cole hershkowitz chai_day5
TRANSCRIPT
Helping homeowners feel green.
Cole Hershkowitz(ME Undergrad)
Ka Suen(Phys Undergrad)
Sam Jones(EE Undergrad)
Subhonmesh Bose(CS PhD)
Elisabeth Neigert(Designer, biz dev)
Fei Yang(ME Undergrad)
Matt Church(business dev)
Chai Energy
TEAM:
No. Of Customers
Utility Ratepayers
Yesterday 8 1
This Week 30 24
Total 54
Things We Learned• Utilities don’t buy unproven products• Large utilities are adverse to changing ideas• Municipal Power Companies are more receptive to 3rd party products• Every state has different incentives for demand response• Governing bodies mandate and allow utilities to implement
• All Californians can already do demand response• Residential DR is not proven to be cost effective• DR must be automated and response time within 30 minutes
• Customers want to care about sustainability but cost prohibited in entering monitoring • If too much work is involved then not worth it• Incentives can be provided to make people care
We are providing simple energy metrics for homeowners.
Idea:
How? • Read energy usage data• Disaggregate appliances• Suggest changes• Offer incentives• Connect homeowners to rebates• Provide TOU information
Why? • People care about their energy use.• People want to be green.
Product?Mobile applications allowing homeowners to view information about their energy use and provide tips on how to maximize efficiency.
Problems to Overcome“You can't manage what you don't measure”: How to get data?
Power at 1 second intervals:
Wattvision – 1000 on kickstarterZigbee Gateway – 20,000 pilots
TendrilDigiTED – 10,000 users
• Disaggregation to appliance level
• Appliance level Tips• Rebates• Energy eff. model
• Alerts• Cost analysis
Power at 1 hour intervals:
Green Button – 10 millionUtility MDMS data - 130 million
• Demand Response tips• Rebates
• Customer education• Load shifting• TOU• Compare with other homes
Partner to Utilities (OEM):
• Convince the first customer• (Burbank/ LADWP)
• Build & maintain communication platform
• Push additional features:• Education• Demand Response• Advertisement
Utility does not buy (Indep. app):
• Pilot test case for proof of concept
• Build customer base• Give them value to keep
them hooked• Push ads for money• Targeted advertisement• Analyze data
Paths to Data
Chai Energy Business Canvas – Day 5
Key Partners
Data sources• Utilities• Tendril• oPower• Wattvision• Digi• TED
Optional:Utilities• PG&E• LADWP• Burbank
Key Activities• Getting
software out to people
• Datacrunching
• Getting energy data
Value Proposition Customer Relationships Customer Segments
• Money Saved• Reduce Energy• Validate a green lifestyle• Understand appliance
energy use• Better DR experienceAccessible Knowledge
• Notifications• Virtual badges• Yard sign• Simple usability
• TOU pricing reduction• Sustainable status symbol• Appreciation for being green• Flexibility
• Word of mouth• Yard signs• Word of mouth• Community• Continued savings and
usefulness• Push notifications
• TED users• Medium/High energy
use residents• Living in hot regions• Green people• College students
People who have the money to be green and care about their personal impact on the environment
Optional• Pilots
Channels Optional
• Demand Response Aggregators
• Municipal utilities
• App store• Social media• Community
Key Resources• Beta Testers• Money TED
devices• Behavioral
psychology tests
Optional• Customer engagement• Customer Education• Demand Response
Optional• Direct sales• VARs with existing utility
relationship
Cost Structure Revenue Streams
• Fixed cost of initial test• Marketing app• Hardware costs• Cost to reduce a kWh
• $3-$10 for one day reduction• A-B test and optimize
• Free
Optional• Utilities will pay for a kWh reduction
• 1st order – 1.25 per kWh• Varying rate based on ISO and CPUC mandates
• Sell to utilities for cost based on users
Day 1Idea: Reduce the cost of demand response events for utilities by providing incentives to homeowners to respond.
Day 2 - 4Idea 1 : Reduce the cost of demand response events for utilities by providing incentives to homeowners to respond.
Idea 2 : Do a better demand response experience for homeowners by targeting increased incentives and rewards with utilities paying us.
Idea 3 : Sell entire package of experience for demand response to utilities and maintain it for them.
Idea 4 : Create a mobile application aimed at engaging customers for utility customers.
Idea 5: Engage customers directly to help them understand their energy use.
What’s Next
• Keep on going: www.myChai.co• New hypothesis:
– Build exciting consumer products– Talk to more homeowners to find out what drives
purchasing decisions– Find out what drove Nest, Prius, Solar panels
• Contact hardware partners to get data– Wattvision, Digi, Exegen, TED, build ourown
• Explore finding deep value within energy data– Utility, advertisers, homeowners
Key Partners
Utilities• PG&E• SCE• From: Money• Giving: Energy
reduction
Data sources• Utilities• Tendril• oPower• From: Data
Key Activities• Software• Getting Partners to
sell DR to• Getting energy
data
Value Proposition Customer Relationships Customer Segments
• Understand appliance energy use
• Validate a green lifestyle
• Money/Savings• Reduce energy
• Utilities that are first movers
• Larger utilities• They want us to
boost our bottom line
• Word of mouth• Direct through
community• Continued savings and
usefulness• Through utilities
• Setup pilots, prove cost effective DR.
• Show positive results to other utilities to growKey Resources
• Beta Testers• Money for a DR
test• Behavioral
phycology
• Green people• Green influencers• College students• Homeowners want
to feeling rewarded and and acknowledged for being green
Channels• Provide engagement
with homeowners (optional)
• DR (optional)• Social media• Community• Word of mouth
• Direct sales
Cost Structure• Fixed cost of initial test• Cost to reduce a single kWh• Cost utilities will pay for a kWh reduction (how that changes
over the course of a year)
Revenue Streams• We make money by charging utilities to reduce load and keeping
the difference of what we have to pay customers to reduce their energy use.
• Pricing for consumers will be A-B tested using many different parameters including reward, social pressure, etc.
Business Canvas 1Chai Energy Key Partners
Utilities• PG&E• SCE• From: Money• Giving: Energy
reduction
Data sources• Utilities• Tendril• oPower• From: Data
Chai Energy Key Activities• Software• Getting Partners to
sell DR to• Getting energy
data
Chai EnergyValue Proposition
Chai EnergyCustomer Relationships
Chai EnergyCustomer Segments
• Notifications -• Competition of energy
saving• Homeowners not
feeling rewarded and and acknowledged for being green
• Leveraging homeowner behavior to reduce energy
• Utilities that are first movers
• Larger utilities• They want us to
boost our bottom line
• Word of mouth• Direct through
community• Continued savings and
usefulness• Through utilities
• Setup pilots, prove cost effective DR.
• Show positive results to other utilities to growChai Energy
Key Resources• Beta Testers• Money for a DR
test• Behavioral
phycology
• Green people• Green influencers• College students• Homeowners want
to feeling rewarded and and acknowledged for being green
Chai EnergyChannels
• Providing energy (reductions) at a low cost during peak demand times
• Effective customer engagement
• Social media• Community• Word of mouth
• Direct sales
Chai Energy Cost Structure• Fixed cost of initial test• Cost to reduce a single kWh• Cost utilities will pay for a kWh reduction (how that changes
over the course of a year)
Chai Energy_Revenue Streams• We make money by charging utilities to reduce load and keeping
the difference of what we have to pay customers to reduce their energy use.
• Pricing for consumers will be A-B tested using many different parameters including reward, social pressure, etc.
Chai Energy Business Canvas – Day 2
Key Partners
Utilities• PG&E• SCE• From: Money• Giving: Energy
reduction
Data sources• Utilities• Tendril• oPower• From: Data
Key Activities• Software• Getting
Partners to sell DR to
• Getting energy data
Value Proposition Customer Relationships Customer Segments
• Competition• Energy reduction• Money• Sustainable status
symbol• Appreciation for being
green• Flexibility
• Better DR experience• Notifications• Virtual badges• Yard sign• Simple usability
• Word of mouth• community• Continued savings
and usefulness• Push notifications• Through utilities
• Aware of energy use
• Med. energy use
• Green people• College students• Green ack.
• On the fence greenos
• Pilots• Low DR price point• Use SCE as social
proof
Channels
• Social media• Community• Word of mouth• Yard sign
Key Resources• Beta Testers• Money for a
DR test• Behavioral
phycology
• Peak load reduction• Customer engagement• Justify smart meters• Lower cost DR
• DR Analytics• A-B testing
• First movers• Larger• They want us to
boost our bottom line
• Direct sales
Cost Structure Revenue Streams
• Fixed cost of initial test• Cost to reduce a kWh
• $3-$10 for one day reduction• A-B test and optimize
• Free
• Utilities will pay for a kWh reduction• 1st order – 1.25 per kWh
Chai Energy Business Canvas – Day 3
Key Partners
Utilities• PG&E• SCE• From: Money• Giving: Energy
reduction
Data sources• Utilities• Tendril• oPower• From: Data
Key Activities• Software• Getting
Partners to sell DR to
• Getting energy data
Value Proposition Customer Relationships Customer Segments
• Money• Sustainable status
symbol• Appreciation for being
green• Flexibility
• Better DR experience• Notifications• Virtual badges• Yard sign• Simple usability
• TOU pricing reduction
Get• Utility mailingKeep• Tips• Push notifications• Continued savingsGrow• Word community• Word of mouth• Yard signs• Through utilities
• Green people• College students
• Energy Aware• Med. energy use• Hot regions• SCE Tier 5• On the fence
greenos
Get• PilotsKeep• Low DR price pointGrow• Use SCE as social proof
Channels
• Utility’s channels• App store• Social media• Community
• Word of mouth• Yard signs
Key Resources• Beta Testers• Money for a
DR test• Behavioral
phycology
• Peak load reduction• Customer engagement• Justify smart meters• Lower cost DR • DR Analytics
• A-B testing
• First movers• Larger• Municipal utils.• They want us to
boost our bottom line
• CPUC Mandates• Direct sales• VARs with existing utility
relationship
Cost Structure Revenue Streams
Chai Energy Business Canvas - 4
Key Partners
Utilities• PG&E• LADWP• Burbank• SCE• From: Money• Giving: Energy
reduction
Data sources• Utilities• Tendril• oPower• From: Data
Key Activities• Software• Getting
Partners to sell DR to
• Getting energy data
Value Proposition Customer Relationships Customer Segments
• Money• Sustainable status symbol• Appreciation for being green• Flexibility• Better DR experience
• Notifications• Virtual badges• Yard sign• Simple usability
• TOU pricing reduction• Knowledge
• Word of mouth• Yard signs• Word of mouth• community• Continued savings and
usefulness• Push notifications• Through utilities
• Aware of energy use
• Med. energy use• Hot regions
• Green people• College students• Green ack.
• On the fence greenos
• Pilots• Low DR price point• Use SCE as social proof
Channels • First movers• Larger• Municipal utilities• They want us to
boost our bottom line
Key Resources• Beta Testers• Money for a
DR test• Behavioral
phycology
• Peak load reduction• Customer engagement• Justify smart meters• Customer Education• Lower cost DR • DR Analytics
• A-B testing
• Utility’s channels• Mailings
• App store• Social media• Community
• Word of mouth• Yard signs
• Direct sales• VARs with existing utility
relationship
Cost Structure Revenue Streams
• Fixed cost of initial test• Cost to reduce a kWh
• $3-$10 for one day reduction• A-B test and optimize
• Free
• Utilities will pay for a kWh reduction• 1st order – 1.25 per kWh• Varying rate based on ISO and CPUC mandates
• Sell to utilities for cost based on users
Chai Energy Business Canvas – Day 5
Key Partners
Data sources• Utilities• Tendril• oPower• Wattvision• Digi• TED
Optional:Utilities• PG&E• LADWP• Burbank
Key Activities• Getting
software out to people
• Datacrunching
• Getting energy data
Value Proposition Customer Relationships Customer Segments
• Money Saved• Reduce Energy• Validate a green lifestyle• Understand appliance
energy use• Better DR experienceAccessible Knowledge
• Notifications• Virtual badges• Yard sign• Simple usability
• TOU pricing reduction• Sustainable status symbol• Appreciation for being green• Flexibility
• Word of mouth• Yard signs• Word of mouth• Community• Continued savings and
usefulness• Push notifications
• TED users• Medium/High energy
use residents• Living in hot regions• Green people• College students
People who have the money to be green and care about their personal impact on the environment
Optional• Pilots
Channels Optional
• Demand Response Aggregators
• Municipal utilities
• App store• Social media• Community
Key Resources• Beta Testers• Money TED
devices• Behavioral
psychology tests
Optional• Customer engagement• Customer Education• Demand Response
• Direct sales• VARs with existing utility
relationship
Cost Structure Revenue Streams
• Fixed cost of initial test• Marketing app• Hardware costs• Cost to reduce a kWh
• $3-$10 for one day reduction
• Free
Optional• Utilities will pay for a kWh reduction
• 1st order – 1.25 per kWh• Varying rate based on ISO and CPUC mandates