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Summary

Behavior Based Efficiency (Home Energy Reports)

Utility Programs: Using Smart Thermostats with Home Energy Reports vs. Not Participating in Utility Program

Services provided by third-party vendors such as home monitoring and energy reports based on smart thermostat data for utilities to use in residential behavior-based energy-saving programs.

Synopsis:

EcoFactor, OPower, and EnergyHub are three companies (there may be others) with business models where they work with utilities to provide inexpensive smart thermostats to homeowners and then use information provided by the thermostats plus utility billing data to provide targeted energy management services.  Two philosophies are employed. EcoFactor uses their patented modeling tools to analyze individual homes without requiring detailed surveys or in-house data beyond what EcoFactor learns from the thermostat.  They implement customized efficiency programs to maximize efficiency without making demands on the homeowner.  OPower "reinvents the way utilities interact with customers" through promoting behavior-based efficiency through comparisons with neighbors, provision of energy tips, assisting customers to respond to time-of-use rates, and through engagement with the Smart Grid. 

OPower provides periodic Home Energy Reports (HERs) on household energy consumption.  These reports compare the energy use of a household to that of neighbors with similar homes and heating/cooling systems and suggest actions the household can take to reduce electricity use.  An evaluation for the Sacramento Municipal Utility District (SMUD) indicates energy savings of 2.9% for high consuming households receiving monthly information-only reports.  Seattle City light reports a similar 3% reduction in total household energy use.  OPower has partnered with Honeywell to use WiFi thermostats to provide additional savings through motivating sustained behavior change.   They expect savings of 15% for cooling and 10% for heating.

Many utility demonstrations have focused on demand reductions.  A pilot program in Las Vegas using EcoFactor's automated energy management services reduced cooling costs by 13% through providing a peak demand reduction of 3 kW per household. 

These approaches provide advantages to the utility as they provide active feedback to customers, assist utilities to target inefficient customers, and validate load reductions in aggregate and at an account level.

Energy Savings: 3%
Energy Savings Rating: Comprehensive Analysis  What's this?
LevelStatusDescription
1Concept not validatedClaims of energy savings may not be credible due to lack of documentation or validation by unbiased experts.
2Concept validated:An unbiased expert has validated efficiency concepts through technical review and calculations based on engineering principles.
3Limited assessmentAn unbiased expert has measured technology characteristics and factors of energy use through one or more tests in typical applications with a clear baseline.
4Extensive assessmentAdditional testing in relevant applications and environments has increased knowledge of performance across a broad range of products, applications, and system conditions.
5Comprehensive analysisResults of lab and field tests have been used to develop methods for reliable prediction of performance across the range of intended applications.
6Approved measureProtocols for technology application are established and approved.

Status:

Details

Behavior Based Efficiency (Home Energy Reports)

Utility Programs: Using Smart Thermostats with Home Energy Reports vs. Not Participating in Utility Program

Services provided by third-party vendors such as home monitoring and energy reports based on smart thermostat data for utilities to use in residential behavior-based energy-saving programs.
Item ID: 460
Sector: Residential
Energy System: Multiple Energy Systems--Energy Management
Technical Advisory Group: 2012 Smart Thermostat TAG (#6)
Technical Advisory Group: 2014 Residential Building TAG (#10)
Average TAG Rating: 2.78 out of 5
TAG Ranking Date: 04/10/2014
TAG Rating Commentary:
  1. The coupling of smart t-stats with the OPower like report would be more substantial.  Should result in better than the 1-2.9% savings.

  2. Out of scope. not a technology, more of a program tool

  3. I'm not sure what is meant by "utility programs." This ET needs to be updated with current information.

Synopsis:

EcoFactor, OPower, and EnergyHub are three companies (there may be others) with business models where they work with utilities to provide inexpensive smart thermostats to homeowners and then use information provided by the thermostats plus utility billing data to provide targeted energy management services.  Two philosophies are employed. EcoFactor uses their patented modeling tools to analyze individual homes without requiring detailed surveys or in-house data beyond what EcoFactor learns from the thermostat.  They implement customized efficiency programs to maximize efficiency without making demands on the homeowner.  OPower "reinvents the way utilities interact with customers" through promoting behavior-based efficiency through comparisons with neighbors, provision of energy tips, assisting customers to respond to time-of-use rates, and through engagement with the Smart Grid. 

OPower provides periodic Home Energy Reports (HERs) on household energy consumption.  These reports compare the energy use of a household to that of neighbors with similar homes and heating/cooling systems and suggest actions the household can take to reduce electricity use.  An evaluation for the Sacramento Municipal Utility District (SMUD) indicates energy savings of 2.9% for high consuming households receiving monthly information-only reports.  Seattle City light reports a similar 3% reduction in total household energy use.  OPower has partnered with Honeywell to use WiFi thermostats to provide additional savings through motivating sustained behavior change.   They expect savings of 15% for cooling and 10% for heating.

Many utility demonstrations have focused on demand reductions.  A pilot program in Las Vegas using EcoFactor's automated energy management services reduced cooling costs by 13% through providing a peak demand reduction of 3 kW per household. 

These approaches provide advantages to the utility as they provide active feedback to customers, assist utilities to target inefficient customers, and validate load reductions in aggregate and at an account level.

Baseline Example:

Baseline Description: Household that does not participate in a utility-sponsored program
Baseline Energy Use: 20650 kWh per year per household

Comments:

The 2014 NEEA "Residential Building Stock Assessment: Metering Study" monitored 41 electric-only homes throughout the region.  The average site energy use was 20,650 kWh/year. 

Manufacturer's Energy Savings Claims: Currently no data available.
Best Estimate of Energy Savings:

"Typical" Savings: 3%
Energy Savings Reliability: 5 - Comprehensive Analysis

Comments:

BPA states that energy savings from customer feedback of 2% to 3% of total household energy use are now well documented (Schick, 2011).  Leading edge programs employ multiple strategies and tactics to achieve greater per participant savings.  Innovative customer engagement strategies include provision of a smart thermostat, use of social marketing techniques, community goal setting, energy saving tips and assistance, contests, rewards, and recognition.  It is sometimes difficult to back out the savings from one program element, but the provision of a smart programmable thermostat can be seen as a "value proposition" that assists in the recruitment and engagement of program participants.    

An evaluation for the Sacramento Municipal Utility District (SMUD) indicates energy savings of 2.9% for high consuming households receiving monthly information-only reports.  Seattle City light reports a similar 3% reduction in total household energy use with annual energy savings of 250 to 640 kWh/year per participant.  A behavioral and process evaluation for Puget Sound Energy reported 3rd year program participants saved 274 kWh/year of electrical energy and 11.9 therms/year of natural gas (KEMA, Inc., 2012).

Energy Use of Emerging Technology:
20,030.5 kWh per household per year What's this?

Energy Use of an Emerging Technology is based upon the following algorithm.

Baseline Energy Use - (Baseline Energy Use * Best Estimate of Energy Savings (either Typical savings OR the high range of savings.))

Technical Potential:
Units: household
Potential number of units replaced by this technology: 1,376,186
Comments:

The 2011 NEEA "Residential Building Stock Assessment: Single-Family Characteristics and Energy Use" concluded that 34.2% of the 4,023,937 single-family utility customers in the Northwest region utilize electric space heating.  (These homes used electric baseboard, electric forced-air furnace, heat pumps, or plug-in heaters) In addition, 55.2% of the region's homes had electric water heat.  It will be assumed that houses with electric space heat have a greater tendency to also use electric water heating, so 34.2% of the households will be considered as "all electric" and be primary candidates for this energy savings approach.  This equates to: 34.3% x 4,023,937 or 1,376,186 households as possible program participants.  (Note: houses that are currently participating in the Seattle City Light or Puget Sound Energy Opower programs have not been deducted from this total).    

Regional Technical Potential:
0.85 TWh per year
97 aMW
What's this?

Regional Technical Potential of an Emerging Technology is calculated as follows:

Baseline Energy Use * Estimate of Energy Savings (either Typical savings OR the high range of savings) * Technical Potential (potential number of units replaced by the Emerging Technology)

First Cost: Currently no data available.

Cost Effectiveness:

Simple payback, new construction (years): N/A

Simple payback, retrofit (years): N/A

What's this?

Cost Effectiveness is calculated using baseline energy use, best estimate of typical energy savings, and first cost. It does not account for factors such as impacts on O&M costs (which could be significant if product life is greatly extended) or savings of non-electric fuels such as natural gas. Actual overall cost effectiveness could be significantly different based on these other factors.

Comments:

Cadmus shows how the benefit cost ratio for a one-year behavior change program deployment with a one-year measure life can be calculated in Program Year #1.  The ratio improves significantly in year #1 when a multi-year measure life is considered.  This analysis is not easy as it must consider participant savings in year #1 and incremental savings in years #2 and #3.  Savings from previous year decay (on the order of 20% per year) and the participant attrition rate must be taken into account (assumed to be 7% per year in this illustrated methodology). 

Reference and Citations:

Tom Kerber, 01/01/2013. Residential Energy Savings through Data Analytics
Parks Associates

Katie Fehrenbacher, 07/17/2012. Utilities embracing smart thermostats to help manage grids
Gigaom.com

Jeff St. John, 07/18/2012. A Tale of Two Texas Smart Thermostat Programs
GreenTechMedia.com

Andy Martin, 11/01/2012. Embracing a Bottom-up Approach to Load Control Programs
Electric Light & Power

Katie Fehrenbacher, 04/22/2013. Nest unleashes the power of its smart thermostat with data-driven services
Gigaom.com

Kevin Cooney, 02/20/2011. Evaluation Report: Opower SMUD Pilot Year2
Navigant Consulting

Alan Meier, et. al., 09/01/2010. Thermostat Interface and Usability: A Survey
Lawrence Berkeley National Laboratory
Special Notes: Excellent issue overview and history of thermostats up to the 7-day programmable baseline. ~50% of programmable thermostats set to long-term hold (80 responses)

Therese Peffer, et. al., 2011. How People Use Thermostats in Homes: A Review
Building and Environment , 46

Alan Meier, et. al., 06/04/2010. How People Actually Use Thermostats
American Council for an Energy-Efficient Economy

David Baylon, et. al., 09/18/2012. 2011 Residential Building Stock Assessment: Single-Family Characteristics and Energy Use
Northwest Energy Efficiency Alliance & Ecotope

Olga Sachs, 2012. Field Evaluation of Programmable Thermostats: Does Usability Matter?
Fraunhofer Center for Sustainable Energy Systems

Joseph Lopes, 07/26/2010. FPL Residential Thermostat Load Control Pilot Project Evaluation
Applied Energy Group, Inc.

Lee Hamilton, 09/26/2012. Can Smart Thermostats Rise from the Ashes of Their Programmable Predecessors?
ESource

Comverge, 10/18/2010. Thermostat cycling vs. temperature offset: customer comfort and load reduction analysis
Comverge

Tony Fadell, 04/22/2013. New features save energy & make money. Automatically.
nest

nest, 07/30/2013. What is Rush Hour Rewards?
nest

nest, 04/01/2013. Seasonal Savings
Nest Labs, Inc.

KEMA, Inc., 04/20/2012. Puget Sound Energy's Home Energy Reports Program: Three Year Impact, Behavioral and Process Evaluation
Puget Sound Energy

M. Khawaja, 01/01/2015. Long-Run Savings and Cost-Effectiveness of Home Energy Report Systems
Cadmus

Skip Schick, 12/01/2011. Residential Behavior Based Energy Efficiency Program Profiles
BPA

Rank & Scores

Behavior Based Efficiency (Home Energy Reports)

2014 Residential Building TAG (#10)


Technical Advisory Group: 2014 Residential Building TAG (#10)
TAG Ranking:
Average TAG Rating: 2.78 out of 5
TAG Ranking Date: 04/10/2014
TAG Rating Commentary:

  1. The coupling of smart t-stats with the OPower like report would be more substantial.  Should result in better than the 1-2.9% savings.

  2. Out of scope. not a technology, more of a program tool

  3. I'm not sure what is meant by "utility programs." This ET needs to be updated with current information.



2012 Smart Thermostat TAG (#6)


Technical Advisory Group: 2012 Smart Thermostat TAG (#6)
TAG Ranking:
Average TAG Rating:
TAG Ranking Date:
TAG Rating Commentary:

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