Lessons Learned and Program Highlights from HPWH Ramping Up
Discover key insights and highlights from the ramp-up of a full-service HPWH program in Palo Alto, including opportunities to reduce GHG emissions, details of the relaunched HPWH program, customer journey insights, and coordination with other city departments.
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0 to 60: 0 to 60: Lessons learned so far Lessons learned so far from ramping up from ramping up a full a full- -service HPWH service HPWH program program January 20, 2023
Opportunity to Reduce GHG Emissions ~ 1,000 gas water heaters are replaced each year in Palo Alto GHG emissions from water heating in an average household ~ 1 MT per year
Relaunch of the HPWH program Goal: 1,000 water heater retrofits in 1 year Program Design: Provide end-to-end advisory and installation service to homeowners to switch from a gas water heater to a HPWH Concierge Service Rebate City contractor manages installation & permitting Choose your own contractor Pull building permit for HPWH and pass inspection Simple Pricing >>$2700 for a 65-gallon HPWH $2300 rebate (Optional) Zero interest on-bill financing for $1200 3
Customer Journey for the Rebate Program Trying to get multiple quotes and navigate the permit process can be a real pain! Submit Permit application before installation Contractor completes HPWH installation Find Contractor(s ) Schedule visit with Contractor(s) Schedule installation date Schedule Inspection Compare project quotes and selects contractor Contractor(s) submit project quote Apply for CPAU Rebate 4
Customer Journey for the Concierge Program The Concierge program is designed to provide a superior customer experience with minimal hassle Submit Customer Interest Form Installer obtains HPWH permit Installer schedules installation date Submit Customer Program Participation Agreement Submit Site Assessment Agreement Installer completes HPWH installation Installer sends Customer Project Estimate Installer completes Site Assessment Installer schedules final inspection 5
Coordination with other City Departments Comms Buildings Utilities Program Services UTL UTL Billing Engineering Legal 6
Concierge Program - Hiccups & Surprises Majority of projects require additional readiness work Due to the nonstandard nature of readiness line items, estimating project cost is more complex than expected Emergency replacement requests Project staff turnover 7
Program Achievements to date # of # of HPWH installed via Rebate # of HPHWs installed via Concierge Emergency Replacements 6 38 78 # of 120V HPWHs # of Sanden units installed # of Loan agreements installed 2 23 1 8
Lessons Learned to date Lesson #1: Focus marketing message on one call does it all instead of simple pricing Lesson #2: There is a learning curve for installer to meet permit requirements and pass inspection Lesson #3: Document everything to ensure smooth transition of project staffing Lesson #4: Don t promote the program until it s ready to hit the street, to avoid backlog Lesson #5: Invest in a platform that supports data exchange with program partners Lesson #6: Extended warranty is a desirable add-on Lesson #7: On-bill financing is a nice-to-have feature Lesson #8: Need ongoing marketing campaigns to feed the sales funnel 9
Survey says... For customers who have completed the project via the Concierge program: Top reasons for choosing the Concierge program option: Ease with finding a contractor Ease with permitting process Satisfaction with the installation based on project price: 4.6 out of 5 (scale of 1 to 5) Satisfaction with the new HPWH: 4.5 out of 5 10
Next Up: Whole Home Electrification Program Design Considerations 5-Star Customer Experience Limited geographic rollout Variability of Appliance costs Variability of Readiness costs Diversify the installer base Quality of installation by contractor Financial viability of program Federal/state programs for low-income households 11
Questions Christine Tam christine.tam@cityofpaloalto.org 12
