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Low Income Engagement:
Beyond Efficiency
Ricky Gratz, Manager, Market Development
& Regulatory Affairs – East
Prepared for NEUAC 2014
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Increasing strains on low income energy
efficiency
More important than ever to maximize the impact
of dollars spent
Low
customer
reach
Increasing
need
for relief
Decreasing
budgets
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We analyzed data from the 500K+ low
income customers we reach today and
external sources
Low income households are not uniform
On every dimension – home ownership, home type, language, age – diversity is great 1.
Low income does not imply low usage
In some geographies, low income households actually use more energy than general population 2.
Low income programs can be cost-effective
Auto-enroll and some traditional low income energy efficiency programs can be cost-effective 4.
Low income populations can engage at impactful levels
Once aware of available resources, low income populations exhibit high savings and
participation rates
3.
What we found:
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Low income households are diverse
1
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-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Low income housing characteristics vary greatly between utilities and regions
Percent of population living
in single-family homes
Difference between low income
and non-low income
Percent of population that
owns their home
Difference between low income
and non-low income
1
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Low income households can have higher or lower energy consumption
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
California IOU 1 California IOU 2 Midwest IOU 1 Midwest IOU 2 Southwest IOU Mid-Atlantic IOU Northeast IOU
Perc
en
t d
iffe
ren
ce o
f kW
h
Energy consumed
Percent difference of energy consumed by low-income and non-low
income
2
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There are potential physical and behavioral drivers to high consumption
OPOWER Research of Low Income Consumers
Have adopted fewer measures to reduce energy
• 50% more likely to have window A/C
• 25% more likely to have space heaters
• 50% less likely to have low-flow showerhead
• Less likely to have CFL bulbs
Differences in housing stock
Level of comfort required by elderly population
2
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1,750 300 30
45,000
20,000
10,000
Weatherization New Construciton Water Heating Opower WestDeployment
Opower MidWestDeployment
Opower SouthestDeployment
8
Auto-enroll programs create deeper reach into the population
Reach of various traditional low income programs
Median number of participants
Source: DSM Market Intelligence
1,750 300 30
Weatherization New Construciton Water Heating
3
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Once engaged, low income households save and participate at high rates
0%
5%
10%
15%
20%
25%
30%
35%
Percent takingEither Type of
Action
Percent takingEquipment Actions
Percen takingBehavior Actions
» Low income customers delivered
almost identical savings across 5
Opower programs
» They were equally likely to
consume more, less, and the same
as non-low-income customers
» Of customers that received home
energy reports, a higher rate of
low income households
participated in each type of
efficiency action than non-low-
income (Navigant 2012)
Cumulative savings
(kWh/household)v
Percent of households taking
Efficiency Actions
0
50
100
150
200
250
300
Western IOU 1 Western IOU 2 Eastern IOU 1 Eastern IOU 2
Low Income savings Regular Income savings
3
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It’s possible for successful low income programs to be cost-effective
4
37%
54%
Among ACEEE’s “exemplary” low income
energy efficiency programs, 37% are cost-
effective with a TRC > 1.0
An analysis of low income programs filed by
86 utilities showed that 54% of those that filed
a cost-benefit test are cost-effective
Opower’s auto enroll programs have also been deployed
cost-effectively to low-income populations throughout the country
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Takeaways
Because every dollar counts, must
maximize the impact of low income
programs
Need targeted experiences that
engage low income populations
When low income customers save,
everyone wins
Equitable programs required for far
reaching relief
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Utility benefits of Opower low income
program
Reduce bad debt,
arrearages, and
administrative costs
Improved customer
satisfaction
Reach every low income
household
Increased positive PR
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Thank you!
Ricky Gratz
Manager
Market Development & Regulatory Affairs - East
O +1 571.483.3023
C +1 410.718.8173