Electricity Provider Programs California Heat Pump Water Heater Collaborative workshop Pacific Energy Center, San Francisco, October 22nd 2018 Owen Howlett Owen.howlett@smud.org (916) 732 7156

CA Energy Provider HPWH Program Goals 14M households in CA, so eventual statewide need is close to 1M units/year for complete success. SCE has grasped the magnitude of the challenge—”Anticipate 1M HPWH in service by 2030”. Total CA energy provider program goals by year, excluding SCE, SDG&E, LADWP: Year 2019 2020 2021 2022 Total Program Goals 2,245 3190 3,620 5,000

CA Energy Provider HPWH Load Shifting Goals Behind the Meter Storage (leg. mandate or board target for POUs) One 50 gallon HPWH is equivalent to approx. 1kWh of storage PG&E 6,600 units 2020-2025 SMUD 5,500 units 2019-2022 SCE approx. 5,000 ($1M budget 2019-2021) Sonoma Clean Power 1,800 units 2019-2022

Load Shifting Opportunities Vertically integrated utilities can pass generation savings on to customers by switching on storage HPWHs at times of overgeneration Storage increases GHG savings and utilization of renewables Using HPWH as storage opens up a new kind of ongoing relationship with the customer Storage maximizes societal cost, minimizes revenue loss Optimized to TOD rate Dynamic pricing Customer savings (relative to uncontrolled HPWH) $38 $38+X Utility avoided cost (societal savings) $2 $15

Prices Paid by our Customers

Utility Issues to Address How to reduce prices quoted to customers (Volume effect? Direct install? Trade allies?) How to reduce complexity and lead time How to integrate HPWH into other programs, including res retrofits and EV, to maximize uptake and to defray panel changeout cost How to pass dynamic pricing to HPWHs, in practice How to increase customer desire / perceived need for this technology, and other electrification.