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Maximizing Results from a High-Efficiency Furnace Program

Maximizing Results from a High-Efficiency Furnace Program. Jacqueline Berger, APPRISE Elliott Gold, PGW January 28, 2014. Presentation Outline. PGW Residential Heating Equipment Rebate Program (RHER) Research Questions Market Study Impact Analysis Summary. 2.

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Maximizing Results from a High-Efficiency Furnace Program

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  1. Maximizing Results from aHigh-Efficiency Furnace Program Jacqueline Berger, APPRISE Elliott Gold, PGW January 28, 2014

  2. Presentation Outline • PGW Residential Heating Equipment Rebate Program (RHER) • Research Questions • Market Study • Impact Analysis • Summary 2

  3. PGW’s Residential Heating Equipment Rebate Program 3

  4. RHER Goals • Promote selection of premium efficiency residential models. • Increase customer’s awareness of energy efficiency opportunities. • Strengthen PGW’s relationship with customers as a partner in energy efficiency. • Encourage market actors to provide and promote high efficiency options. • Align incentives with other programs. • Aid in market transformation towards the highest-efficiency options. 4

  5. RHER Process • Educate customers about RHER. • CSP, PGW, equipment dealers, and contractor marketing. • Provide information about program eligibility and rebates to customers. • Includes a marketing document and a program application. • Customers work with contractors and retailers to purchase and install eligible equipment. • Customers complete the rebate application. • Proof of purchase required. • Contractor certification that the measure was installed. • The CSP processes the application • Checks customer and measure eligibility. • Mails a Visa gift card (payments<$500) or check (payments>$500) to the customer if approved. • Notifies customer if it is not eligible, and the reason for rejection. • Three percent of rebates receive a post-installation inspection. 5

  6. RHER Rebates 6

  7. Research Questions 7

  8. Questions • What is the market for high-efficiency equipment? • How can PGW best market the program? • What are the incremental costs of high-efficiency furnaces and boilers? • Have rebates increased penetration of high-efficiency equipment? • What are the barriers to increased participation? • What are the savings from the installation of high efficiency furnaces and boilers? 8

  9. Market Study 9

  10. Participating Contractor Sample 10

  11. Maximizing Contractor Response • Advance letters were sent to the contractors using priority mail. • The advance letters informed the contractors about the purpose of the survey and a $100 incentive that would be provided if they completed the survey. • A toll-free number was provided for contractors to call in to complete the survey. • Up to 17 calls were made to contractors over a 4-week period. • Messages were left three to six times for the contractors. • 20-30 minute telephone interviews were conducted • Interviews were completed between February 19, 2013 and March 18, 2013. 11

  12. Participating Customer Sample 12

  13. Maximizing Participant Response • Advance letters were sent to the participants. Emails were also sent to the seven participants who did not have a phone number in the file and whose phone number could not be found in our look-up. • The advance letters and emails informed the participants about the purpose of the survey and provided a toll-free number for participants to call in to complete the survey. • Up to nine calls were made to participants over a 2-week period. • Messages were left up to four times for the participants. • 5-20 minute telephone interviews were conducted • Interviews were completed between March 7, 2013 and March 21, 2013. • One interview was completed with a furnace rebate recipient who had no phone number available, but who responded to our email with her phone number. 13

  14. How should PGW focus their marketing efforts? 14

  15. Contractor Information Sources 15

  16. Customer Information Sources 16

  17. First Customer Information Sources 17

  18. How large is the market for high-efficiency furnaces and boilers in Philadelphia? 18

  19. Annual HVAC InstallationsIn Philadelphia Past Year 19

  20. High Efficiency Penetration 20

  21. Do contractors know how to educate customers and market high efficiency furnaces and boilers? 21

  22. Contractor ReportWhen Information Provided 22

  23. Contractor ReportFrequency Information Provided 23

  24. Contractor ReportInformation Provided to Customers 24

  25. Customer ReportInformation Provided by Contractor 25

  26. Is the program increasing the frequency of high efficiency sales? 26

  27. Contractor ReportHigh Efficiency Sales Change 27

  28. Contractor ReportRole of Rebate in Sales Presentation 28

  29. Contractor ReportRebate Influence on Sales 29

  30. Customer ReportRebate Importance 30

  31. Customer ReportOther Purchase Factors 31

  32. Are rebates set at the right level? 32

  33. Contractor and Customer ReportRebate Sufficiency 33

  34. Customer ReportHow Long Considering Replacement 34

  35. Contractor ReportIncremental Cost Variability 35

  36. Contractor ReportHigh Efficiency Furnace Incremental Cost 36

  37. Contractor ReportHigh Efficiency Boiler Incremental Cost 37

  38. Customer ReportHigh Efficiency Incremental Cost 38

  39. What are the Barriers? 39

  40. Contractor ReportHigh Efficiency Barriers 40

  41. Impact Analysis 41

  42. Impact Methodology • Billing analysis • Determination of fuel switchers • Later participant comparison group • Matched comparison group • Findings by boiler/furnace and pre-usage level 42

  43. Annual HVAC InstallationsIn Philadelphia Past Year 43

  44. Annual HVAC InstallationsIn Philadelphia Past Year 44

  45. Annual HVAC InstallationsIn Philadelphia Past Year 45

  46. Key Findings and Recommendations 46

  47. Findings • Contractors do not often provide customer-specific savings estimates • Contractors need more information to effectively educate customers • RHER has impacted installation of high-efficiency furnaces and boilers • Both contractors and customers feel RHER rebate is important in high efficiency purchase decision • Customers are also likely to cite environmental concerns • Incremental costs are highly variable • Rebate does not usually cover 80% of incremental costs • Venting barriers often present • Savings estimate range from 100-130 ccf (11%-14%) 47

  48. Recommendations • Continuing marketing at supply houses • Improve and update RHER information on PGW website • Investigate whether joint marketing with electric utility is possible • Train contractors on selling high efficiency equipment • Consider incentive that varies based on costs or housing characteristics • Revise protocol savings formula 48

  49. Save The Dates For more information - www.aesp.org

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