0% 0%

19%

2%

13% 14% 13%

0%

5%

10%

15%

20%

25%

30%

35%

Load control module Electric vehicle charging Lighting controls Programmable

communicating

thermostats

Smart appliances

%O

fferingSpecifiedIncentive

Lower electricity rate Rebate or discount of purchase or installation cost

Incentives for DR-Capable Devices (Q3/12)

"Q303. Which types of incentives does your company provide for the following demand response capable devices?"(Among US Electric Utilities With DR Programs, n=41, 15.3%)


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Consumer Enrollment in Load Control

20

4.0%

3.6%3.4%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

4Q 2009 4Q 2010 4Q 2011

%SpecifyingEnrollme

nt

Direct Load Control Program Enrollment 2009-2011"Q225/3025/315. Are you currently enrolled in any energy management programs

being offered by your electricity provider?"(Among All BB HHs)


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Energy Management Growth Inhibitors

21

7%

19%

37%

57%

70%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Lack of communication standards

Lack of consumer awareness

Customers are aware but lack interest

Programs lack compelling economic value proposition

% Selecting Specified Inhibitor

Energy Management Growth Inhibitors (Q3/12)"Q804. In your opinion, which of the following are major inhibitors to growing residential energy management

space?"



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Consumer Demand for Energy Saving Products

22

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$0 $25 $50 $75 $100 $125 $150 $175 $200 >$200

Price Sensitivity of Energy Products630B-1. Sometimes special equipment is required to participate in utility cost saving programs. If

you were certain to save 10% off your monthly electricity bill, please indicate how much you

would you be willing to pay for (one time fee) such equipment

(Among BB HHs n=555 +/-4%)


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23

Space Heating,

$682

Space Cooling,

$264

Water Heating,

$264

Lighting, $242

Computers &

Electronics, $198

Appliances, $198

Refrigeration,

$176

Other, $176

How Residential Energy is Used: U.S. Households

Source: U.S. Department of Energy


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24

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$0 $25 $50 $75 $100 $125 $150 $175 $200 >$200

Price Sensitivity of Energy Products630B-1. Sometimes special equipment is required to participate in utility cost saving programs. If

you were certain to save 10% off your monthly electricity bill, please indicate how much you

would you be willing to pay for (one time fee) such equipment

(Among BB HHs n=555 +/-4%)

10% on entire bill - $220/yr ~ 3 month payback


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25

0%

10%

20%30%

40%

50%

60%

70%

80%

90%

100%

$- $25 $50 $75 $100 $125 $150 $175 $200 >$200

Price Sensitivity of Energy Products630B-1. Sometimes special equipment is required to participate in utility cost saving programs. If you were

certain to save 10% off your monthly electricity bill, please indicate how much you would you be willing to pay

for (one time fee) such equipment

530B-1. If you were going to purchase a new flat screen TV that costs approximately $700, how much MORE

would you be willing to pay for an exactly comparable model that uses 20% less electricity?

10% on entire bill - $220/yr ~ 3 month payback

20% on TV energy - $10/yr ~ 6 year payback

50% will pay price premium of up to 4X annual savings


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26

Almost all incentive

based, 28%

Mostly incentive based,

13%

Roughly equal, 16%

Mostly pricing based, 7%

Almost all pricing based,

27%

I don't know, 9%

Critical Peak Demand Response Programs (Q3/12)"Q301. Which statement best describes the CRITICAL PEAK demand response program you anticipate your

company will be offering in 5 years?"

(Among US Electric Utilities With Critical Peak Incentive Programs, n=22, 20.7%)


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Demand Response Programs Pricing Based

27

51%

30%

5%

0%

10%

20%

30%

40%

50%

60%

Tiered Time-of-use Demand

%ofRatesWithSpecified

Charges

Tariff Structures


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28

TOU Peak to Off-Peak Ratio


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29

26%

42%

28%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1-3 hours 4-6 hours 7-9 hours 10+ hours

%RateCa

sesSpecifyingNumberof

On-PeakHours

Number of On-Peak Hours


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Feedback and Control Systems

30

Intelligence

Follow

Orders

Data

Notification

Knowledge

Based

Automation

Knowledge

Based

Reporting

Control


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Intraday Load Forecasting

31


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Intraday Load Forecasting

32

G f C


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Growing Install Base of Home Controls

33

6.5%

6.4%

5.6%

5.3%

5.2%

Lights

Thermostat

Security cameras

Garage door

Door locks

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Home Control System (Q1/12)"Q7005 Which of the following can you control or monitor through the Internet

using the home control system for your home ?"(Among All BB HHs n=10,000, +/-0.98%)

H C t l Pl tf


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Home Control Platforms

34

Security Channel

Broadband Service Providers

H C t l Pl tf


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Home Control Platforms

35

HVAC Channel

Retail Solutions

H C t l C i


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Home Control Comparison

36

Security

Sales Approach

Installation

Face to Face Call CenterRetailVignette

Professional DIY

Professional

Monitoring

Fee Based Self

Monitoring

Self

Monitoring

On Line

Security

C I t t i E d S it


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Consumer Interest in Energy and Security

37

Security Services

Home Security

Video Monitoring

Remote Access Control

Energy Services Energy Monitoring

Energy Management

Manage Appliances Manage to Utility Rates

C I t t i E d S it


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Consumer Interest in Energy and Security

38

Security

18%

Both30%

Energy

17%

None

35%

Appeal of Specified Services (Q4/11)

"Q500. Please rate the appeal of each of these services?High appeal of at least one security service, energy service, both energy & security, or neither.

(Among All BB HHs, n=1,500, 2.53%)

N P t hi


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New Partnerships

39

Utilit Vie of Partnership Opport nit


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Utility View of Partnership Opportunity

40

18%

18%

23%

24%

32%

35%

41%

11%

4%

14%

9%

4%

4%

6%

20% 10% 0% 10% 20% 30% 40% 50%

Cable broadband provider

Security service provider

Telco broadband provider

Retailer

CE, appliance manufacturers

HVAC OEMs and dealers

Home automation OEMs and dealers

% Specifying Threat or Opportunity

Competitive threat

Partnership opportunity

Opinion of Potential Competitors/Partners (Q3/12)"Q700. Broadband service providers, retailers, and dealers are beginning to offer home monitoring and control

system with energy management capabilities. Please select the statement that best describes your opinion of eachprovider type."



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About SES2013

SPONSORS

BREAK SPONSORS

Perspectives and consumer attitudeson the market for residential energy

management products and services

Strategies to integrate energyservices and unique valuepropositions.

Changes in the demand responsemarket and impact of real-timeconnectivity.

Steps to integrate energy solutionswith home controls and security aspart of a comprehensive connectedhome strategy.

The use of data analytics and cloud-based products and services toenhance services.

Partnership opportunities andbenefits for utilities, communicationsservice providers, security providers,and retailers.

The impact of CE ownership andservice bundling on consumer energy

preferences.

New business models for distributionchannels: security, cable, telecom,utility, retail, HVAC

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FEATURES:

Register Today|Learn More at SES2013.com
http://www.greenwavereality.com/http://www.alertme.com/http://www.parksassociates.com/events/smart-energy-summit/sponsor-descriptionshttp://www.parksassociates.com/events/smart-energy-summit/sponsor-descriptionshttp://www.parksassociates.com/events/smart-energy-summit/sponsor-descriptionshttp://www.parksassociates.com/events/smart-energy-summit/sponsor-descriptions


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Speakers

KeynoteSpeakers

AlertMe

Arrayent

Austin Energy

Bidgely

CenterPointEnergy

Comverge Inc.

CPS Energy

DACOR

Duke Energy

ecobee

EcoFactor, Inc.

EnergyHub

GE Digital Energy

Genability

GreenWave Reality

GridwiseArchitectureCouncil

HitachiiControl Networks

Itron

Landis & Gyr

NETGEAR

ONZO

OpenADR Alliance

Opower

PlanetEcosystems

Qualcomm

Reliant

Salt River Project

Schneider Electric

SiliconLaboratories

Southern

California EdisonSprint

Z-WaveAlliance/SigmaDesigns

SPEAKE

RS

Workshop Speakers

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Jeremy EatonVP & GM Honeywell Smart

Grid SolutionsHoneywell

Kevin MeagherVP & General Manager, Smart

HomeLowe's Companies, Inc.

Roy PerryVice President, Ecosystem

AlliancesAlarm.com

Ted M. RegulyDirector, Customer Programs & Assistance

San Diego Gas & Electric (SDG&E)
http://www.wi-fi.org/http://www.parksassociates.com/events/smart-energy-summit/agendahttp://www.parksassociates.com/events/smart-energy-summit/agendahttp://www.parksassociates.com/events/smart-energy-summit/agendahttp://www.parksassociates.com/events/smart-energy-summit/agendahttp://www.upnp.org/http://www.parksassociates.com/events/smart-energy-summit/agenda


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Thank You.

Tom KerberDirector, Research, HomeControls & Energy

15950 N. Dallas Parkway, Suite 575

Dallas, Texas 75248

Office: 972.490.1113 | Fax: 972.490.1133

[email protected]

Documents

Parks Associates - Business Models for Energy Services