nest lab presentation_2013_03_06

27
S Nest Labs Innovation for Energy and the Environment Mario Avila, Jeffrey Quackenbush, Carlos Saborio Villalta, and Christopher Yoder

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Page 1: Nest lab presentation_2013_03_06

S

Nest LabsInnovation for Energy and the Environment

Mario Avila, Jeffrey Quackenbush, Carlos Saborio Villalta, andChristopher Yoder

Page 2: Nest lab presentation_2013_03_06

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

Page 3: Nest lab presentation_2013_03_06

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

Page 4: Nest lab presentation_2013_03_06

$1,056

$317

$287

$269

$85 $257

Typical Energy Consumption of US Households

Heating and CoolingWater HeatingAppliancesLightingElectronicsOther

Current and Future Demand/Market

Page 5: Nest lab presentation_2013_03_06

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

Page 6: Nest lab presentation_2013_03_06

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

Page 7: Nest lab presentation_2013_03_06

Leadersh

ipTony

Ch

ip

Matt

Joh

n

ErikYoky

Page 8: Nest lab presentation_2013_03_06

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

Page 9: Nest lab presentation_2013_03_06

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

Page 10: Nest lab presentation_2013_03_06

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

Page 11: Nest lab presentation_2013_03_06

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

Page 12: Nest lab presentation_2013_03_06

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

Page 13: Nest lab presentation_2013_03_06

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.

Page 14: Nest lab presentation_2013_03_06

Economic Analysis

$181 Energy Savings

$20 1.1 Ton GHGs

$201 Total

Savings

Page 15: Nest lab presentation_2013_03_06

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

Page 16: Nest lab presentation_2013_03_06

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

Page 17: Nest lab presentation_2013_03_06

Environmental Management Systems

Product Standards Private Partnerships

Government Programs

Page 18: Nest lab presentation_2013_03_06

Private Partnerships

Retail stores

Energy providers

HVAC professionals

Page 19: Nest lab presentation_2013_03_06

EMS Framework

Research

Define Strategy &

Targets

Lobbying

CommunicationRecordkeeping

Relationship Management

Assess Strategy

Page 20: Nest lab presentation_2013_03_06

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

Page 21: Nest lab presentation_2013_03_06

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

Page 22: Nest lab presentation_2013_03_06

Nest Learning Thermostat

Page 23: Nest lab presentation_2013_03_06

Sensitivity Analysis

Capital Cost-$500.00 $0.00 $500.00 $1,000.00 $1,500.00 $2,000.00

Nest Smart Thermostat Tornado Plot

Page 24: Nest lab presentation_2013_03_06

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

Page 25: Nest lab presentation_2013_03_06

If you don’t trust us, ask them!

Page 27: Nest lab presentation_2013_03_06