Cambridge Multifamily
Energy Innovation Project
MIT Energy Efficiency Strategy Project
THE BIG QUESTION
How do we transform markets to realize
scalable energy efficiency and renewable energy
In multifamily housing (2-20 units)
via partnership between utilities, government,
community organizations, and private business?
Proposed practicum Spring 2013. Not yet approved.
JUNE 2013 PRODUCTS
Conceptual design of an energy program for City & utility
consideration, leveraging:
• Big data
• “Democratization” of program delivery
• Innovative financing tools
• Community-partnered outreach
Student learning objectives
• Introduction to energy efficiency resource governance
• Multi-stakeholder engagement and decision-making
techniques
• Program design, administration and evaluation
• Exposure to data systems management
FALL 2012
• Background research
• Terms of Reference to guide detailed Spring
2013 program design
• Solidifying partners and program status
BY THE NUMBERS
THE CAMBRIDGE HOUSING MARKET
HOUSING MARKET
DOMINATED BY RENTALS
YOUNG RENTAL
DEMOGRAPHIC IN
TRANSITION
HOUSING STOCK PRIME
FOR EFFICIENCY
RENTALS ARE 65% OF MARKET
95% OF RENTALS ARE MULTI-UNIT
33% OF RENTALS ARE 2-4 UNIT
27% OF HOUSING UNITS ARE CONDOS
STUDENTS ARE 27% OF ADULT POPULATION
53% OF RENTAL HOUSEHOLDERS ARE UNDER 35
OVER 60% OF RENTERS HAVE LIVED IN
CURRENT HOME LESS THAN FIVE YEARS
52% OF RENTAL UNITS BUILT BEFORE 1940
13% OF RENTAL UNITS USE OIL HEATING
UNDERSTANDING SPLIT INCENTIVES
MULTI-FAMILY HOUSING A HARD-TO-REACH
MARKET IN ENERGY EFFICIENCY
• THE “LANDLORD-TENANT PROBLEM”
• EXACERBATED BY LOCAL MARKET
CHARACTERISTICS
 DOMINANCE OF RENTALS
 FEW LONG-TERM RESIDENTS
 HIGH NUMBERS OF SMALL PROPERTY
OWNERS
CONDOMINIUMS PRESENT ADDITIONAL
UNIQUE BARRIERS
• INFLUENCE OF HOMEOWNER
ASSOCIATIONS
Creative Commons License,
http://www.flickr.com/photos/bradywahl/3942246432/
POTENTIAL POLICY SOLUTIONS
TIME-OF-SALE EFFICIENCY
ORDINANCES
ENERGY DISCLOSURE
ORDINANCES
PROVEN IN COMMERCIAL
MARKET
SIDESTEP THE SPLIT-INCENTIVE
PROBLEM
OVERCOME INFORMATION
BARRIERS
PROVIDE CERTAINTY AND
TRANSPARENCY
LOCAL PRECEDENT IN GREEN
COMMUNITIES ACT
EVIDENCE OF CONNECTION TO
ENERGY SAVINGS
DIFFICULT WITHOUT RENT
CONTROL
HARD TO ENACT AND HARDER TO
REPLICATE
SUBSTANTIAL OPPOSITION;
UTILITY PRIVACY POLICY
DO NOT ADDRESS TRUST
ISSUES
LIMIT ON HOMES THAT CAN BE
REACHED
MUST STILL CONNECT
INFORMATION TO ACTION
GREEN LEASES
PROS
CONS
SEVERAL EXISTING OPTIONS
•
•
ALL ARE PARTIAL SOLUTIONS
UNLIKELY TO SUCCEED WITHOUT BROKERED AGREEMENT
STAKEHOLDER ENGAGEMENT AND
FACILITATION
CURRENT PREP WORK
•
•
BUILDING ROSTER OF RELEVANT
ACTORS
IDENTIFYING EXISTING AVENUES
OF COMMUNICATION
TARGETED GROUPS
LANDLORD ORGANIZATIONS
TENANT ADVOCACY GROUPS
AGENDA FOR SPRING SEMESTER
CONDO ASSOCIATIONS
•
PROPERTY BROKERS AND
MANAGERS
•
CONDUCT OUTREACH TO
RELEVANT ACTORS
USE PARTICIPATORY PROCESS TO
INFORM PROGRAM DESIGN
ENERGY CONTRACTORS
NSTAR AND CITY OF CAMBRIDGE
AVAILABLE MULTI-FAMILY PROGRAMS IN
MASSACHUSETTS
MASS-SAVE HOME ENERGY SERVICES PROGRAM
• AVAILABLE FOR 1-4 UNIT BUILDINGS
MASS-SAVE MULTI-FAMILY PROGRAM
• AVAILABLE FOR 5+ UNIT BUILDINGS
LOW-INCOME MULTIFAMILY PROGRAM (LEAN)
• 50% OF UNITS MUST BE AT OR BELOW 60% OF AMI
MASSACHUSETTS GREEN RETROFIT INITIATIVE
• 50% OF UNITS MUST BE AT OR BELOW 60% OF AMI
• FOCUS ON DEEPER RETROFITS, ONGOING ENGAGEMENT
WITH PROPERTY OWNERS
CAMBRIDGE’S EXPERIENCE WITH MULTIFAMILY PROGRAMS
EXPERIENCE PROMOTING MASS-SAVE PROGRAMS
• FOCUS ON COMMUNITY-BASED OUTREACH
• NOW DEVELOPING MULTI-FAMILY SOLAR GUIDE
FINDINGS
• MOST ENGAGED LANDLORDS LIVE IN THE PROPERTY
• MOTIVATED TENANTS KEY TO SUCCESS
CHALLENGES
• MAINTAINING CONTACT WITH LANDLORDS AND TENANTS
• ACCESSING MULTI-FAMILY AUDIT DATA & CUSTOMER PROGRESS
• LACK OF UPTAKE OF DEEP RETROFITS
POTENTIAL SHIFTS IN MASSACHUSETTS
MULTI-FAMILY PROGRAMS
DRAFT MASSACHUSETTS EFFICIENCY PLAN FOR 2013-2015
MENTIONS:
• TREATING CONDO OWNERS AS SINGLE FAMILY HOMEOWNERS
• COORDINATING MULTI-FAMILY AND COMMERCIAL PROGRAMS
• COORDINATING SINGLE FAMILY AND MULTI-FAMILY LOW
INCOME PROGRAMS
POTENTIAL FINANCING OPTIONS
ENERGY PERFORMANCE IMPROVEMENT PROGRAM
• PROVIDES LOANS OF UP TO $15,000 PER UNIT FOR MULTI-FAMILY
EFFICIENCY IMPROVEMENTS
ON-BILL FINANCING
• NSTAR HAS FACED PAST CHALLENGES IN CAMBRIDGE WITH BILLING
SYSTEM LIMITATIONS
LOCAL TAX INCENTIVES
• HAS BEEN LARGELY UNEXPLORED IN MULTI-FAMILY SECTOR
SOLAR LEASING
• SOLAR COMPANIES COVER EQUIPMENT AND INSTALLATION COSTS
• CUSTOMERS PAY FIXED MONTHLY LEASE PRICE OR ELECTRICITY RATE
DATA AND BENCHMARKS
ENERGY DATA
• MONTHLY BILLING RECORDS
• GRANULAR SMART METER READINGS – LOAD DISSAGREGATION
• APPLIANCE COMMUNICATIONS VIA “INTERNET OF THINGS”
•
•
ADDRESSABLE EQUIPMENT & HOME AREA NETWORK
DETAILED LOAD DISSAGREGATION & ENERGY MANAGEMENT
ASSET DATA – BUILDING INFORMATION
• TAX ASSESSOR RECORDS
• USER INPUTS
• COMPREHENSIVE BUILDING ASSESSMENTS
BUILDING BENCHMARKING
• SOCIAL COMPARISON
• PRIORITIZE UPGRADES
• TYPES
•
•
OPERATIONAL (ENERGY USE)
ASSET BASED (EFFICIENCY OF THE PHYSICAL BUILDING, IRRESPECTIVE OF
OPERATION)
POTENTIAL PILOT PROGRAM
ARCHITECTURE
BUILDINGS &
ENERGY DATA
SYSTEMS
POLICY –
DISCLOSURE,
MANDATE, LEASE
COMMUNITY
BASED
OUTREACH
DRIVE
DEMAND
FOR
MassSAVE
& MF
POTENTIAL PILOT PROGRAM
ARCHITECTURE
EE & HEALTHY
HOMES
CREDENTIALS
BUILDINGS &
ENERGY DATA
SYSTEMS
POLICY
DRIVE
DEMAND
FOR
MassSAVE
& MF
COMMUNITY
BASED
OUTREACH
OPEN
CONTRACTOR
POOL
QUALITY
ASSURANCE
FINANCING
POTENTIAL PILOT PROGRAM
ARCHITECTURE
EE & HEALTHY
HOMES
CREDENTIALS
BUILDINGS &
ENERGY DATA
SYSTEMS
POLICY
DRIVE
DEMAND
FOR
MassSAVE
&
MF
COMMUNITY
BASED
OUTREACH
OPEN
CONTRACTOR
POOL
ENERGY USE
MONITORING &
PRESENTATION
OPERATIONAL
IMPROVEMENT
OCCUPANT
BEHAVIOR
QUALITY
ASSURANCE
FINANCING
BUILDING
UPGRADES
ASSET
MANAGEMENT
POTENTIAL PILOT PROGRAM
ARCHITECTURE
EE & HEALTHY
HOMES
CREDENTIALS
BUILDINGS &
ENERGY DATA
SYSTEMS
POLICY
DRIVE
DEMAND
FOR
MassSAVE
& MF
COMMUNITY
BASED
OUTREACH
OPEN
CONTRACTOR
POOL
ENERGY USE
MONITORING &
PRESENTATION
OPERATIONAL
IMPROVEMENT
OCCUPANT
BEHAVIOR
QUALITY
ASSURANCE
FINANCING
BUILDING
UPGRADES
ASSET
MANAGEMENT
INTEROPERABLE “CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM”
UTILITY PROGRAM CYCLES & PILOTS
PILOT
PROGRAMS
Vine, Edward. 2010. “A Conceptual Framework for Integrating Behavior and Behavioral Change in the Energy Efficiency Program Cycle.” In People-Centered
Initiatives for Increasing Energy Savings. Washington DC: American Council for an Energy Efficient Economy.
UTILITY PROGRAM CYCLES & PILOTS
LIMITATIONS TO TYPICAL ENERGY PROGRAM DEVELOPMENT
HOW CAN WE DESIGN EXPERIMENTATION INTO
PILOT PROGRAM?
Sullivan, Michael. 2009. Using Experiments to Foster Innovation and Improve the Effectiveness of Energy Efficiency Programs. Berkeley: California Institute for
Energy and Environment Behavior and Energy Program. http://uc-ciee.org/downloads/exp_design_wp.pdf.
THANKS!
THOUGHTS?
COMMENTS?
•
Part 1: Introduction
•
•
•
•
•
•
Intro (Brendan)
Program components
Summary of existing MF programs
Summary of potential delivery vehicles
Market Analysis (Ryan)
•
Part 2: Recommendations and Considerations
•
•
•
•
•
•
Mandates and Disclosure Ordinances (Brendan)
Data Tools (Alexis)
Organizing Strategies and Marketing (Ryan)
Financing (Adi)
Deep Upgrades and Ongoing Engagement (Brendan)
•
Part 3: Conclusion
•
Potential Delivery Vehicles (Brendan)