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DER CUSTOMER INSIGHTS: VALUES & MOTIVATIONSJULY 2020
2DER Customer Insights: Values & Motivations
1.0 EXECUTIVESUMMARY 4
2.0 INTRODUCTION 6
2.1 CUSTOMERSAREKEYTOTHESUCCESSFULDEPLOYMENTOFDER 6
2.2 DERCUSTOMERVALUES&MOTIVATIONS 6
3.0 CHARACTERISTICSOFARENA’SPROJECTS&CUSTOMERS 7
3.1 APPLESANDORANGES:PROJECTSTARGETEDCUSTOMERSINTHREEWAYS 10
3.2 THEOPPORTUNITYTOUSEAVALUES-BASEDFRAMEWORK 11
3.2.1 VALUESMODESOFFERASIMPLEMETHODFORUNDERSTANDING MANYCUSTOMERS 12
3.2.2 MAPPINGVALUESMODESTOEXISTINGARENAPROJECTS 14
3.2.3 CAVEATSTOFOCUSINGONVALUES 15
4.0 THEMOTIVATORSOFDERCUSTOMERS 16
4.1.1 MOSTDERCUSTOMERSWEREDRIVENBYFINANCIALBENEFIT,WHICH ISAMOTIVATORTHATCUTSACROSSVALUESMODES 17
4.1.2 SETTLERSAREMOSTCONCERNEDABOUTSECURITY,EXPRESSED ASADESIREFORRELIABILITYAND“MAINTAININGTHESTATUSQUO” 19
4.1.3 PROSPECTORS,WHOOFTENLEADMAINSTREAMINVESTMENT INNEWTECHNOLOGY,AREEXCITEDBY‘GETTINGAHEAD’ 20
4.1.4 PIONEERSWILLWANTFAIRNESSANDTOSUPPORTTHE‘GREATERGOOD’ 21
4.2 ONTRUST 23
5.0 CONCLUSION 24
6.0 APPENDICES 25
6.1 APPENDIXA:VALUEMODES 25
6.2 APPENDIXB:THECOHORTOFARENA-FUNDEDDERPROJECTS ANDTHEIRCUSTOMERS 26
TABLE OF CONTENTS
3DER Customer Insights: Values & Motivations
ABOUTTHISREPORTThisreportispartoftheAustralianRenewableEnergyAgency(ARENA)‘DERCustomerInsightsSeries’whichinvestigatestheexperiencesofcustomersinvolvedintwentyARENA-fundedDistributedEnergyResources(DER)projects(‘projects’).AsummaryoftheprojectsthatweresystematicallyanalysedisinAppendixB
TheAnalysiswasundertakenbyUTSInstituteforSustainableFutures,whopreparedthereportinconjunctionwithARENA.
TheInstituteforSustainableFutures(ISF)isaninterdisciplinaryresearchandconsultingorganisationattheUniversityofTechnologySydney.ISFhasbeensettingglobalbenchmarkssince1997inhelpinggovernments,organisations,businessesandcommunitiesachievechangetowardssustainablefutures.Forfurtherinformationvisit:www.isf.uts.edu.au
ISF Research Team
› DaniAlexander
› DrScottDwyer
› DrChrisBriggs
› ProfessorChrisRiedy
DisclaimerTheauthorshaveusedallduecareandskilltoensurethematerialisaccurateasatthedateofthisreport.ISFandtheauthorsdonotacceptanyresponsibilityforanylossthatmayarisebyanyonerelyinguponitscontents
4DER Customer Insights: Values & Motivations
ThisreportispartofARENA’s‘DERCustomerInsightsSeries’whichinvestigatestheexperiencesofcustomersinvolvedinARENA-fundedDERprojects.Customerinsightsweredrawnandanalysedfromalmostone-hundredreportsfromtwentyprojects.
ThisreportaimstounderstandDERcustomervalues.Itdoesthisbyexamining:
1. The types of customers targeted in the projects,andhowtofindtherighttypesofcustomersforfutureprojects.
2. What motivates the type of target customerandwhatengagementstrategiescouldencouragecustomerstoparticipateinfutureprojects.
TheoverarchingfindingofthisreportisthatfutureDERprojectscanbenefitfrombetterunderstandingtheirtargetcustomerbasebeforedevelopingandcommunicatingtheproductoffering.
Thereportproposesavalues-basedapproachasaneffectivewaytoengageandtailormessagestomanytypesofcustomers.Valuesarestablepsychologicalstructuresthatmotivatebehaviour,cuttingacrossdemographiccharacteristics.WhileappealingtocustomervaluesmaynotdirectlyaddressallbarrierstoDER–suchascost,locationfactorsand/orenergyuseconstraints–theydoallowprojectstounderstandcustomermotivationsbetter.
Asimplewaytosurveycustomers’valuesistousea‘valuesmodes’method.Thiscategorisesthemainsetofcustomervaluesintothreemodes:Settlers,ProspectorsandPioneers:
VALUESMODESARECATEGORIESOFVALUESEXPRESSION.THEREARETHREEVALUESMODES: SETTLERS,PROSPECTORSANDPIONEERS.
TheresearchmappedeightoftheninemotivatorsofDERcustomersagainstthevaluesmodes:
1.0EXECUTIVESUMMARY
Security
Family
Price
Local
Escapist
Solidarity
Community
Thrifty
Roots
Comfort
Fearful
SETTLERSJet-setting
PROSPECTORS
Wealth
Appearance
Keeping up with the Jones’
Importance
Position
Glamour
Rightneighbourhood
PIONEERSValue
Knowledge
Discerning
Individuality
Quality
Information
Contacts
People-focused
Risk takers
Settlersaresustenancedriven,needingsafety,securityandbelonging.
Prospectorswantsuccess,includingtheesteemofthemselvesandothers.
Pioneers arefocusedonnewideasandself-actualisation.
MOTIVATORSOFDERCUSTOMERS
SETTLERS PROSPECTORS PIONEERS
Financial/securitybenefits Financial/securitybenefits Financial/securitybenefits
Securityofsupply Securityofsupply EnergyIndependence
Maintainingthestatusquo Newtechnology Environmentalbenefit
Communitybenefit Aesthetics/statussymbol Communitybenefit
Trust EnergyIndependence Trust
Trust
5DER Customer Insights: Values & Motivations
ValuesmodesalignwithMaslow’shierarchyofneeds1andcanbeusedtotargetmessagestoparticulargroupsofcustomers:
1. We all ‘have a Settler inside of us’.Tomaximiseuptakeinthisgroup,productsshouldminimisetheirthreattoacustomer’senergyandfinancialsecurity.
2. Two strategies for targeting Prospectorsincludeshowing1)howtheDERoptionwillbeasmartinvestment,and2)howitcanbeshowcasedasastatussymbol.
3. Promoting the environmental and community benefits of DER projects or innovation of the DER product and/or service itself can help engage Pioneers,howeverthisshouldnotcomeattheexpenseofcustomer’ssecurity.
Projectsapproachingthemassmarketarelikelytobemoresuccessfuliftheycommunicatetheirproductinmultiplewaystoappealtoallthreevaluesmodes.Thisshouldbeapproachedfromthebottom(Settler)tothetop(Pioneer)ofthehierarchy.
Buildingtrust,includingensuringfairness(orsocialequity),throughdesignandimplementationwillhelpprotectfutureprojectsfromcustomerbacklashandmovethesectorclosertoacustomer-centredenergyfuture.
NB:Thisresearchhasonlyconsideredasub-setofARENAprojects,whicharemostlyfocusedonon-gridresidentialsolarandstorage.Thoughthesecoreinsightsarelikelytoholdtrueinothersituations,itisimportanttoconsiderthenuancesofothercontextssuchasthoselivinginremote(off-grid)locationsthatcanbeislanded,DERsthatdonotrequireanyextraequipment(e.g.loadmanagement),andthecharacteristicsofrentersandapartmentdwellersandcommercial&industrialcustomers.
1 Maslow’shierarchyofneeds(1943)istheoryofhumanmotivationwhichstatesthattherearefivesetsofbasicneeds(physiological,safety,love,esteem,andself-actualisation)thatarearrangedinahierarchymeaningthathigherneedsemergeaslowerneedsaresatisfied.
6DER Customer Insights: Values & Motivations
2.1CUSTOMERSAREKEYTOTHESUCCESSFULDEPLOYMENTOFDER
ThisreportformspartofARENA’s‘DERCustomerInsightsSeries’whichinvestigatestheexperiencesofcustomersinvolvedintwentyARENA-fundedDistributedEnergyResources(DER)projects(projects).AsummaryoftheprojectsthatweresystematicallyanalysedisatAppendixB.
TheDERprojectsthatARENAfundsarecuttingedge.Theytypicallyfeaturesophisticatedtechnologythatisnewtocustomersandinstallers,oftenwithinherentcomplexityintheequipmentandbusinessmodels.BecauseDERarerenewableenergyunitsorsystemscommonlylocatedinhomestoprovidetheoccupantspower,theyrelyoncustomerspurchasing,owning,andoperatingthem.CustomersarethereforekeytothesuccessfuldeploymentofDER.
2.2DERCUSTOMERVALUES&MOTIVATIONS
Onthesurface,thecustomersparticipatingintheprojectsreviewedforthisreportaresimilar.Mostcustomersarehomeownersandmosthaveenoughdisposableincometomakesubsidisedinvestmentse.g.inbatterystorage.However,thesesharedtraitsmaybeartificial,drivenbythenatureofARENA’scurrentinvestmentportfolio,whichhasbeenlargelyresidentialsolarand/orstoragedemonstrations.
AsmarketforcesdriveAustraliatowardsamoredecentralisedenergysystem2,itisimportanttomoredeeplyunderstandthecustomersthatDERproductsandprojectsareseekingtoserve.LookingmorecloselyattheARENA-fundedDERprojects,thecustomersarequitedifferentwithdiverse:geographicalrepresentation;energyneeds;reasonsforparticipating;andvaluesthatwilldrivetheirbehaviournowandintothefuture.
Thisreportseekstointerrogatethesedifferencestodetermine:
1. The types of customers that were targeted in the projects,andhowtofindtherighttypesofcustomersforfutureprojects.
2. What inherently motivates the type of target customerandwhatengagementstrategiescouldencouragethesecustomerstoparticipateinfutureprojects.
Theresearchusesavalues-basedframeworkthatisawell-acceptedmethodforunderstandingandmotivatingdifferentgroupsofpeople.ThisreportcanbeusedasaguidebyfutureproponentsseekingtodesignmoreeffectiveDERprojects.
2 BloombergNewEnergyFinance(BNEF)forecaststhatapproximatelyone-thirdofAustralia’selectricitycapacitywillsitbehind-the-meterby2035(BNEFNewEnergyOutlook,2019)
2.0INTRODUCTION
7DER Customer Insights: Values & Motivations
WhileARENA’sDERprojectsaregeographicallydiverse(representedacrossallstatesandterritoriesapartfromtheNorthernTerritory),theyareoftensolvingasimilarproblem.Mostprojectsweretryingtoresolveelectricitydistributionissues(e.g.peakloadandpowerquality)withresidentialsolarandbatteries.Allbutoneproject3thattrialednewtechnologiesorbusinessmodelson-the-ground(eitheratpilotordemonstration-scale)wereconnectedtotheelectricitygrid.Ofthesetrials,therewasanevensplitofurbanandregionaltrials,whichprovidedusefulcomparisonsbetweendifferentdemographicsconnectedtodifferentnetworkconfigurations.AsummaryofthecharacteristicsoftheprojectsandthecustomerstheyengagedisprovidedinTable1.
Thetypeoftargetcustomerforthetrialstendedtobethesame.Projectslookedforhouseholdsthathadsmoothorconsistentenergydemand(‘load’),andanabilityand/orinteresttoshiftorshapeit(‘loadflexibility’).Inmanycasesthisinvolvedinvestinginbatterystoragesystemsthatcouldberemotelycontrolledbyathirdparty–e.g.anetworkbusiness,energyretaileroranindependentaggregator–toprovidearangeofgridservices.ThisloadflexibilitywasoftenusedtooptimiseorimprovesolarPVsystems,fromboththecustomerandthenetwork’sperspective.Italsomeantthatthecustomersneededtobeabletoafford(generally>$1,000)andaccommodateanewbatteryunit,whichwasnotalwayspossible.Thus,itwasoftenchallengingtorecruitthetargetnumberoftargetcustomersand,insomecases,keepthemfullyengagedandresponsiveoverthelifeofthetrial.
Mostprojectsexperienceddelaysincustomerrecruitmentandmanydidnotreachtheiroriginalparticipanttargets4.DERproductsneededtobecommunicatedmorebroadlyanddeeplythananticipated,forexamplebyholdingcommunityeventsandone-on-one(andsometimesface-to-face)conversationswithprospectivecustomers.Thisisunderstandable,giventhenatureofthenewtechnologiesandbusinessmodelsonoffer.However,itwastimeconsumingandbudgetintensive,whichisunlikelytosucceedinacommercialcontext.Itwasalsoapparentthatfew(<6)projectsformallysegmentedtheircustomerbasepriortodevelopingtheproductandengagingthetargetmarket.DER projects stand to achieve better outcomes by better understanding their target customer base (for example, by customer segmentation) before developing and communicating the product offering.
ThesectionsbelowseektosupportDERprovidersfindingabetterapproach,facilitatingabetterunderstandingthetargetcustomerbaseby:
› Analysing the different targeting approaches taken by the existing projects,tomoredeeplyunderstandthecustomertypes.
› Outlining the opportunity to use a value-based approachforsegmentingandengagingcustomersinfutureprojects.
Bytakingthesemeasurestodevelopacustomer-centricproduct,itislikelythatfutureDERprojectswillbemoreefficient(i.e.benefitfromfasterrecruitment)andeffective(i.e.enablebiggerimpact).
3 TheCarnarvonDERtrialswereoff-grid,withafocusonahighsolarcommunityandaspecificfeeder(detailin Table 1andAppendixB).
4 Fordetailonchallengesfacedbyprojectsinengagementandacquisition,seeDERCustomerInsights:The Customer Journey
3.0CHARACTERISTICSOFARENA’SPROJECTS&CUSTOMERS
“ThecustomerloadprofilewhichpresentsthebesteconomicvalueforthenetworkfromaSolarStorageperspectiveisonewhichisrelativelyconsistentoveragivenpeakperiodandisnotlumpy.”–UnitedEnergy,PeakDemandReductionusingSolarandStorageTrial
PROJECT (LOCATION) LEAD PARTNER TECHNOLOGY STAGE NO. CUSTOMERS TARGET POPULATION TARGET GROUP AND/OR SEGMENTATION STRATEGY
SolarandStorageTrialatAlkimosBeach(WA)
Synergy(energyretailer) Solar&storage(microgrid)
Studyanddemonstration
60-100with17onthetrial(ongoingandin-flux)
Residential
Urban
On-grid
Mosaicgroups:
–B.Knowledgeablesuccess(commutingcommunities)
–F.Newhomesandhopes(familyconnections,newbubs/newburbs,tykesandtakeaways)
LatrobeValleyMicrogridFeasibilityStudy(VIC)
LO3Energy(communityorganisation)
DERandDRwithblockchain
(microgrid)
Feasibilitystudy 81(37resi,23farms,21comm)
Residential+C&I5
Regional
On-grid
SoughttoapproachallmembersofLatrobeCity,SouthGippslandShire,BawBawShire,andWellingtonShire
IndraMonashSmartCity(VIC)
IndraAustraliaPtyLtd(propertydeveloper)
DERandDR(microgrid)
Demonstration 1 Residential+C&I
Urban
On-grid
Customer-led(MonashUniversity)
IntelligentStorageforAustralia’sGrid(ACT)
RepositPowerPtyLtd(energystart-up)
Storage
(VPP)
Pilot 6 Residential
Urban
On-grid
TargetedentireACTpopulation,assumingonlyearlyadopterswouldexpressinterest,throughmediaadvertisements
DistributedEnergyMarket(AUS)
AustralianPhotovoltaicInstitute(APVI)(researchorganisation)
DER
(market/regulation)
Feasibilitystudy 61focusgroups,2463surveys
Residential
Urban
On-grid
Australia-wideengagement,seekingacross-sectionofcommunity
HigherRenewablePenetrationinNewLand&HousingDevelopments(NSW)
BrookfieldEnergyAustraliaPtyLtd(propertydeveloper)
Microgrid Feasibilitystudy 7,500homes Residential
Regional
Off-grid
Customer-led–existingandprospectivemembersofHuntleeCommunity.NB: further segmentation may have been undertaken, however the referenced customer report was confidential and not provided for analysis.
CONSORTBrunyIslandBatteryTrial(TAS)
ANU(researchorganisation)
Solar&storage[Reposit]
(VPP)
Demonstration 34 Residential
Regional
Fringe-of-grid
Drivenbyanetworkconstraint(NB: TasNetworks uses a customer segmentation model).AllhomeownersonBrunyIslandwereofferedtheopportunity,andfinalparticipantsselectedwithapointsassessmentincluding:location,propertytype,residentialstatus,vacancy,connectivity,solar.Theywerenottypicalearlyadopters.
IncreasingtheUptakeofSolarPVinStrataResidentialDevelopments(WA)
CurtinUniversity(researchorganisation)
Solar&storage(microgrid)
Demonstration 50 Residential
Urban
On-grid
Customer-led–existingmembersoftheWhiteGumValleycommunitywithmedium-densityhousing:GenY,SHAC(SustainableHousingforArtistsandCreatives)andEvermore
NetworksRenewed(NSW,VIC)
UTS(researchorganisation)
Solar&storage(VPP) Demonstration 98
(41NSW:57Vic)
(44PV:54PVstorage)
Residential
Urban+regional
On-grid+fringe-of-grid
Targetedconstraintondistributionnetworkfeeders
5 C&I:Commercial&industrial
8DERCustomerInsightsSeries:Values&Motivations
PROJECT (LOCATION) LEAD PARTNER TECHNOLOGY STAGE NO. CUSTOMERS TARGET POPULATION TARGET GROUP AND/OR SEGMENTATION STRATEGY
AGLVirtualPowerPlant(VPP)(SA)
AGLEnergyLimited(energyretailer)
Solar&storage(VPP) Demonstration 1,000 Residential
Urban
On-grid
Mosaicgroups:
–A.ExclusiveEnvirons(24%-overrepresented)
–B.Knowledgeablesuccess(19%-overrepresented)
–D.AffluentAcreage(15%-overrepresented)
–G.MiddleAustralia(12%)
PeakDemandReductionusingSolarandStorage(VIC)
UnitedEnergy(electricitynetworkbusiness)
Solar&storage(VPP)
[Reposit]
Demonstration 42 Residential
Urban+regional
On-grid
Targetedconstraintondistributionnetworkfeeder
TriallingaNewResidentialSolarPVandBatteryModel(QLD)
ErgonEnergy,(electricitynetworkbusiness)
Solar&storage(VPP) Demonstration 33 Residential
Regional
On-grid
Targetedconstraintondistributionnetworkfeeder
CarnarvonDistributedEnergyResources(DER)trials(WA)
HorizonPower(electricityretailandnetworkbusiness)
Solar&storage
[WW & Reposit]
Demonstration 82(incl.16batteryandPVsystems)
Residential+C&I
Regional
Off-grid
Drivenbynetworkconstraintwithafocusonahighsolarcommunityandaspecificfeeder(GibsonSt)–NB: further segmentation may have been undertaken, however the referenced customer report was confidential and not provided for analysis.
BatteryStorageSystemPerformanceStandard(AUS)
DNV-GL(energyconsultancy)
Batterystorage Study n/a Residential+C&I Residentialandsmallcommercialstoragesystemconsumers(massmarket)
SimplyEnergyVPP(SA) SimplyEnergy(energyretailer)
Solar&batterystorage(VPP)
Demonstration 191committedparticipants,48inpipelineand19cancellationsinlastreport
Residential+C&I Residential+C&IcustomersofSimplyEnergy
SolarAnalytics:MonitoringforBetterEnergyOutcomes(AUS)
SolarAnalyticsPtyLtd(energystart-up)
Solar&batterystorage,control&monitoringequipment
Demonstration owncustomerbase Residential ResidentialhouseholdsthathaveinstalledsolarPVintheircustomerbase(massmarket)
DecentralisedEnergyExchange(deX)(AUS)
GreenSync(energystart-up)
Solar&batterystorage Demonstration A‘selectionofcustomers’(numberunspecified)
Residential+C&I ResidentialhouseholdsthathaveinstalledsolarPVintheircustomerbase
Buildingtheworld’sfirstconsumerownedsolarretailandservicescompany(NSW,VIC,QLD,SA)
DCPowerCo(energystart-up)
Solar&batterystorage, Demonstration 17,000investors(crowdsourceequityfundingcampaign)
Residential ResidentialhouseholdsthathaveinstalledsolarPV,andespecially‘prosumers’(massmarket):originallytargetingearlyadopters(e.g.throughonlinemarketing)untilreceivedfeedbackthattheproductwasmoreattractivetomainstreampopulation(changedmediatoolse.g.totelevision)
9DERCustomerInsightsSeries:Values&Motivations
10DER Customer Insights: Values & Motivations
3.1APPLESANDORANGES:PROJECTSTARGETEDCUSTOMERSINTHREEWAYS
Weallseetheworldfromourownlivedexperience,andthesameistruefororganisations.Theresearchfoundthatenergyretailers,distributionnetworkbusinesses(‘networkbusinesses’)andcommunitiestookdifferentapproachestocustomerengagement.However,withineachgroup,therewasalotofcommonground.Commonapproachesusedbythesekeystakeholdersareoutlinedbelow.
TABLE2.DOMINANTGROUPSOFCUSTOMERSINDERTRIALSLEDBYENERGYRETAILERS(ADAPTEDFROMAGLANDSYNERGY)
KNOWLEDGEABLE SUCCESS
MIDDLE AUSTRALIA EXCLUSIVE ENVIRONS AFFLUENT ACREAGE NEW HOMES AND HOPES
Welleducatedfamilyandcouplehouseholdsinsuburbanareasofmajorcities
Mixedfamilyformslivingontheoutskirtsofmetropolitanareas
Familieslivinginthemostprestigiousandaffluentaddressesinthecountry
Affluentretireesandoldercoupleslivinginsoughtaftercoastalandregionallocation
YoungfamilieswhohaverecentlymovedintonewhomesinthefastestgrowingsuburbsinAustralia
Network businesses were solutions-focused and approached the mass market.Inthesetrials,thelocationdrovetheengagementstrategymostlytoaddressanetworkconstraintontheelectricitydistributionnetwork.Thisoftenrequiredhighlevelsofuptake(sometimesover20percent)inaspecificarea7.Networkbusinessestargetedtherighttypeof“energyuser”ratherthantherighttypeofpersonalitye.g.earlyadopters.Theyrarelytailoredmessagesandinsteaddeliveredastandardmessageinavarietyofformatsorforumssuchasonline,phone,door-knockingandcommunityevents.
6 Experien’sMosaicisaproprietarysegmentationtoolthatdefines,measures,describesandengagestargetcustomers.ItsegmentstheAustralianpopulationinto14groupsand15types:https://www.experian.com.au/mosaic
7 Mostnetworkssoughtimpactatthedistributionfeederlevel,whichisthemost-granularlevelofnetworkmanagementbeforethehouseitself.Eachhouseisconnectedtothedistributionfeederbyaservicecable.Theamountofhouseholdsonaparticularfeedervariesdependingonthelocationonthedistributionnetwork.
Figure1:AGLandSynergydiscoveredfivemajorcustomersegmentsintheirDERtrials Source:AGLandSynergy
Energy retailers are customer-focused and can easily (and formally) segment their target populations.BothAGL(Adelaide,SA)andSynergy(AlkimosBeach,WA)usedtheMosaicmarketsegmentationtoolthatwasdevelopedbyExperian6,classifyinghouseholdsintooneof13“consumerlifestyle”groups.Withintheareasofthesetrials,fivegroupsdominated:KnowledgeableSuccess;MiddleAustralia;ExclusiveEnvirons;AffluentAcreage;andNewHomesandHopes.Theretailersusedthisinformationtomoredeeplyunderstandthemotivationsofpotentialparticipantswhowereoriginallyattractedtotheprojectvialaunchmedia(Table2).
11DER Customer Insights: Values & Motivations
Communities have a deep understanding of customers and their needs.Projectsledbycommunitiesorpropertydevelopershadastronggraspoftheneedsoftheircustomers.Theseprojectsofteninvestigatedmoreinnovativebusinessmodels,whichalignedwiththeuniquecontextthroughdifferentmicrogridandenergy-sharingapproaches.Thecustomerswithinthesecommunitiesweremoreheavilyinvolvedinthedesignprocess,whichimprovedcustomersatisfaction.
3.2THEOPPORTUNITYTOUSEAVALUES-BASEDFRAMEWORK
The‘goldstandard’inunderstandingcustomersissegmentation,howeveritiscostlyandtimeconsuming.Customer-facingenergyretailers,suchasAGLandSynergy,areexperiencedwithsegmentationtechniquesbutthiskindofmarketingislessfamiliaroravailabletootherbusinessessuchasthosethatmanagedistributionnetworks.
Avalues-basedmethodmayofferaneffectivetargetingapproachforfutureprojectsthatdonothavetheresourcestoformallysegmenttheircustomerbase.Valuesarestablepsychologicalstructuresthatmotivatebehaviour.Valuescutacrossdemographicssothisapproachcanbemorerelevantwhenprojectsneedtoappealtothemassmarketandacquireahighproportionofcustomersinaparticulararea.
Researchshowsthattherearetenbasic‘universalvalues’andthewayapersonranksthesewillguidetheiraction8:
8 Schwartz,S.H.(2012).AnOverviewoftheSchwartzTheoryofBasicValues.OnlineReadingsinPsychologyandCulture,2(1).https://doi.org/10.9707/2307-0919.1116
Mostnetworkbusinesseseventuallyreachedtheirtargetuptake,afteralonger-than-expectedrecruitmentprocess(see:TheCustomerJourneyreport).
KEY INSIGHT:
Face-to-faceengagementcanyieldstronguptakewithoutformalsegmentation;howeveritoftencomesatahighresourcecostandmaynotbesuitableforcommercialofferings.
KEY INSIGHT:
Astrongunderstandingofcustomerscanachievegreateruptakewithlesseffortandhigherlevelofsatisfaction,particularlywhentheyinvolvedareinprojectdesign.
Figure2:Network-ledprojects(AusNetServicespictured)needcustomerstomeettheirneed,whilecustomer-ledprojects(Huntleepictured)canbuildtheirownideal
KEY INSIGHT:
Valuesthatcutacrossdemographicscanbeaneffectiveapproachforengagingandtailoringmessagestomanytypesofcustomers.
› Self-direction: seekingindependentthoughtandaction.
› Stimulation:seekingexcitement,noveltyandchallengeinlife.
› Hedonism:seekingpleasureorgratificationforoneself.
› Achievement:seekingpersonalsuccessthroughdemonstratedcompetence.
› Power:seekingsocialstatusandprestige,controlordominance.
› Security:seekingsafety,harmonyandstability.
› Conformity: seekingrestraintofactionslikelytoharmothersorviolatenorms.
› Tradition:seekingrespect,commitmentandacceptanceofcustomsandculture.
› Benevolence:seekingpreservation/enhancementofthewelfareofone’sgroup.
› Universalism:seekingtounderstand,appreciateandprotectthewelfareofall.
12DER Customer Insights: Values & Motivations
3.2.1VALUESMODESOFFERASIMPLEMETHODFORUNDERSTANDING MANYCUSTOMERS
Avalues-basedapproachtoengagementisanacceptedstrategytodrivechange,particularlyforenvironmentalandsocialjusticeorganisations(e.g.thosewhopartnerwithCommonCause9).Asimplewaytosurveycustomers’valuesinaparticularplaceistousea“valuesmodes”method.Thismethodoutlinesthemainsetofvaluesthatarepresent,easilycategorisedintothreemodes:Settlers,ProspectorsandPioneers:
Figure3.Valuesmodesframework(Rose,C.(2011))10
9 CommonCauseisanetworkworkingwithenvironmentalandsocialjusticeorganisationstoengageculturalvaluesformoreeffectivepublicengagement.CommonCauseAustralia’swebsitecanbefoundhere:http://www.commoncause.com.au
10 Rose,C.(2011),WhatMakesPeopleTick:TheThreeHiddenWorldsofSettlers,ProspectorsandPioneers.Troubador Publishing Ltd.FurtherdetailisatAppendixA:ValuesModes.(NOTE:theARENAdesignteamwouldneedtoredotheseimageswhicharecopyright
Prospectorswantsuccess,includingtheesteemofthemselvesandothers.Theprospectorvaluesmodesare:
GoldenDreamers–witha“tryanything”mentalitybutuncertain
HappyFollowers–optimisticandambitious,seekingrespect
NowPeople–“lifeisapartytobeenjoyed”
TomorrowPeople–“mostindividualisticandflexible,yetfocused”
Pioneersarefocusedonnewideasandself-actualisation.Thepioneervaluesmodesare:
Transitionals–lookingtoexploreboundaries,butsafely
ConcernedEthicals–“needtolivealifewithasenseofpurpose”
FlexibleIndividualists–“mostextremeformofself-reflectiveindividualism”
Transcenders–“pushingfarther,faster,yetwithalightness”
Settlersaresustenancedriven,needingsafety,securityandbelonging.Thesettlervaluesmodesare:
Roots–“survivalisthemarkofsuccess”
SmoothSailing–routinesandrulesand“ifitain’tbroke,don’tfixit”
BraveNewWorld–“attractedtobigideasbutactinsmallways”
CertaintyFirst–“attractedtostrong,simpleexplanationsoftheirreality”
Security
Family
Price
Local
Escapist
Solidarity
Community
Thrifty
Roots
Comfort
Fearful
SETTLERS
Jet-setting
PROSPECTORS
Wealth
Appearance
Keeping up with the Jones’
Importance
Position
Glamour
Rightneighbourhood
PIONEERSValue
Knowledge
Discerning
Individuality
Quality
Information
Contacts
People-focused
Risk takers
13DER Customer Insights: Values & Motivations
Mappingvaluesmodescanbeusefultobetteralignprojects,andthecommunicationoftheseprojects,withthetargetpopulationandtheirpriorityvalues:
Figure4.ValuesmodesmappedtoSchwartz’suniversalvalues11
*BasedonSchwartz’suniversalvalues(1992)andRose’svaluesmodes(2011)
11 Peet,J.G.(2016)Charitycampaigningbasedonpeoples’unconsciousmotivationalvalues:https://medium.com/william-joseph/how-to-get-people-to-do-what-you-need-them-to-based-on-their-unconscious-motivational-values-fa715da2a8f2)
Power
Achievement
PROSPECTOR
Hedonism
Security
Stimulation Self Direction
Conformity SETTLER
Tradition
Benevolence
PIONEER
Universalism
VALUES
14DER Customer Insights: Values & Motivations
3.2.2MAPPINGVALUESMODESTOEXISTINGARENAPROJECTS
Anexampleofwhatthismaylooklikefortheexistingprojectsbasedonprojectreportsisbelow,notingthatevaluationislimitedsincenocustomershavebeendirectlyapproachedtomeasurevalues:
PROJECT TARGETING STRATEGY POSSIBLE VALUES MODES
SolarandStorageTrialatAlkimosBeach(WA)
Mosaicgroups:B(Knowledgeablesuccess)andF(Newhomesandhopes)
Settlers(F)
Prospectors(B,F)
LatrobeValleyMicrogridFeasibilityStudy(VIC)
SoughttoapproachallmembersofLatrobeCity,SouthGippslandShire,BawBawShire,andWellingtonShire(massmarket)
Settlers,Prospectors,Pioneers
IndraMonashSmartCity(VIC) Customerled(MonashUniversity) Pioneers
IntelligentStorageforAustralia’sGrid(ACT)
TargetedentireACTpopulation,assumingonlyearlyadopterswouldexpressinterest,throughmediaadvertisements
Pioneers
DistributedEnergyMarket(AUS) Australia-wideengagement,seekingacross-sectionofcommunity
Settlers,Prospectors,Pioneers
HigherRenewablePenetrationinNewLand&HousingDevelopments(NSW)
Customerled–existingandprospectivemembersofHuntleeCommunity
N/A
CONSORTBrunyIslandBatteryTrial(TAS)
Targetedconstraintondistributionnetwork-approachedentirecommunitywhowerenotalltraditionalearlyadopters
Settlers,Prospectors,Pioneers
IncreasingtheUptakeofSolarPVinStrataResidentialDevelopments(WA)
Customerled–GenY,SHAC(SustainableHousingforArtistsandCreatives)andEvermore
Prospectors(GenY,Evermore)
Pioneers(GenY,SHAC)
NetworksRenewed(NSW,VIC) Targetedconstraintondistributionnetworkfeeder
Prospectors,Pioneers(Collombatti)
Prospectors,Pioneers(Melbourne)
Pioneers(Yackandandah)
AGLVirtualPowerPlant(VPP)(SA) Mosaicgroups:A(ExclusiveEnvirons),B(Knowledgeablesuccess),D(AffluentAcreage),G(MiddleAustralia)
Settlers(G)
Prospectors(A)
Pioneers(B,D)
PeakDemandReductionusingSolarandStorage(VIC)
Targetedconstraintondistributionnetworkfeeder
Prospectors,Pioneers
TriallingaNewResidentialSolarPVandBatteryModel(QLD)
Targetedconstraintondistributionnetworkfeeder:customershadlargehousesandlargebills
Prospectors
CarnarvonDistributedEnergyResources(DER)trials(WA)
Targetedconstraintondistributionnetworkfeederwithafocusonahighsolarcommunity
Prospectors
BatteryStorageSystemPerformanceStandard(AUS)
N/A–nocustomerstargetedasthiswasastandardsstudy
N/A
SimplyEnergyVPP(SA) Customerled–existingandprospectiveconsumers
N/A
SolarAnalytics:MonitoringforBetterEnergyOutcomes(AUS)
N/A–nocustomerstargetedsincetheprojectwasfocusedondataanalysis
N/A
DecentralisedEnergyExchange(deX)(AUS)
Customerled–existingandprospectiveconsumers
N/A
Buildingtheworld’sfirstconsumerownedsolarretailandservicescompany(NSW,VIC,QLD,SA)
Originallytargetedearlyadoptersthen,basedonmarketfeedback,changedtargetgrouptomainstreamaudience
Settlers,Prospectors
15DER Customer Insights: Values & Motivations
LISTENING FOR SIGNPOSTS TO A PERSON’S VALUES MODEYOUCANROUGHLYIDENTIFYVALUEMODESBYLISTENINGTOWHAT CUSTOMERSSAYWHENCONSULTED.
Examplesofphrasesthatsignpostaperson’smode:
SETTLERS:
“AndIjustcan’tbebotheredlookingatitbecauseI’mnotinterestedinit.Ifit’sdoneit’sdone,Igetpaidsomuch,butIcan’tbebotheredjustcheckingit.”–CONSORTtrialparticipant
“IguessI’vereliedonTasNetworkandtheReposittomakeitfairandequitablesothatthey’recallingonallthebatterytrialparticipantsinapproximatelythesameway”–CONSORTtrialparticipant
“Well,ifI’mstoringmyday’sexcess,I’mthenutilisingandhaving–yeah,becauseitfeelsmoretrulyefficientbecauseI’musingintheeveningwhatI’vemadeintheday,andthenI’vegotlessriskonthegrid…”–CSIROfocusgroupparticipant
“…Idon’tlikeothercompaniescontrollingmydevicesandmoney…”–CSIROfocusgroupparticipant
PROSPECTORS:
“I’musingthesolarfromhybridtopowerotherhalfofhouse.NothappywithrecommendationtoleaveinBypassuntiladvisedotherwise.IfIcan’tuseitinasituationlikethisthenwemightaswellremoveitasthisisreallytheonlytimeit’sneeded”–ErgonEnergytrialparticipant
“Ithinkit’sclumsyandIwouldhopethatinthenot-too-distantfuturethat’llbecomealotmorerefined.SoIthinkthatIwouldbeoutofthemarketatthemoment.Itseemstometobesomethingthat’sinitsinfancyandisdevelopingrapidly.Ithinkthere’sgoingtobefarbetteroptionsinthenot-too-distantfuture.”–CSIROfocusgroupparticipant
“JusttheindependenceandI’dknowit’smine.It’smyhome,myownelectricity.There’sarealsenseoffamilyandlookingafterourselves,basically.”–CSIROfocusgroupparticipant
PIONEERS:
“[I’m]attractedtotheholisticallysustainableandwellthoughtthroughdesignofthebuilding”–GenYmemberofWhiteGumValleytrial
“ImeanBruny’sgotaverystrongcommunity,andIthinkit’sgoodtogivebacktoit.Idon’tseeit’samajorissueatall”–CONSORTtrialparticipant
“AndIguessourinterestprobablyinreducingelectricityconsumptionismoreenvironmentalthancost,Iwouldsay,withourfamily.”–CSIROfocusgroupparticipant
3.2.3CAVEATSTOFOCUSINGONVALUES
Understandingcustomer’svaluesisnotgoingtoanswerallthequestions.TheuptakeofDERisinfluencedbyotherfactorsthatmustbetakenintoconsideration:inparticular,cost,technologyreadiness,locationalfactors(e.g.thetypeofgrid,telecommunicationsconnectivity),andthewaycustomersneedtouseenergy.Forexample,renterscannotyeteasilyinvestinrooftopsolaranddairyfarmscannotshifttheirmilkingtodifferenttimesoftheday.However,outsideofthesefactors,valuesareausefulwaytopredictmotivations,whichisexploredinthefollowingsection.
KEY INSIGHT:
Cost,technologyreadiness,location,andenergyprofilearefactorsnotrelatedtovaluesthatmayalsoprecludecustomersfrominvestinginDER.
16DER Customer Insights: Values & Motivations
Deeplyunderstandingcustomervalueswillrevealtheirmotivations.Thissectioninvestigateshowcustomers’motivations,derivedfromtheirvalues,directlyinfluencetheiractionswithinDERprojects.Byunderstandingthesemotivations,futureprojectsmaybemoresuccessfule.g.byrecruitingagreaternumberofcustomersmoreefficiently.Determiningvalues-basedmotivationsalsohelpstoexplainthefindingsoftheexistingprojects,forexample:
1. CSIRO’s six key influencing factors for DER preference12–infrastructure-related,lifestyle,financial,information,environmentalconsiderations/impacts,benefitsforindependence,and
2. The University of Tasmania’s exploration of DER customers’ emotions13towards(e.g.relaxationandenthusiasm)andagainst(e.g.angerandhostility)DERprojects.
Theresearchfoundninecommonmotivatorsforparticipationintheprojects.Wehavelistedthesebelow(Table3)andmappedeightofthemagainsttheuniversalvaluesandvaluesmodesthattheycorrespondto.
TABLE3.EIGHTOFTHENINEMOTIVATORSOFDERCUSTOMERSCANBEMAPPEDAGAINSTTHEVALUESMODES
MOTIVATORS OF DER CUSTOMERS UNIVERSAL VALUES PRIMARY MODE
1 Financialsecurity/benefits Security,power*,universalism*
Settler2 Securityofsupply Security,power,self-direction*
3 Maintainingthestatusquo Conformity,tradition
4 Newtechnology StimulationProspector
5 Aesthetics/statussymbol Achievement
6 Energyindependence Self-direction*
Pioneer7 Environmentalbenefit Universalism
8 Communitybenefit Benevolence*
9 Trust N/A N/A
*isalignedtoanothervaluemode
12 CSIRO’ssixfocusgroupswith61participantsacrossBrisbane,MelbourneandSydneyfoundthatthesewerethemostimportantfactorsinfluencinghouseholderpreferenceforacceptingdistributedenergyoptions(Householderinterestinactiveparticipationinthesolardistributionenergymarket,2012)
13 TheUniversityofTasmaniafocusedontheemotionsofhouseholdersthroughouttheCONSORTTrialbecause“thereiswellestablishedresearchthatdemonstratesthatemotionsandethicalintuitionsareequally,orinsomecasesevenmoreimportantthanreason,inmakingmoraldecisionsabouttechnology”(CONSORTSocialScienceReport,2019)
4.0THEMOTIVATORSOFDERCUSTOMERS
“Householdsarediverse,andgreaterawarenessandappreciationofthecontextinwhichhouseholdsmakedecisionsabouttheirenergyiscrucialtounderstandingtheirreceptivenesstoDER,andtheirDERpreferences.–UniversityofTasmaniaSocialScienceReport
17DER Customer Insights: Values & Motivations
4.1.1MOSTDERCUSTOMERSWEREDRIVENBYFINANCIALBENEFIT,WHICH ISAMOTIVATORTHATCUTSACROSSVALUESMODES
Financialbenefit(includingreducingcostsandincreasingrevenue)wasdescribedasthestrongestmotivatorforcustomersinallprojectsbarone.14However,financialmotivationscancutacrossthevaluemodes.Forexample:
› Settlersvaluecostsavingsasafinancialsecuritymeasure
› Prospectorsseesmartinvestmentsasasignalthattheyaresuccessfuland‘gettingahead’
› Pioneersaremotivatedbyfairness,expecting‘goodvalueformoney’andfaircompensationfortheirefforts.
Asinglemessageonfinancialbenefitsisunlikelytoappealtoallgroups.Projectsshouldcarefullyconsiderthemotivationsofeachgrouptocommunicateamessageeffectivelytothetargetcustomergroup.Aprojectmaymoreeffectivelyreachthemassmarketifthefinancialmessageisphrasedinthreewaysthatalignwiththethreevaluesmodes(asabove)
However,thereisachancethatthetypeofDERproduct,orthewayitwasinitiallycommunicated,mayhave‘primed’customers’valuestowardsfinancialfactors.Inotherwords,mostprojectspromotedthecost-benefitsaspartoftheinitialengagement,whichmayhaveprioritisedcostastheprimarymotivatorforthosecustomers.Primingfinancialmotivationmayleadtotwomissedopportunities:
(a) The chance that customers may be prepared to pay morefor(orasklessfrom)participatinginprojectsiftheyfeelitalignswiththeirmorealtruisticvalues.
(b) Turning away customers who are strongly motivated by conflicting values(e.g.benevolence)andareturned-offbyproductsthatpromotecostbenefits,particularlyiftheyareperceivedtocomeatacosttoothers.
14 Thecasewherecostwasrankedasthesecond-highestmotivatorwasaninvestigationofCitizenUtilities(sharedownershipofsolarandstorage)inWhiteGumValley.Thisdevelopmentdescribesitselfas“amodern,innovativeandsustainablecommunity”.Therewasuniversalagreementthattheprimarybenefitofsolarinthiscasewasenvironmentalsustainability,describedas“fightingclimatechange”,“cleanerenergy”,“notburningfossilfuels”,“emissionsneedtobereduced”or“betterfortheenvironment”.
Thekeyfindingsexploredinthesectionsbeloware:
› Financial benefit is a core motivator for DER customers,howeveritcutsacrossvaluesmodesandshouldbecommunicatedinmultipleways.
› Settlers are motivated by security,expressedasadesireforreliabilityand‘maintainingthestatusquo’.
› Prospectors who will be driving the first wave of mainstream DER adoptionareexcitedby‘gettingahead’or‘makingasmartinvestment’.
› Pioneersdesirefairnessandarewillingtosupport‘thegreatergood’.
› Trust also cuts across the values modesandiscriticaltosuccessfullyachieveacustomer-centredenergyfuture.
“…costsavingsarethemostimportantfeature…”
“…inadditiontoreducingelectricitycosts,forsomeparticipants,environmentalimpact,levelsofself-sufficiency,andlevelsofcontrolandsafety,arealsoimportantconsiderationswhendeterminingtheirpreferencesforacceptingdistributedenergyoptions…”
“…respondents,whofeelresponsibleforenergyproblems,havestrongerpersonalnormsandaregenerallymoresupportivetowardsdistributedenergytechnologies…”–Householderinterestinactiveparticipationinthesolardistributionenergymarket(CSIRO,2012)
KEY INSIGHT:
Valuepropositionsarelikelytobemoresuccessfuliftheyarecarefullydesignedwiththetargetcustomerinmindand,ifapproachingthemassmarket,arecommunicatedinthreewaystoappealtoeachvaluesmode.
18DER Customer Insights: Values & Motivations
Theprimingoffinancialmotivatorsislikelytohavebeenexacerbatedbythehigh-costnatureoftheprojects.Mostoftheon-the-groundtechnologytrialsrequiredsignificant(>$1,000)customercontributions.Thereweremanyreferencestocustomersnotparticipatingintheprojectssincethelevelofinvestmentwasprohibitive.Forthosecustomerswhochosetoparticipate,thesignificantupfrontcostmayhavealsoincreasedthefocusonareturnoninvestment.Futureprojectscouldaddressthisby:
› Investigating alternative DER technologiesandbusinessmodelse.g.loadmanagement,solargardensandcommunitybatterysharing,
› Including an in-depth design phase,restructuringproductofferingsand/orvaluepropositionsafterthoroughlyinvestigatingtheneedsofthetargetcustomers.
“Wejustdon’thavethefundsavailabletopaythatupfront.I’dratherpayanextrafewhundreddollarsonmybillsthantopaythousandsofdollarsupfrontatthispointintime.”-APVIFocusGroupParticipant
KEY INSIGHT:
Assumingthecoremotivationsoftargetcustomerscanberisky–e.g.byprimingparticularmotivators–leadingtomissedopportunities.ThiscouldbeaddressedbyinvolvingcustomersatthedesignphaseoftheDERproductoffering.
PRIMING:
Researchhasshownthatraisingamotivefromaperson’smemorycanincreasethatperson’sdrivetowardsthatmotive.Thisisknownas‘priming’.Primedmotivationscanalsocomeattheexpenseofotheropposingmotivations.Forexample,priming“money”candecrease“helpfulness”.(Maio et al. 2009; Vohs, Mead & Goode, 2006)
19DER Customer Insights: Values & Motivations
4.1.2SETTLERSAREMOSTCONCERNEDABOUTSECURITY,EXPRESSED ASADESIREFORRELIABILITYAND“MAINTAININGTHESTATUSQUO”
Settlersaredrawntoseekoutsafety,security,tradition,identityandbelonging.Settlersareconservative,risk-avoidantandwaryofchange,withatendencytobelievethattheworldchangesthem,notthattheycanchangetheworld.EffectivecommunicationwithSettlerscouldemphasisetraditionalpractices,thriftinessandthesecuritythatcomesfrombeingabletomanageyourownenergy.
TheoryassumesthatpeopletendtostartasSettlersandthen,asbasicneedsaremet,moveontotheothervaluesmodes.Evenwhenweexpresshigher-levelvalues,westill“allhaveaSettlerinsideofus”.
Security–acommontraitofSettlers–wasacommonlyexpressedvalueofcustomers.Thetwomainsecuritymotivatorsweremaintainingorincreasing‘securityofsupply’,and‘maintainingthestatusquo’.Thesesecuritymotivationswerefoundtosometimestrumpthefinancialbenefits(i.e.customerschosetoforgofinancialupsideiftheyfeltthattheirenergysecuritywasbeingthreatened).
ThemostcommonDERtypethattriggeredsecuritymotivationswasbatterystoragetodelivermorereliableenergysupply.Thiswasparticularlyrelevantinfringe-of-gridandregionallocations,wherethereweregenerallymoreoutages.Forexample,customersinSouthAustraliaandBrunyIslandvaluedreliabilitymorehighlyandalsoexperiencedmoreregularpoweroutages(plannedandunplanned)thanmoreconnectedregionsoftheNationalElectricityMarket(e.g.inner-citySydneyandMelbourne).Bycomparison,thecustomerslivinginAlkimosBeach,45kmnorthofPerthwithlessregularoutages,rankedthereliabilitybenefitsofabatteryafterthebenefitsoflowerenergybills.
Evenincaseswherereliabilityofsupplywasnotchallenged,somecustomersstillpreferredtoforegofinancialbenefitstomaintainthestatusquo(e.g.theirexistingbillingarrangements_.Threeprojects(CONSORT,NetworksRenewedandUnitedEnergy)involvingRepositPower,anaggregatorofnetworksupportservices,experiencedthisinrelationtotariffchanges.Tosupportitsenergyarbitragebusinessmodel,presentedinauser-friendlyappinterface(Figure5),RepositPowerrequirescustomerstomovetoatime-of-use(ToU)tariff.CustomersfoundthatmovingtoaToUtariffwascomplexandopaque,leadingmanytochoosenottomakethemoveevenaftertheywereshownthatitwouldreducetheirbills.Thissometimesmutedtheimpactofthesetrialssince:customerscouldnotalwaysbecalleduponaseasilytodelivertheservicestheprojectsweretesting;and/orthenetworkbusinessdidnotseeasmuchday-to-daybenefitofcustomersmovingtoaToUtariffi.e.customersonToUtariffsarebetter‘gridcitizens’sincetheymovetheirusagetooff-peaktimes.
KEY INSIGHT:
Weall“haveaSettlerinsideofus”.Therefore,tomaximiseuptakeacrossabroadaudience,itisimportantthatallproductofferingsminimisetheirthreattoacustomer’ssecurity,includingenergyreliabilityandfinancialrisk.
“Reliabilitymaybeafactorthatistakenforgrantedandnotwellunderstood”(SynergyAlkimosBeachEnergyStorageTrial:CustomerInsightsResearch,2019).
“ReliabilityofsupplywasabigissueforCONSORTparticipants.GridoutagesareaboveaverageonBrunyIslandandmanyhouseholdsintheTrialwerereallyfocusedonmanagingoutages.”(CONSORTTrial:partnercommentary)
Figure5:RepositPower’senergyarbitrageappishowcustomerscanseeandactonfinancialopportunities
20DER Customer Insights: Values & Motivations
4.1.3PROSPECTORS,WHOOFTENLEADMAINSTREAMINVESTMENTINNEWTECHNOLOGY,AREEXCITEDBY‘GETTINGAHEAD’
Prospectorsyearnforsuccess,thesearchforesteemofothers,andself-esteem.Theyliketoacquireanddisplaysymbolsofsuccess,bethebestatwhattheyaredoingandlookgoodwhiletheyaredoingit.Theyaretrendy,fashion-consciousandalwaysonthelookoutforopportunities.Prospectorsmaybemotivatedbybeingabletodisplaythelatesteco-productandtalkaboutitwiththeirfriendsandcolleagues.
ProspectorsaremainstreamadopterswhoarewillingtomakeinvestmentsinnewDERtechnologiesiftheyseeanopportunityto‘getahead’,financiallyorsocially.Thisisanattractivesegmenttotargetsincethereisahigherappetiteforfinancialriskinordertogetareward.
WhentargetingProspectors,itisimportantthattheproductisattractivetodrivethefirstwaveofmainstreamadoption.Thisisespeciallyimportantiftheproducthasahighcost,sinceitislikelytobesoughtafterasastatussymbol.Forexample,RepositPowerfoundthatbatterystoragesystemsshouldhave“similaraestheticstoacommonhouseholdappliance(refrigerator,storagehotwaterheater,indoorheateranddishwasher)fromahigh-qualitybrand”and“easilyaudiblenoisefrompowerconversionwasdeemedtobebroadlyunacceptable”.Thiscangobeyondpersonalpreferenceandberelatedtoincreasingaproperty’svalue.
However,emergingtechnologiesthatarerapidlyimprovingcanalsobeademotivatorforsomeProspectors(e.g.batterystorage).Prospectorshaveacloseeyeonsocialnormsandwanttobeinvolvedintrendsthataresociallypopular.Theymightwaituntilatechnologyismorematurebeforeinvesting.Itisuncleartheextenttowhichthisimpactedtheprojectsandtheindustry’scurrentdevelopment(i.e.howquicklyadoptionwillramp-upwhenthetechnologyisperceivedasmature).Thisisanareathatcouldbemorefullyexploredbycustomerresearch.
“Itseemstometobesomethinginitsinfancyandisdevelopingrapidly.Ithinkthere’sgoingtobefarbetteroptionsinthenot-too-distantfuture”–APVIfocusgroupparticipant
KEY INSIGHT:
TwostrategiesfortargetingProspectorsincludeshowing1)howtheDERoptionwillbeasmartinvestment,and2)howitcanbeshowcasedasastatussymbol.
21DER Customer Insights: Values & Motivations
4.1.4PIONEERSWILLWANTFAIRNESSANDTOSUPPORTTHE‘GREATERGOOD’
ForPioneers,theconstantdriveisfornewideas,thequestforconnectionswaitingtobemade,andlivingalifebasedonethics.Theyhaveafocusonaestheticandcognitiveneeds,andself-actualisation.Pioneersliketoexploreideas,experimentandfeelthattheiractionsareethical.Thismakesthemtheclassic‘earlyadopters’,willingtotryatechnologyforethicalreasonsbeforeitnecessarilymakesgoodfinancialsense.Theywanttounderstandthebigpictureandarethemostconcernedaboutenvironmentalandsocialissues,fairness,justiceandequality.Theygenerallyembracechangeandbelievethattheycanmakeadifferenceintheworld.
PioneersareintrinsicallymotivatedbyaltruismandDERprojectscanappealtothemwithmessagesofemissionsreductionandfairness.Synergy’scustomerresearchsupportsthisapproach,findingthatcustomers(oncetheirbasicfinancialneedsaremet)seemtobewillingto‘dotherightthing’overconvenienceandcomfort.Thisalignswiththevaluesmodestheory,whichexpectspeoplemoveuptheirhierarchyofneeds15fromSettlerstoPioneers.‘Doingtherightthing’mightbeinvestinginrenewablestoreduceemissions,butalsomightmeansupportingabusinessmodelthatisperceivedas‘fair’.ModelsormessagesthatmayappealtoPioneersincludereaching‘100percentrenewables’targetsandcommunitysolarand/orbatteries,wheremoreindividualscaninvestwithintheirmeans.
Community-mindednesswasapparentinprojectsthatwerecommunity-led.ItwasofmuchhigherimportanceintheLatrobeValley,whichhasahistoricaleconomicdependenceoncoal-firedgenerationandparticipantswerekeentocontinuebeingamajorelectricityproducerinthecleanenergytransition.ItwasalsoamajormotivatorforYackandandah,wherethecommunityischampioningrenewableenergyvia‘TotallyRenewableYackandandah’.But,eveninthesecases,theDERoptionneededtobecheapertobeattractive.Thisconfirmstheconceptthat“weallhaveaSettlerinsideus”andthat,eveninprogressivecommunities,projectscannotignorecustomers’needsforfinancialand/orenergysecurity.
Fairnesswasnotoftenreferencedinthenetworkandretailer-ledprojects,whichmayhaveledtosomenegativecustomerexperiences.Severalprojectsexperiencedminorcustomerbacklashwhenaspectsofthetrialwereperceivedas‘unfair’.Examplesincludedwherearecruitmentprocesswasnotconsideredequitable,orwherethecustomerhadmisunderstoodthebenefitsofferedbythetrial(e.g.didnotrealisethatthebatterystoragewouldnotprovideback-uppowerwhenthegriddisconnected).Themostexplicitexampleofsocialequitybeingconsideredinanetwork-ledtrialwasintheCONSORTtrial16,whichinvestigatedamodelof“value-reflectivepricing”thatwaspartiallyimplementedwithcustomersonBrunyIsland.
15 Maslow’shierarchyofneedsisatheoryinpsychologythatdescribesmotivationsintheformofapyramid.Thebaseofthepyramidarephysiologicalneeds(food,water,shelter),followedby:safety/security;belonging;esteemand,finally,self-actualisation.ThisalignswiththeprogressthroughthevaluesmodesfromSettlerstoProspectorstoPioneers.
16 ThekeyinnovationoftheCONSORTtrialwastheNAC(NetworkAwareCoordination),whichdevelopedameansofcoordinatingDERthataddressedconstraintsatleastcosttothecustomerandnetwork.TheNACconsistsofalgorithms,techniquesandsoftwaretoachieveoptimalpowerflow.Thetechnologyisstillunderdevelopmentforwidespreadimplementationacrossothernetworks.
“…respondents,whofeelresponsibleforenergyproblems,havestrongerpersonalnormsandaregenerallymoresupportivetowardsdistributedenergytechnologies…”–(CSIRO,2012)
KEY INSIGHT:
PromotingenvironmentalandcommunitybenefitscanhelpengagePioneers,howeverthisshouldnotcomeattheexpenseofcustomers’financialorenergysecurityifmassmarketadoptionisneeded.
KEY INSIGHT:
Ensuringfairness(socialequity)inthedesignphasewillhelpprotectaprojectfromcustomerbacklash.
22DER Customer Insights: Values & Motivations
HOT BUTTONSSEGMENTIFYOUCANBUT,IFYOUCAN’T,HITA‘HOTBUTTON’FOREACH GROUPINTURN.
Itisdifficulttounderstandcustomervaluesataglance,thereforestrategiesthatmaximisecustomermotivationwithoutisolatingpotentialtargetgroupscanbeuseful.Fromapsychologyperspective,itisperceivedtobesafesttomoveupMaslow’shierarchyofneedsfromSettlerstoPioneers(Rose,2011).‘Hotbuttons’arephrasesthatalignwithparticularvalues.Whentryingtoreachallthreegroups,trynottooverusehotbuttonsfromanyparticulargroup,astheothersmaystarttotuneout.Whenseekingoutaparticulargroup,don’tusemotivatorsfromtheothergroups,whichwillturnthemoff.
Whilethisresearchdidnotfullyinvestigatethemostsuccessfulhotbuttonsfordifferentvaluesmodes,examplesofwhatthesemaylooklikeareprovidedbelow.Furthertestingofthesephrasesisrecommended(e.g.throughfocusgroupswithtargetcustomers).
“Makeasmartinvestment/choosethebestenergyoption”
“Getahead,beawinner”
“Havethissymbolofsuccesstoshowothersthatyouhavethelatestthing”
Celebrityendorsements
“Choosethefairest,mostethicaloption,thatwillhelpothersinthecommunity”
“Mostenvironmentallyfriendly”
“Anew,excitinginnovation”
“Anopportunityforenergyindependence,todoyourownthing”
“Takecontroloveryourenergyforlessexposuretorisks,orsafeandreliablesupply”
“Reduceyourelectricitycoststotakecareofyourfamily”
“Dowhatisnormal/whateveryoneelseisdoing”
“Doyourduty,helpthecountry”
Security
Family
Price
Local
Escapist
Solidarity
Community
Thrifty
Roots
Comfort
Fearful
SETTLERS
Jet-setting
PROSPECTORS
Wealth
Appearance
Keeping up with the Jones’
Importance
Position
Glamour
Rightneighbourhood
PIONEERSValue
Knowledge
Discerning
Individuality
Quality
Information
Contacts
People-focused
Risk takers
23DER Customer Insights: Values & Motivations
4.2ONTRUST
Sociallicencedependsontrust.Trustcutsacrossthethreevaluemodesiscriticaltopublicacceptanceandadvocacyofnewtechnologies,includingDERuptake.
DERprojectswillhavetoworkhardtogaintrust.Customers’trustinourenergymarketisalreadylow17–only32percentofhouseholdsbelievethatthemarketisworkingintheirinterests,whichhasbeenstablesince2016(EnergyConsumersAustralia,201918).ThisisexacerbatedforDERprojectsthathavecomplextechnicalofferingsandmayencounterunforeseenissueswhendevelopingandtestingnewtechnology.Therearealreadynegativeperceptionstoovercome,forexamplethebeliefthatoneneedstolookoutfor‘cowboy’or‘rogue’installers.Thus,buildingtrustmustbeacoreobjectiveforDERprojects.
Tobuildtrust,projectsmaywanttoconsidermodelssuchasthe“TrustEquation”19.TheTrustEquationusesfourobjectivevariablestomeasuretrustworthiness.Thesefourvariablesarebestdescribedas:Credibility,Reliability,IntimacyandSelf-Orientation.Howthesevariablesmayalignwiththevaluesmodesapproachisdescribedbelow:
› Credibilityisaboutexpertiseandfeelingthatthepeopleyouareengagingwithknowtheirsubject.Valuesarelessrelevanttobuildingcredibility.
› Reliabilityisabouttrackrecord.Havetheyperformedwellbefore?Ifcustomershavehadbadexperienceswithfaultsthenthiswillbelow.Again,thisisnotinfluencedstronglybyvalues.
› Intimacyisaboutsafetyandsecurity,whichisstronglylinkedtothevaluesmodes.First,thisislikelytobeamoreimportantvariableforSettlers,whoaremorefocusedonsafetyandsecurity.Second,customersaremorelikelytofeelsafeandsecurewithpeoplethatsharetheirvalues.
› Self-Orientationisaboutwhetheracustomerfeelsliketheorganisationhastheirinterestsatheartorisbeingself-serving.Valuesisrelevantintwoways.First,thedifferentmodesvaluedifferentthings,sotheirinterestsvary.Settlerswillfeelmoretrustiftheutilityshowsitisfocusedonsafetyandsecurity.Prospectorswillfeelmoretrustiftheutilitytalksabouthelpingthemmakemoney.Pioneerswillfeelmoretrustiftheutilitytalksaboutenvironmentalgoalsorinnovation.Second,self-orientationwillbereduced(andtrustincreased)ifutilitiesexpressintrinsicvaluesthatare‘biggerthanself’ratherthanself-focusedextrinsicvalues.
17 However,thismayalsobeanopportunityforfutureprojectstocapitaliseonthenewdesiresforenergyindependence.
18 EnergyConsumersAustralia(2019), Energy Consumer Sentiment Survey Findings: December 2019.
19 Green,CH(2000),The Trusted Advisor
“Iwanttogetsomethingwithabitofqualityaboutit.Andsomeofthequotestoodon’tincludetheinverterandit’sinfineprintonceyoureadtheircontract.That’sdishonesttobeginwith.Youhaven’tevenstartedandthey’renotbeingupfrontwiththeirinformation.Howcantheyearnyourtrust?Youcouldn’tdobusinesslikethat.AndIhearthattheirafter-salesservicetoo,theirmaintenanceservice,fallsreallyshortfromwhereitshouldbe.” – CSIROfocusgroupparticipant
AkeyquestionforfutureDERprojectsis:“Howdoesthisprojecthelpbuildcustomertrust?”
Ifthiscanbeansweredpositively,ingoodfaith,wewillbemovingclosertoacustomer-centredenergyfuture.
24DER Customer Insights: Values & Motivations
Avalues-basedframeworkmayofferaneffectivetargetingapproachforfutureDERprojects.Valuesarestablepsychologicalstructuresthatmotivatebehaviour,cuttingacrossdemographics.ThisreporthasanalysedthevaluesofDERcustomersandtheirmotivations,whichareconsolidatedintofivekeyfindingsbelow.ThiscanservetohelpinformfutureDERprojects,andotherorganisationsinterestedintheseprojects.
DER projects can benefit from better understanding their target customer basebeforedevelopingandcommunicatingtheproductoffering.Face-to-faceengagementcanstillyieldstronguptakewithoutformalsegmentation;howeveritoftencomesatahighresourcecostandmaynotbesuitableforcommercialofferings.
Values cut across demographics and can be an effective approach forengagingandtailoringmessagestomanytypesofcustomers.Listeningcloselytocustomersduringtheengagementphasecangivecluestotheirvaluesbaseandwhatwilldrivetheiraction.Assumingthecoremotivationsoftargetcustomerscanberisky(e.g.byprimingparticularmotivators),potentiallyleadingtomissedopportunities.
Value propositions are likely to be more successful if they are communicated in multiple waystoappealtoallthreevaluesmodes(fromSettlertoPioneer),whilerememberingthatweall“haveaSettlerinsideofus”.Tomaximiseuptakeinthisgroup,productsshouldminimisetheirthreattoacustomer’senergyandfinancialsecurity.TwostrategiesfortargetingProspectorsincludeshowing1)howtheDERoptionwillbeasmartinvestment,and2)howitcanbeshowcasedasastatussymbol.PromotingenvironmentalandcommunitybenefitsofDERprojectscanhelpengagePioneers,howeveritisimportanttobemindfulofcustomersecurityneeds.
Some factors may preclude customers from investing in DER,regardlessoftheirvalues(e.g.cost,location).
Buildingtrust,includingensuring fairness(socialequity),throughdesignandimplementationwillhelpprotectaprojectfromcustomerbacklashandmove the sector closer to a customer-centred energy future.
5.0CONCLUSION
25DER Customer Insights: Values & Motivations
6.1APPENDIXA:VALUEMODES
TheValuesModeframeworkisaproprietarymotivationalapproachdevelopedbyacompanycalledCulturalDynamicsStrategyandMarketing(CDSM)andappliedbycampaignstrategistsandmarketresearchersincludingChrisRose,KSBRandFuterra(Rose,2011).ItdrawsonsurveyresearchthatmapsindividualvaluesonthecircularmotivationalcontinuumproposedbySchwartz(Rose,2011).ItalsodrawsonMaslow’shierarchyofneeds(Maslow,1987).Maslowproposedthathumanmotivationsderivefromourdominantneeds,andthatneedsdevelophierarchicallyastheyareprogressivelysatisfied.Ourmostbasicneedsarethephysiologicalneedsforfood,water,sleepandwarmth.Oncetheseneedsaresatisfied,webecomemotivatedbythesatisfactionofsafetyneeds,thenneedsforbelongingandlove,esteemneeds,aestheticandcognitiveneedsandtheneedforself-actualisation.
TheValuesModeframeworkidentifies12values-basedmarketsegments(or‘valuesmodes’),groupedintothreeprimarymotivationallevels–labelledasSettlers,ProspectorsandPioneers(Rose,2011).Thesegroupscanbethoughtofasthreedifferentworlds,withfundamentallydifferentvaluesandmotivations.AllpeoplestartasSettlers,butiftheymeettheirbasicneeds,theymaymoveontobecomeProspectorsandthenPioneers.
Settlersaredrawntoseekoutsafety,security,tradition,identityandbelonging.Settlersareconservative,risk-avoidantandwaryofchange,withatendencytobelievethattheworldchangesthem,notthattheycanchangetheworld.EffectivecommunicationwithSettlerscouldemphasisetraditionalpractices,thriftinessandthesecuritythatcomesfrombeingabletomanageyourownenergy.
Prospectorsyearnforsuccess,thesearchforesteemofothers,andself-esteem.Prospectorsliketoacquireanddisplaysymbolsofsuccess,bethebestatwhattheyaredoingandlookgoodwhiletheyaredoingit.Theyaretrendandfashionconsciousandalwaysonthelookoutforopportunities.Prospectorsmaybemotivatedbybeingabletodisplaythelatesteco-productandtalkaboutitwiththeirfriendsandcolleagues.
ForPioneers,theconstantdriveisfornewideas,thequestforconnectionswaitingtobemade,andlivingalifebasedonethics.Theyhaveafocusonaestheticandcognitiveneeds,andself-actualisation.Pioneersliketoexploreideas,experimentandfeelthattheiractionsareethical.Theywanttounderstandthebigpictureandarethemostconcernedaboutenvironmentalandsocialissues,fairness,justiceandequality.Theygenerallyembracechangeandbelievethattheycanmakeadifferenceintheworld.Pioneersareintrinsicallymotivatedtoadoptpro-environmentalbehaviourssocommunicationscanappealtoethicalreasonsforaction.
6.0APPENDICES
26DER Customer Insights: Values & Motivations
WA3 projects ~132 customers
SA2 projects >1,000 customers
VIC4 projects~100 customers
TAS1 project 34 customers
NSW/ACT2 projects 47 customers
QLD1 project 33 customers
The analysed projects are mostly on-grid residential solar and storage trials therefore it is important to consider the nuances of other contexts when applying these findings.Presentation to ARENA I Institute for Sustainable Futures
19 ARENA projects* across almost all states and territories hosted ARENA-funded projects. The demonstration projects involved over 1,300 customers who chose to have DER systems installed in their homes.
*13 demonstration projects and 6 non-demonstration projects (including feasibility studies, standards development and market testing).
6.2APPENDIXB:THECOHORTOFARENA-FUNDEDDERPROJECTS ANDTHEIRCUSTOMERS
PROJECT DESCRIPTION
SolarandStorageTrialatAlkimosBeach
LendleaseCommunities,Synergy,DevelopmentWA
2014 TheSolarandStorageTrialatAlkimosBeachResidentialDevelopmentprojectinvolvesdeveloping,deployingandtestingthecommercialfeasibilityofanewenergyretailmodel.Itwillcombinecommunityscalebatterystorage,highpenetrationrooftopsolarPVandenergymanagementwithinanewresidentialdevelopmentatAlkimosBeach,WesternAustralia.
LatrobeValleyMicrogridFeasibilityStudy
LO3Energy 2018 TheLatrobeValleyMicrogridFeasibilityStudywillassesstheviabilityofcreatingalocalenergymarketplacefordairyfarms,residentialparticipantsandcommercial/industrialcustomersintheLatrobeValley.Participantswillsellexcessenergygeneration,demandresponsecapabilitiesandnetworksupportservicestoimproveintegrationofDistributedEnergyResources,suchasrooftopsolar.TheProjectwillincorporatePV,storage,demandresponseandLO3Energy’sExergyplatformtodeliveranoptimaldistributedenergymodelintheregion.
IndraMonashSmartCity
IndraAustraliaPtyLtd
2018 TheIndraMonashSmartCitywilldemonstratehowsmartandrenewabletechnologiescanbeintegratedattheMonashUniversityClaytonembeddednetworktomaintainpowerqualityandtestmarketdrivenresponsesandbusinessmodels.Indra’sActiveGridManagement(InGRIDAGM)platformwillprovidereal-timemonitoringandcontroloverthegrid-connectedassets,andbeoptimisedtoaddvaluetocustomers,marketparticipantsandtheelectricitygrid.
IntelligentStorageforAustralia’sGrid
RepositPowerPtyLtd
2014 TheIntelligentStorageforAustralia’sGridprojectinvolvespilotingGridCredits,abatterystoragecontrolmodulethatallowsconsumerstomonitorelectricityusageandaccesstheirsolarpowerovernightandatpeaktimes.Repositwillofferthe‘GridCreditsSystem’tovolunteerhouseholdsinCanberra.ThepilotwilldemonstratethevalueofsmartstorageandalsoincreasetheunderstandingofhowresidentialsolarandenergystoragesystemscanoperateinAustralia’selectricitygrid.Theprojecthasthepotentialtoincreasetheuptakeofrooftopsolarandmayallowmorerenewableenergytobeconnectedtothegrid.
27DER Customer Insights: Values & Motivations
PROJECT DESCRIPTION
DistributedEnergyMarket
AustralianPhotovoltaicInsitutute(APVI)
2012 TheDistributedEnergyMarketprojectassessedarangeofwaysinwhichcustomersandelectricityutilitiesmightparticipateinadistributedenergymarket.
HigherRenewablePenetrationinNewLand&HousingDevelopments
BrookfieldEnergyAustraliaPtyLtd
2015 Thisprojectaimstoexplorethecommercialviabilityandimpactofrenewableenergyforlargenewhousingdevelopmentswithoff-gridmicrogrids.BrookfieldEnergyAustralia,throughFlowSystems,willworkwithSiemens,KinesisandCSIROtodeterminewhetherrenewables,batterystorageandenablingtechnologiescanreliablyandcosteffectivelypowernewsuburbs.
CONSORTBrunyIslandBatteryTrial
ANU,TasNetworks,RepositPowerPtyLtd,UniversityofSydney,UniversityofTasmania
2016 TheCONSORTBrunyIslandBatteryTrialsuccessfullydevelopedanddemonstratedaninnovativeautomatedcontrolplatformthatenablesconsumerswithbatterysystemstoprovidesupporttoaconstrainedelectricitynetwork.Itcontinuestodosoinawaythatisofmaximumbenefittoboththeconsumerandthenetwork.AttheheartofCONSORTisaplatformcalledNetworkAwareCoordination(NAC).TheNAC’sprimarytaskistoautomaticallycoordinatehouseholdenergysystems(inanonintrusiveway)enablingthemtoadheretoandalleviatenetworkconstraints.Thetrialeffectivelydemonstratedtheuseofthisapproachtomanagehighrenewablepenetrationandotherconstraintsatamuchlowercostthanisconventionallypossible.
IncreasingtheUptakeofSolarPVinStrataResidentialDevelopments
CurtinUniversity,LandCorp,ElectricityNetworksCooperation,CRCforLowCarbonLiving,CityofFreemantle,BalanceUtilitySolutions
2016 TheIncreasingtheUptakeofSolarPVinStrataResidentialDevelopmentsprojectwilldevelopgovernancemodelstoallowsharedsolarphotovoltaics(PV),batteryandmonitoringsystemstobeusedinmediumdensityapartments.Thegovernancemodelswillbetestedat50unitsoftheWhiteGumValleydevelopmentinPerth.Thegovernancemodelsdevelopedwillexaminethesharedbenefits,risksandcostsbetweendevelopers,owners,tenants,stratabodiesandutilities.Themodelswillalsoincludetheenergysystemdesign,billing,legaladdendumsfordwellingpurchasersanddwellingleases.Thefinancialaspectsofthegovernancemodelswillbestudied,testedanddemonstratedinthreedifferentstratalotdevelopments.Themodelsdevelopedareexpectedtobeadaptableandscalabletosuitdifferentdevelopmenttypes.
NetworksRenewed
UTS,RepositPowerPtyLtd,EssentialEnergy,UnitedEnergy,AusNetServices,APVI
2016 TheNetworksRenewedprojectinvestigatedpathwaystoincreasetheamountofrenewableenergyinAustraliabypavingthewayforsmall-scalesolarphotovoltaic(PV)andbatterystorageinstallationstoimprovethequalityandreliabilityofelectricityinAustralia’sdistributionnetworks.Twodemonstrationsfocussingonvoltagemanagement,recruited90customersinthreelocationsacrossNSWandVictoriaundernewcommercialmodelsfornetwork-relatedbusinesses.Akeyoutcomeoftheprojectisapracticalunderstandingofthecommercialvalueofnewsmartinvertertechnology.
AGLVirtualPowerPlant(VPP)
AGLEnergyLimited
2017 TheAGLVirtualPowerPlantisaworld-leadingprototypeofavirtualpowerplants(VPP)createdbyinstallingandconnectingalargenumberofsolarbatterystoragesystemsacross1000residentialandbusinesspremisesinAdelaide,SouthAustralia,tobemanagedbyacloud-basedcontrolsystem.Thebatterieswillbeableto‘talk’toeachotherthroughacloud-basedplatformusingsmartcontrols,formingaconnectedsystemthatwillbeabletooperateasa5MWsolarpowerplant.
PeakDemandReductionusingSolarandStorage
UnitedEnergy 2017 ThePeakDemandReductionusingSolarandStorageprojecthassuccessfullydemonstratedareductioninpeakdemandasanalternativesolutionfordeferringnetworkaugmentation.UnitedEnergy:developedoperatingmodesforthesystemsincludingautomatedcontrolalgorithms;andinvestigatedbusinessmodelsthatcouldfacilitatethedeploymentofstoragetoaddressnetworkissues.Theoutcomesfromthedispatcheventswerecomplementedbyongoingmarketresearchinordertofacilitatetheprovisionofnon-networksolutionstosystemplannerswherenetworkconstraintsareidentified,andtofeedintoongoingassetstrategydevelopmentregardingtheapplicationofenergystorageinanetworkcontext.
TriallingaNewResidentialSolarPVandBatteryModel
ErgonEnergy,Sunverge,SunPower
2015 TheTriallingaNewResidentialSolarPVandBatteryModelprojectinvolvesQueenslandenergyproviderErgonRetailundertakingapilotdemonstrationtotestacommercialandoperationalmodelforprovidinggrid-connectedsolarphotovoltaic(PV)andbatterystoragesystemstoresidentialcustomers.
Thedemonstrationwillinvolveinstallingandtesting33systemsinCannonvale,ToowoombaandTownsville.
28DER Customer Insights: Values & Motivations
PROJECT DESCRIPTION
CarnarvonDistributedEnergyResources(DER)trials
HorizonPower 2017 Thisprojectaimstoresolvethetechnical,operationalandtransitionalbarrierstoahighpenetrationDERbusinessfuture.ItalsoaimstoleverageHorizonPower’sexperienceandpioneeringuseofdistributedenergystoragetobuildcapabilitiesinthemanagementandoptimisationofhighpenetrationrenewableenergygenerationinremotemicrogrids.Heldoverthreeyears,theDistributedEnergyResource(DER)trialswilltestdistributedenergysystemsthroughavarietyofbehind-the-meterenergysystemstests,withtheaimofbetterunderstandinghowtomanagethevariabilityofrenewableenergyanditsimpactonthenetwork,andultimatelyincreasingPVsystempenetrationthroughoutourremotenetworks.
BatteryStorageSystemPerformanceStandard
DNV-GL 2018 TheBatteryStorageSystemPerformanceStandardprojectaimstoproduceaproposedAustralianBatteryEnergyStorageSystem(BESS)PerformanceStandard(ABPS)forbatteriesconnectedtoresidentialorsmall-scalecommercialsolarphotovoltaic(PV)systems.TheintentionisforthisproposedABPStobesubmittedtotheStandardsAustraliastandardcreationprocess.AGuidelinebasedontheproposedABPSwillalsobeproducedforusebyindustrystakeholderspriortoafinalABPSbeingagreedandfinalisedviaStandardsAustralia.
SimplyEnergyVPP
SimplyEnergy,GreenSync,SAPN,AEMO,Tesla,Flextronics
2018 TheSimplyEnergyVirtualPowerPlant(VPP)projectwilldeliverupto1200TeslaPowerwall2batteriestoAdelaidehouseholds.Thisrepresents6MWofresidentialenergystorage,whileafurther2MWofdemandresponsecapacitywillbedeployedacross10commercialbusinesses.
SolarAnalytics:MonitoringforBetterEnergyOutcomes
SolarAnalyticsPtyLtd,APVI
2016 TheprojectaimstoacceleratedeploymentofanAustralian-developedtechnologydesignedtomonitortheperformanceofresidentialsolarPVsystemsandprovidelowcostanalyticsandfaultdiagnostics.Thetechnologycomparesenergygenerationagainstperformanceexpectations,reportingsystemdatabacktotheresidentialuser,whilealsoidentifyingfaultsandprovidingcorrectiveactions.
DecentralisedEnergyExchange(deX)
GreenSync,UnitedEnergy,ANU,MojoPower,ACTEnvironmentalPlanningDirectorate,VictorianDELWP,ActewAGL
2017 DecentralisedEnergyExchange(deX)isaprototypeonlinemarketplacethatwillprovideawayforhouseholdsandbusinesseswithrooftopsolarandbatterystoragesystemstobepaidforallowingelectricitynetworkbusinessestoaccesstheirrooftopsolarandstoredelectricitytostrengthenthegrid.
Buildingtheworld’sfirstconsumerownedsolarretailandservicescompany
DCPowerCo 2018 DCPowerCo.isadisruptivebusinessplanningtolaunchtheworld’sfirstsolarfocused,customerownedenergyretailerandservicescompany.Takingaccountofthe1.8m+Australianhomeswithrooftopsolarthatareripefordisruptioninthecurrentenergyretailmarket,theDCPowerCo.modelproposestodeliver:
› Adisruptiveelectricityretailsolutionfocusedonsolarprosumers
› Customerengagementthroughownership
› Enhancedsavingsbydivorcingprofitsfromconsumption
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