Accelerating Adoption of Community Solar
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1 October 2016 Community Solar Markets and Customers Accelerating Adoption of Community Solar Using survey-based market forecasting to take the guesswork out of designing and promoting community solar programs Tom Cooper
2 To be successful, a utility or developer must design and promote a program consumers find attractive Program Design Market Acceptance Promotion Accelerating Adoption of Community Solar October
3 Program Design from the Customer Perspective Economic factors Program features Incentives Initial investment What I lease or own % of bill covered Initial impact on monthly bill Impact on bill 5 years out Duration of contract Various incentives to sign up Accelerating Adoption of Community Solar October
4 Community Solar Program Design Features and Levels 375,000 optional programs can be designed with different combinations of these features. Program Features Initial investment What you lease or own Percent of current bill covered Initial net monthly impact on bill Net monthly impact on bill 5 years out Duration of contract at initial sign-up Incentives Levels None $ (financing available) 5000 (Financing available) $25 monthly charge $50 monthly charge Nothing Solar panels KWH increments Fixed rate for solar portion of power 25% 50% 75% 100% 125% 8% decrease 3% decrease No change 3% increase 8% increase 8% decrease 3% decrease No change 3% increase 8% increase Month to month 1 year 2 years 5 years 10 years Receive $100 of LED lightbulbs Name on solar panel to recognize participation Cash rebate if coverage goal not met Late fee forgiveness two times per year No additional incentive Accelerating Adoption of Community Solar October
5 Promotional strategy has three components Source Spokesperson delivering the message Media How the message reaches the customer Message Principal content of the message Accelerating Adoption of Community Solar October
6 Community Solar Promotional Campaign Elements Different combinations of media, messages and sources represent 945 optional promotional campaigns. Media Message Source Communications Elements Newspaper Mailer Utility bill stuffer Social Media Message on the utility bill Radio spot TV spot Web Saves you $ No maintenance Grows the solar industry Avoids use of fossil fuels No start-up costs or investment Promotes renewable energy Solar panels are not on your roof If you move you can take with you or cancel Every homeowner or renter eligible to participate Hedge against rising utility costs Growing demand for community solar Buying or leasing too costly Community solar is local Get started right away, cancel at anytime Conserve natural resources Well-known personality Neighbor Local community spokesperson State Govenor Solar organization Utility Non-profit organization Accelerating Adoption of Community Solar October
7 Accelerating Adoption of Community Solar October
8 PCG Survey Sample State N California 116 Colorado 106 Florida 116 Massachusetts 110 Michigan 108 Minnesota 107 Texas 113 Washington 108 Total 884 Accelerating Adoption of Community Solar October
9 Initial investment has the most influence on market acceptance of Community Solar Accelerating Adoption of Community Solar October
10 The market is very sensitive to differences in initial investment required to participate in Community Solar Utility 0 No Initial Investment $500 $2,000 (financing) $5,000 (financing) $25/month $50/month Accelerating Adoption of Community Solar October
11 None of the incentives tested make much difference in influencing adoption of Community Solar Utility $100 LED s Name on solar panel Cash rebate if coverage goals not met Late fee forgiveness 2X/year No additional Incentive Accelerating Adoption of Community Solar October
12 Messaging is the most important communications component Accelerating Adoption of Community Solar October
13 Key messages emphasize eligibility and $ Extrinsic motivator Intrinsic motivator Every homeowner or renter eligible No start-up costs or investment Saves you $ Get started right away, cancel anytime If you move you can take it with you Hedge against rising utility costs Promotes renewable energy Conserve natural resources Community solar is local Growing demand for community solar No maintenance Avoids use of fossil fuels Solar panels are not on your roof Grows the solar industry Buying or leasing too costly Communications Priorities Accelerating Adoption of Community Solar October
14 Consumers seem to trust an institution that knows the solar business Utility Non-profit energy organization Solar organization Local community spokesperson Neighbor State Govenor Well-known personality Source Priorities Accelerating Adoption of Community Solar October
15 Channels targeted to consumers (plus TV) seem to carry the most influence Message on the utility bill TV spot Mailer Utility bill stuffer Web Social Media Newspaper Radio spot Media Priorities Accelerating Adoption of Community Solar October
16 Market simulations can expedite planning and enable utilities and developers to get it right the first time Contract length % of bill covered What I lease or own Initial Investment Incentives Immediate savings Savings 5 years out Source Spokesperson delivering the message Media How the message reaches the customer Message Principal content of the message Accelerating Adoption of Community Solar October
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