Commercial Distributor Incentive Project: Regional Roll-Out
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1 Commercial Distributor Incentive Project: Regional Roll-Out April 2014 Argonne National Laboratory/DOE Building Energy Decision and Technology Research (BEDTR) Program Southeast Energy Efficiency Alliance (SEEA) BEDTR Better Decisions + Better Technology = Better Buildings Building Energy Decision and Technology Research Program
2 What is the Commercial Distributor Incentive Program? Incentive program to reward commercial distributors for selling more energy efficiency (EE) products Innovative approach to engage distributors as partners Give distributors active role to promote EE product sales Build blueprint for U.S. utilities to launch new distributor programs Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 2
3 Unique Opportunities for Southeastern Pilot Refine existing lessons learned Reduce planning hours and costs Collect valuable data Create methodology that can be used nationally Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 3
4 How Does This Benefit Utilities? First-hand pilot experience Leverage Argonne s pilot experience Build distributor partnerships Test for potential business change Cost-effective model for future programs Use pilot processes & lessons learned by utility to scale-up or launch new distributor programs. Use Argonne s implementation & analysis experience to guide pilot & cut planning costs Build network for EE promotions via distributors. Gather valuable sales data from distributors Operational changes (automated EE ordering) Market changes (EE sales persist w/o incentives) Streamline program design & costs to help launch new distributor EE programs. Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 4
5 How Does This Benefit Distributors? First-mover role Offer a first-mover role in innovative distributor incentive pilot Early stage partner Play key role in jointly-designing EE program Leverage head-start Use pilot sales training & marketing experience as advantage in new programs Build skills & systems for future EE programs Enhance partnerships with utilities Have sales systems & sales support tools in place for new EE programs. Forge relationships with utilities & SEEA to facilitate participation in new programs Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 5
6 Potential Timeline Spring 2014 Project Planning Work with regional partners to draft project plan, documents, savings estimates Spring 2014 Engage B-to-B/Utility Partners Develop distributor selection, participation agreements Spring- Summer 2014 Finalize Program Plan Customize incentive structures, data-related procedures, communication plans Summer- Fall 2014 Launch Incentive Program Manage all aspects of incentive program from sales data validation to incentive payments, etc Winter Spring 2015 Deliver Program Results Evaluate program results and document potential recommendations for additional pilot programs Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 6
7 Key Project Steps Utility Engagement Product Selection Incentive Design Pre-Launch Steps Launch Utility Outreach Work with SEEA /Argonne to determine roles/incentive resources Product Selection Determine what EE product does utility partner want to promote Review product selection criteria Develop Incentive Option Select simple to follow/communicate incentive option Design potential bonuses for marketing ideas, timely data collection, sustained sales growth, etc. Finalize Pre-Launch Documents/Steps Reach consensus/agreement on participation and NDA agreements Secure data collection, training logistics Launch Steps Coordinate training sessions, marketing documents Coordinate data collection and incentive payment processes and systems Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 7
8 Pilot Partner Participation Argonne Pilot guidance Implementation Pilot execution Utility/distributor support Post-pilot evaluation SEEA Utility outreach Distributor outreach Pilot monitoring Post-pilot review Utility Partner Pilot sponsor Pilot incentives Pilot bonuses Distributor outreach Marketing/training support Post-pilot evaluation Southeast Distributor Incentive Pilot Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 8
9 Argonne & SEEA s Roles Pre-Launch Project Planning Program Implementation Post-Program Evaluation SEEA s Role Outreach to utilities & distributors Source utility partners SEEA s Role Industry outreach Project monitoring SEEA s Role Review final report Present pilot results Argonne s Role Incentive design support Baseline calculations Training & com. support Argonne s Role Data collection Incentive validation Reporting and updates Argonne s Role Examine pilot results Recommend best practices Build project toolkit Co-author final report Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 9
10 Utility Partners Roles Pre-Launch Project Planning Program Implementation Post-Program Evaluation Utility s Role Outreach to distributors Help select distributor partners Utility & Argonne s Roles Select EE product Design incentives Plan communications Utility s Role Pay incentives (if any) Pay mid-program bonuses (if any) Utility/Argonne s Roles Select incentive design Pick distributor pilot & non-pilot locations Secure partner & NDA agreements Design data validation Utility s Role Pay end-of-pilot bonuses Utility/Argonne s Roles Review program results Collect lessons learned Recommend steps for future programs Build project toolkit Co-author final report Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 10
11 Distributors Roles Pre-Launch Project Planning Program Implementation Post-Program Evaluation Early-Stage Planning: Indicate interest in pilot Offer planning feedback Suggest pilot locations Assign point-ofcontact Launch steps: Sign partner & NDA agreements Coordinate sales training Deliver sales data Identify mid-program training needs Provide feedback on sales successes or challenges Review pilot results: Review pilot results Provide post-pilot monthly sales data Provide post-pilot feedback interviews Recommend effective marketing tools Offer suggestions to test scale-up or new EE product Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 11
12 EE Product Options Product Criteria High priority EE product Simple-to-sell Easily measurable Frequent sales short sales cycle Low existing market share Scalable from pilot to broad market Energy savings potential Potential Product Categories Lighting HVAC Water Heating Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 12
13 Learnings from BPA/NEEA Pilot Topic Program Decision Decision Rationale Lighting Product Incentive Targets Incentive Design Incentive Payments Incentivize sales of lowwattage T8 fluorescent lamps Pay incentive for sales exceeding historical baseline levels Pay $0.40/lamp for monthly sales above baseline + bonus on 6-month sales target NEEA pays incentive payments monthly after validating data Simple to sell and easily measurable Incentivize sales growth while excluding seasonal or outlier sales Offer consistent incentive for all participants (eliminate getting the same incentive? concern) Obtain sales volume data from all locations, including control groups Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 13
14 Selecting utility partners now! Contact SEEA Wesley Holmes Development Manager Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 14
15 Questions? Argonne BEDTR: Better Decisions + Better Technology = Better Buildings Commercial Distributor Incentive Project: Regional Roll-Out - 15
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