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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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Parks Associates Feb 7th webcast Business Models for Energy Services
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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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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%)
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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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Feedback on Energy Consumption
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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Feedback on Energy Consumption
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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Demand Response Programs
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?"
(Among US Electric Utilities, n=100, 9.8%)
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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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Consumer Demand for Energy Saving Products
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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Consumer Demand for Energy Saving Products
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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Consumer Demand for Energy Saving Products
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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Demand Response Programs
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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Demand Response Programs Pricing Based
28
TOU Peak to Off-Peak Ratio
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Demand Response Programs Pricing Based
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."
(Among US Electric Utilities, n=100, 9.80%)
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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
41
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-descriptions7/29/2019 Parks Associates - Business Models for Energy Services
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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
42
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/agenda7/29/2019 Parks Associates - Business Models for Energy Services
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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
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