The role of energy savings kits

Todd Recknagel, CEO of AM Conservation Group, discusses energy savings kits on the Intelligentutility website. Because it is not often we hear about such a concept, this is well worth the read. Let us know what you think?

3 tips to help customers embrace energy savings kits

Energy programs continue to offer utilities a consistent source of energy savings across the United States. Serving as a gateway to energy efficiency by preparing customers for additional program offerings in the future, energy savings kits help customers make the decision to adopt cost-saving products. These initiatives often work to engage utility customers and boost program energy savings and cost-effectiveness.

A recently published white paper by ILLUME Advising LLC. found that energy efficiency kits offer a viable means of establishing and deepening the connection between a utility and a customer—providing verified energy savings along the way.

ILLUME found that while energy savings kit program initiatives were able to boost energy savings across the nation, there is a wide variation in the level of energy savings found per individual kit. Evaluating the success of 11 different kits provided to utility customers in 11 different markets, savings per kit ranged from 114 kWh to 758 kWh for electricity savings and 2 to 73 therms for natural gas savings. This variation was due to diverse energy-saving product adoption rates by customers.

For utilities seeking to take advantage of the opportunities presented by implementing an energy savings kit program, there are some areas to keep in mind to better ensure customer adoption.

1. Focus on the ROI.

Customers and utility providers alike are constantly seeking the latest and greatest technologies and products. Utilities have a tendency to ask product and service suppliers “what’s new and different” because they are interested in the “latest developments in energy-saving technology.” However, the better question for a utility to ask a trusted supplier is “what solutions have been proven tried and true?” Small measures, like adopting compact fluorescent light bulbs (CFLs) or light emitting diode (LED) light bulbs over continued use of more traditional incandescent bulbs, have consistently proven to have the highest return on investment on average. How these small measures are marketed and packaged toward utility customers is the true key to success. When combined with energy savings kits, product solutions like CFLs and LEDs achieve a significantly higher adoption rate and offer the greatest bang for the buck for both the utility and the consumer. So in the future, don’t ask a supplier what’s the latest product developed, ask what products demonstrate the proven and highest ROI.

2. Combine initiatives.

Energy savings kits are a versatile tool in a utility provider’s belt. Acting alone, these programs offer a user-friendly and no-to-low-cost introduction to energy efficiency for many customers. They also allow program administrators to reach a large number of households at once, establish a rapport with customers and educate the market about easy ways to reduce energy usage and save. When energy saving kits are added on to existing programs or are an integral component of a sector-based program, utilities can see an even higher rate of adoption due to the more integrated, cohesive strategy. Some of the strategies that are recommended include mailing an energy savings kit after completing an online audit, delivering kits through energy education programs held in K-12 grade schools when paired with energy and water conservation curriculum and direct installing kit measures during an in-home energy evaluation or audit of a multi-family property.

3. Vary kit contents.

An evaluation from the Energy Trust of Oregon cited that kit contents should vary depending on the installation rates and free-ridership values reported through customer surveys in order to achieve the greatest rate of savings. Attaining high installation rates is paramount to maximize the success of an energy savings program that includes kits as a key tool. ILLUME’s research found that the technologies with the highest installation rates by customers were CFLs at 78 percent, pipe insulation at 73 percent, showerheads at 59 percent and faucet aerators at 51 percent.

Overall, utilities are able to optimize energy kit savings and increase customer adoption by focusing on proven solutions, pairing energy savings kits with other programs for greater customer outreach and varying kit contents. Kits offer utilities the ability to impact energy savings, improve customer satisfaction, connect with hard-to-reach customer segments, introduce new technologies, educate customers and increase energy efficiency in general. Energy savings kit programs have been around since the 1990s, but paired with the latest technology developments concerning customer targeting these trusted strategies will ensure that energy savings and operational efficiencies are maximized.