yoUtilBill - A Fresh Look At Residential Energy Efficiency

Private & Confidential

A Fresh Look at

Residential Energy Efficiency

February 2010

GET YOUR ENERGY

BILL DOWN!

1 confidential – yoUtilBill llc 2009© - all rights reserved

Government recognizes the energy reduction imperative

Source: McKinsey & Company, yoUtilBill

Example: Sonoma County’s ‘Climate Action Plan’

Goal is to reduce greenhouse gas (GHG) emissions 25 percent

below 1990 levels by 2015

• All nine Sonoma cities and the County established this goal in 2005

Over 90 percent of electricity and natural gas is used by the

County’s approximately 200,000 homes & 30,000 businesses

Action plan is for an aggressive efficiency retrofit program – 80%

adoption rate

150,000 residential accounts

20,000 commercial accounts


Total in California – 492 Millions Tons of Carbon Emissions

Of course, less consumption lowers emissions; residences are key

By 2020, the residential sector will

consume 29% of energy in U.S.

• Growth of 0.4% driven by population

growth, larger homes, and more electrical

devices in homes

Over 28% of energy could be saved

with positive economic returns

• Energy Savings: If enacted all positive

NPV changes, could save $41Bn a year

and 360 million tons of CO2 emissions

• Upfront Investment: $229 Bn incremental

which leads to overall NPV savings of

$395 Bn

The U.S. average annual residential

energy bill is $2,000, but it could be

$1,200

Emissions in United States

Transportation

(32%)

Residential

Buildings

(21%)

Industrial

(25%)

Other

Buildings

(22%)

Source: California Energy Commission, The Economist, yoUtilBill


And efficiency is comparatively cost effective

Cost of Cutting Carbon By Opportunity

Source: Wall Street Journal, McKinsey & Company

4 confidential – yoUtilBill llc 2009© - all rights reservedSource: California Energy Commission, yoUtilBill

Even homes built after 1978 have poor energy efficiency

• Most homes still have little insulation, low performance windows, leaky duct

systems, and inefficient HVAC units

• This is despite huge government spending on energy conservation

awareness and direct subsidies and grants – and mandates!

The answer; good citizenship is a good goal – but homeowner

pocket book and market forces are the real motivators

• Most citizens espouse responsible ethics and wishful conservation intentions

• But the real driver of most homeowner actions is inspired by homeowner

economics

• BUT NO MARKET-BASED APPROACHES HAVE BEEN DEPLOYED TO

DATE TO ALTER CONSUMPTION PATTERNS

After 30 years, why not more progress??


$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

$0.45

Jan-0

4

Jan-0

5

Jan-0

6

Jan-0

7

Jan-0

8

Jan-0

9

Base

101-130%

131-200%

201-300%

>300%

Problem: Bills are rising, but home prices

are down; everyone focused on bottom line

PG&E Electricity Prices Greater Bay Area Home Prices

Price

Dollars per kWh

Source: PG&E, yoUtilBill


How should homeowners prioritize energy efficiency actions?

Source: yoUtilBill

Inadequate insulation

in attic & walls

Leaky ducts

Inefficient light bulbs

Lack of programmable thermostat

Plug load from small appliances

Inefficient kitchen appliances

Inefficient washer & dryer

Inefficient furnaces &

water heaters

Problem: Most homeowners have no idea on home energy consumption economics


• Identify all ways to save you energy

Source: yoUtilBill

• Calculate the energy savings of each action

• Determine the equipment & installation cost to

perform action

• Determine the cost to finance each action

• Identify all rebates, tax credits, & recycling opportunities

• Evaluate your current energy usage

as well as the prices you pay

Problem: The economics are complex

Only Actions That Save Money Should Be Performed

Calculating the Economics


If homeowners know what actions will be economically wise, they will respond…

1Based on cost of energy consumed in last 12 months; under today’s pricingSource: Equipment specifications, customer interviews, yoUtilBill analysis

$1,292

$684

$159 $48 $115 $40 $334

$254 $97 $146 $44 $27 $55

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Ba

se

line

Hea

t 1

Po

ol F

ilte

r P

um

p

Plu

g L

oa

ds

Lig

htin

g

Wall

Insu

lation

Att

ic In

su

lation

Cra

wls

pa

ce

In

su

lation

Air S

ea

ling

Wate

r H

ea

ter

1

Re

frig

era

tor

1

Dis

hw

ash

er

1

Clo

the

s W

ash

er

1

Clo

the

s D

rye

r 1

Old annual bill:

$6,0331

Expected new annual bill:

$3,4211

Do these Don’t do these

Actual example of savings - $2,500 every year

9 confidential – yoUtilBill llc 2009© - all rights reservedSource: yoUtilBill

Problem: Most homeowners don’t want to invest, they want flexibility to move in 1 yr

Options are emerging that allow homeowners to invest in their home’s energy systems without carrying the liability if they choose to move anytime in the future

• California Assembly Bill (AB) 811 enables local governments to offer energy efficiency loans to homeowners

– Sonoma County has launched this program with $100m in funds

– Improvement projects must be tied to the home (e.g. duct work, windows, boilers)

– Loans are payable twice a year through property taxes; 7% now, to 3%?

• Utilities are considering on-bill financing for residences

– Include loan repayments on monthly bill

– Ongoing obligations stay with the meter, not the individual

Without the ongoing obligation to pay for improvements after moving house, customers are now inspired to invest as efficient homes have higher valuations


($20,000)

($15,000)

($10,000)

($5,000)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Efficiency (Plus Solar if Cost Effective)

Solar - Top 2 Tiers Solar - All Electricity

PV solar must be evaluated as part of a whole house view

Ove

rall

En

erg

y S

avin

gs

Ove

r T

ime

(Do

llars

)

Example Customer View of PV Solar;

A Preliminary Look At Overall Savings

Source: yoUtilBill LLC analysis


The environmental impact of such

efficiency measures is significant

Example of the Annual CO2

Savings of One Home... Would Be Similar To…

Driving 4,500 fewer miles

Flying 11,400 fewer miles

Source: yoUtilBill, Chevron, Department of Energy

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Today With Just Efficiency Measures

If 1000 People Joined You,

The Energy Savings Could…

Provide power in Sonoma County for -

1,180 houses for 1 year

a hospital for 6 years

a school for 13 years

Be equivalent to taking 375 cars off the

road a year

An

nu

al

Ca

rbo

n E

mis

sio

ns

Pounds

yoUtilBill - A Fresh Look At Residential Energy Efficiency

Technology

Transcript of yoUtilBill - A Fresh Look At Residential Energy Efficiency