Home Performance Programs Overview

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Home Performance Programs Overview

• Katherine Johnson, Market Development Group

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Leading Program Partner Profiles
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Profile Information

• Company Name/Address/Website
• History with HPwES
• When program was established
• Reasons/Primary Drivers
• Program Implementation Strategy
• Target Markets
• Delivery Methodology
• Number of Customer Audits
• Key Vendors/Partners/Allies
• Key Reasons For Success/Failure
• Lessons Learned
• Best Way to Learn of New Developments
• Key Staff Individuals/ Primary Staff Contact

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Profiles Presented

• Represent different program approaches
• Reflect different parts of the US
• Demonstrate the flexibility of these programs
• Municipal utilities
• Investor-owned utilities
• Rural electric cooperatives
• Statewide energy organizations
• Illustrates best practices

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Home Performance with ENERGY STAR Marketing
Toolkit
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Home Performance with ENERGY STAR Marketing
Toolkit
Contractor name
Sponsor name
Contractor web, phone, logo
Sponsor logo
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Austin Utilities

• 10th largest municipal electric utility in US
• Reputation for developing innovative and
  comprehensive energy efficiency and renewable
  programs.
• Program began in May 2005
• Its relies on audits and low-interest loans to
  encourage customers to make needed improvements.
• Customers can qualify for up to 1,575.00 in
  rebates and/or receive additional financing in
  unsecured loans for installing a list of approved
  measures.
• Financing is provided through a local credit
  union.
• Target Markets  The program is designed for
  Austin Energy customers with older homes (i.e.,
  10 years or more) that are either
• Single-family home, condominium or town home
• Duplex
• Rental property

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Austin Utilities

• Marketing Strategy Through bill stuffers and
  direct mail.
• Delivery Methodology  Contractor delivery with
  focus on inspection and verification
• Have more than 70 certified contractors are
  working in the community and
• Developed a contractor recognitions program,
  including an awards banquet.
• They also provide training and some compensation
  for contractors diagnostic equipment.
• Project Goal Austin Energy completed 1,300 in
  2005 will complete more than 1,700 jobs
  annually.

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Austin Utilities

• Program Success
• Built up a successful contractor network,
• Developing interest among solar contractors.
• Won an EPA ENERGY STAR award in 2006 for their
  sustained commitment to energy efficiency.
• Program Failure  Wet summer has hurt 2007
  numbers, so the program may not meet its 2007
  goals.
• Key Staff Contact - Jerrel Gustafason,  512
  482-5387 jerrel.gustafson_at_austinenergy.com

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E Star Colorado

• E Star Colorado is an independent 501(c)3
  nonprofit that has been the provider of HPwES
  program in Colorado since 2003.
• Received funding from EPA, Colorado Springs
  Utility, Fort Collins Utility and the City of
  Boulder. Now affiliated with the Colorado Energy
  Science Center.
• Target Markets  Single family home owners in
  Colorado
• Delivery Methodology  Contractor driven
• Contractors are encouraged to receive BPI
  certification.
• Currently contractors pay for training and
  equipment but some funds are set aside to perform
  quality assurance by staff.
• Project Goal 10 jobs were completed in 2005 26
  in 2006, and 75 are forecast in 2007.

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E Star Colorado

• Program Success
• Established a strong training program.
• Attracted funding from key Colorado funders.
• Program Failure
• HP contractors are able to use some utility
  incentives in Fort Collins and Colorado Springs,
  but there is not a distinct incentive for
  HPwES.  
• The program has good support from several
  in-state funders but none at a level large enough
  to support an aggressive program. 
• The current job volume is low, and  contractors
  have not reported consistently.    
• Key Staff Contact- Pat Keegan, Acting Executive
  Director, pkeegan_at_energyscience.org

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Efficiency Vermont

• Statewide provider of energy efficiency services,
  operated by an independent, non-profit
  organization under contract to the Vermont Public
  Service Board. 
• Program began  Spring 2005
• Target Markets  Vermont homes having four units
  or less.
• Delivery Methodology  Contractor
• Provides contractor training, mentoring, and BPI
  certification  assistance, along with ongoing
  quality assurance inspections.
• Contractor support and incentives of 100 for
  each project that is reported to Efficiency
  Vermont. 
• Currently, there are 28 certified contractors in
  Vermont, of which 5 actively report jobs to
  Efficiency Vermont.
• Provides co-op marketing and advertising support
  to each contractor up to 500 annually.

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Efficiency Vermont

• Implementation and Marketing Strategies
• Partners with four lending institutions to offer
  discounted loans for qualifying home
  improvements.
• Reduces the lenders market interest rates by
  3.5 for loans of up to five years for qualifying
  Home Performance projects. 
• Only available for home improvements completed or
  supervised by a participating Home Performance
  with ENERGY STAR contractor
• Marketing Strategies/Messages  
• through its website, and through EPA-funded
  marketing campaigns in the Spring and Fall of
  2007. 
• Radio spots, print media ads, and internet
  keyword search advertising to drive potential
  customers to the Efficiency Vermont Home
  Performance web page. 
• Customers are able to send requests of contact
  directly to contractors via this web site.

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Efficiency Vermont

• Program Success 
• Efficiency Vermont has been reasonably successful
  at recruiting and training contractors,
• The marketing support of EPA is building
  awareness of Home Performance services. 
• Strong demand for these services in the market.
• Program Failure 
• Efficiency Vermont continues to be challenged to
  get contractors to report completed jobs. 
• Some do, but may not report all jobs, others
  dont report jobs at all. 
• Key Staff Contacts- Emily Levin, elevin_at_veic.org,
  Bethanny Banghart, bbanghart_at_vei

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Maine Home Performance with Energy Star

• The Maine Home Performance with Energy Star)
  Program started as a pilot program but quickly
  became a state-wide initiative.
• Funding grew from just 50,000 to more than
  1,250,000 in the first year.
• Target Markets  Residential home owners
• Delivery Methodology  Contractor model but also
  considering about a hybrid option
• The program provides contractor incentives of up
  to 1,700 to defray the costs of training and
  equipment.
• About 15 qualified contractors in the program.
• Offers loans to low income households but may
  expand loans to other home owners

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Maine Home Performance with Energy Star

• Project Goal  Forecast to complete 100 jobs in
  2007. and complete 2,500 jobs statewide by 2009 
• Program Success
• Became a part of the political discussion,
  received high visibility due to support from the
  Governor
• Relied on an the Home Energy Makeover Contest to
  generate leads for contractors and create
  enthusiasm and awareness among customers.
• Key Staff Individuals - Heather RaeRick Karg
  631-755-5313

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Maine Whole House Contest
Carpet and Rug Depot
Nu-Wool Cellulose
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Maine Whole House TV Program

• Winning home from the Home Performance Makeover
  Contest was featured in a television show in
  which the MaineHP conducts an analysis of the
  home, recommends how to cut energy bills and
  demonstrates the installation of the
  energy-saving measures.
• Broadcast over 150 times at varying times to
  reach an anticipated viewing audience of over
  50,000 people
• Cross-section of local businesses and
  organizations donated products/services featured
  and provided other promotional consideration.
• Sponsors included Efficiency Maine, Maine Home
  Performance with ENERGY STAR, EPA, Northern
  Utilities, Lee Toyota, WarmTECH Solutions, Energy
  Kinetics boilers, Paradigm Windows and Carpet
  Rug Depot.
• Show excerpts produced as a separate DVD to be
  used by contractors to educate customers while
  contractors assess the house and other purposes

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Lessons Learned (Pioneers get the arrows...)

• Pick a typical home and saavy homeowner
• Award prizes based on building science rather
  than luck or need
• Focus media on winner AFTER measures installed
• Help losers do their own home performance
  makeover
• Cultivate media without playing favorites
• Rally all product/service providers for their
  conceptual as well as in-kind support but
  maintain overall control of messaging
• Showcase energy and non-energy benefits through
  the winners eyes

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Reaching Out to Green Audiences

• Sustainable living booklet coupon booklet sold by
  Southern Maine retailers and fund-raising groups
• 25 coupon off home performance analysis
• Narrative explains MaineHP philosophy/concept

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Integrating Energy with Non-Energy Benefits
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Integrated Brand Image
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Individual Recognition
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Media Credibility
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Unfair Competitive Advantage for your
ContractorsThat Inoculates Homeowners and
Embraces Stakeholders
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Contractors Making Their Own News

• Make literature look like a newsletter or guide
• Include customer testimonials and article
  reprints
• Sample at www.evergreenhp.com/Newsletter20061025.p
  df

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National Grids Home Performance with Energy
Star

• National Grid operates a regional program serving
  customers in Massachusetts and Rhode Island.
  Current funding is approximately 5 million, but
  funding may double in the next few years.
• Year Program Began- 2002
• Target Markets  Homeowners
• Marketing activities include bill inserts, post
  cards, direct mail, radio and newspaper ads.
• Delivery Methodology  Contractors and all are
  BPI accredited
• Contractors are responsible for all work done in
  the home
• Are subject to quality assurance reviews by
  National Grid and BPIs quality assurance staff.

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National Grids Home Performance with Energy
Star

• Implementation Strategies
• National Grid modified its existing energy
  efficiency programs to conform with the EPAs
  program. 
• Customers can received low-interest loans or
  direct incentives of 50 of the cost up to 1500.
  
• The program also includes the installation of
  ENERGY STAR compact fluorescent lamps (CFLs) at
  no cost to the consumer.

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National Grids Home Performance with Energy
Star

• Program Success
• Increasing sales of energy efficiency measures
• Conversion of typical state-mandated programs
  into  real energy savings and home improvements
  for customers
• Large numbers of customers served and energy
  efficiency measures installed.
• Program does not subsidize non-energy savings
  measures
• Quality Assurance is strongly built into the
  program design.
• Program Failure
• Does not have as strong market transformation
  aspects as some HPwES programs in other areas
  since it works with general contractor energy
  service companies as opposed to contractors
  directly. The program is also experimenting with
  moving in this direction in Rhode Island.
• Key Staff Individual Laura McNaughton, 508
  421-7215,  laura.mcnaughton_at_us.ngrid.com

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NYSERDAs Home Performance with ENERGY STAR

• New York State Energy Research and Development
  Authority (NYSERDA) developed the first Home
  Performance with ENERGY STAR Program.
• Allocated an annual budget of approximately 5
  million for implementation, training and quality
  assurance to support this program.
• Mission is to transform New Yorks trade
  contractor infrastructure by facilitating
  training and requiring mandatory contractor
  certification and accreditation by the Building
  Performance Institute (BPI).
• Year Program began March 2001 
• Target Markets
• The HPwES program targets existing one-to-four
  family homes
• Targets also local HVAC champions. These local
  champions may be the largest contractor serving
  the home improvement market, or an aggressive
  smaller contractor hungry to develop a successful
  business and set themselves apart and above.
• Project Goal 55,000 homes by 2011

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NYSERDAs Home Performance with ENERGY STAR

• Delivery Methodology Contractor
• Participating contractors are required to be BPI
  Accredited
• Focused on building sustainable and lasting
  changes in contractor behavior and to create
  market transformation by supporting the
  infrastrucutre.
• Provides incentives to the contractors for
  training, certification and equipment, and to
  customers through subsidized loans for energy
  improvements.
• The contractor incentives included subsidies for
  up to 75 percent of the cost of training and
  certification, partially forgivable equipment
  purchase loans, and a 5 total job cost
  incentive.
• For consumers, NYSERDA arranged for and bought
  down the interest rate on financing to help pay
  for comprehensive jobs.

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NYSERDAs Home Performancewith ENERGY STAR

• Program Implementation Strategy
• The program was launched in six markets beginning
  in March 2001 Albany, Buffalo, Rochester,
  Syracuse, Binghamton, and the Hudson Valley.
• NYSERDA provided LIPA program support to expand
  the HPwES program into Long Island.
• Launch was executed after completing focus groups
  with contractors from the targeted regions,
• This same approach is being replicated as program
  expands into Westchester County and New York
  City.
• Focuses on sales and marketing training to its
  participating contractors specifically on how to
  sell home performance in a competitive market.
• Programs promotional methods had changed from an
  event orientation to a heavier emphasis on local
  TV spots.

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NYSERDAs Home Performance with ENERGY STAR

• Contractor Marketing Strategies
• Some contractors piggyback NYSERDAs advertising
  activities by buying TV spots immediately before
  and after the NYSERDA TV ads.
• Some contractors also do targeted telemarketing
  in the neighborhoods where they are already
  performing home assessments and making home
  improvements.

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NYSERDAs Home Performance with ENERGY STAR

• Progress to Date
• Over 16,000 jobs have been completed at an
  average job cost to date of over 7,300 per job.
• Customers have invested more than 119 million of
  their own money in home energy improvements.
• Of these NYSERDA has subsidized over 3,500
  income-eligible households for installation of
  eligible measures under the New York Assisted
  HPwES Program.
• Average Electricity and Gas Savings Estimates of
  the per home average annual savings are as high
  as 800 kWh and 33 MMBtus (gas or oil) over the
  life of the program.

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NYSERDAs Home Performancewith ENERGY STAR

• Program Success
•  Focused on developing a strong network of
  third-party contractors to provide comprehensive
  home assessments including energy efficiency
  testing and then to install the recommended
  measures.
• Its affiliation with ENERGY STAR creates
  immediate awareness and provides additional
  credibility to both contractors and customers.
•  
• Program Challenges
•  sometimes required cross-participation between
  trades.
• Sometimes the program offerings were confusing
  for both customers and contractors.
• Did not have standardized contractor training
  initially.

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Growing a Home Performance Contracting Business
Before
After
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Contractor Earnings Potential?
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• NY Home Performance Contractor Ads
• - Examples -

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• Reduce Energy Costs

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• Protect the Environment

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• Focus on Home Comfort, Health Safety

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• Offer Comprehensive Measures

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Wisconsin Energy Conservation Corporation, Focus
on Energy

• Organizations that make up the Focus on Energy
  program include
• Wisconsin Energy Conservation Corporation
  Residential, Business and Renewable Energy
  Programs
• Public Service Commission of Wisconsin
• Statewide Energy Efficiency and Renewable
  Administration
• Energy Center of Wisconsin Environmental
  Research, and Education and Training Programs
• Year Program began  WECC began operating a whole
  house rating program in 1997 called HouseWorks
  
• In October of 2001, upon passage of Public
  Benefits legislation creating Focus on Energy,
  both programs combined into the current Home
  Performance with ENERGY STAR program.
• Project Goal
• 1,145 completed jobs in 2006
• 1,350 completed jobs for 2007

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Wisconsin Energy Conservation Corporation, Focus
on Energy

• Program Implementation Strategy
• Target Markets  Renters and owners who live in
  Focus eligible territories across the state are
  eligible for rewards, but any unit can be served
  by our providers.  Single family units, duplexes,
  and triplexes are eligible.
• Delivery Methodology  Consultant
• This program relies on an independent consultant
  to conduct all inspections and post-tests after
  the work has been completed. In addition, WECC
  staff also inspects an additional 10 of all jobs
  completed, as a way to provide additional quality
  control.
• The participating contractors receive subsidies
  to offset the training costs.
• To date, four have been fully trained and each
  contractor must complete at least 7 jobs annually
  to stay in the program.
• Customers do receive some rebates for installing
  qualified equipment through this program.

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Wisconsin Energy Conservation Corporation, Focus
on Energy

• Marketing Strategies
• Program is marketed through a variety of
  channels, including media, home shows, and via
  the website.
• The website includes information on both energy
  and non-energy benefits of this program and
  emphasizes the following key messages
• Comfort
• Safety
• Durability
• Greater energy efficiency
• Resale value

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Wisconsin Energy Conservation Corporation, Focus
on Energy

• Reasons for Success/Failure
• Program Success
• Strong contractor training
• In-house access to financing
• Strong utility support
• Funding from the System Benefits Charge
• Program Failure
• Contractor verification is critical to program
  success.
• Key Staff Contacts
• Sue Hanson, Single Family Homes Program Manager,
  Phone [phone] x 106
• Bob Pfeiffer, Project Manager, Phone 608
  249-1271 x168, Email bobp_at_weccusa.org

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Key Lessons Learned

• Lesson 1 Contractor Participation Is Key
• Lesson 2 Contractors Need to Own It
• Lesson 3 Financing Helps Sales
• Lesson 4 Develop a variety of messages to focus
  on both energy and non-energy benefits

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Home Performance Programs Overview

• Katherine Johnson, Market Development Group