Heat Pump
Water Heater
Advanced Pilot:
Next Steps
S/CAP Committee
October 20, 2023
cityofpaloalto.org/ClimateAction Acting Now for a Resilient Future 2 2cityofpaloalto.org/ClimateAction Acting Now for A Resilient Future 2 Current Program Status
• Program Statistics (as of October 12, 2023):
– 571 signups
– 184 (32%) stopped responding or dropped out before getting an estimate – 100 more participants are still active, but are earlier in the process – 287 have received an estimate
– 148 of these (about 50%) chose to move forward, with 101 installs completed – In addition, 33 people managed their own install and received a rebate – TOTAL TO-DATE: 134 installs completed (with 47 more pending) • Insights:
– Challenges with staffing early in the program led to delays and dropouts – More post-estimate follow-up is needed to help people choose to move forward with their install - increase “take rate” from 50%
3 3cityofpaloalto.org/ClimateAction Acting Now for A Resilient Future 3 Current Program Status
• Recent performance (July through September)
– 8-9 average weekly new participants
– 4-5 weeks from signup to receiving an estimate, on average, for 2/3 of projects. • 1/3 of Jul-Sep signups do not have an estimate yet after 41 days (on average) – About 1/3 of participants are dropping out before receiving an estimate • Per program operator, this is a good dropout rate compared to other programs they run – Staff estimates this pace would result in 3-4 installs / week (about 150-200 per year, or 12% to 20% of all water heaters installed each year) • Insights
– Generating leads is the biggest challenge
– More work is needed on the participant intake process to reduce dropouts – Better post-estimate follow-up could also help
4 4cityofpaloalto.org/ClimateAction Acting Now for A Resilient Future 4 Current Program Status – Customer Satisfaction
• Of 118 confirmed dropouts from program start, reasons included:
– needed to move faster than program could accommodate (31 people) – cost (21 people)
– other (35 people)
– unknown reason (31 people)
• Post-install customer survey (about 20% response rate) – 100% cited the easiness of the program as their reason for participation – 80% said their experience with contractor was easy or very easy – High ratings for contractor quality, timeliness, and professionalism – 85% were satisfied or very satisfied with the value they got for what they paid
5 5cityofpaloalto.org/ClimateAction Acting Now for A Resilient Future 5 Current Program Status – Customer Satisfaction
• Cost may not be the primary driver – cost for those who moved forward not significantly different
1st Quartile
(cheapest
25%)
4th Quartile
(most costly
25%)
6 6cityofpaloalto.org/ClimateAction Acting Now for A Resilient Future 6 Electrification Outreach Plan Status
• Steadily ramping up. Implemented to-date:
– Utility bill inserts July, October
– Uplift Local, Utilities E-Newsletter, and Sustainability Newsletter outreach – Facebook and Instagram posts, social platform advertising – 350 Canvassing
– Google Ads – first set of ads to gauge which messages work best for each audience • Results: Doubled weekly signups (from 0-5 per week to 5-10 per week) • Upcoming outreach and resources:
– More bill inserts, newsletters, social posts and advertisements – Google Ads – Click to Call campaign and audience-targeted ad campaign using lessons learned in first run – Palo Alto Online advertising
– Community toolkit and student engagement
– Outreach at Development Center
– Gather testimonials from customer surveys
7 7cityofpaloalto.org/ClimateAction Acting Now for A Resilient Future 7 Current Program Status
• Lessons learned from pilot
– Marketing consultant has helped the City increase its leads through innovations like targeted Google Ads, for example
– Relying on a single installer has risks – consider this in future program design • Positive upcoming events that may drive more leads
– Lower pricing due to new State incentives
– Continued expansion of marketing efforts
8 8cityofpaloalto.org/ClimateAction Acting Now for A Resilient Future 8 Current Program Status
• Successes to-date
– Developed business process that can deliver about 150-200 installs / year • Higher participation rate than any previous energy program to-date – Achieved higher rate of signups than any previous program (35/month) – Developed new approaches to program outreach (e.g. targeted Google ads, audience segmentation, comprehensive, ongoing campaign themes)
• Challenges to-date
– Staff turnover early in the program with the City and its two program operators – Far more leads are needed to reach 20 installs per week (which represents 1000 installs per year, or 80% of water heaters replaced in Palo Alto each year) • With current dropout rates, 60 leads per week are needed • Lower numbers of leads would be needed with improvements in the dropout rate
9 9cityofpaloalto.org/ClimateAction Acting Now for A Resilient Future 9 Working Group and Ad Hoc Suggestions
• Find ways to integrate multiple contractors into the program • Explore more intensive use of 120V HPWH to reduce costs • Start an emergency replacement program
• Reach out to contractors to get more installers in Palo Alto • Look for regional partnerships on programs and contractor development • Advisory service with deep electrification expertise to help project design • Explore a leasing program
• Stay ahead of BAAQMD requirements / use them to spur action
10 10cityofpaloalto.org/ClimateAction Acting Now for A Resilient Future 1 0
Working Group and Ad Hoc Suggestions
• Outreach suggestions:
– Reach out to people with water heater permits from 10-15 years ago – Encourage people to provide the City their water heater’s serial number to find its age – Celebrate the 1000th HPWH installation
• Potential Next Step:
– In-person workshop to review lessons learned to date, upcoming actions already planned, and what other changes could be made
Thank You!