CA Single Family EE Rebates PG&E, SCE, SCG, SDG&E
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- Rosamond Sabrina Fitzgerald
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1 Program Synopsis The Single Family Energy Efficient Rebate Program is a statewide program administered by all four California IOUs and funded by electricity and gas public goods charges. It offers prescriptive rebates for energy efficient products in four distinct markets - HVAC, home improvement, appliances, and pool pumps. Its objectives are to achieve energy savings and demand reduction. There is also a formal regulatory mandate for hard-to-reach (HTR) customer participation. 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 LowIncome ResOther - 1
2 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 Bounded Rationality Organizational Practices or Customs - 2
3 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 Retro-commissioning Space Heating Heat Pump 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 CAC, RAC, Thermosts, Furnaces Water Heating Motors Load Control (Cycling) High Efficiency Insulation Blankets Low-Flow Showerheads Low-Flow Aerators Solar Assisted High Efficiency W.H. High Efficiency Variable Speed Drives High Efficiency pool pumps 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 Insulation: Wall/Attic Refrigeration High Efficiency Controls Variable Speed Compressors Multi-Stage Compressors Commissioning Other (specify) see measure list below Program Context - 4
5 Residential energy efficiency rebates have been offered in California for many years. The Single Family Rebate Program began as a contractor-driven program but as a result of a 2001 CPUC directive calling for increased incentive funds and reduced administration costs, the program design changed to a direct customer incentive. The directive also set forth formal HTR requirements mandating that one-third of rebate applications come from HTR customers. This new approach, coupled with reduced consumer demand, resulted in modest program performance in The program met Therm savings targets, but failed to reach energy savings and demand reduction goals. Factors resulting from the 2001 California Energy Crisis also influenced the Single Family Rebate Program. The crisis led to an increase in energy efficiency awareness, especially of Energy Star products and measures. Additional CPUC funding was allocated to help address the crisis but waned in 2002 and in 2003 continued to decline. Nevertheless, evaluations show that customers continue to conserve although less so than during the energy crisis itself. Program Components Program Management The Single Family Rebate Program s program staff consists of in-house staff and significant subcontractors (total of 14 FTE). The Program Manager is responsible for program design and management. Trade allies and an advertising contractor primarily conduct advertising. A retail management contractor performs retail management. The majority of staff (11 FTE) are composed of a contracted processing group housed in the utility building. This group processes applications and provides customer service for all CEM programs (residential/commercial/new construction) including the Single Family Rebate Program. Implementing Organization Utility Nonprofit Govt Private IOOther Implementation Structure InHouse TurnkeyContractor InHouseAndSubcontractors Other Reporting and Tracking Application data (measure of commitment, payments, energy savings, and applications processed, pending, rejected, approved) is entered within 5 days of receipt and used to generate weekly real time reports. Leading indicators (applications in the mail, online application downloads, number of application requests, website hits) help program staff identify program trends, measure program velocity, and make projections in order to stay ahead of the program and address concerns early. Retail Management also enters factual and anecdotal information on the retail market and program functionality within it; this information is distributed to retailers (about 370). Verification and Quality Control IOU s perform on-site installation verifications of participants rebated measures to confirm customer and equipment eligibility for (1) 100% of customer-installed insulation (the only qualifying customer-installed measure) and (2) a random sample of 5% of contractor-installed - 5
6 measures. Customers who exceed the reasonableness limit on the quantity of measures installed (typically for dishwashers, whole house fans, etc) are flagged for review by the inspection group. A quality control process for the tracking system involves a random inspection by an independent evaluator, which may include a random inspection of paper applications, a matchup to tracking system entries, and/or verification that rebated measures qualified under the Single Family Rebate Program. Participation Process Customers determine eligibility by contacting the IOU (direct phone contact or website). Customers complete required documentation (application and receipts). The IOU validates the project and makes a payment within 6-8 weeks. Instant rebates are available for programmable thermostats (the retailer invoices the IOU for this point of sale). Outreach, Marketing and Advertising Cooperative advertising with big box retailers (Home Depot, Lowe s, Costco) has been very successful in marketing the Single Family Rebate Program. IOUs contact retailers with program information (fax, direct contact, site visits), which retailers pass on to customers through their marketing channels. About 100,000 customers were reached through the 377 retailers targeted in Customers are increasingly going to website prior to purchasing a product, so IOUs make sure to provide clear and concise online information on products and the program. IOUs also utilize monthly bill inserts, seasonal newspaper and radio advertising campaign for pools and HVAC, a $20 rebate sticker on thermostats at participating retailers, and provide industry education. IOUs developed a mobile training exhibit to help the pool industry learn about energy efficient pool pumps. This Pool Pump demonstration trailer ( Show me ) is taken on the road to be used at monthly pool industry association meetings and training classes because most people are auditory and visual learners. Installation and Delivery Prescriptive rebates are available for HVAC and home improvement measures (programmable thermostat, insulation, aerators, showerheads), appliances (gas furnace, water heater, clothes washer, dishwasher), and pool pumps, and range from $0.15 per square foot of insulation to $200 per gas furnace (AFUE =/> 90%). Rebates levels are set based on market trends (past participation, new minimum standards, changes in the market place) and measure incremental cost. An instant rebate (point of sale) was piloted at the end of 2002, and may be expanded in 2003 to cover measures beyond programmable thermostats. Due to high rejection rates in 2002 (especially of HVAC), IOUs implemented various measures in 2003 to reduce application processing time by half and to increase the volume of applications. These practices include: (1) a qualifying-product database to assist contractors, (2) contractor education to better inform them about needed information for application processing, (3) the processing center will call back contractors directly when customer questions arise, providing consistency to improve rebate turnaround. Because of high numbers of participants using the website, IOUs also provide online applications and are developing an online rebate system. Program Evaluation In 2002, an independent evaluator conducted a verification study, impact evaluation (pool pumps, thermostats), process evaluation, and market assessment. Despite fairly high program awareness - 6
7 (41% of customers surveyed heard of rebates), reduced consumer demand coupled with a program shift to direct consumer rebates contributed to modest program performance in The program garnered 35,488,363 kwh savings, or 75% of its goal and 30,260 kw in demand reduction (86% of goal) in The program exceeded its 2002 Therms target by 40%, with 3,768,799 in Therms savings. Quantitative Data Program Year: Jan 2002 to Dec 2002 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 2002 Draft Statewide Residential Single Family Home Energy Efficiency Rebates Program Evaluation 2002 IOU Implementation Plans IOU Quarterly Reports Contact Information Name Sue Fisher - 7
8 Title Company Phone Senior Program Manager Pacific Gas & Electric (415) Ext. - 8
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