Achieving Large

Scale Energy
Efficiency
A Panel Discussion Moderated
by

Steven Meyers
Rational Energy Network

Steven Meyers
512-796-2242
steve@rationalenergy.net
MainStreet Efficiency Webinar Series www.rationalenergy.net
20 October 2009, 2:00 PM EDT www.mainstreetefficiency.com
Rational Energy Network www.mainstreetefficiency.com

Achieving Large Scale Energy Efficiency

Dulcey Simpkins
MODERATED BY Senior Research Associate
E source
Steven Meyers
President and Founder
Rational Energy Network
steve@rationalenergy.net
www.rationalenergy.net Carter Williams
512-796-2242 Managing Partner
OI Ventures

Brian Reilly
Weatherization

Commissioner of Economic Development

City of Buffalo, NY

Christine Herbert
Vice-President
Good Company Associates

Rational Energy Network www.mainstreetefficiency.com

1
Some recent observations
“$130 billion in annual savings from unrealized energy efficiency opportunities…”
Unlocking Energy Efficiency in the US Economy, McKinsey & Company
http://www.mckinsey.com/clientservicericpowernaturalgas/downloads/US_energy_efficiency_full_report.pdf

“The annual growth rate of electricity demand can be reduced by up to 36% through 2030.”
Assessment of Achievable Potential from Energy Efficiency and Demand Response Programs in the U.S. (2010–2030), EPRI
http://mydocs.epri.com/docs/public/000000000001018363.pdf

“Energy Efficiency creates more jobs per dollar invested than other energy resources”
Green Recovery, Political Economy Research Institute, University of Massachusetts at Amherst
http://www.peri.umass.edu/green_recovery/

“The California Public Utilities Commission (CPUC) recently approved spending $3.1 billion
on energy efficiency programs from 2010 through 2012.”
Decision Approving 2010-2012 Energy Efficiency Portfolios and Budgets, California Public Utilities Commission
http://docs.cpuc.ca.gov/word_pdf/AGENDA_DECISION/107378.pdf

“In recent years, US venture capitalists have invested over $1B into the CleanTech Industry”
Q2 2009 MoneyTree Report, PricewaterhouseCoopers and National Venture Capital Association
https://www.pwcmoneytree.com/MTPublic

“The US Government committed over $40 billion to improving energy-efficiency”

American Recovery and Reinvestment Act of 2009, United States Congress
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills&docid=f:h1enr.pdf

“Retrofitting homes in the US can reduce energy usage by up to 40%”

White House Council on Environmental Quality, Executive office of the President of the United States
http://www.whitehouse.gov/assets/documents/Recovery_Through_Retrofit_Final_Report.pdf

Rational Energy Network 2 www.mainstreetefficiency.com

What needs to be true to achieve scale?

Energy Efficiency Must Be “Easy”
Every step of this process must be done well to ensure wide adoption of energy efficiency.

Evaluate Install Pay for Verify

Figure Out Find Reliable
Costs New Efficient Energy
What to Do Contractors
and Benefits Technologies Technologies Savings

The Barriers Are Well-Known…

1. Complicated process
2. Lack of information
3. Mis-aligned stakeholders
4. Lack of financing
5. High transaction costs

Rational Energy Network www.mainstreetefficiency.com

3

2
Solutions must target specific segments

Opportunities within the Mass Market:

US Electricity Usage
(2007 $344 billion)
Large portion of energy usage

Untapped energy reserve

Industry Homes
32% 35%
High visibility within communities

Fast ramp-up
Large
Small
Businesses
Businesses
Optimal economic development
16%
17%

Rapid creation of green careers

Low-risk
Source: DOE Annual Energy Review 2007
Rational Energy Network 4 www.mainstreetefficiency.com

LADWP Small Business Lighting Program

 Small Business Lighting Program began
February 2008
Google maps tracks progress
 42,000 small businesses upgraded in 18
months
 Results per site (total program):
– Peak reduction ~1kW (40MW)
– Annual savings 3,222 kWh (135 M kWh/year
equivalent ~13,000 homes)
– Turn-key installed costs $940

 Levelized costs ~4¢ / kWh saved

 Green Jobs (20 auditors + 220 contractors)
 High Customer Satisfaction (>99%)
 Positive Spillover (85% interested in making
more retrofits in their homes)
 Technology-enabled delivery with real-time
Program Tracking
Source: www.enerpath.com
Rational Energy Network 5 www.mainstreetefficiency.com

3
Small Business Energy Efficiency

Rational Energy Network 6 www.mainstreetefficiency.com

Helping communities “see” energy efficiency

Goal: Reduce city-wide energy usage by 30% by 2012

Last year, retrofit 1,000 small business and 6,100 homes
Partnership Program with utilities, city, and contractors

Source: www.enerpath.com

Rational Energy Network www.mainstreetefficiency.com

4
Scale with Multiple Funding Sources
Delivering a $14M Residential Efficiency Program
$1,200,000 6,000
5,532
Homes
$1,000,000 Customer Loans 5,000

Total Homes Participating in Parogramm (Cumulative)

Weekly Energy Efficiency Investments ($)

$800,000 4,000

$600,000 3,000

$400,000 2,000

Customer Funds
$200,000 Program 1,000
Funds

$0 0
2008-20

2008-22

2008-24

2008-26

2008-28

2008-30

2008-32

2008-34

2008-36

2008-38

2008-40

2008-42

2008-44

2008-46

2008-48

2008-50

2008-52

2009-01

2009-03

2009-05

2009-07

2009-09

2009-11

2009-13

2009-15

2009-17

2009-19
Source: www.enerpath.com
Weekly Program Performance (Trailing 52 weeks)
Rational Energy Network www.mainstreetefficiency.com
8

Leveraging Funding Sources (Spend $6M, get $14M)

$16.0
Annual Program Funding ($ million)

$14.0

$12.0

$10.0 $7.4

$8.0
$14.1
$6.0 $0.7

$4.0
$6.0
$2.0

$-
Utility Funding Direct Customer Customer TOTAL
Payment Funded Loans PROGRAM
(AB811) FUNDING

PROGRAM: $1,080 utility funding leads to $2,531 total program: $1.00 → $2.34

LOAN PARTICIPANTS: $1,080 utility funding leads to $40,230: $1.00 → $37.22

Rational Energy Network www.mainstreetefficiency.com

5
What seems to be working…

STRONG – Build a coalition with cities, states, utilities, contractors, and

COMMUNITY community organizations
COALITIONS – Market program together and align all incentives.

– Streamline implementation via web-based mobile-

computing platform .
TECHNOLOGY – Improves customer experience
ENABLED
– Capture more data than you need
– Connect multiple programs and stakeholders

– Make it easy to become energy efficient

IMPROVED – Canvass communities door-to-door
BUSINESS
PROCESS – One-touch sales with integrated implementation
– Integrating financing, education, and programs.

– Measure program goals in real-time

CONTINUAL
– Take actions to improve results.
MEASURABLE
FEEDBACK – Mine field data to add more measures and funding sources.
– Let program evolve.

Rational Energy Network 10 www.mainstreetefficiency.com

Now speaking…
Steven Meyers
President and Founder
Rational Energy Network
www.rationalenergy.net
steve@rationalenergy.net, 512-796-2242

Steve has been a leader in energy-efficiency for over 15 years and advises utilities, foreign
governments, corporations, utilities, start-ups, and investors on energy-efficiency,
technology, finance, scalability, and risk management. Steve has been an officer at two
publicly traded energy companies, managed a $250 portfolio of energy-efficiency
investments, conducted research at a DOE laboratory, and worked with an international
ESCO. Steve has BS in Physics from Haverford College, an MS in Mechanical Engineering,
from UC Berkeley and an MBA concentrating in Energy Finance from UT Austin.

Steven Meyers Dulcey Simpkins Carter Williams Brian Reilly Christine Herbert

Rational Energy Network www.mainstreetefficiency.com

6
Now speaking…
Dulcey Simpkins
Senior Research Associate
E-Source

Dulcey investigates and advises on energy-efficiency program design and implementation

for E Source—a leading research and analysis firm. Dulcey has worked in the municipal and
state energy offices and designed clean tech and economic development programs for
Michigan’s Department of Labor’s WIRED entrepreneurship grant. She received a PhD in
political science and a master’s degree in resource policy and management the University of
Michigan.

Steven Meyers Dulcey Simpkins Carter Williams Brian Reilly Christine Herbert

Rational Energy Network www.mainstreetefficiency.com

Now speaking…
Carter Williams
Managing Partner
OI Ventures

Carter advises and invests in products in services that help reduce demand energy. Carter
was previously President of Gridlogix, a software company focused on energy and building
integration which was sold to Johnson Controls. Carter has worked with Boeing Ventures
where he developed an internal incubator reviewing over 1000 new business opportunities
with successful spin-outs. Carter has played leadership roles in the MIT 50K competition,
the MIT Entrepreneurship Society, the MIT Corporate Venturing Consortium. Carter has an
MBA from the MIT.

Steven Meyers Dulcey Simpkins Carter Williams Brian Reilly Christine Herbert

Rational Energy Network www.mainstreetefficiency.com

7
Now speaking…
Brian Reilly
Commissioner of Economic Development
City of Buffalo, NY

Brian Reilly has 15 years of public sector and non-profit experience in community, economic
and sustainable development. Brian formerly directed Cleveland’s Economic Development
Department and managed a 1,200-acre redevelopment in Milwaukee that won the Sierra
Club’s “Best 10 New Developments in the US (2006).” Brian has created Sustainable
Development for large foundations and is a Senior Fellow with the National Environmental
Leadership Program. Brian’s degrees are in American Studies and International Peace
Studies.

Steven Meyers Dulcey Simpkins Carter Williams Brian Reilly Christine Herbert

Rational Energy Network www.mainstreetefficiency.com

Now speaking…
Christine Herbert
Vice President
Good Company Associates

Christine co-manages Good Company Associates—business development consulting firm

specializing in energy efficiency, renewable energy, energy storage and smart grid
applications since 1991. Christine works with diverse clients active in residential and small
commercial-related energy efficiency services. She designs programs and communicates
innovations that encourage market transformation using funds from EECBG grants,
municipalities, and utilities. She also serves as Chair of the City of Austin Resource
Management Commission, which advises the City Council in energy and water conservation,
alternative energy technologies, and renewable energy sources.

Steven Meyers Dulcey Simpkins Carter Williams Brian Reilly Christine Herbert

Rational Energy Network www.mainstreetefficiency.com

8
A Program Participant from Palm Desert, CA
Monthly electricity usage from one of the 6,100 homeowners participating in Palm Desert’s Set to
Save Energy Efficiency Program
These results show 67% Nominal Energy Savings

4,500

4,000

Monthly Electricity Usage (kWh)

3,500
2008
3,000
2009
Installed CFL Installed
2,500
Lighting from Set variable speed
to Save program pool pump
2,000 funds
Installed
1,500 Solar PV on
AB811 Loan

1,000

500

-
Dec.

April

Sept
August
February

October
March

June
January

May

Nov
July
(500)

Rational Energy Network 16 www.mainstreetefficiency.com

QUESTIONS…
Dulcey Simpkins
MODERATED BY Senior Research Associate
E source
Steven Meyers
President and Founder
Rational Energy Network
steve@rationalenergy.net
www.rationalenergy.net Carter Williams
512-796-2242 Managing Partner
OI Ventures

Brian Reilly
Weatherization

Commissioner of Economic Development

City of Buffalo, NY

Christine Herbert
Vice-President
Good Company Associates

Rational Energy Network www.mainstreetefficiency.com