Report: Utility-contractor partnerships affect success of energy-efficiency programs

Fast Water Heater CompanyRedirecting to a non-government site has released a white paper suggesting that utility energy-efficiency programs built around strong cooperation between contractors and the power provider are likely to get more customer participation.

Approaches on Utility-Contractor Partnerships compared the experiences of two utilities marketing very similar rebates for an almost identical product over a similar time period. The major difference between the programs was the level of contractor engagement and accountability—and the results. A large utility serving 5 million customers used a conventional, partner-neutral business model with minimal contractor evaluation. The second utility, with 700,000 customers, actively collaborated with approved contractors on program promotion and follow-through.

The results, summarized in an article in Intelligent UtilityRedirecting to a non-government site, were strikingly different. The utility using the partnership model achieved a 63-percent penetration rate, in contrast to the 8-percent penetration rate of the program relying on the traditional approach.

The effect that the difference in the size of the utilities might have had on the results does not get much attention in the article, but may be explored in more depth in the report. Also, the report doesn’t state whether the utilities are investor-owned or public power, which might reflect on the pre-existing relationships with their customers. Even so, the correlation between the partnership model and program success is worth noting.

The author, who is the CEO of Fast Water Heater subsidiary Demand Management Installation Services, addresses some of the reasons utilities prefer contractor neutrality, offering credible arguments for a more hands-on approach to energy-efficiency programs.

Studies like Approaches on Utility-Contractor Partnerships will be the focus of the Smart Cities conferenceRedirecting to a non-government site, Nov. 3-5, in San Diego, California. Innovative utilities and industry leaders will be presenting case studies and hosting discussions on the future of the energy and water efficiency as well as municipal-level sustainability programs.