Go back
CEO
Discover CLEAResult’s latest articles on CEO and stay informed on the biggest trends for a greener and more sustainable future.
First things first, Happy New Year everyone! As I look in the rearview mirror, 2023 emerges as a pivotal year for our business and the broader energy efficiency landscape. Sustainability is no longer a yes or a no – in other words, it’s no longer a question of whether it’s a worthy investment. Instead, it’s now a matter of how fast (and how far) to go. We still have a lot of work to do, but that positive momentum is a promising sign that we’re in for an even brighter year ahead. As we kick off the new year, I want to reflect on 2023 and explore the trends that will continue to shape the industry in 2024 and beyond. 2023: A breakout year for the sustainability movementIn addition to the strong double-digit growth we experienced through utilities running their energy efficiency programs, for the first time we saw multiple states and municipalities actively developing and implementing their own programs, with simultaneous engagement from utilities and the federal government through landmark legislation like the Inflation Reduction Act (IRA). We also saw record energy savings and utility bill reductions for millions of customers, driven by the continued proliferation of demand response programs, milestone electric vehicle (EV) usage and more. Collectively, these initiatives are helping to drive shifts toward widespread adoption of more sustainable practices. Energy policy may have taken center stage in 2023, but even before we saw the full force of state and government-funded programs materialize, the industry saw significant positive momentum – our own business saw record growth – highlighting the strength and promise of the energy efficiency sector and setting the stage for accelerated progress in the coming months. 2024 will be the IRA’s time to shineAs I mentioned in a previous post, the IRA will be a marathon, not a sprint. We’re already seeing state energy offices start to mobilize and figure out how to translate the IRA and corresponding guidance from the DOE into a contractable framework. Goals will translate into concrete action this year as federal funding starts to flow. We’re all navigating new territory, and every state has its own set of nuances. State energy offices – many of which have limited administrative capacity – will need substantial resources and support to ensure that every dollar is allocated effectively and everyone can take advantage of the IRA’s home energy efficiency and electrification rebates. Working better togetherThe pace of sustainability efforts varies across states, but the importance of strong collaboration can’t be overstated. Effectively implementing and tailoring programs to local needs will hinge upon strong partnerships between federal agencies, state governments and local communities. Imagine the chaos if, amidst the national rush to participate in IRA programs, these groups fail to communicate effectively. Proactive collaboration will help prevent wasted IRA funding and ensure it reaches those who need it most: income-eligible populations. Increasing heat pump adoptionAll signs point to heat pumps eventually becoming a major factor in the race toward decarbonization. Significant advancements in technology and federal tax credit incentives are driving a recent surge in demand, and public utility commissions (PUCs) are moving full speed ahead to implement heat pump programs. Heat pumps move heat instead of generating it, so they are much more energy efficient than traditional systems like furnaces – even in cold climates – and new and improved ductless systems can be installed with minimal effort. A recent study in Joule measured heat pump performance in low temperatures across three continents, finding that heat pump efficiency was significantly higher than fossil heating and electric-resistance alternatives, even well below 0°C: Average Coefficient of Performance Source: Joule. Heat pump efficiency is measured by the device’s coefficient of performance (COP). For comparison, COP of traditional fossil and electric-resistance systems is 1 or lower. New and existing incentive programs gaining traction in both the U.S. and Canada are also driving the positive momentum. Heat pumps power around 15% of U.S. homes and 7% of Canadian homes today, leaving a huge amount of untapped potential. It’s impossible to overstate the potential impact of heat pumps, but the reality is: it’s a big decision for customers. Successful implementation will depend on addressing barriers to entry as the market grows. That’s where strong customer education comes in. As we continue to design and deliver heat pump programs, we need to meet customers where they are to gain influence and increase market penetration. Promising shifts in consumer mindsetAs the benefits of energy efficiency become increasingly apparent, more individuals and businesses are proactively seeking greener solutions, ultimately driving market demand and greater investments in our sector. We also anticipate substantial technological innovations to play a pivotal role in the energy efficiency landscape in 2024, which I look forward to covering in future blogs. The bottom line is, we’re going to see a record amount of money being put into sustainability programs over the next 3-5 years, and I’m excited by the real opportunity to make a meaningful impact on the planet (which we will all benefit from). With all hands on deck, 2024 promises to be another game-changing year.Thanks for reading!
Blog .
Let me start by wishing you all a fantastic Energy Efficiency Day. What better day for us to reflect on how far we’ve come in the green transition and to steady our focus on the sustainable path ahead. Backdropped by the landmark Inflation Reduction Act (IRA), set to transform our industry beyond anything we’ve ever seen before, this Energy Efficiency Day is surely our most promising yet. Anticipating the full transformational effects of the Inflation Reduction ActThe journey to that transformation will prove to be more marathon than sprint, and that is no bad thing. As , said: “It’s more important to make sure the programs work well than to do this fast.” And I completely agree. With the on how State Energy Offices (SEOs) can apply for funding, we are now poised to meet the accelerated demand for energy efficiency programs. These programs need to be done well, or we risk wasting money and limiting participation with a frustrating experience. There can be no false starts. The Department of Energy (DOE) intends for states to get this right, and as such the funding application process for SEOs is rigorous. To illustrate my point, as part of its guidelines, the DOE provides a ch… for SEOs to use to support their application. This checklist alone is 23 pages long… Each state is being required to be thoughtful and intentional as they design an effective program, while the DOE is being equally diligent in its allocation and release of funds. So, while we celebrate the historic shift in momentum the IRA has brought about, we also appreciate the preparation that states are undertaking. This careful approach will ultimately benefit us all, allowing more opportunities for SEOs, utilities and other stakeholders to collaborate effectively and take advantage of this once-in-a-generation opportunity. Opportunities are there for everyoneA lot of coverage has been given to the and the and the . And rightly so. This is a huge opportunity to effect change within the most energy-burdened and hard-to-reach households in America; those who could rarely otherwise afford to improve their circumstances or their energy efficiency. And let’s not forget, the opportunities extend much further than that, too – billions of dollars in tax incentives are being made available to individuals who are above those income limits. Plus, the IRA has already and could over the next decade. On the business and commercial side, there are multiple grants from the DOE and Environmental Protection Agency, including the GHG reduction fund as well as many others. The Department of Urban Housing and Development will also provide benefits to businesses, large and small, private and nonprofit. The IRA’s reach is extraordinary, and it is going to transform the way we all, as a nation, use energy. Changing the worldOn this Energy Efficiency Day, I want to remind everyone they have a chance to participate in achieving the ultimate goal of this work and the IRA – comprehensive market transformation. Together, we all have a role to play. Big contributions or small, they all count. The actions we take today will persist far beyond the years of incentives and tax credits to fundamentally change how everyone uses energy. Just imagine what we can celebrate on future Energy Efficiency Days. Thanks for reading.
Blog .
This article was originally posted on LinkedIn. It’s been a fast start to 2023. CLEAResult is coming off one of our most successful years to date. The energy industry is receiving a lot of attention, and with the Inflation Reduction Act, a level of investment never seen before. Everyone is rightfully optimistic. The plans people are making today will have a huge impact on the way people use energy for decades to come. However, as the energy industry continues to make progress toward decarbonization and environmental sustainability, the challenges are also clear. Global electricity demand is expected to rise 3% per year between 2023 and 2025, and higher energy prices in 2022 have been difficult for people and businesses to keep up with, especially as hotter summers and colder winters become more common. The climate workforce is also growing, but not yet fast enough to keep up with demand. All that said, hope and a sense of urgency have us all working faster than ever. Renewable energy grew to 23% of U.S. generation in 2022, a 12.6% increase from 2021. Climate careers continue to outpace other industries, growing 4% in energy alone, and clean energy programs, including energy efficiency, are breaking participation records year after year. Everything’s trending in the right direction. Enthusiasm is in the air, and people are ready to turn the industry’s optimism into the sustainable outcomes we all know are possible. Meeting people where they are. Everything we do as an industry is aimed at making energy better for people and more sustainable for our planet. We focus on building confidence with every customer to make sure any business or individual we interact with understands the meaningful difference they’re making by using less energy. To build confidence, it’s important that programs are flexible and able to meet the needs of households and businesses of all sizes, whatever business they are in. Just a few weeks ago, our decarbonization team went over to Fenway Park to begin an energy audit. The results of that assessment will give Fenway’s leaders the data they need to plan their next steps and make informed decisions on their sustainability journey. Our team will also be out west soon with the Colorado Energy Office to perform of industrial and manufacturing sites. Those assessments will allow the energy office to make the most of its $25 million Clean Air Program Grants and give their state, and others, a model to follow for maximizing the impact of all the climate investments coming our way. Energy efficiency is essential. We can’t emphasize it enough—energy efficiency is the least expensive, most immediate solution we have to reduce demand, lower costs and accelerate the energy transition. In 2019, ACEEE research touted that energy efficiency alone could cut U.S. energy use and greenhouse gas emissions in half by 2050. The latest IPCC report frequently cites enhanced energy efficiency as a necessary component of long-term energy reliability and a key driver of GHG emissions reductions. As renewable energy expands and generation becomes more weather dependent, energy efficiency will make sure every kWh is used effectively. As the trend to electrify everything continues, we’ll need our systems to be as energy efficient as possible to give the grid more flexibility and keep people safe and comfortable during periods of high demand. If there’s one thing I’ve learned as a leader in the business of sustainability, it’s that everyone can make an impact. Whether it’s a business or an individual residence becoming more energy efficient, those contributions help all of us make progress toward a more sustainable planet. Thank you for reading,Rich
Press Release .
This article was originally posted on LinkedIn.
2022 was a momentous year. I have so much to be thankful for, and so much gratitude and respect for everyone who made CLEAResult’s year successful. The industry’s push to grow the impact of energy efficiency is incredible. I see it measured best by our increasingly large backlog of new programs, and I’m looking toward the new year filled with excitement to deliver them.
The groundwork for sustainable action has clearly been laid, many businesses have set their course, and leaders everywhere are ready to hit the ground running in 2023.
Today, I’d like to share some simple advice that climate-focused business leaders can pick up and run with immediately.
Here are 3 climate resolutions all companies should consider in 2023:
1. If you haven’t started, start.
It may sound obvious, but many leaders I talk to find their biggest barrier is simply getting started. I applaud every business who has already taken the first, second or hundredth step toward making their companies more sustainable. It’s a huge accomplishment that executives and employees can be proud of together. No commitment to sustainability can be achieved in a silo.
Find the first step that’s right for your company. Open up conversations with your employees, customers and partners to see what people care about most and what will have the biggest impact for your business.
2. Build a team to drive focus on sustainability.
With your ideas in hand, it’s time to assemble a team to guide your next steps. Creating a team to drive sustainability provides critical structure for leading, coordinating and reporting on the company’s progress. This team should have representation from all levels across the company, including senior leadership, operations managers, finance folks and more.
Most importantly, this team should be comprised of people who are passionate about the cause. People who are eager to set goals, identify the gaps and build a plan to improve. CLEAResult is fortunate to have environmental sustainability as a core part of our company’s purpose and culture. We have passionate people at every level pushing us to achieve our reduction targets. Its why people work here, why our customers and partners choose our teams again and again, and why I know we’ll reach our goals.
3. Learn where your company stands today.
To know where you’re going, you first need a clear understanding of where you are. Measuring your company’s carbon footprint is an essential first step for any sustainability team. Before setting goals, you’ll need to understand your baseline by doing an assessment. This will include scope 1, 2 and 3 emissions—explained nicely by our friends at National Grid who’s CEO spoke in depth about their net-zero journey on the Cleaning Up podcast earlier this year.
From there, your team can set short- and long-term goals for reducing greenhouse gas emissions. These goals should be made visible internally to make sure everyone’s on board and give people tangible targets that bring the mission down to earth. Short-term goals in particular, like improving energy efficiency, are an important way to achieve quick, continuous wins that keep moral high throughout the process.
On Earth Day this year, CLEAResult committed to reaching Net Zero by 2025 in our corporate sustainability report. Meeting that commitment has become a collaborative and continuous learning process for everyone on our team. Reducing energy use is built-in to our mission, yet this commitment feels like a fresh start—a new goal that aims higher and holds us accountable.
These 3 resolutions are tied together by a common theme I emphasize often, relying on your people. Listen to what’s important to people in your organization, customers who help you innovate, and the communities you serve where your impact matters most. Then, in 2023, rely on each other to get the job done.
Finally, remember it’s a journey—not an event or a task. Continuous improvement is the key, and I can’t wait to see what next year holds. Thank you to everyone who has followed along so far. There’s plenty more to come.
Wishing you all a happy and healthy new year!
Talk soon,
Rich
Blog .
This article was originally posted on LinkedIn.
The energy efficiency industry is scaling up at an unprecedented pace. Utility programs across North America are feeling the forward momentum, making the most of it and getting ready to grow—fast. There are plenty of outside factors to point to, from the Inflation Reduction Act to private investor pressure, but what’s being left out is the success programs are building from within.
Utility goals are changing. They’re choosing to go big and make their impact even more meaningful for the communities they support.
As I travel around North America, I feel it’s time to recognize the utility industry for the impact they are making. Not only for “keeping the lights on”, but for the real impact they’re having on people’s daily lives in the communities they serve. Utilities are showing an enhanced emphasis on low- and moderate-income (LMI) programs that uplift people being hit the hardest by inflation.
The social impacts of saving energy
Saving energy is still goal number one, but utilities are focused on their relationships with communities more than ever before. In Tennessee for example, the TVA Home Uplift program has had tremendous success reaching the under resourced households they serve. They exceeded their weatherization goal for the year, upgrading over 1300 homes, and have created efficiencies to keep that forward momentum growing. From workforce development initiatives that bring in members of the community, including more non-English speakers, to achieving an astonishing Net Promoter Score of 93—it’s clear the program’s impact is resonating.
Michigan is also seeing impressive growth in programs focused on people who need the most help. One program saw incentive dollars spent on income-qualified measures double in 2022 with no signs of slowing down. Our Healthier Homes program, which is focused on improving air quality through energy efficiency for people with respiratory ailments in the Flint area, has now helped over 225 households breathe cleaner air, all while lowering energy use. This shift towards programs with a social purpose is increasing, and it’s going to stick. I’m proud of all the people working to make it happen.
Program goals are going for even bigger impacts.
Utilities have hit their stride with energy efficiency programs. There’s a strong foundation from the past decade of work that shows us successful strategies, and programs are setting ambitious goals to put that experience to use. Reducing electric demand through energy efficiency programs is a necessity for utilities, especially as the energy transition wave ramps up.
Heat pumps are a major part of that transition, and they’re catching on even in the coldest climates. Maine, California, New York, and Massachusetts have all set time-bound commitments to get energy-saving electric heat pumps in homes with more states likely to follow in a push towards electrification. Maine made news recently after announcing that 28,000 new heat pumps were installed in the past year alone, putting them well on their way to reach the state’s goal of 100,000 by 2025. That’s more than three times the amount installed in 2018. The program teams in the area have done a tremendous job keeping up with the growth and are continuously developing a workforce to get the job done.
This rapid need for workforce development to support energy efficiency programs is being felt everywhere. As states and cities roll out their decarbonization plans, we’re finally seeing program funding match the need for growth. Colorado is another prime example. Our partners in the area are asking us to touch five times the number of homes, plus build a plan to reach ten times our current pace soon after—an effort that continues to focus on benefitting people in need. These big asks are becoming common, and we’re thrilled to take on the challenge.
Utilities reprioritize to reflect the communities they serve
Energy efficiency is mission critical for everyone. That means making sure our programs are not only equitable and inclusive by design, but that the people and suppliers we hire are as diverse as the communities they serve. I feel very fortunate knowing that our clients take this to heart. As lighting incentives fade out, utilities are prioritizing equity by refocusing on LMI programs as a primary driver of future growth.
The same shift in focus is being placed on supplier diversity as well, but the conversation feels different. There’s a genuine motivation to measure energy efficiency’s impact beyond pure savings. This has been particularly true with our partners in Oregon. We’re working together to set significantly higher diverse supplier spend goals as a vital part of our long-term growth strategy. Proactively bringing more diverse suppliers into our systems ensures that we’re improving equity at every level and creating an ecosystem of mutual respect by design. It’s important work and the impact will be felt for years to come. I’m excited to watch it grow.
I could cite examples of success for hours. People are feeling the optimism, programs are moving quickly to capture every opportunity, and utilities are getting ready to make the most of them. Energy efficiency is entering a new era of purpose, and the impact for communities and our planet will be huge.
Everyone is aiming higher, and when strategy, purpose and need all align, it’s amazing what gets done.
Until next time,
Rich
Blog .
One year as CEO of North America’s largest energy efficiency businessThe month of July marked my first year as CLEAResult’s CEO. It’s remarkable how fast it goes, and how much we’ve accomplished in that time. I’m very proud of this company and our people. Our people care deeply about our mission and can identify with our purpose as they live it every day. We know first-hand the choices many people have to make between paying their energy bill and putting food on the table. And with inflation over 8%, that number is growing every day. Last year, we celebrated our 500th home energy remediation project with our utility partner in Memphis. During the ceremony, the woman living there shared with us how far a few hundred dollars in monthly energy savings could go for her family. That is the meaningful difference our work makes in the lives of thousands of people every year, and those stories stick with me. When our clients tell us how much they appreciate the dedication of our team members and how irreplaceable they are—that makes me proud. Our team members are committed and passionate about changing the way people use energy. This is why our impact exceeds expectations time and time again.My role is to connect the dots.I feel very fortunate to lead this organization and speak from a unique vantage point in the industry. We work with hundreds of utilities across the U.S. and Canada. We see what works and what doesn’t across a wide variety of programs. It’s from this perspective that I’m able to see the larger trends at play. I listen to our program team’s success stories where they’ve found ways to overcome the community-specific challenges and grow widespread participation. I speak with our clients – both gas and electric – about what’s most important to them. Surprising to some, there are many similarities and clear patterns affecting our success in all areas. Sharing that big picture perspective is one of the most important things I can do. For example, weatherization is one of the most talked about programs today and for a good reason. Extreme weather events are happening more frequently due to climate change, and this is leading to higher demand for energy. Likewise, as inequality expands alongside inflation, the energy burden families are experiencing can be crushing. The most vulnerable members of our community are those with the least efficient homes. In response, utilities are shifting the funds once set aside for to weatherization and whole home efficiency programs that will have a greater impact on our communities and the grid. This is not just a local issue. We need to speed up energy-saving success everywhere. Energy is a significant part of people’s budgets, and we all need to use less. Two-thirds of low-income households on utility bills. Whether at home or in business, that’s where we can have the biggest impact. We can’t lower folks’ mortgages or reduce the price of gas, but we can save you 20–30% on your energy bill while protecting our planet too.Looking ahead with a macro lens.I see three distinct and interrelated phases happening in real-time under the umbrella of sustainability in energy—Energy Efficiency, Energy Transition and Energy Sustainability Services. Energy Efficiency is using less energy to produce the same or greater amount of power and reliably meet demand.Energy Transition is the continued effort to replace fossil fuel systems with low-carbon energy alternatives that are integrated with the grid and interactive for consumers and providers alike.Energy Sustainability Services combines low-carbon energy production with efficient energy use to realize our challenging and collective goal of reaching net zero. I’ll be sharing more of my observations on each of these phases over the next few months. My hope is that by sharing these trends and connecting the dots, together we can guide our industry in the best direction possible. I’m honored to lead this company, and I share the deep commitment to our mission. Our work is rooted in actions that make a real difference every day. I’m excited to be a part of it and watch our impact continue to expand and grow. Until next time…Rich
Blog .