Rebates & Incentives - WTF. Lee Guthman February 28, 2012
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1 Rebates & Incentives - WTF Lee Guthman February 28,
2 The dilemma we face 2
3 Who is GreenOhm? Mainstream benefits of energy efficient products and services Drive purchasing behavior for energy efficient products and services Identify local rebates, incentives and on-going cost savings tools and data Utilized by leading manufacturers, distributors, wholesalers, contractors and energy raters 3
4 Tools you may see around Rebate & Incentive Finder On-Going Cost Savings GBB Comparison 4
5 Why energy efficiency? Limited resources Reliance on foreign energy Economy and stimulus effects Do well by doing good Differing viewpoints lead to same conclusion 5
6 Ways to lower energy usage Inform and educate Modify codes and standards Involve 3 rd parties Incentivize and finance 6
7 Why they do it? Mandated Governing bodies Stakeholders Self-Benefiting Avoids costly investment Stabilizes profit minimize peaks and valleys 7
8 Case Study Cash for Appliances $300M of rebate and incentives for energy efficient appliances Started in December 2009 >50 independent programs >50 sets of program requirements Source: EnergySavers.Gov 8
9 Appliance Rebate Program Results What was published Reading into it 1.7 million consumer rebates Payback isn t very attractive $258 million paid to consumers $2.0 billion in consumer spending 1.7 trillion Btu saved >14% of funds went to administration Saved $150 per appliance from rebate and ~$40/year Every $1 rebate = $10 of spend 9 Source: EnergySavers.Gov
10 There s plenty of programs to go around, so don t get discouraged 10
11 Who s incentivizing? Utilities Municipalities Counties States Federal 11
12 $Billions USD Great opportunities exist $8.0 $7.0 $6.0 US and Canada Energy Efficiency Budgets $6.1 $7.5 $5.0 $4.0 $3.0 $2.0 $1.0 $3.7 $4.5 $ Source: ecova 12
13 Why should you care? Increase profits and margins Meet consumers expectations on payback Customers are beginning to expect it Stay competitive 13
14 Capture Piece of Pie Median Income Non-Core Spend $50,000 $5,074 $40,000 $30,000 Average Retrofit $1,500 $20,000 $45,666 $10,000 $0 Median Income Other $3,574 14
15 Meet your customer demands 15
16 Incentive opportunities Program Type Rebates and Incentives Loan & Tax Financing Number of Programs / Products Complexity $ Amount Frequency of Change Tax Credits 16
17 Rebate programs run across product lines 17
18 Huge opportunity can lead to challenges Opportunity Utility Energy Program Budgets $12.0 $10.9 $10.0 $8.0 Identifying Promoting Challenges $6.0 $5.4 Incorporating $4.0 $2.0 $2.7 Proposals Bids $ est Monitoring 18 Source: RMI
19 The universe is tremendous >2,700 electric companies 800 electric cooperative boundaries 1,100 gas companies 4,700 water companies TX IL OH IA GA CA MO KS OK IN WI TN AL NY MN KY PA MA AR NC NE FL LA MS MI NJ SC CO WA VA WV SD OR NM ME MT UT AZ ID NH ND WY MD VT NV CT AK DE RI HI DC PR Electric Gas Water Source: GreenOhm 19
20 Every program and market is different Regional requirements and differences Energy costs I know my market better than anyone 20
21 Years Leverage funds to overcome market perception Expected Payback for Retrofit Projects X What can you do? Modified payback methodology Infuse all proposals and bids with rebates and incentives Tiered rebates Good/Better/Best 21
22 Most incentive providers cover more than one product 22 *Includes air/duct sealing, boiler, caulking/sealing, clothes washers, dehumidifiers, dishwashers, duct repair, fans, freezers, heat pumps, home energy efficiency programs, audits, HVAC maintenance, insulation, lighting, thermostats, refrigerator, roofing, room A/C, ventilation and windows
23 Opportunities are there Audit and Efficiency Programs >300 programs covering >15K zip codes Insulation & Air Sealing >400 programs covering >22K zip codes 23 Source: GreenOhm
24 Pile up the savings 24 Source: GreenOhm
25 Another example of piling it on 25 Source: GreenOhm
26 Devil is in the details Types Mail-in Online Call ahead Reservation Requirements Start and end dates Submission requirements Funds remaining Efficiency factors (R-value, AFUE %, etc) Participating contractor Permitting Audit Double dipping 26
27 Best Practices Who s your customer s suppliers Utilities, municipality, county, state, federal and manufacturer programs by customer What programs apply to your customer Infuse your proposals with rebates Good, better, best (R-value, SEER, etc) Forms Monitor programs Product eligibility, start and end dates, changes and funds remaining Monitor, monitor, monitor 27
28 Lee Guthman GreenOhm (224)
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