Offering Instant Rebates in Foodservice

Maximizing Performance and Increasing Customer Satisfaction2019 National Restaurant Association Show: Energy Star Panel

Kyle CoumasEnergy Solutions

May 20th, 2019

Instant Rebate Method

Successes and New Ideas

Opportunity

About Energy Solutions

Presentation Agenda

Market & Utility Barriers

2

AboutEnergy Solutions

Our Mission: Create large-scale energy and

environmental impacts by leveraging market-

based solutions.

• Offices in CA and MA

• Implement efficiency programs in 22 states

• First upstream program in the US

• Midstream programs for all types of technologies

Distributed Energy Resources

Energy Efficiency Policy & Ratings

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1998

High-efficiency HVAC & Motors

2006

Lighting & Bottling

2009

Mini/Multi Splits & Water Heaters

2014

Early Retirement; Residential HVAC and Auto-DR HVAC

2010

Variable Refrigerant Flow and Air-cooled + Water-Cooled Chillers

Our Midstream Experience

Energy Solutions launched the following as the nation’s first Midstream incentive programs: Foodservice

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Foodservice Program Implementation Experience

Over 120 equipment dealers nationwide enrolled

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Market Barriers

Importance of First Cost

Replacing the equipment is often unplanned, so cost is the main driver

in purchasing decisions

Stocking

High efficiency models are not in stock and can take

days to special order

Rebate Programs Inconsistency

Varying equipment eligibility, rebate amounts, and processes for

participation across states and utility territories

Programs Require Investment for Large Market

Actors

Updating internal accounting and quoting systems involves many

departments taking time and resources

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Utilities / Program Administrator Barriers

Verification Calculate Energy Savings

Approvals Public Benefit

Utilities need to be able to verify that rebated equipment was installed

and is saving energy in their territories

Utilities have to calculate and report how much energy their programs

save, accurately

Highly regulated entities, almost everything has to be approved by

shareholders, regulatory bodies, or other bureaucratic institutions

Most utility programs have to meet strict thresholds of calculated “public

benefit” and the benefits must be greater than the costs

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Instant Rebates ProgramAllows equipment manufacturers and their distributors to provide rebates as a discount for customers purchasing qualifying high-efficiency kitchen equipment.

Participating dealers are reimbursed within 2 weeks of rebate application approval and will receive up to a $500 sales incentive per unit for their efforts.

The goal of the Instant Rebates Program is to increase the sales and stocking of high efficiency foodservice equipment, while increasing customer satisfaction.

Energy Solutions’ Instant Rebates Method

How it Works

Recruit and train dealer

Top-Down Approach

Promote upselling and stocking

Market Engagement

Continual market engagement and dealer

outreach

Ongoing Relationships

Applications Processed Online

Easy to use, robust review

Fast Dealer Reimbursements

Payment in 14 days or less

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Synergy with DownstreamIf sale cannot go through Point-of-Sale, vendors can still promote

high efficiency with downstream paper rebate form

Double-Dipping PreventionCustomer Eligibility Forms require contact info and signature.

Sales Invoices denote “Instant Rebate.”

Complimentary Implementation

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Custom Marketing MaterialsClient-Specific

Our design team develops materials within company and utility brand standards.

Design for NeedsAdvertisements and custom marketing materials based on dealer-specific needs.

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Custom Marketing Materials

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Through customized marketing materials such as "Fill-In-Posters" our team helps equipment dealers

catch more customer eyes and meet their own needs.

Successes and New Ideas

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0

500

1,000

1,500

2,000

2,500

3,000

2012* 2013** 2014

Re

ba

ted

Un

its

Program Year

Downstream

Point-of-Sale

6-month Pilot with 1 vendor

** 10 months of implementation

Point-of-Sale Programs captured the commonly underserved cash-and-carry market.

PG&E® Northern California Program Results

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The market adoption curve of high-efficiency

sales accelerates over time.

SoCalGas® Southern California Instant Rebates Growth

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

50

100

150

200

250

300

350

400

450

Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016 Q4 2016 Q2 2017

Submit Month

Cu

mu

lati

ve

Un

its

Qu

art

erl

y U

nit

s

Quarterly Units

Cumulative Units

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Increased awareness and education helped significantly increase Downstream participation.

SoCalGas® Southern California Spillover Effect

0

200

400

600

800

1,000

1,200

1,400

1,600

2011 2012 2013 2014 2015 2016 2017

Re

ba

ted

Un

its

Program Year

Downstream

Point-of-Sale

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National Grid New York PilotMarket Transformation

Pilot exceeded aggressive 2017 gas goals and on track to double 2018 gas and electric goals

National Grid received approval for these updated Foodservice measures in their New York TRM

We leveraged industry contacts to obtain up to date confidential market data which influenced various necessary calculations

Energy Solutions internal engineering department developed content (savings methodologies, incremental measure costs, etc.) for National Grid to use for its TRM

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100% in-service rate of inspected sales

National Grid®

New York Pilot Third-Party Evaluation

4 out of 5 vendors never sold high-efficiency before

Very low rate of free-ridership

Customers “love” program

Vendors extremely satisfied with Energy Solutions

Several Con Edison customers wanted to participate

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New Program Design

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No customer paperworkAllows salespeople to focus on upselling high efficiency equipment.

One-page application form

Zip code lookup tool Allows for quick and easy customer installation address verification.

Active service account verification

No installation date requirements Allows for more special order projects to be eligible for rebates.

One-month sales-to-install date required

PREVIOUS DESIGN =

Participation Barriers

NEW DESIGN=

Ease of Participation

Effects of New Program Design and Outreach Investment

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total instant rebates provided to customers

2xincrease in rebates provided for special

order equipment

322%

additional participation from smaller dealers

161%Increase in customer

zip codes reached

49%

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Q1 and Q2 program participationvs

Q3 and Q4 program participation

New Technologies

Restaurant Depot had never sold high-efficiency equipment before

Personal Relationships

Developed ongoing relationship to help them

serve their customers

Success Stories

They have sold over 1,600 high efficiency pieces of

equipment leading to over 1,000,000 therms of energy

saved nationwide

Nationwide

The Restaurant Depot has 128 warehouse stores

located nationwide

Restaurant Depot

“Since partnering with Energy Solutions on these programs, we have seen a dramatic shift in kitchen equipment sales at our participating stores towards energy efficient equipment.”

–Larry RosenthalDirector of Purchasing

Restaurant DepotEquipment and Supplies Division-Northeast Region 21

Advocacy Team Successes & Lessons Learned

National Dealers

In the process of or enrolled 30 of the top 100 dealers*

*According to Foodservice Equipment & Supply Magazine

Chain Account Sales

Manufacturer Buy-In

Product Specification

Worked with a leading manufacturer’s national

accounts team to incentivize fryer sales to Jack in the Box

A major pre-rinse spray valve manufacturer redesigned its

product to meet the eligibility requirements for the Instant

Rebates program

A top fryer manufacturer is working on a new fryer

design to address a market gap identified by the Instant

Rebates program team

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“Thank you for the outreach and the partnership. I give your team a lot of credit for the success we are seeing in the New England market.”

–Mark Easterday, Middleby

“This program is a no-brainer forour customers.”

–Joe Thibert, TriMark United East

Success Stories Shared

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Thank you California, Massachusetts, Rhode Island, and New York Program Administrators for sharing the results of their Initiatives.

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Thank You

kcoumas@energy-solution.com

617-440-5470 x705

Kyle Coumas | Energy Solutions