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Smart home devices like smart thermostats, smart plugs and many more have grown in popularity and affordability over the past decade. It is expected that by 2025, such devices will be in approximately 60% of homes. These devices have already made their way into some utility energy programs but there is an opportunity to expand the smart home market into underserved populations who can benefit most from these devices. We talked to Senior Practice Consulting Director Emily Kemper about how adding smart devices to utility programs could help improve program equity and home accessibility. What is the state of smart home devices in energy programs?Right now, this really depends on the device. The smart home devices offering the most potential to save energy and reduce peak demand are smart thermostats and, fortunately for everyone, these are widely available in energy programs across the country. Unfortunately, however, our energy programs have struggled to find room for other smart home devices, like smart plugs, smart bulbs and smart appliances, either because the savings are too difficult to discern or due to other issues, such as usability concerns and technology interoperability. What kind of benefits can these devices bring to customers?Many smart home devices give customers the ability to save energy incrementally either with advanced remote controls, available via smartphone apps, or with built-in energy monitoring that customers can observe and then take action on. However, the benefits I’m most excited about are the ones that can meaningfully improve people’s lives and health. For example, we’ve supported small pilots in which we saw people with disabilities using some smart devices or apps to control appliances, such as grid-enabled ovens, remotely. We’ve also received feedback that some of those customers appreciate how smart speakers offer them the ability to call for help, even if they never have to use this functionality. Such features are conveniences for many people, but if you are experiencing a disability, they can be a safety upgrade, too.Furthermore, we’ve seen smart thermostats and other devices on the market focus more on indoor air quality monitoring, which is an issue that has become especially relevant in recent years as the outdoor air quality has suffered across much of North America due to wildfires. These “non-energy” benefits are, I think, the reason that smart devices have such potential in our programs. What type of customers could be helped most from those non-energy benefits? Many people with disabilities, whether they have limited mobility or are deaf or blind, can benefit from the remote-control capabilities offered by smart devices, enabling them to turn devices such as smart lamps or small appliances on, off, up or down. Smart devices can also offer additional benefits that enhance accessibility, such as voice control, voice alerts or visual alerts for those who are hard of hearing. Smart devices with air quality monitoring or smart air purification devices can help customers who live in areas affected by bad outdoor air due to wildfires or other calamities, but these features can also be a daily matter of health and safety for folks who have respiratory conditions, such as moderate to severe asthma. What should utilities be looking for when designing a program or pilot that includes smart devices?Utilities should consider how to better incorporate non-energy benefits, such as air quality improvements, safety or even comfort, into cost-effectiveness testing or other program valuation calculations, in order to better take advantage of the features that customers want in smart devices. Additional benefits, such as peak load reduction, exist within ecosystems of smart devices that can offer both energy and non-energy benefits, but traditional program incentives and mechanisms are not well-equipped to handle more complexity in both incentivizing benefits and in direct installation. We also think that a lot of potential exists in ecosystems of smart devices, and we recommend direct installation for this very reason, so that our technicians can answer customers’ questions and help them take advantage of all the features that these products offer. Any last thoughts? As much as we are ready to leverage all the benefits that smart home devices bring in existing energy efficiency programs, we are also ready to tackle the next generation of programs that deliver more than just energy savings to customers – for example, how to achieve more peak load shifting. Smart home devices can help us move those programs forward, with their inherent control functionality and ability to change customer behavior. As an industry, we should also be considering how to layer interventions and incentives in programs in order to increase equity, provide climate resilience, and enhance end-user safety and comfort. I’m proud to say that CLEAResult is already investigating how to do that in the most sensible and cost-effective way possible, and smart home devices are a central piece of this much larger puzzle._____________Emily Kemper is an Oregon-state registered architect and building science expert who manages the design and development of new solutions and capabilities at CLEAResult. With 23 years of experience in the building and energy efficiency industries, she leads the team that develops new approaches to changing the way we use energy throughout all of CLEAResult's markets. She is an active member of the residential building industry through her work on state and city zoning and code boards, including serving as the Public Member on the Oregon State Residential and Manufactured Structures Board, which advises the Building Codes Division on new residential code adoption, since 2011. She is also a member of the American Institute of Architects.
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This summer, we hosted some of the energy efficiency industry’s brightest thought leaders in Austin, Texas for the 2023 CLEAResult Energy Forum. One of the highlights was the session on Sustainable Diverse Partnerships, where we explored how utilities and implementers can work with their diverse partners and subcontractors to overcome barriers and open doors to new audiences and program opportunities. Joining our Director of Supplier Diversity, Sylvester Johnson and Program Director Brooke Landon were Tracy Scott from Energy Trust of Oregon and Patricia Watts from FCI Management who shared their unique perspectives and experience. Here are our top takeaways from this session: There is a growing need for diverse partners to help utility programs reach under-resourced communities. For years, utilities have relied on their market-rate programs to bring in significant energy savings. With shifting baselines and greater equity awareness, many portfolios are expanding their program outreach to include more low-and-moderate income (LMI) households and hard-to-reach markets. To be successful, utilities need implementers, subcontractors, and partners who know these communities to establish trust and deliver effectively. During the session, Tracy Scott discussed Energy Trust’s requirement that diverse businesses make up a portion of their subcontractor portfolio. This requirement helps ensure that communities are served by partners and subcontractors who are familiar with their specific needs and challenges and brings new ideas and perspectives to the program. While this requirement is only a few years old, they already have seen doors open to under-resourced communities because of their diverse partnerships. For example, a small community in rural Oregon had only 10 participants in their business lighting program. With the help of some local expertise and partners, ETO rolled out a lighting blitz in that community resulting in 42 projects in one campaign. The power of local, diverse expertise can pay huge dividends in communities where programs have historically struggled. Some partners face barriers that can limit growth and partnership opportunities. Many minority-owned or women-owned businesses that partner with utility programs face the typical challenges of being a small business, including access to capital and competing for talent. Oftentimes, these businesses may only have a small staff and a regional or local focus which makes scaling up or supporting programs in another part of the country seem daunting. Additionally, some programs have insurance requirements that may be completely out of reach for these businesses making it difficult for them to partner with large utility programs. Utilities and energy efficiency implementers need to be willing to not just understand these barriers, but actively remove them and work closely with these partners to understand where they can succeed and how to help their business grow.Helping partners overcome barriers starts with program design. Many utilities’ energy efficiency programs have grown in popularity and reach over the last decade, and with that growth comes complexity that can make it difficult for small businesses to navigate. Understanding where your program design can be simplified or where your delivery plan has gaps helps a wider range of partners to participate. This simplification can start even at the proposal level. Streamlining proposal requirements so partners don’t spend valuable time duplicating efforts from previously submitted RFPs allows them to focus on their core work and driving results. Bringing these diverse partners and their unique insights early into the proposal process can help shape your delivery strategy to new or hard-to-reach markets instead of having to experiment or pivot after the program has launched. The key to maximizing partner impact, and eventually program success, is understanding what gaps your programs may have, where your potential partners excel, and matching those together early in the process. Growing the next generation of diverse partners takes an intentional effort. Outside of program design, there are many ways utilities and other industry stakeholders can help diversify our industry and help small companies grow. While there is no silver bullet to remove every obstacle, reducing financial barriers, like simplifying insurance requirements, and giving suppliers favorable payment terms to empower diverse partners. Mentorship and workforce development are also key. Many businesses may have the technical know-how and motivation to become major players but lack the experience and opportunity. Providing program opportunities that allow partners to thoughtfully scale their business and gain valuable expertise can deepen relationships and help set them up for future success. Lastly, working with advocacy organizations like the National Minority Supplier Development Council (NMSDC) and the Women’s Business Enterprise Council (WBENC) can help identify opportunities, new partners and give insight into what the industry needs. Watch the full session, Sustainable Diverse Partnerships, on YouTube and stay tuned for more content from the 2023 CLEAResult Energy Forum.
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This July, the 2023 CLEAResult Energy Forum Conference brought over 150 utility representatives, state energy officials, CLEAResult staff, and visionary thought leaders together to Austin, Texas. Under the theme of "Connect," we explored how meaningful collaboration among industry leaders, partners and peers can open new opportunities for growth and drive collective success. Through panel discussions, roundtables, breakout sessions, and training workshops our clients and partners shared their experiences and insights in addressing some of the energy industry’s most pressing challenges. Here are some of our top takeaways from a rich week of collaboration and discussion: The impact of the Inflation Reduction Act is top of mindWith billions of dollars set to be distributed to the states for energy efficiency programs through 2022’s Inflation Reduction Act (IRA), and program application guidelines just announced, many utilities are wondering how their programs can work directly with their local governments to ensure success for everyone. As a model for early engagement and collaboration, Tennessee Valley Authority and the State of Tennessee urged utilities to start the conversation with their states (if they haven’t already) to determine how they can best support each other’s needs. Program Portfolio Manager, Keith Canfield hosted a training on IRA Fundamentals and what to expect from Department of Energy guidance that provides further information on the timing and implementation of these IRA programs. Though not part of the IRA, several of our Canadian clients have experienced blending federal, provincial, and utility funding to serve customers. They stressed the need to focus on the customer experience to ensure customers get the most money they can and don’t leave the process confused. Removing barriers to access programs Utilities are committed to providing energy programming to all communities through new program designs, outreach methods and more. Our Sustainable Diverse Partnerships panel focused on Energy Trust of Oregon’s ambitious goals for equity and inclusion, how they are reframing “hard-to-reach” communities and leveraging a wide range of diverse partnerships to connect with those customers. The residential program innovations breakout highlighted the unique challenges homeowners and renters face due to cost-of-living increases and how programs across the country are getting creative to meet their needs. On the commercial side, midstream programs are essential to fill in the gap between large commercial and small-and-medium business program and our electric vehicle panel explored how to bring fleet electrification to even more businesses across the country. The dynamic marketing roundtable delved into multi-cultural marketing tactics, prompting one client to share their success in organizing a block party in an underserved community that helped to build trust and grow participation. Partnerships that help power greater program successUtilities and implementers often can’t do it alone and rely on the expertise or specialization of key partners to help programs reach their goals. Our partners at Virtual Peaker helped us explore how to drive demand response program success through collaboration and align on program goals with clients to maximize realized savings. We explored the importance of turning distributors and manufacturers into program advocates during our midstream session and how constant engagement can help programs navigate unforeseen obstacles and forecast more accurately. The Sustainable Diverse Partnerships panel highlighted specific examples of how diverse partnerships opened doors to communities in rural Oregon that had not been involved in energy programs for years. Pat Watts, President and CEO of FCI Management, shared her journey as a business owner and what utilities and implementers can do to help small diverse partners flourish. A human touch is still neededIn many territories, new technology and program complexity have made energy efficiency programs harder to navigate and many customers are left with more questions than answers. This is where person-to-person interaction can still make a major difference. One of our breakout sessions focused on the benefits of energy concierges (or advisors) to help homeowners navigate complex programs involving multiple utilities and government-run programs. Direct support for these customers, built into the program design, has resulted in more savings and high customer satisfaction. Decarbonization and strategic energy management (SEM) are other areas where working directly with people, with the support of technology, is driving great results. This session also talked about making in-roads with industrial customers in a rural territory who may need energy efficiency upgrades framed in a different way. We left the week energized and motivated to continue to change the way people use energy and build programs that reflect the communities they serve. Plus, there is more content to come! Stay tuned for more content from this event and thank you to everyone who attended the 2023 CLEAResult Energy Forum. We’re looking forward to doing it again in 2024!
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