NGA Governors’ AdvisorsEnergy Policy Institute

Rick Counihan April 16,2015

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Agenda

Introducing the Nest Learning Thermostat

Current Studies of Energy Savings

Rush Hour Rewards

Seasonal Savings

Ideas for States

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Nest Learning Thermostat

Beautiful design

Packed with sensors

A learning object

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It’s easy

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Compatible with ~95% of low voltage systems

Works out of the box with the following:

Heating: one, two and three stages (W1, W2, W3)

Cooling: one and two stages (Y1, Y2)

Heat pump: with auxiliary and emergency heat (O/B, AUX, E)

Humidifier or dehumidifier (HUM, DEHUM)

Fan (G)

Power (C, Rh, Rc)Connectors: R, Rh, Rc, W1, W2/Aux, Y1, Y2, O/B, C, G

*= W3, E, HUM or DEHUM

Pro installer can help Nest work with:

Dual fuel systems (heat pump + furnace)

Whole-home humidifiers or dehumidifiers

Not typically compatible with:

Line voltage, millivolt systems, or low voltage systems withincompatible wires (some require installation of common wire)

Remote or floor sensors (S) [< 1%]

Proprietary systems [< 1%]

Incompatible 5%

New Nest20%

Original Nest75%

Time to TemperatureLearns how long it

takes to heat and cool

Early onGet the temperature you

want when you want it

SunblockAdjusts to direct

sunlight

Auto -AwayNotices when you’re out

to help s ave energy

Auto-ScheduleLearns your schedule and

helps you save

L eaf

Guides you towards moreenergy efficient settings

AirwaveUse less air conditioning

while staying cool

Filter R eminder

Uses system runtime toe stimate replacement

S ys tem MatchTurns on features to keepyou comfortable and help

you s ave

True RadiantLearns and gives you apredictable schedule

Heat Pump BalanceLearns and optimizes howoften you need expensive

auxiliary heat

Cool to DryUses A/C to dehumidify your

home

eUpstairs

oDownstairs

oProtect

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s. l V l hi ' f t-

A5 fZ> 'ft- 0 G)Thu 4

111111111 1111 111• l

L

II • • l ..

Wed 3 ..,Tue 2 1!1 • ....

Mon 1 ... ...

UpstairsSun 30 2 • •

Sat 29 1 1 1 4 ti•

Fri 28

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Energy History

Monthly Energy Report

Open Rate: 60%(3x industry standard)

Click-through rate: 5.6%

(3-6x industry standard)

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Energy Savings

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Traditional Thermostat S avings E stimates and Claims

•US DOE: 5%-15% savings per 8 hour setback per day

•US EPA: save $180/year (but dropped Energy Star designation in 2009)

•Nest: “could cut 20% off your heating and cooling bill” vs. constant set point

(customer specific)

•Ecobee: “customers in the US saved an average of 23% on their heating and

cooling costs” vs. constant 72°F

•Carrier: “homeowners saved an average of 20% on their heating and cooling

energy costs” vs. constant 72°F

•Tado: “cut your heating bill by up to 31%”vs. constant 68°F

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Pre-Nest

Energy Use Energy Savings

Nest Findings: Gas and E lectric Savings

Heating savingsn = 735

10%

18%

February,2015.Study performed by Nest Labs.

Cooling savingsn = 624

COOLING

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Fuel HVAC Total % of HVAC

Natural Gas (therms/yr) 584 56 ±12 9.6% ±2.1%

Electricity: cooling, no heat (kWh/yr) 3,351 585 ±97 17.5% ±2.9%

Independent Study #1 : Energy Trust of Oregon

‣ Electricity Savings:12% of heating use,781 kWh/yr

Savings attributed to strip heat control (Heat Pump Balance)‣

12%

89%

n = 185 heat pump customers, independent evaluation by Apex Analytics

Customer satisfaction‣High satisfaction:89%

‣ Improved Comfort:66%

Non-Energy Benefits: 34% say worth the cost even

without energy savings

‣

Heating electric savings

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Independent Study #2 : Vectren Indiana

Heating savingsNatural Gas Savings:12.5% of heating use,69 th/yr

13%

14%Cooling savingsElectricity Savings:13.9% of cooling use,429 kWh/yr

n = 300, independent evaluation by Cadmus

Standard programmable thermostat group savings:5%heating, 13.1%cooling

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Independent Study #3 : NIPSCo Indiana

Heating savingsNatural Gas Savings:13.4% of heating use,106 th/yr

13%

16%Cooling savingsElectricity Savings:16.1% of cooling use,388 kWh/yr

n = 400, independent evaluation by Cadmus

Standard programmable thermostat group savings:7.8%heating, 15% cooling

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Independent Study: PA State-Wide Evaluator*

•Smart Thermostat w/Electric Heating and Cooling

Savings:10.5 %

Cost:

TRC:

$249

2.59

•Smart Thermostat w/Electric Cooling and Non-electric Heating

Savings:13.6%

Cost:

TRC:

$249

.45 (no credit for natural gas savings)

* “EnergyEfficiency Potential Study Final Report”,Statewide Evaluator Team,February 2015,pp.D-5,6, Original Measure Nos.2022, 2024.

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Rus h Hour Rewards

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Life with Rus h Hour Rewards

Auto-Tune™gold gear appears as soon as pre-cooling starts (if necessary)

“R ush Hour ” i s displayed during the actual event

You’re always in control

78RUSH HOUR

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The results?

events completed

without adjustment

85%

kW reduction per

thermostat

1

cooling load

reduction

55%

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Seasonal Savings

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Seasonal Savings

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• Offered exclusively by Nest’s Energy Partners

• 0.7° average temperature increase

• 5-10% heating and cooling savings

• 65% completed program without adjustments

Works with Nest

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Capitalize on E E benefits of Nest ecosystemNest can send the “Away” signal to partner products

Lighting Appliances Load Switches Smart Plugs

WaterHeaters

PoolPumps

240V, 30 AMP

Switch120 V, <1.8 kW

Switch

Window

A/C

Portable

Heater

Extend RHR to other devices in the homeNest can send the “Rush Hour Rewards” signal to partner products

Load Switches Smart Plugs EV Chargers

State Ideas

New Low Hanging Fruit?

BYOT?

Statewide Seasonal Savings (MA DOER)?

New Kind of Demand Response (Uncertainty in DR Markets)?

Tool for Clean Power Plan ?