2003 SingleFamily Home Rebate Program Evaluation

1
2003 Single-Family Home Rebate Program Evaluation
Summary of Final Evaluation Report Prepared
by John Cavalli, Itron Tami Rasmussen,
KEMA Kenneth James, PGE July 26, 2006
2
Evaluation Objectives

• Participation Assessment
• Identify measures contributing to savings
• Program Verification
• Verify that measures were installed and
  program-qualifying
• Process Assessment
• Examine program awareness and customer
  satisfaction.
• Assess retailer and contractor involvement.
• Measure Assessment
• Detailed characterization and assessment of
  program influence for Programmable Thermostats,
  Central Air Conditioners and Windows.

3
Program Targets and Accomplishments

• Overall, the program fell short of its electric
  savings goals, but met the majority of its gas
  and HTR goals.
• Energy and demand savings

• HTR accomplishments

4
Program Accomplishments

• Programmable Thermostats contributed over a third
  of the programs kWh and Therms accomplishments.
• Pool Pumps contributed 20 of the programs kWh
  accomplishments.
• Clothes Washers contributed a quarter of the
  programs Therms accomplishments.

5
Program Verification Results
Overall the accomplishments reported to the CPUC
were accurately reported and installed.

• Applications were entered correctly and
  invoices verified program qualifying equipment.
• Measure Accomplishments and Ex Ante Values were
  verified comparing tracking data, CPUC Final
  workbooks and PIPs.
• HTR Accomplishments were verified comparing
  tracking data and CPUC Final workbooks.
• Measure Installations were verified through
  1,065 telephone surveys, and were determined to
  be program qualifying through 76 on-sites.
• 98 of surveyed participants recalled receiving
  their rebate
• 98 still have their measure installed
• 100 of measures were verified on-site

6
Process and Measure Assessments

• Interviews with 742 Participants
• Interviews with 42 HVAC contractors, 40 windows
  contractors, and 21 retailers.

7
Sources of Program Awareness

• Retailers remained the primary source for program
  awareness.

8
Where Participants Obtain Rebate Applications

• Retailers also provided participants with rebate
  applications nearly half of the time.
• Significant increase in obtaining applications
  online

9
Satisfaction

• Compared to 2002
• Participant satisfaction with rebate turnaround
  time increased, reflecting IOU efforts to
  streamline application processing.
• Bill savings continued to receive the lowest
  satisfaction score.

10
Process Assessment - Retailers

• Retailers continue to be a key market actor in
  moving the energy-efficient appliance market.
• Appliance purchasing participants tend to learn
  about rebates through retailers.
• Nearly 75 got an application at a retailer.
• 89 recalled speaking with a retail salesperson.
• 67 recalled in-store advertising.
• Nearly all retailers interviewed were aware of
  the program.

11
Retailers Point of Sale Rebates

• 44,000 Energy Star Programmable Thermostats were
  rebated through point-of-sale discounts.
• 67 of the retailers interviewed supported
  expanding POS rebates to additional measures
• Clothes washers, whole house fans, room air
  conditioners, and pool pumps
• POS Retailers believed sales for other
  program-qualifying equipment could increase by
  25 if POS were expanded.
• The most significant benefits of the POS
  approach
• Customers receive their rebates instantly and
  avoid the hassle of filling out a rebate form.
• The greatest drawbacks of the POS approach
• Retailers must rely on the utilities for payment,
  
• Smaller retail establishments are not equipped to
  handle POS rebates.

12
Process Assessment - Contractors

• Contractors figure prominently into making
  participants aware of program-qualifying heating
  and cooling measures.
• Nearly half of the heating and cooling measure
  participants
• Became aware of the program through a contractor.
• Obtained their application from their contractor.
• Over 80 of the contractors interviewed were
  aware of the program.
• Over half of the contractors interviewed said
  they actively promote rebates.
• 70 of HVAC contractors fill out rebate
  applications on behalf of their customers.

13
Energy Star Programmable Thermostat Assessment

• 24,000 participants submitted an application for
  an Energy Star programmable thermostat rebate.
• 7,000 installed on their own (DIY
  do-it-yourself)
• 17,000 had a contractor install
• 44,000 participants received a point-of-sale
  (POS) discount from a participating retailer.
• Tracking data were not collected for these
  customers, and only 25 participants were
  surveyed.

14
P-Stat Existing Equipment and Sales

• According to contractors,
• 44 of their customers have a programmable
  thermostat
• 21 of their customers have Energy Star-qualified
  thermostats.
• Many Participants replaced existing programmable
  thermostats
• 26 of Contractor installs, 17 of DIY and 12 of
  POS
• HVAC contractors claim installing Energy Star
  programmable thermostats has become standard
  practice
• 74 of contractor thermostat installations are
  Energy Star.
• However, contractors say only a third of their
  customers ask for Energy Star-qualified
  thermostats.

15
P-Stat Usage

• Nearly half of participants claim to use their
  air conditioner/furnace less after installing
  their new thermostat
• About 40 do not use the programmable features
• Very few use the factory settings (about 10).
• Contractors tend to program the unit for their
  customers and show them how to use it, according
  to both contractors and participants.

16
P-Stat Influence Contractor Installations
The Program is having a limited influence on
contractor installed units

• 63 of participants claim they would have
  purchased an Energy Star thermostat in the
  absence of the program
• Only 23 said the rebate was very influential
• However, 41 were somewhat influenced
• Contractors also indicate program is having
  limited influence on what they recommend and
  install.
• 95 of contractors replace thermostat when
  installing AC
• 78 install an Energy Star Programmable
  Thermostat
• Contractors report sales of Energy Star
  Programmable Thermostats would decrease by only
  9 if the program discontinued.

17
P-Stat Influence DIY Installations
The Program is also having a limited influence on
DIY installations

• 69 of participants claim them would have
  purchased an Energy Star thermostat in the
  absence of the program
• Only 27 said the rebate was very influential
• However, 50 were somewhat influenced

18
P-Stat Influence POS Installations
The Program appears to have more influence on
POS installations

• 43 said the rebate was very influential
• Only, 16 were not at all influenced
• However, 62 of participants claim them would
  have purchased an Energy Star thermostat in the
  absence of the program
• Retailers report that
• Only 54 of the units they sell are programmable,
  and only 35 are Energy Star.
• Discontinuing the program would reduce sales of
  Energy Star thermostats by as much as one third

19
Central Air Conditioner Program Influence

• Participants claim they are not very influenced
  by the program.
• 88 say they would have purchased an energy
  efficient CAC without the rebate.
• 37 of participants were not at all influenced by
  the rebate, and only 18 were very influenced.
• 67 claim their primary reason for purchasing a
  new CAC was to replace an old, broken or
  poorly-performing unit.
• Contractors are much more influential on CAC
  purchase decisions than the rebate.
• 49 of participants claim that their contractors
  were very influential and only 22 said that they
  were not at all influential.

20
Central Air Conditioner Program Influence

• The programs influence on the CAC market is seen
  more directly on the actions taken by contractors
  that actively promote the program than on
  consumers.
• Contractors are recommending and explaining the
  benefits of high efficiency equipment to over 75
  of participants
• Contractors are filling out the application on
  behalf of the participant (70 of the time).
• Participants are not very knowledgeable about
  SEER and/or Energy Star ratings for HVAC
  equipment (only about a third are knowledgeable)
• Most participants (55) do not initially request
  high efficiency equipment from their contractor.
• Contractors claim their sales would be
  significantly reduced without the rebate.
• By as much as a third for Tier III equipment.

21
Windows Program Influence

• Rebates for high-performance dual-pane windows do
  not appear to have any significant influence on
  whether or not customers purchase these types of
  windows.
• 90 of participants said that they would have
  purchased high performance windows absent the
  rebate
• 43 said that they were not at all influenced by
  the rebate,
• Only 10 said that they were very influenced.
• Window contractors claimed that high-performance
  windows accounted for 80 of their total
  installations.
• Even contractors unaware of the rebate program
  claimed that high-performance windows accounted
  for 78 of their total installations.
• Both aware and unaware contractors almost always
  recommend high performance windows.

22
Free Ridership Assessment

• An assessment of free ridership was made using
  three participant self report modeling scenarios.
  Ranges of free ridership were as follows
• Energy Star Programmable Thermostats 42 78
• Windows 62 91
• Central air conditioners not modeled, as it is
  believed the contractors were primary influencing
  factor.

23
Recommendations

• Reassess the cost-effectiveness of the
  programmable thermostat rebate
• Reassess the programs gross per unit energy
  savings estimate for programmable thermostats
• Consider eliminating window rebates
• Continue central air conditioning rebates
• Consider moving the CAC rebate upstream, as the
  program appears to directly influence
  contractors, but not customers
• Attempt to identify POS rebate participants and
  better assess the programs influence on this
  delivery mechanism.