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Ecology Action Helps Small Commercial Customers Slash Utility Bills
in Five California Counties
Over the past two years, the nonprofit Ecology
Action has helped
more than 1,100 businesses achieve tremendous energy and cost savings
through its RightLights
Program. RightLights provides small businesses
with turn-key lighting upgrades that improve lighting quality while
greening the bottom line. Most of the businesses served by RightLights
are classified as “hard to reach” meaning that due to
size, language, or other factors these customers typically do not
participate in energy efficiency programs. This business segment
has been hardest hit by rising energy prices, yet has the greatest
opportunity for job growth and is a prime engine for local economic
health. RightLights is funded by the ratepayers of California under
the auspices of the California Public Utilities Commission.
RightLights is a cornerstone of Ecology Action’s business
programs portfolio which recently drew the prestigious Governor’s
Economic and Environmental Leadership Award for 2003. Based in
Santa Cruz, and founded in 1970, Ecology Action designs and runs
programs that advance sustainable energy, pollution prevention,
solid and hazardous waste reduction, integrated pest management,
and green building.
RightLights was rolled out in late 2002 with $1.9 million to serve
businesses in Santa Cruz, Monterey, and San Benito counties. After
serving more than 600 customers and achieving 180% of its energy
savings goal, Ecology Action was awarded an additional $6.2 million
by the CPUC to expand the program into Santa Clara and San Mateo
counties for 2004-05. In the award process, a CPUC Draft Decision
cited RightLights as “one of the most successful, impressive
programs funded in 2003.” The program is on target to serve
over 3,000 small businesses, nonprofits, schools, and government
energy consumers by the end of 2005. “There’s been a
real pent-up need for a program like this, based on the huge response
we’ve seen,” observed Gene Thomas, RightLights Program
Manager. “Give business owners a turn-key way to slash energy
expenses and improve their facilities with better lighting at little
out-of-pocket cost, and they’ll do it.”
Greening the Bottom Line
In its first year of full operation the program put approximately
$1.5 million, through direct rebates and avoided energy costs,
into the pockets of participating businesses. These businesses
will continue to reap utility cost reductions of over $1 million
annually thereafter. The electricity savings through 2003 was enough
to power over 1,200 homes annually, and the resulting CO2 reduction
of 3,426 tons per year was equivalent to taking nearly 500 cars
off the road. “It’s especially gratifying to be able
to improve people’s environmental and financial bottom line
together,” observed Mahlon Aldridge, Ecology Action’s
Deputy Director. “This is cost-effective energy savings and
serves the customer group that is largely responsible for driving
the economy.”
Local Economic Impacts
Every dollar spent on energy efficiency has an economic multiplier
of 2.32 (i.e., a $1 million investment in energy efficiency yields
$2.32 million in local benefits). This is significantly higher
than the multipliers for electricity (1.75) and petroleum products
(1.48)1. This high multiplier effect for energy efficiency is attributed
to the fact that dollars spent on efficiency remain in the local
economy longer than those dollars exported out of the community
when purchasing electricity or petroleum. The efficiency investment
also reduces future electrical expenditures which are then redirected
into local operating expenses2.
The Nuts & Bolts of RightLights
 RightLights is a totally turn-key process for the participant.
Initial customer contact is typically made through an in-person
visit by a RightLights Lighting Specialist. While on-site the Specialist
performs a detailed analysis of the current lighting system (Lighting
Survey) and installs a “Quick-Saver Package” of CFLs
valued at up to $250 per business, all at no cost to the customer.
The Lighting Specialist then designs a retrofit project. In the
process a computer program uses the customer-specific data to compute
the utility bill savings and rebate as well as generate all necessary
work orders, equipment lists, and contractor paperwork. The computerized
report details project costs, rebate amount, out-of-pocket costs,
annual utility savings, payback period, energy savings, and CO2 abated. The RightLights rebate covers much of the cost of the lighting
upgrade (79% on average) and is calculated based on the amount
of energy saved (kWh) and the facility’s electric rate schedule.
RightLights assigns the job to one of its pre-qualified private
contractors who then schedules and performs the retrofit, contracting
directly with the subject business. Each contractor in the RightLights
pool has agreed to fixed labor rates and below-market markups on
materials thus assuring fixed pricing with no surprises for the
customer. Jobs are typically completed within three weeks from
the initial contractor visit. RightLights staff audits a percentage
of completed jobs to ensure quality and contractor compliance with
program standards.
This arrangement succeeds so well because:
- The process is totally turn-key for participants (free audit,
no obligation, up-front low fixed pricing, local support, qualified
contractors, no red tape).
- It preserves the business owner’s capital (they get
an “instant rebate” and can enjoy the savings immediately).
- The rebates cover much of the retrofit cost (average of 76%
for typical jobs).
- The Quick-Saver Package yields energy savings even if the
full retrofit is declined.
- The program contractors are able to “close” their
own self-marketed jobs more easily since the instant rebate allows
a lower up-front price for the customer.
The core of RightLights’ work is comprehensive T12 to T8
fluorescent fixture conversions, compact fluorescent (CFL) replacement
of incandescent lamps, LED upgrades of exit signs, and occupancy
sensors. The program also provides recommendations and reference
materials on HVAC and refrigeration efficiency measures, low-cost
and no-cost strategies to reduce energy consumption, detailed recycling
information, and links to other energy efficiency programs. Importantly,
the program specifies 3100 lumen “third-generation” ultra
low mercury T8 lamps, combined with the most advanced energy-saving
electronic ballasts. By specifying these “Super T8” retrofits
as the default standard, Ecology Action has placed itself in the
forefront of lighting program implementers.
The program’s marketing efforts are directed through local
chambers of commerce and community groups to help minimize costs.
In its first 14 months RightLights reached approximately 3% of
the estimated small business market in the Monterey Bay area.
For 2004-05 the expanded program adds common area lighting measures
for multifamily buildings and a non-lighting measure for natural
gas savings.
Customer Satisfaction
The program’s 2003 independently-conducted Evaluation, Measurement,
and Verification (EM&V) Report noted that “customer satisfaction
is very high due to the ease of participation, professional manner
of installers, and significant realized energy savings.”
Customer surveys found that most of these small business owners
had believed that energy costs were beyond their control, and 88%
had never participated in other energy efficiency programs. In
the process of upgrading their lighting, the program taught them
how they can effectively reduce and contain energy expenses by
installing cost-effective efficiency measures and through common-sense
conservation. As a result of the positive experience and education
received through the program (as well as the ongoing savings),
they are more likely to look for other ways to improve energy efficiency
and be receptive to similar programmatic efforts in the future.
Ecology Action and its original partners, Energy Solutions and
Center for Energy and Environment, designed RightLights to respond
very specifically to the barriers faced by the small business customer.
By maximizing the owner’s decision-making confidence and minimizing
the time, money, and effort required to install long-term energy
savings, the program effectively reaches customers that have never
been adequately served by traditional PGC-funded energy efficiency
programs.
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