E-1Incentive Setting Methodology: CLEAResult Report & EfficiencyOne Implementation Plan
12 passages
1 3.2 Recommendation 2 2 3 3.2.1 Recommendation 2 a) 4 EfficiencyOne is supportive of maintaining up-to-date customer and technology 5 research for its energy efficiency measures, especially those with high levels of 6 annual expenditure....
AI summary EfficiencyOne supports maintaining updated customer and technology research for energy efficiency, acknowledging financial challenges. It commits to 2016 LED lamp market research, a 2017-2018 research plan, and developing a TRM and consolidated calculator. Budget constraints limit 2016 research scope, with Q3 reporting on impacts.
Customer Research A critical component of determining perceived value is actually asking potential customers what they would pay for a product or service, and what their price points are for difficult technology options. This work can be d...
AI summary Customer research is essential for understanding price points and barriers to adopting energy-efficient technologies. Methods like focus groups and surveys help gauge customer preferences, while the principal-agent problem in rental units highlights conflicts between tenants and landlords over energy costs and upgrades. Addressing these barriers requires tailored incentive strategies.
Table 3: Research Engagement Phase Research and Engagement Phase Customer Research Most jurisdictions studied undertake customer research (either primary or secondary) to identify the motivations to participate in energy efficiency program...
AI summary The text discusses customer research practices in energy efficiency programs, highlighting how jurisdictions like PG&E, Efficiency Vermont, and BC Hydro use primary and secondary research to understand customer motivations and barriers to participation in energy efficiency initiatives.
CUSTOMER MOTIVATIONS AND BARRIERS As discussed, understanding customer motivations and barriers to participation are important. This customer research can be performed in numerous ways; it is often done through surveys of both randomly sel...
AI summary The document discusses the importance of understanding customer motivations and barriers to participation in energy efficiency programs. It outlines methods such as price sensitivity research and conjoint analysis for incentive setting and program design, noting that these methods are recommended for high-value expenditures over multiple years.
Conjoint Analysis Conjoint analysis can be used to evaluate how individual attributes contribute to consumers' value of a product or service. With many efficiency programs and incentive offers, there can be multiple benefits to the consume...
AI summary Conjoint analysis is a method to evaluate how different product or service attributes contribute to consumer value, particularly in efficiency programs and incentive offers. It involves asking consumers to make trade-offs between attributes, allowing for the assessment of the relative importance of benefits such as financial, educational, and convenience factors. CLEAResult suggests using this method for incentive expenditures over $400,000 annually over multiple years.
SUPPLY CHAIN AND SERVICE PROVIDER RESEARCH The supply chain and service providers should be engaged to support the customer and technology research efforts. It can be difficult to get firsthand information about customer motivations, price...
AI summary Engaging supply chain and service providers is critical for customer and technology research, as they provide insights into customer motivations, price elasticity, and technology parameters. They also offer reference data (e.g., sales, installations) to inform incentive setting and program design. Regular interactions with these stakeholders are emphasized for effective program management and stakeholder collaboration.
Understand Customer Motivation and Barriers for Participation Currently, EfficiencyOne uses four different methods to understand customer motivation and barriers to participation: 1. Market research to assess customer awareness of programs...
AI summary EfficiencyOne uses four methods to understand customer motivation and barriers to participation, including market research, annual surveys, active program management, and specialized research. Recommendations include continuing current activities, introducing an annual survey on key technology portfolios, and conducting price sensitivity or conjoint analyses if large incentive expenditures are anticipated.
FORMAL & DOCUMENTED INCENTIVE SETTING PROCESS It is recommended that ENS use a formal and documented incentive setting process for all incentive setting exercises. This does not necessarily mean that every step of the process needs to be f...
AI summary The text recommends ENS use a formal, documented incentive setting process, outlining three potential processes. It emphasizes considering existing market incentives in customer research, technology analysis, and financial impact assessments to address barriers and attribution issues.
For the Instant Savings Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities Understand Customer Motivation and Barriers for Participation For Instant Savings, EfficiencyOne gai...
AI summary CLEAResult recommends that the Instant Savings Program conduct annual price sensitivity research for high-expenditure measures and continue annual participant and non-participant surveys to evaluate customer motivation and barriers for participation. A semi-annual survey for residential LED technology is also suggested.
For the Custom Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities Understand Customer Motivation and Barriers for Participation For the Custom Program, EfficiencyOne gains an...
AI summary CLEAResult recommends continued market research and program evaluation to understand customer motivations and barriers for participation in the Custom Program. It highlights the importance of educational incentives over financial ones and suggests using semi-annual surveys to gather insights for underperforming areas.
rovide insight on the contractor and customer program experience. EfficiencyOne also has dedicated Application Coordinators for application support and approval in the program. They work with both the distributors in the midstream program...
AI summary The text discusses the Business Energy Rebates program, highlighting EfficiencyOne's role in providing application support and program benchmarking based on similar programs like Efficiency Vermont. It also emphasizes the importance of program evaluation, market research, and understanding customer motivations and barriers in the commercial and industrial sectors.
Understand Customer Motivation and Barriers for Participation For the Home Energy Assessment Program, EfficiencyOne gains an understanding of customer motivations and barriers through the following activities: 1. Market Research; 2. Ongoin...
AI summary EfficiencyOne outlines activities to understand customer motivations and barriers for participation in the Home Energy Assessment Program, including market research, program management, benchmarking, and evaluation.
E-3REVISED Incentive Setting Methodology: CLEAResult Report & EfficiencyOne Implementation Plan - Clean Version
10 passages
Customer Research A critical component of determining participant perceived value is actually asking potential customers what they would pay for a product or service, and what their price points are for difficult technology options. Additi...
AI summary Customer research is critical for understanding perceived value and setting effective incentives. Barriers like price, light quality, and environmental concerns (e.g., CFLs) hinder adoption despite financial incentives. The principal-agent problem in rental units complicates incentive delivery due to conflicting motivations between tenants and landlords.
Research and Engagement Phase Customer Research Most jurisdictions studied undertake customer research (either primary or secondary) to identify the motivations to participate in energy efficiency programs and the barriers preventing parti...
AI summary The text discusses how various jurisdictions conduct customer research to understand motivations and barriers to participation in energy efficiency programs. Examples include PG&E's focus groups, Efficiency Vermont's market analysis, and BC Hydro's one-on-one consultations with larger customers to gather insights and assess the impact of incentives on participation behavior.
Conjoint Analysis Conjoint analysis can be used to evaluate how individual attributes contribute to consumers' value of a product or service. With many efficiency programs and incentive offers, there can be multiple benefits to the consume...
AI summary Conjoint analysis is a method to evaluate consumer preferences by examining trade-offs between product or service attributes. It helps determine the financial and non-financial value consumers place on efficiency programs and incentives. CLEAResult suggests using this method for incentive expenditures over $400,000 annually. EfficiencyOne already conducts much of the necessary research for setting incentive levels.
SUPPLY CHAIN AND SERVICE PROVIDER RESEARCH The supply chain and service providers should be engaged to support the customer and technology research efforts. It may be difficult to directly contact customers and technology manufacturers to...
AI summary Engaging supply chain and service providers is critical for customer and technology research, providing access to contacts, customer insights, reference data for incentive analysis, and identifying barriers to program implementation. Regular interactions with these stakeholders are essential for effective incentive setting and program design.
3. What is the acceptable incentive threshold in terms of Customer Cost? With respect to Customer Cost, there may be an acceptable incentive level threshold that is based on the retail price, project cost, Incremental Equipment Cost or pro...
AI summary The acceptable incentive threshold for Customer Cost is based on factors like retail price, project cost, and payback period. While a suggested limit of 100% of Incremental Equipment Cost is provided, this can be exceeded with justification. Guidelines suggest boundaries of 50-70% of retail price or project costs, or a minimum one-year payback period, but these are not hard limits.
Understand Customer Motivation and Barriers for Participation Currently, EfficiencyOne uses four different methods to understand customer motivation and barriers to participation: 1. Market research to assess customer awareness of programs...
AI summary EfficiencyOne uses four methods to understand customer motivation and barriers to participation, including market research, annual surveys, active program management, and specialized research. The document recommends continuing these activities and introducing an annual survey on key technology portfolios to track participation trends. It also suggests considering price sensitivity analyses due to rising electricity prices and affordability concerns.
The template is provided as an attached Excel file, with a selected screenshot of the first page provided below: Initial Process Customer Research
AI summary The text references a customer research process, indicating that the document is related to gathering insights or data from customers. However, no specific details or arguments are discussed in the provided text.
For the Instant Savings Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities Understand Customer Motivation and Barriers for Participation For Instant Savings, EfficiencyOne gai...
AI summary CLEAResult recommends conducting annual price sensitivity research for high-expenditure program measures and continuing annual participant and non-participant surveys to understand customer motivation and barriers for the Instant Savings Program. A semi-annual survey for residential LED technology is also suggested.
Understand Customer Motivation and Barriers for Participation For the Business Energy Rebates Program, EfficiencyOne gains an understanding of customer motivations and barriers through: 1. Market Research; 2. Ongoing Program Management; 3....
AI summary EfficiencyOne identifies customer motivations and barriers for participation in the Business Energy Rebates program through market research, program management, benchmarking, and evaluation. Financial support is highlighted as critical for business participation in energy efficiency initiatives.
Understand Customer Motivation and Barriers for Participation For the Home Energy Assessment Program, EfficiencyOne gains an understanding of customer motivations and barriers through the following activities: 1. Market Research; 2. Ongoin...
AI summary EfficiencyOne outlines activities to understand customer motivations and barriers for participation in the Home Energy Assessment Program, including market research, program management, benchmarking, and evaluation.
E-3-(i)REVISED Incentive Setting Methodology: CLEAResult Report & Efficinecy One Implementation Report - Redline Version
12 passages
3.2.1 Recommendation 2 a) EfficiencyOne is supportive of maintaining up-to-date customer and technology research for its energy efficiency measures, especially those with high levels of annual expenditure. EfficiencyOne is cognisant of the...
AI summary EfficiencyOne supports maintaining up-to-date customer and technology research for energy efficiency measures but acknowledges financial challenges. It plans to quantify impacts by Q3 2016, increase research frequency, and collaborate with experts. Due to budget constraints, only LED lamp market penetration research will be conducted in 2016.
Customer Research A critical component of determining participant perceived value is actually asking potential customers what they would pay for a product or service, and what their price points are for difficult technology options. This w...
AI summary Customer research is vital to understanding perceived value, price points, and barriers to adopting energy-efficient technologies like CFLs and LED lamps. While financial incentives may not fully address non-financial barriers (e.g., light quality, mercury concerns), customer input via surveys and focus groups is essential. The principal-agent problem in rental units, where tenants and landlords have conflicting interests, further complicates incentive strategies.
Research and Engagement Phase Customer Research Most jurisdictions studied undertake customer research (either primary or secondary) to identify the motivations to participate in energy efficiency programs and the barriers preventing parti...
AI summary The text discusses how jurisdictions conduct customer research to identify motivations and barriers to participation in energy efficiency programs. Examples include PG&E's focus groups, Efficiency Vermont's market analysis, and the use of program evaluations to assess the impact of incentives on participant behavior.
The following table contains an analysis of the barriers and the associated incentive strategy for the four investigated programs. Program Identified Barriers Incentive Strategy Business Energy Rebates 2) Commercial and industrial customer...
AI summary The table outlines barriers and incentive strategies for the Business Energy Rebates program. A key barrier is the lack of education among commercial and industrial customers about energy-efficient projects. The incentive strategy involves engaging distributors to educate contractors, who are influential in promoting energy efficiency awareness.
CUSTOMER MOTIVATIONS AND BARRIERS As discussed, understanding customer motivations and barriers to participation are important. A key component of the customer research is understanding how customers view costs associated with the efficien...
AI summary The document discusses the importance of understanding customer motivations and barriers to participation in energy efficiency programs. It highlights the use of price sensitivity research and conjoint analysis for incentive setting and program design, noting that these methods are typically reserved for high-value incentive expenditures exceeding $400,000 annually.
Conjoint Analysis Conjoint analysis can be used to evaluate how individual attributes contribute to consumers' value of a product or service. With many efficiency programs and incentive offers, there can be multiple benefits to the consume...
AI summary Conjoint analysis is a method used to evaluate how individual attributes contribute to consumer value, particularly in efficiency programs and incentive offers. It involves asking consumers to make trade-offs between different benefits, such as financial, educational, and convenience factors. CLEAResult recommends using this method for incentive expenditures over $400,000 annually over multiple years, and EfficiencyOne is advised to leverage existing research for future incentive level setting.
3. What is the acceptable incentive threshold in terms of cost to the customerCustomer Cost? With respect to cost to the customerCustomer Cost, there may be an acceptable incentive level threshold that is based on the retail price, increme...
AI summary The acceptable incentive threshold for customer cost is based on factors like retail price, incremental equipment cost, and payback periods. While a 100% limit on incremental equipment cost is suggested, it can be exceeded with justification. Customer research and program-specific considerations are emphasized to determine appropriate thresholds, with guidelines rather than hard limits being recommended.
Understand Customer Motivation and Barriers for Participation Currently, EfficiencyOne uses four different methods to understand customer motivation and barriers to participation: 1. Market research to assess customer awareness of programs...
AI summary EfficiencyOne uses four methods to understand customer motivation and barriers to participation in energy efficiency programs, including market research, annual surveys, active program management, and specialized research. Recommendations include continuing current activities, introducing annual surveys on key technologies, and conducting price sensitivity analyses if large incentive expenditures are anticipated.
For the Instant Savings Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities Understand Customer Motivation and Barriers for Participation For Instant Savings, EfficiencyOne gai...
AI summary CLEAResult recommends that EfficiencyOne conduct annual price sensitivity research for popular program measures with annual expenditures over $400,000 and continue annual participant and non-participant surveys to understand customer motivations and barriers for the Instant Savings Program.
Understand Customer Motivation and Barriers for Participation For the Custom Program, EfficiencyOne gains an understanding of customer motivations and barriers through: 1. Market Research; 2. Ongoing Program Management; 3. Program Benchmar...
AI summary EfficiencyOne conducted market research to understand customer motivations and barriers for participation in the Custom Program. The research found that financial incentives were not effective in driving participation, and educational incentives combined with access to financial support were more valuable. Ongoing program management is also emphasized for improving participation.
For the Business Energy Rebates program, CLEAResult has the following recommendations: For the Business Energy Rebates Program, EfficiencyOne gains an understanding of especially for customer motivations and barriers through: underperfor...
AI summary CLEAResult recommends that EfficiencyOne conduct market research, ongoing program management, benchmarking, and program evaluation to understand customer motivations and barriers for the Business Energy Rebates program. Research from 2014 highlighted the importance of financial support for business participation in energy efficiency initiatives.
ernment. The rebates from the federal government were discontinued in 2012, with a corresponding reduction in participation. It is recommended that market research continue to be conducted, especially for areas that are underperforming i...
AI summary The Home Energy Assessment program recommends continuing market research, especially in underperforming areas, and conducting semi-annual surveys for residential HVAC technology. EfficiencyOne is advised to maintain current program management and evaluation activities.
69771Reply to Stakeholder Comments re Incentive Setting Methodology
3 passages
rider problem in an 26 incentive-setting mechanism. One option is to rely on customer research to identify the 27 potential range of free-ridership in previously flagged measures and adjust incentives 1 accordingly." 2 EfficiencyOne Respon...
AI summary EfficiencyOne discusses adjusting incentives based on free-ridership estimates and customer research, referencing historical data and program evaluations. NSP asks about mechanisms for adjusting incentives if program uptake exceeds expectations, to which EfficiencyOne responds with budget evaluations and trigger reviews for unexpected program performance.
1) Customer Research The customer research is intended to capture the understanding of the customer's motivations and barriers to participate. The identification of the barriers will inform the incentive design, and broader program design...
AI summary Customer research aims to identify motivations and barriers to participation, informing incentive and program design. Understanding customer valuation methods (e.g., upfront costs, lifecycle costs) ensures aligned incentives. Barriers may require education or non-financial incentives to address.
3) Supply Chain Research The supply chain research assists with understanding if members of the supply chain and stakeholders face barriers to participation in the programs and whether a specific incentive level (or broader program design...
AI summary The supply chain research aims to identify barriers faced by supply chain members and stakeholders in program participation, evaluate the effectiveness of different incentive levels (midstream, upstream, downstream), and support customer and technology research efforts.
69772Incentive Setting Methodology and CLEAResult Report and EfficiencyOne Implementation Plan - Second Revision - Clean Version
9 passages
3 3.2.1 Recommendation 2 a) 4 EfficiencyOne is supportive of maintaining up-to-date customer and technology 5 research for its energy efficiency measures, especially those with high levels of 6 annual expenditure. 7 8 EfficiencyOne is cogn...
AI summary EfficiencyOne supports maintaining up-to-date customer and technology research for energy efficiency, acknowledging financial challenges. It plans to quantify budget impacts by September 31, 2016, and commit to increasing research frequency. Prior research on LED A-lamps was completed in 2016, with future efforts involving expert methodologies.
1 3.3 Recommendation 3 2 EfficiencyOne agrees that conducting a financial simulation on existing 3 incentive levels, using CLEAResult's six financial simulation metrics, is a 4 valuable exercise. This exercise will be useful in determining...
AI summary EfficiencyOne agrees to conduct a financial simulation using CLEAResult's metrics to evaluate current incentive levels and future revisions. They commit to an initial simulation by June 30, 2017, with improved data quality expected from a two-year research plan.
Customer Research A critical component of determining participant perceived value is actually asking potential customers what they would pay for a product or service, and what their price points are for difficult technology options. Additi...
AI summary Customer research is vital to understanding perceived value, barriers, and incentives for energy-efficient technologies like LED lamps. Financial considerations alone may not address non-financial barriers (e.g., light quality, mercury concerns in CFLs). The principal-agent problem in rental units highlights conflicting motivations between tenants and landlords regarding energy efficiency upgrades.
Research and Engagement Phase Customer Research Most jurisdictions studied undertake customer research (either primary or secondary) to identify the motivations to participate in energy efficiency programs and the barriers preventing parti...
AI summary The text discusses how various jurisdictions conduct customer research to identify motivations and barriers to participation in energy efficiency programs. Examples include PG&E's focus groups, Efficiency Vermont's market analysis, and BC Hydro's primary research. Program administrators use this research to assess changes in customer motivations, barriers, and the impact of incentives on behavior.
SUPPLY CHAIN AND SERVICE PROVIDER RESEARCH The supply chain and service providers should be engaged to support the customer and technology research efforts. It may be difficult to directly contact customers and technology manufacturers to...
AI summary The document emphasizes engaging supply chain and service providers to support customer and technology research, as direct contact with customers and manufacturers may be challenging. Supply chain involvement can provide insights into customer motivations, price elasticity, and technology parameters, as well as reference data for incentive analyses. Regular interactions with supply chain stakeholders are highlighted as critical for program design, incentive setting, and overcoming administrative barriers.
Understand Customer Motivation and Barriers for Participation Currently, EfficiencyOne uses four different methods to understand customer motivation and barriers to participation: 1. Market research to assess customer awareness of programs...
AI summary EfficiencyOne uses four methods to understand customer motivation and barriers to participation in energy efficiency programs, including market research, annual surveys, program management with customer feedback, and specialized research. Recommendations include continuing current activities, introducing an annual survey on key technologies, and conducting price sensitivity analyses if large incentive expenditures are anticipated.
For the Instant Savings Program, CLEAResult has the following recommendations: General Principle Current Activities Recommended Activities Understand Customer Motivation and Barriers for Participation For Instant Savings, EfficiencyOne gai...
AI summary CLEAResult recommends conducting annual price sensitivity research for high-expenditure program measures and continuing annual participant and non-participant surveys to understand customer motivation and barriers for the Instant Savings Program. A semi-annual survey for residential LED technology is also suggested.
and customer program experience. EfficiencyOne also has dedicated Application Coordinators for application support and approval in the program. They work with both the distributors in the midstream program and customers who access the down...
AI summary EfficiencyOne manages the Business Energy Rebates program with dedicated support and application coordinators. Program design was influenced by Efficiency Vermont, and annual evaluations assess free ridership and spillover savings. Recommendations include continuing market research and segmentation analyses to better understand customer motivations and barriers in the commercial and industrial sectors.
Understand Customer Motivation and Barriers for Participation For the Home Energy Assessment Program, EfficiencyOne gains an understanding of customer motivations and barriers through the following activities: 1. Market Research; 2. Ongoin...
AI summary EfficiencyOne aims to understand customer motivations and barriers for participation in the Home Energy Assessment Program through activities such as market research, program management, benchmarking, and evaluation.
69773Incentive Setting Methodology and CLEAResult Report and EfficiencyOne Implementation Plan - Second Revision - Redline Version
8 passages
3 3.2.1 Recommendation 2 a) 4 EfficiencyOne is supportive of maintaining up-to-date customer and technology 5 research for its energy efficiency measures, especially those with high levels of 6 annual expenditure. 7 8 EfficiencyOne is cogn...
AI summary EfficiencyOne supports maintaining up-to-date customer and technology research for energy efficiency measures but acknowledges budget challenges. It will quantify impacts by September 31, 2016, and report findings in Q3. It commits to increasing research frequency and consulting experts on methodologies, while prioritizing LED A-lamp research in 2016.
Customer Research A critical component of determining participant perceived value is actually asking potential customers what they would pay for a product or service, and what their price points are for difficult technology options. Additi...
AI summary Customer research is essential to determine perceived value and barriers to adopting energy-efficient technologies like CFLs and LED lamps. Financial incentives alone may not address non-financial barriers (e.g., light quality, mercury concerns). Upfront costs remain a hurdle for LED lamps despite popularity. The principal-agent problem in rental units highlights conflicting motivations between tenants and landlords regarding energy upgrades and incentives.
Incentive Setting Component Factors that can Place Upwards Pressure on Incentive Rates Factors that can Place Downwards Pressure on Incentive Rates Budget Impact • Reduction in administration costs, leaving additional space in the budget....
AI summary The table outlines factors influencing incentive rates in programs, including budget impact, customer and technology research, supply chain discussions, benchmarking, program evaluation, financing, and education. Upward and downward pressures on incentives are identified based on various considerations such as cost changes, customer participation, and market conditions.
CUSTOMER MOTIVATIONS AND BARRIERS As discussed, understanding customer motivations and barriers to participation are important. A key component of the customer research is understanding how customers view costs associated with the efficien...
AI summary The document emphasizes the importance of understanding customer motivations and barriers through research methods like price sensitivity and conjoint analysis. These methods help design incentives and programs, with a recommendation to use them only for high-value expenditures exceeding $400,000 annually, based on Efficiency Nova Scotia's evaluations.
Conjoint Analysis Conjoint analysis can be used to evaluate how individual attributes contribute to consumers' value of a product or service. With many efficiency programs and incentive offers, there can be multiple benefits to the consume...
AI summary Conjoint analysis is a method to evaluate how different attributes contribute to consumer value, particularly useful for understanding the financial and non-financial benefits of efficiency programs. CLEAResult recommends using it alongside Price Sensitivity Research for incentive levels over $400,000 annually. EfficiencyOne already conducts much of the required research, which can be leveraged for future processes.
SUPPLY CHAIN AND SERVICE PROVIDER RESEARCH The supply chain and service providers should be engaged to support the customer and technology research efforts. It may be difficult to directly contact customers and technology manufacturers to...
AI summary The document emphasizes the importance of engaging supply chain and service providers in customer and technology research, highlighting their role in facilitating access to contacts, providing data for incentive analysis, and identifying program barriers. Regular interactions with these entities are recommended to enhance program design and management.
Understand Customer Motivation and Barriers for Participation Currently, EfficiencyOne uses four different methods to understand customer motivation and barriers to participation: 1. Market research to assess customer awareness of programs...
AI summary EfficiencyOne uses four methods to understand customer motivation and barriers to participation, including market research, annual surveys, active program management, and specialized research. The recommendation includes continuing these methods, introducing an annual survey on key technologies, and addressing affordability concerns due to rising electricity prices.
The priority for ensuring information is updated to account for the four principles is based on the relevance of the research at hand. For example, if EfficiencyOne has recently conducted customer research to understand motivations and bar...
AI summary The priority for updating information is determined by the relevance of the research to the current task. If recent customer research by EfficiencyOne is already available, it may not be necessary to repeat it for a specific incentive level setting exercise.