nest lab presentation_2013_03_06
TRANSCRIPT
S
Nest LabsInnovation for Energy and the Environment
Mario Avila, Jeffrey Quackenbush, Carlos Saborio Villalta, andChristopher Yoder
Executive Summary
Nest Labs Smart Thermostat
Revolutionizing the heating and cooling industry
42% of consumer home energy expenditures attributed to heating and cooling (EIA) or roughly $1,000 a year
Large thermostat market and an even larger home appliances market
Savings of $201 per year
Introduction
1st and 2nd generation Nest learning thermostats
Constant connection via a smart phone, tablet, and Internet
Sold at Lowe’s, Best Buy, Amazon, and the Apple Store
130 employees
Based in Palo Alto, CA
Kleiner Perkins, Google Ventures, and 5 other well established venture capitals
$1,056
$317
$287
$269
$85 $257
Typical Energy Consumption of US Households
Heating and CoolingWater HeatingAppliancesLightingElectronicsOther
Current and Future Demand/Market
Nest Learning Thermostat
The results of a October 2012 report found that homeowners using Nest’s Auto-Schedule and Auto-Away features saved 20.1%.4
Works with 95 percent of all 24V systems including gas, electric, forced air, heat pump, radiant, hot water, solar, and geothermal
User Friendly Interface for Control
Unit - US 2012/0203379 A1
Thermostat Graphical User Interface - US 2012/0131504 A1
Thermostat User Interface - US 8,195,313 B1
Thermostat With Self-Configuring
Connections to Facilitate Do-It-
Yourself Installation - US 2012/0248211 A1
System Methods for Updating Climate
Control Algorithms – Under Review
Adaptive Power Stealing Thermostat –
Under Review
Rich Patent Portfolio
Leadersh
ipTony
Ch
ip
Matt
Joh
n
ErikYoky
23%
20%
5%15%
7%
13%
17%
CostSavingsInterfaceEase of UseConnectiv-ityReliabilityFeatures
Market Demand
Tugrul U. Daim, Ibrahim Iskin, (2010),"Smart thermostats: are we ready?", International Journal of EnergySector Management, Vol. 4 Iss: 2 pp. 146 - 151
Customer Preferences For Smart Thermostats
Thermostat Competition
Honey
wel
l Hea
t Onl
y Th
erm
osta
t
Honey
wel
l Pro
gram
mab
le T
herm
osta
tNes
t
Ecob
ee S
mar
t The
rmos
tat
Honey
wel
l Pre
stig
e $-
$50
$100
$150
$200
$250
$300
$350
Nest Competitors
Thermostats
Cost
Other Competitors
Pulls information from smart meters and certain GE products
Doesn’t allow customers the ability to control units remotely only provides information
Tado is currently only sold in Germany
Free hardware but $126 annual subscription fee
Current and Future Demand/Market
91 million households have thermostats with 25 million smart thermostat.3
$200 X 66 million = $13.2 billion 91 million
25 million
Northeast
Midwest South West0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.90.8
0.8
0.40.4
0.3 0.3
0.6
0.4
Nest Average GHG Emissions Savings by Region (U.S.)
Heating (Natural Gas)Cooling (Electricity)
Geographic Region
Ton
s o
f G
HG
s
Data: EIA, 2005.
Economic Analysis
Economic Analysis
Northeast Midwest South West $-
$50
$100
$150
$200
$250 $213
$169 $172
$118
Nest Average Energy Bill Savings by Region (U.S.)
Geographic Region
Dollars
Data: EIA, 2005.
Economic Analysis
$181 Energy Savings
$20 1.1 Ton GHGs
$201 Total
Savings
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
Smart Thermostat Market
NestIndustry
Year
Num
ber
of
Sm
art
Therm
osta
tsLearning and Diffusion
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
Smart Thermostat Market
NestIndustryMarket Saturation
Year
Num
ber
of
Sm
art
Therm
osta
tsLearning and Diffusion
Environmental Management Systems
Product Standards Private Partnerships
Government Programs
Private Partnerships
Retail stores
Energy providers
HVAC professionals
EMS Framework
Research
Define Strategy &
Targets
Lobbying
CommunicationRecordkeeping
Relationship Management
Assess Strategy
Life Cycle Assessment
Manufacturing – materials, processes, location, regulations
Transportation – Pacific Ocean, North America
Energy Savings – energy bill, emissions, geography
Disposal – silicon, IC’s, no collection program, e-waste
Minimal impact on water
Externality Analysis
In using the Nest, customers are reducing GHG’s and other associated emissions with power plants based on geographic location
CO2 currently valued at $21/metric ton
Nest alone accounts for reduction of 744,624.8 metric tons CO2/year
Net savings of $15.6M / year in CO2 costs
Nest Learning Thermostat
Sensitivity Analysis
Capital Cost-$500.00 $0.00 $500.00 $1,000.00 $1,500.00 $2,000.00
Nest Smart Thermostat Tornado Plot
Sensitivity Analysis
40% 60% 80% 100% 120% 140% 160%$0.00
$200.00
$400.00
$600.00
$800.00
$1,000.00
$1,200.00
Discount Rate
Capital Cost
Fuel Cost
Electric-ity Cost
Net
Pre
sen
t V
alu
e o
f P
urc
hase
If you don’t trust us, ask them!
1. http://gigaom.com/cleantech/nest-makes-its-smart-thermostat-er-smarter/
2. http://bits.blogs.nytimes.com/2012/10/02/nest-second-generation/
3. http://www.energystar.gov/ia/partners/prod_development/revisions/downloads/thermostats/Summary.pdf
4. http://downloads.nest.com/summer_2012_savings_white_paper.pdf