Smart Thermostats Opportunities for Energy Savings Jackie Berger HPC National Home Performance Conference March 21, 2017

Overview Research Motivation Survey Methodology Demographic Characteristics Current Thermostat Characteristics Thermostat Programming Behavior Thermostat Setback Behavior Potential Smart Thermostat Use 2

Research motivation 3

Research Motivation Interest in “Smart Home” Smart thermostats are becoming more common in utility energy efficiency offerings ACEEE review found savings of 8%-15% of heating and cooling usage 4

Hypothesis: savings from Smart Thermostats will be affected by Research Motivation Type of thermostat in use Programmable Manual Setback practices Demographics – elderly or less technology advanced Hypothesis: savings from Smart Thermostats will be affected by 5

Research Motivation Which households will benefit from smart thermostats? What are the savings opportunities? 6

Research Motivation What is the smart thermostat penetration rate? Do smart thermostat owners use remote features? What is the programmable thermostat penetration rate? Are programmable thermostats programmed for setback when away or asleep? Do manual thermostat owners consistently practice manual setback? What is the predicted use of smart thermostats? 7

Survey methodology 8

Methodology APPRISE partnered with two natural gas utilities in the northeast Each utility randomly selected residential customers Advance letter sent to 1,600 customers Surveys conducted from January-March 2016 9

Methodology Utility 1 Utility 2 Total Completes 217 168 385 Cooperation Rate 50% 46% 48% Response Rate 30% 27% 29% 10

Demographic characteristics 11

Home Ownership 12

Heating Fuel 13

Computer Use 14

Wi-Fi and Smart Phone 15

Technology by Income Level 16

Setback Opportunity Home Regularly Unoccupied 17

Current thermostat characteristics 18

Number of Thermostats 19

Same Thermostat Controls Air Conditioning 20

Programmable Thermostat And Remote Sensor 21

Programmable Thermostat By Income 22

Smart Thermostat Features 23

Thermostat Type 24

Satisfaction with Current Thermostat 25

Thermostat programming behaviors 26

Thermostat is Programmed 27

Thermostat is Programmed By Income 28

Manually Adjust Thermostat At Least Once per Week Includes those whose thermostat is programmed. 29

Thermostat Setback behaviors 30

Programmable Not Programmed Programmed Programmable Heating Setback Do you adjust the heat to a cooler temperature… When everyone is asleep at night in the winter? During the day if everyone is at work or school in the winter? Manual Programmable Not Programmed Programmed Programmable Total Observations 169 108 385 Night 54% 60% 95% 67% Away from Home 53% 49% 83% 61% 31

Heating Setbacks By Income 32

Programmable Not Programmed Programmed Programmable Cooling Setback Do you adjust the air conditioning to a warmer temperature… When everyone is asleep at night in the summer? During the day if everyone is at work or school in the summer? Manual Programmable Not Programmed Programmed Programmable Total Observations 53 76 68 197 Night 53% 37% 69% 52% Away from Home 60% 39% 79% 59% Includes those whose thermostat also controls air conditioning. 33

Cooling Setbacks By Income 34

Potential smart thermostat Use 35

Predicted Frequency Remote Temperature Change 36

Predicted Frequency Remote Temperature Change 37

Reasons for Remote Temperature Change 38

Summary and recommendations 39

Demographics Technological Aptitude Existing Equipment Behaviors 70% use computers once or more pre day Existing Equipment 74% had both wi-fi and smart phone/tablet Behaviors 57% had regular times of day when no one was home But several had pets in the home at all times 40

Current Thermostat Manual Thermostat Smart Features 44% had a manual thermostat Smart Features 5% had smart features Thermostat Satisfaction 37% only somewhat satisfied with current thermostat 12% somewhat or very dissatisfied 41

Smart Thermostat Potential Programmed Thermostat 28% had a thermostat that is currently programmed Setbacks 95% with programmed thermostat set heat back at night 56% with manual or unprogrammed thermostat set heat back at night Potential Smart Thermostat Use 19% said they would remotely change temp at least 1/day 37% said they would remotely change temp at least 1/week 42

Low-Income Potential Programmable Thermostat 17% with income <$50,000 had thermostat programmed 47% with income >$100,000 had thermostat programmed Technology Use and Ownership 51% below $50,000 use computer once or more per day 67% have Wi-Fi 69% have smart phone or tablet Potential Smart Thermostat Use 25% with income <$50,000 would remotely change temp at least 1/day 27% with income >$100,000 would remotely change temp at least 1/day 43

Contact Jackie Berger APPRISE 32 Nassau Street, Suite 200 Princeton, NJ 08540 609-252-8009 jackie-berger@appriseinc.org www.appriseinc.org 44