2011 deloitte harris efficiency survey power point 2
TRANSCRIPT
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
1/41
March 16, 2011
reSources 2011 Study
How resourceful businesses andconsumers are taking charge of energy
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
2/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.1
Introduction
Deloitte, with the assistance of strategy and market research firmthe Harrison Group, is conducting the reSources 2011 Study.
Seeks to identify and quantify changes in buyer attitudes andbehaviors to inform how to plan for the future during uncertaintimes
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
3/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.2
Qualitative:
Consumer/Mid-Cap Business focus groups in Northern Virginia (2) andLos Angeles (2)
Develop and refine hypotheses and language for quantitative survey
15-20 one-on-ones with policy makers, power companies, alternativeenergy companies, and enterprise size companies
Quantitative:
Nationally projectable US survey
Consumers: Online among n=3,200 primary or shared decisionmakers for utilities for the household completed February 2011
Business: Online and phone recruit to online completion among400 business decision makers responsible for energy decisions orenergy policy for their company. To be completed in March 2011
Methodology: Qualitative and Quantitative
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
4/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.3
NERCRegions
Electricity consumers have been grouped by the following NERC classifications for
regional analysis as appropriate
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
5/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.4
Monthly Bill forElectricity
Average Monthly Cost Peak Periods Off-Peak Periods
Less than $50
$50 - $99
$100 - $ 149
$150 - $199
$200 or more
Average $146 $182 $102
Q: On average, approximately how much is your monthly electric bill? Please consider your average bill over a 12 month period,including both "peak" months and "off-peak" months
Q: On average, approximately how much is your monthly electric bill during peak months when your electricity usage is higher andhow much is your monthly electricity bill during off-peak months when your electricity usage is lower?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
6/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.5
Energy Use for Heating Home
How Home Heated
Electric/Forced Air (Net)
Electric
Forced hot air/heat pump
Natural gas
Oil burner
Propane
Other
$147
Q: How is your primary residence heated during colder months of the year?
Average MonthlyElectric Bill
$167
$123
$147
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
7/41
Let's Talk About Consumers
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
8/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.7
Almost Half of America Has
Felt the Pain of the Recession Directly
Data shown among the 92% ofconsumers who have made a change intheir shopping practices.
Had adirectloss ofincome
No incomereduction,
just feltshould be
cutting back
Someone in householdlost a job
Someone in householdhad a reduction in work
hours
Someone in householdhad a reduction in pay
rate
The Field
Reasons for cuttingback
Information on this slide comes from theDeloitte American Pantry Study
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
9/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.8
Americans are optimistic in their own resiliance
Base: Total Gen Pop; N=1,035
I am confident I will make it
through this recession:
82%
Information on this slide comes from theDeloitte American Pantry Study
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
10/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.9
Birth of the Resourceful Shopper
I am looking at everyspending category to
see where we can save
87%
I have become a more
resourceful person
90%
Q: Please use the scale below to indicate how much you agree or disagree with the following statements.
Information on this slide comes from theDeloitte American Pantry Study
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
11/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.10
44%I cannot believe how wasteful I used tobe in how I shopped
84%are looking closely at every spendingcategory to see where we can save
65%
79%
do not feel like they are sacrificingmuch
feel smarter about the way they shopversus two years ago
The Rules Go Beyond Behavior
The Rules
Information on this slide comes from theDeloitte American Pantry Study
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
12/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.11
Resourceful Consumers Follow Precision Shopping
The Rules
84% have become a lot more precise in what they buy
xe ute a lan tay withinri e
ara eterDe loy o etitive
leverage
Information on this slide comes from theDeloitte American Pantry Study
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
13/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.12
ResourcefullnessExtends to Electricity
Consumption
We don't really worryabout doing things tokeep our electric bill
down
16%
I/Our family tookseveral e tra steps toreduce our electric bill
as a result of therecession
68%
Q: Please use the scale below to indicate how much you agree or disagree with thefollowing statements about your electric company and use of utilities.
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
14/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.13
No Plans to Go Back
Even as the economyimproves, I will remain
cautious and keep myspending at its current level
95% As the economy improves, Iwont become more rela edabout my electricity usage*
85%
Q: Please use the scale below to indicate how much you agree or disagree with the following statements.
* Statement has been reversed. Original statement: As the economyimproves, I will likely become more rela ed about my electricity useand be less conservative to which 15% replied positively.
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
15/41
Perceptions of Electric Company
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
16/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.15
% Feel describes electric
companyTotal
Reliable 51
Consistent 34
E pensive 34
Efficient 28
Responsible 26
Cares about its customers 22
Informative 22Well managed 21
Trustworthy 20
Practical 19
Perceptions ofElectric Company
% Feel describes electric
companyTotal
Resourceful 14
Considerate of sustainableenergy practices
14
Prepared for the future 13
Out of touch 12
Conservative 11
Limited 8
Non-Responsive 8
Frugal 3
Sophisticated 3
Constrained 3
Q: Which of the following describe your electric company?
Blue =positive perceptions
Red =negative perceptions
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
17/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.16
Uncertain About the Electric Company
Conservation Programs
Perceived ElectricCompany Desire*
To have yourhousehold conserveelectricity
To have yourhousehold use moreelectricity
Really not sure
Energy Saving TipsReceived By Electric
Company
Yes, several good tips
Yes, a few good tips
No, not really
Q: Which of the following statements best reflects what you believe your electric company wants?
* No differences by NERC Region
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
18/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.17
Average Monthly Electric Bill
Total Less than$100 $100-$150 More than$150
We feel very grateful to our electric company for theservice they provide
73 72 68
If you really think about it, electricity is pretty cheap
relative to what you get as a result64 56 47
Our electric bill is relatively small and not somethingwe worry about too much
47 29 18
Gratitude!
% Agree:
Q: Please use the scale below to indicate how much you agree or disagree with the following statements about your electriccompany and use of utilities.
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
19/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.18
and Potential Lack of Trust and Disloyalty
My electricity provider hascharged me a lot more onmy bill than I used in a given
month
30%
Agree With Statement
Definitelywould
considerswitching
Probablywould
considerswitching
Might or mightnot consider
switching
Probably/Definitelywould notconsiderswitching
49 34 24 14
Q: Please use the scale below to indicate how much you agree or disagree with the following statements about your electric
company and use of utilities.
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
20/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.19
Average Monthly Electric Bill
TotalLess than
$100 $100-$150More than
$150
Rate increases 63 69 77
Lack of alternative energy sources 41 42 45
Aging infrastructure 41 40 41
Service to my home or business 35 39 43
Lack of national energy policy 36 33 35
Demand e ceeding capacity 31 34 38
Regulations 30 31 39
Slow response to storm outages 29 32 35
Lack of state energy policy 28 26 31
Management 23 24 29
Connecting to a broader energy grid 22 24 28
Quality of the employee base 19 21 22
Price really matters
% Extremely/Very Concerned:
Q: As you consider your electric company, how concerned are you about each of the following?
* No meaningful differences by NERC Region
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
21/41
The Communication Gap
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
22/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.21
Understand ElectricityResources
Yes
No
Not Sure
Sources Used
Natural gas
Coal
Oil
Hydroelectric
Nuclear
Wind
Solar
Geothermal
AgriculturalBiomass
Uninformed of the factsbut interested
Primary Secondary
50%
48%
42%
34%
33%
32%
26%
12%
9%
Source would likeelectric company
to invest in
Q: Do you have an understanding of theresources your electricity companyuses to generate your electricity?
Q: Which do you believe or would e pect areprimary, secondary, or non- resources used byyour electric company to produce electricity?
Q: Which, if any, of these resources would youmost like to see your electric company invest into produce electricity keeping in mind that some
may be more of less viable in your part of the country?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
23/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.22
Understand Electricity Resources
Total Gen Y Gen XBaby
BoomersMatures
Yes 24 32 42 52
No 50 40 30 19
Not Sure 26 28 28 29
Young & Less Informed about Electricity
Resources
Q: Do you have an understanding of the resources your electricity company uses to generate your electricity?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
24/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.23
Hmmm, Seems like a good idea
Total*
E tremely/Very Important (Net)
E tremely important
Very important
Somewhat important
Not very important
Not at all important
* No meaningful differences by NERC Region
Importance ofElectricityComing from Alternative orRenewableResources
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
25/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.24
ElectricCompanyOffered Opportunity to
Buy Green Energy
Yes
No
Not Sure
Green Energy, Huh?
Reasons have notparticipated
Not Aware
Too e pensive
No way to separategreen energy to myhouse
Current sourcesperfectly acceptable
Didnt want to subsidizethose unwilling to pay
Not sure how to
sign up
Prefer to support ourlocal sourcesof energy
Some other reason notlisted here
Participation in GreenEnergy Program
Yes,
currently
No,previously
No
Q: Has your electric company offered youopportunities to buy green energy whichis typically offered at a premium to your current rate?
Q: Have you participated in green energy programs like these?
Q: Why havent you participated in these green programs?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
26/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.25
Deregulation, Huh?
Yes, by utility companiesother than my primaryelectricity provider
Yes, by other small newaggregators
No
Not Sure Ifyes
No
Yes
Live in Deregulated MarketHave You Been Solicited ByCompanies Other ThanPrimary Electricity Provider
Q: Do you live in a deregulated market where more than oneelectric company competes for your business?
Q: Have you ever been solicited by companies other than yourprimary electricity provider in your area to buy electricity?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
27/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.26
Alternate Providers, Huh?
No
Alternative Energy ProviderPurchase Funnel
Live in deregulated
Market
Have been approachedby alternate providers
Have purchased fromalternate providers
(71% of people in aderegulated market)
(29% of people who wereapproached by alternateprovider)
Evaluation of AlternateEnergy Provider
(among 3% who have purchased from alternateprovider)
Much better than theprimary electricity provider
A little better than theprimary electricity provider
No better or worse
A little worse than the
primary electricity provider
Much worse than theprimary electricity provider
Q: Do you live in a deregulated market where more than oneelectric company competes for your business?
Q: How good has this new alternative turned out to be relativeto the primary electricity supplier in your area?
Q: Have you ever been solici ted by companies other than your
primary electricity provider in your area to buy electricity?
Q: Did you buy your electricity through the alternative provider?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
28/41
Getting Resourceful
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
29/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.28
How Easy to Reduce Electric Bill in a
Meaningful Way
Total
E tremely/Very difficult (Net)
E tremely difficult
Very difficult
Somewhat difficult
Not very difficult
Not at all difficult
Q: How easy or difficult do you think it would be for you to reduce your electric bill in a meaningful way relative to your current bill?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
30/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.29
Interest in Home Energy Usage Assessment
Our family took several extra steps to reduce ourelectric bill as a result of the recession
Total Agree Disagree
Definitely/Probably would beinterested (Net)
44 31
Definitely would be interested 21 11
Probably would be interested 23 20
Might or might not be interested 32 37
Probably would not be interested 13 18
Definitely would not be interested 11 14
Q: How interested would you be to have a representative from your electriccompany come to your home and provide an energy assessment of ways to reduce electricity use?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
31/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.30
Ideas that matter
Development of alternative energy in the US can create many jobshere while reducing dependence of foreign oil 69%
Using alternative energy reduces the risk of another Gulf of Me ico oil
spill by decreasing the need for off shore drilling
50%
Alternative energy will be an important aspect of future economichealth and America needs to invest to win for jobs and national security
59%
% Extremely/Very Motivating to
Change Current Energy Practices
-- Alternative Energy
Conventional forms of energy like oil and coal are creating globalto icities and global warming we need to avoid through use of
alternative energies
44%
Q: Listed below are a set of hypothetical statements. How motivating do you find each statement to make you want to change from yourcurrent energy practices?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
32/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.31
Ideas that matter
Smart meters allow you to manage your energy consumption around when electric power ratesare lower 54%
Businesses are getting smarter and cutting their electric power bills by 10% on average. Thesewinning practices are now available for your home 53%
There is lots of wasted energy in the S. ou can be part of a national program to reduce
energy consumption by 10-1 % in the next - years 53%
lectric power companies will have a trained professional come to your home to test where youcan save the most power/energy 47%
Applications are now available to run on computers or smartphones that reveal the mostefficient means to use electricity in your home without impacting your lifestyle 44%
ou can save 1 % on your annual electric power bill by being willing to be one of thehouseholds in the community who can be 'powered off' for no more than 10 hours -4 times per
year during times of severe electricity storage32%
% Extremely/Very Motivating to
Change Current Energy Practices-- Money Saving Options
Q: Listed below are a set of hypothetical statements. How motivating do you find each statement to make you want to change from yourcurrent energy practices?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
33/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.32
Ideas that matter...and dont
Get ta credits for investing in solutions to reduce your electric bill like better insulation, moreefficient light bulbs, light sensors, or smart home technology 61%
Your electric company is adding a small surcharge to your bill to invest directly in alternativeenergy solutions and jobs in your area 24%
Now you can get instant rebates on new more efficient light bulbs from your electric powercompany 59%
% Extremely/Very Motivating to
Change Current Energy Practices
-- Financial Incentives
Q: Listed below are a set of hypothetical statements. How motivating do you find each statement to make you want to change from yourcurrent energy practices?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
34/41
Ideas They'll Pay For
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
35/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.34
Supportive of Surcharge to Raise Capital for
Investment in Alternative/Renewable Sources
I would like you to assume for a moment that your electric company would like to launch a campaign to raisecapital for investment in alternative energy sources that would be best suited to your region. I am going to
show you a set of costs that could be associated with this effort. For each one, please tell me how likely youwould be to support this initiative to reduce dependency on foreign oil, reduce pollution, and add localAmerican jobs? These increases would be required of the entire customer population. OR Participation on your part is voluntary.
Q: If your average monthly bill were to increase by ($ ) to accomplish this effort, how likely would you be to support it?
Definitely/probably would support andparticipate (Net)
Required ofEntireCustomer Population
Participation isVoluntary
2% surcharge
4% surcharge
6% surcharge
8% surcharge
10% surcharge
12% surcharge
14% surcharge
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
36/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.35
More Difficult: Smart Energy Applications
Likelihood to PurchaseConcept
Definitely/ProbablySmart energy systems give homeowners the control and informationthey need to become more environmentally aware, reduce their carbonfootprint and save money. From simply turning down the heat or airconditioning when away from home to full home automation solutions,smart energy applications offer homeowners a variety of conveniencesthat make homes both greener and less expensive to maintain.
yMonitor your households power use and control appliances anddevices remotely from your computer or smartphone
yEasy to install sensors and switches enable you to control appliances,lighting, programmable thermostats, home security, electric vehiclecharging stations and more
yHistorical and projected usage, costs and savings are calculated anddisplayed in easy to visualize graphs
yIdentify the top electricity consumers of your home so that you cancontrol the appliances and devices that will maximize your savings
y
Basic smart energy systems start at $25
0 (including Wi-Fi enabledthermostat and 2 additional sensors/switches)
Likelihood to pay a smallamount for a
meter/timer control system Definitely/Probably
Q: How likely would you be to pay a small amount to have a meter and control (or timer) system for atleast some of your major household devices that use electricity, to better manage their use and cost?
Q: Please read the description below and then indicate how likely you would be to purchase suchan application for your household?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
37/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.36
Total Gen Y Gen XBaby
Boomers Matures
Likelihood to Purchase Smart EnergyApplication Definitely/Probably
28 19 16 13
Likelihood to pay a small amount for ameter/timer control system Definitely/Probably
33 27 22 16
Interest in Smart Home Energy Technology
Skews Younger
Q: Please read the description below and then indicate how likely you would be to purchase suchan application for your household?
Q: How likely would you be to pay a small amount to have a meter and control (or timer) system for at
least some of your major household devices that use electricity, to better manage their use and cost?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
38/41
A Few Observations
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
39/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.38
Closing Thoughts: Consumers
Does Pocket-Book trump Trial and E perimentation?
Does Self-Interest Trump Public Interest?
Does Suspicion Trump Confidence (Trust)?
Does Inconvenience Trump Cooperation?
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
40/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.39
Closing Thoughts forConsumers
Observations: Will It Take a Major Event?
Under-informed
Under-aware
-
8/7/2019 2011 Deloitte Harris Efficiency Survey Power Point 2
41/41
Copyright 2011 Deloitte Development LLC and Harrison Group. All rights reserved.40
Closing Thoughts: Consumers
Or Can We Take Control:
Has the Recession Has Changed the Value Equation.
In the End Innovation in Energy Management Will Be aProduct of Our Ability to Persuade Consumers That
There is Profit in Changing the Way Energy IsConsumedSaving is Passive; Investing is Active!