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INSTITUTE FOR SUSTAINABLE FUTURES
QUANTATIVE ANALYSIS OF ELECTRICITY SAVINGS FROM THE HOME SAVER REBATES PROGRAM
2013
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Prepared by
THE INSTITUTE FOR SUSTAINABLE
FUTURES, UTS
For
NSW Office of Environment
and Heritage
September 2013
QUANTATIVE ANALYSIS OF
ELECTRICITY SAVINGS
FROM THE HOME SAVER
REBATES PROGRAM
FINAL REPORT JULIAN FYFE, STEVE MOHR, GEOFF MILNE, PETER RICKWOOD
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ABOUT THE AUTHORS
The Institute for Sustainable Futures (ISF) was established by the University of Technology, Sydney in
1996 to work with industry, government and the community to develop sustainable futures through
research and consultancy. Our mission is to create change toward sustainable futures that protect
and enhance the environment, human well-being and social equity. We seek to adopt an inter-
disciplinary approach to our work and engage our partner organisations in a collaborative process
that emphasises strategic decision-making.
For further information visit: www.isf.uts.edu.au
Research team: Julian Fyfe, Steve Mohr, Geoff Milne and Peter Rickwood
CITATION
Please cite this report as:
Fyfe, J., Mohr, S., Milne, G., Rickwood, P. 2013, Quantitative analysis of electricity savings from the
Home Saver Rebates Program, prepared for the NSW Office of Environment and Heritage by the
Institute for Sustainable Futures, UTS.
DISCLAIMER
While all due care and attention has been taken to establish the accuracy of the material published,
UTS/ISF and the authors disclaim liability for any loss that may arise from any person acting in
reliance upon the contents of this document.
REVIEW
Version Author Reviewed by Date
Interim Draft GM and JF JF 8 July 2013
Draft GM and JF JF 24 July 2013
Draft GM and JF OEH 12 August 2013
Final GM and JF JF 2 September 2013
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EXECUTIVE SUMMARY
The NSW Office of Environment and Heritage (OEH) commissioned the Institute for Sustainable
Futures (ISF) to undertake a quantitative statistical analysis of electricity savings from the installation
of hot water systems as a result of rebates provided under the Home Saver Rebates Program (HSRP).
Savings in gas or other fuel usage were not examined.
The program targeted all households in NSW. More than 330,000 rebates were granted statewide,
which represents about 1 in 8 NSW households. This analysis only evaluates participating houses in
the Ausgrid electricity distribution area.
Ausgrid provided electricity consumption data for 51,358 households in their service area that
received hot water rebates, of which 38,455 were able to be used in the analysis. Sample sizes were
reduced to the numbers given in Table 1 through data filtering. Ausgrid also supplied consumption
data for approximately 1.38 million households that did not participate in HSRP to provide a control
group for the analysis.
The primary methodology used to analyse the savings was a ‘mixed effects’ conditional demand
analysis (CDA) model, as this is the most widely used approach to analysing energy efficiency
programs (Vines & Sathaye 1999, Bartels and Fiebig 2000, Isaacs et al 2006) and is capable of
controlling for influences such as climate and household specific factors that can affect apparent
savings. The matched pairs mean comparison (MPMC) methodology was also used where
appropriate to validate the regression findings. The results of the regression are reported in the
body of the report and the detailed MPMC results can be found in Appendix B. Technical
descriptions of the two methodologies, including the regression equations used, can be found in
Appendices C and E.
A summary of the average net annual savings in total electricity consumption across all tariffs and
system types obtained from the mixed modelling analysis can be seen in Table 1.
The savings achieved are affected by a number of factors such as household occupancy and the
passage of time. As would be expected, household occupancy had a significant impact on the
electricity savings resulting from replacing hot water systems. Energy used for hot water is positively
correlated with the number of people in a household, which also means that larger households
benefit from greater energy savings with the switch away from electric storage systems. The
exception to this was for electric-boosted solar systems where the savings declined slightly with a
household occupancy of more than two people. The impact of occupancy is investigated in Section
5.6 of this report.
Overall, the savings also declined slightly over time by about 0.5kWh/day for each year post the
installation of the new hot water system, but this is dependent on the system type. This is in part
due to the decline in residential electricity consumption over recent years. Again this is investigated
in more detail in Section 5.6.
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Table 1 Average net program electricity savings by type of rebated hot water system
Rebate Item Average Household Saving % of household
consumption
Sample size -
number of households
kWh/d kWh/year
Hot water systems
Gas – instantaneous or storage
7.40 ± 0.03 2,717 ± 12 29 ± 0.1 8,698
Gas-boosted Solar 6.43 ± 0.09 2,348 ± 33 25 ± 0.3 1,252
Electric-boosted Solar 4.11 ± 0.02 1,500 ± 9 16 ± 0.1 15,682
Heat Pump 3.69 ± 0.03 1,347 ± 10 14 ± 0.1 12,715
A comparison of the tariff data from the OEH rebate forms and metered data from Ausgrid showed
that many people have a poor understanding of which electricity tariff they are actually using,
particularly when tariff changes were involved. For example, approximately half of those who
remained on a continuous tariff after the installation of a new hot water system erroneously
reported that they had changed to an off-peak tariff. Such a low level of awareness is likely to be a
barrier to encouraging people to take up options to reduce their electricity costs.
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Contents
EXECUTIVE SUMMARY ............................................................................................................................ 4
1 THE HOME SAVER REBATES PROGRAM ........................................................................................ 10
1.1 Program Description ............................................................................................................. 10
1.2 Characteristics of HSRP Hot Water Systems ......................................................................... 13
2 ENERGY SUPPLY AND TARIFF SWITCHES ....................................................................................... 14
2.1 Supply Analysis ...................................................................................................................... 14
2.2 Tariff Analysis ........................................................................................................................ 17
3 BACKGROUND INFLUENCES ON ELECTRICITY CONSUMPTION ..................................................... 20
3.1 Electricity Consumption Trends ............................................................................................ 20
3.2 The Take-Back Effect ............................................................................................................. 22
4 METHODOLOGY ............................................................................................................................ 23
4.1 Data Pre-Processing .............................................................................................................. 23
4.1.1 Filtering ......................................................................................................................... 24
4.1.2 Intervention date .......................................................................................................... 25
4.2 Mixed Effects Modeling in R ................................................................................................. 25
4.2.1 Overall Savings and Controlled Load Subsets ............................................................... 26
5 SAVINGS ESTIMATES ..................................................................................................................... 28
5.1 Households that installed a gas hot water system ............................................................... 30
5.2 Households that installed a gas-boosted solar HWS ............................................................ 32
5.3 Households that installed electric-boosted solar HWS......................................................... 33
5.4 Households that installed a heat pump hws ........................................................................ 35
5.5 Comparison with Energy Australia findings for hws replacement ........................................ 35
5.6 The effect of occupancy and time on HWS savings .............................................................. 36
6 VALIDATION OF MIXED MODELLING RESULTS USING MPMC ...................................................... 38
7 COMMENTARY ON HSRP DATA ..................................................................................................... 39
8 CHANGES TO PARTICIPANTS’ ELECTRICITY BILLS .......................................................................... 40
9 CONCLUSIONS AND RECOMMENDATIONS ................................................................................... 42
10 REFERENCES .............................................................................................................................. 44
APPENDIX A: Breakdown of hot water systems installed by manufacturer and type .......................... 45
APPENDIX B: Detailed tariff analysis ..................................................................................................... 49
APPENDIX C: Mixed effects model specifications ................................................................................. 52
APPENDIX D: Mixed modelling outputs (from R) .................................................................................. 55
Overall savings model (model specification 2) ................................................................................. 55
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MODEL INCORPORATING OCCUPANCY AND SAVINGS DECAY (model specification 4) ................... 56
OFF PEAK SYSTEM REPLACEMENT SUBSET – NET SAVINGS (model specification 2) ........................ 60
OFF PEAK SYSTEM REPLACEMENT SUBSET – controlled load SAVINGS (model specification 2) ..... 62
APPENDIX E: MPMC methodology and detailed results ....................................................................... 64
Households that switched to gas hot water ................................................................................. 64
Households that switched to gas-boosted SOLAR hot water ....................................................... 65
Households that switched to electric-boosted solar .................................................................... 66
Households that installed a heat pump ........................................................................................ 67
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List of figures
Figure 1-1 Uptake of the HSRP hot water system rebates .................................................................. 11
Figure 1-2 Map of the Ausgrid distribution area .................................................................................. 12
Figure 1-3 Installation of hot water systems by type ........................................................................... 13
Figure 2-1 Before and after intervention electricity consumption of participants who report staying
on an off-peak tariff .............................................................................................................................. 15
Figure 2-2 Before and after intervention electricity consumption of participants who report switching
from continuous to controlled load ...................................................................................................... 16
Figure 2-3 Histogram of before and after controlled load consumption for participants claiming to
switch from controlled load to continuous tariff but still have controlled load consumption ............ 17
Figure 2-4 Histogram of before and after consumption for participants switching from controlled
load to gas but still have controlled load consumption ........................................................................ 17
Figure 3-1 Trend in average monthly electricity consumption of non-participant households over
timeframe of HSRP ................................................................................................................................ 20
Figure 3-2 Energy Australia regulated Domestic All Time residential electricity tariff ........................ 21
Figure 5-1 Average overall savings and savings from replacement of off peak HWSs by system type 29
Figure 5-2 Average daily saving over time for gas HWS ....................................................................... 31
Figure 5-3 Average daily saving over time for electric-boosted solar HWS.......................................... 34
Figure 5-4 Variation in average monthly solar exposure for Sydney 2009-2012. ................................ 34
Figure 5-5 Saving by HWS and household occupancy 3 months after installation .............................. 37
Figure 5-6 Saving by HWS and household occupancy 24 months after installation ............................ 37
Figure C-1 Mixed model specification flow chart. Numbers correspond to models listed in Table A-1.
Red lines indicate REML log likelihood ratio tests, blue maximum likelihood log likelihood ratio tests,
and green model outputs. .................................................................................................................... 54
Figure E-1 Pre and post intervention consumption of gas HWS participant and matched pair control
cohorts .................................................................................................................................................. 65
Figure E-2 Gas HWS savings time series ............................................................................................... 65
Figure E-3 Pre and post intervention consumption of gas-boosted solar HWS participant and
matched pair control cohorts ............................................................................................................... 66
Figure E-4 Gas-boosted solar HWS savings time series ........................................................................ 66
Figure E-5 Pre and post intervention consumption of electric-boosted solar HWS participant and
matched pair control cohorts ............................................................................................................... 67
Figure E-6 Electric-boosted solar HWS savings time series .................................................................. 67
Figure E-7 Pre and post intervention consumption of heat pump HWS participant and matched pair
control cohorts ...................................................................................................................................... 68
Figure E-8 Heat pump HWS savings time series ................................................................................... 68
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List of tables
Table 1 Average net program electricity savings by type of rebated hot water system ....................... 5
Table 1-1 Timeframes and amounts offered by HSRP rebates for water heaters ............................... 10
Table 1-2 Numbers of participant households eliminated from and used in the analysis ................... 13
Table 2-1 Summary of agreement between OEH and Ausgrid supply information ............................. 14
Table 2-2 Percentage of households who nominated the correct original tariff ................................. 18
Table 2-3 Summary of discrepancies in the tariff data ......................................................................... 19
Table 3-1 Average daily participant household consumption pre-intervention by tariff ..................... 21
Table 3-2 Average pre-intervention electricity consumption by rebate item ...................................... 22
Table 4-1 Ausgrid electricity consumption tariffs and corresponding supply categories. ................... 24
Table 5-1 Average net electricity saving due to replacement HWS..................................................... 28
Table 5-2 Average net electricity saving due to replacement of off peak HWSs (on controlled load
supply). .................................................................................................................................................. 29
Table 5-3 Average electricity saving for households that installed a gas HWS ................................... 30
Table 5-4 Average electricity saving for households that installed a gas-boosted solar HWS ............ 32
Table 5-5 Average saving in total electricity per household that installed a electric-boosted solar
HWS ....................................................................................................................................................... 33
Table 5-6 Average electricity saving for households that installed heat pump HWS ........................... 35
Table 6-1 Comparison of regression and MPMC saving results ........................................................... 38
Table 8-1 Energy Australia regulated electricity prices 2012-2013, c/kWh ......................................... 40
Table 8-2 Average annual electricity bill saving for different hot water systems ................................ 41
Table C-1 Model equations tested in the HWS model step-up specification process .......................... 52
Table C-2 Variables used in the HWS mixed modeling for total electricity consumption .................... 53
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1 THE HOME SAVER REBATES PROGRAM
1.1 PROGRAM DESCRIPTION
The NSW Home Saver Rebates Program (HSRP) provided rebates to NSW households to purchase
items to reduce their energy and water use, including:
Rainwater tanks
Solar, heat pump and gas hot water systems replacing electric systems
Replacement of single-flush toilets with new 4 star dual flush toilet systems
Hot water recirculation units for instantaneous gas hot water heaters
Ceiling insulation
Water efficient washing machines
The program operated between 1 July 2007 and 30 June 2011. During that time, a total of 332,239
households obtained a rebate, equivalent to one in eight (12.5%) households in NSW.
This study quantifies the electricity savings for households that received a NSW Home Saver Rebate
for a replacement hot water system (HWS). The rebates that were made available for HWSs are
given in Table 1-1. The total number of rebates paid for HWSs was 155,216. Figure 1-1 shows the
number of rebates paid for hot water systems over the life of the HSRP (Source: OEH rebate
database).
Table 1-1 Timeframes and amounts offered by HSRP rebates for water heaters
Timeframe Rebate item Rebate amount
1/10/07-15/01/10 Gas 5 Star instantaneous / storage HWS
$300
Solar / Heat pump HWS 20-27 RECs
$600
Solar / Heat Pump HWS 28-35 RECs
$800
Solar / Heat Pump HWS 36-43 RECs
$1,000
Solar / Heat Pump HWS 44+ RECs
$1,200
15/01/10-30/06/11 Gas 5 Star instantaneous / storage OR solar HWS
$300
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Figure 1-1 Uptake of the HSRP hot water system rebates
Households that had net solar electricity meters and those that had participated in the OEH Home
Power Saver Program or had obtained an HSRP rebate for ceiling insulation at any stage within the
analysis window were excluded from the analysis to ensure savings estimates for the rebate
programs were not biased by households known to be engaging in other electricity saving activities.
The savings analysis covers households within the distribution area of Ausgrid only (shown in Figure
1-2). It does not consider the rest of NSW. Since the performance of HWSs is influenced by climate
to some extent, this means that the results are specific to the climate zones contained within this
geographical area.
Ausgrid provided consumption data for 51,358 households that received a hot water system rebate,
of which 38,347 were able to be used in the analysis. As shown in Table 1-2, the bulk of households
were eliminated from the analysis because no National Metering Identifier (NMI)1 was provided
(10,695), no Delivery Point Identifier (DPID)2 was provided (1,387) or they are a net generation solar
PV customer (3,338).
1 Unique identification number for all electricity connection points in Australia
2 Unique identification number for all mailing addresses in Australia
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Figure 1-2 Map of the Ausgrid distribution area
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Table 1-2 Numbers of participant households eliminated from and used in the analysis
HSRP Participants
Number of hot water rebates3 51,358
No DPID provided 1131
No NMI in Ausgrid lookup 8800
Net Generation solar customer 2926
No Intervention date 1
Ausgrid and OEH address mismatch 18
Signed up to the same program multiple times
26
Only has a controlled load meter 1
Total removed from analysis 12,903
Valid Participants 38,455
1.2 CHARACTERISTICS OF HSRP HOT WATER SYSTEMS
Figure 1-3 shows the numbers of participant households that installed different types of hot water systems based on the raw OEH rebate form data. Although only approximately 1200 solar gas boosted systems were installed, the magnitude of the savings for hot water systems means that this number is adequate to provide a reliable estimate of the associated electricity saving. A detailed breakdown of the various manufacturers and types of hot water systems installed under the HSRP is given in Appendix A.
Figure 1-3 Installation of hot water systems by type
3 Excluding households that also received a rebate for ceiling insulation.
8912
1283
15905
12923
Gas Solar Gas Solar Electric Heat Pump
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2 ENERGY SUPPLY AND TARIFF SWITCHES
Recipients of HWS rebates had to identify their original HWS electricity tariff, the new type of HWS
system installed, and in the case of new electric HWS systems (heat pumps and electric-boosted
solar) the tariff applied to the new system. As a check on the veracity of the data collected by OEH
from the rebate forms, switches between tariffs or energy sources (electricity to gas) that could be
inferred from the data supplied by Ausgrid (by analysing the presence or otherwise of off-peak tariffs
before and after HWS system installation) were compared with those recorded by OEH.
2.1 SUPPLY ANALYSIS
Table 2-1 provides a summary of the switches between different types of HWS energy supply and
the agreement between OEH and Ausgrid data for participants who replaced a HWS. Electricity
tariffs have been grouped into ‘continuous’ supply (C), incorporating the standard continuous tariff
and all time of use tariffs, and ‘controlled load’ supply (CL), incorporating both off-peak tariffs.
Continuous supply incorporates the uninterrupted supply to the bulk of, if not all (where a controlled
load meter is not in place) household demand. Controlled load supply is separately metered, and
supplies time-controlled power only during lower demand periods (such as overnight or early
morning) typically to HWSs, but in some cases may also supply other appliances that do not require
continuous supply such as pool filter pumps. The category ‘electric’ supply (E) is applied to
households that did not report either their pre- or post-intervention tariff on the rebate form, or for
which there was no Ausgrid consumption data before or after the installation. The ‘gas’ category in
Table 2-1 includes both conventional gas and gas-boosted solar HWSs. In the Ausgrid data, a new gas
supply was inferred from a lack of an off-peak load tariff post intervention.
There were significant discrepancies between both pre- and post- intervention HWS energy supplies
reported by the participant households in the OEH data and the metered consumption data
provided by Ausgrid, indicating that many households have a poor understanding of which electricity
tariffs they are using.
Table 2-1 Summary of agreement between OEH and Ausgrid supply information
Change in HWS energy supply
Number in OEH data
Number in Ausgrid data
Percentage overlap
#
CL to CL 21,794 21,347 85.9
CL to C 856 2,547 23.5
C to CL 1,004 507 6.8
C to C 4,414 4,294 59.8
CL to E 12 0
C to E 45 0
E to CL 6 0
E to C 66 0
E to E 761 5 0
CL to G 5,911 5,349 68.5
C to G 3,456 3,080 66.1
E to G 829 1,767 18.5
Total 39,025 39,025 72.0 # Percentage of OEH participants that are in agreement with the Ausgrid data.
Note: C = continuous supply, CL = controlled load supply , E = tariff indeterminate, G = gas
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The best agreement is for participants where the HWS remained on a controlled load supply, with
nearly 86% agreement. The worst agreement was with people changing from continuous to
controlled load with less that 7% agreement. The agreement in households remaining on a
controlled load supply is illustrated in Figure 2-1, which shows average electricity consumption
before and after system replacement using Ausgrid data (left) and OEH data (right) to define hot
water tariffs . The blue and red lines represent average household consumption while the vertical
line at ‘0’ on the horizontal axis demarks the month of system replacement against which individual
household consumption records were aligned. The two plots exhibit very similar before and after
consumption patterns, both showing substantial decreases in the controlled load electricity
consumption following replacement, with no apparent change in continuous supply consumption,
indicating that these participants reported their tariff change correctly.
Ausgrid data OEH data
Figure 2-1 Before and after intervention electricity consumption of participants who report staying on an
off-peak tariff
By comparison Figure 2-2 shows the electricity consumption of participants who shifted from
continuous to controlled load supplies. Amongst the switches identified using the Ausgrid data, the
consumption pattern is as expected; controlled load consumption in the pre period is close to zero
and is followed by a rise in the after period, while the continuous consumption decreases at the
installation date. Furthermore, the percentage of households on controlled load supply increases to
100% after the intervention month. In the case of tariff switches reported in the OEH data, more
than 50% of households who say they shifted from continuous to one of the off-peak tariffs actually
register controlled load consumption prior to the installation of the replacement HWS, which
averages close to what a HWS system typically uses. In addition, both the controlled load and
continuous consumption decrease after the installation, which shows that the cohort includes a mix
of HWS energy supply switches rather than just the nominated switch from continuous to controlled
load supply.
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Ausgrid data
OEH data
Figure 2-2 Before and after intervention electricity consumption of participants who report switching from
continuous to controlled load
The supply changes determined from the Ausgrid data appears to be consistent with actual change
to the tariffs in the households, while the OEH data is highly variable with some tariff changes
indicating a good agreement with Ausgrid data (e.g. controlled load to controlled load), and other
tariff changes (e.g. continuous to controlled load) having a very poor level of agreement.
A significant number of households who indicated on their rebate form that they had switched to
either gas or a continuous tariff also showed some controlled load consumption post the installation,
indicating that in some cases they did not actually switch to gas or continuous electricity supply, or
that the household had a secondary HWS or other appliances, such as a pool filter pumps, connected
to the controlled load supply. Figure 2-3 shows a histogram of the consumption data for the
participants who said they went from continuous to controlled load supply. It can be seen that these
households were in fact still consuming some off-peak electricity after the switch to continuous hot
water. The same is the case for participants that stated they switched to a gas or gas-boosted solar
HWS (Figure 2-4).
Assuming that most households accurately filled out the field describing the type of HWS installed
(since it has significant implications for the cost and rebate available to the customer), the average
controlled load consumption recorded after installation by households that stated they switched to
gas systems (1.1 kWh/d) could be considered to reflect consumption from a secondary HWS or other
appliances such as pool filter pumps. The noise in this data is substantial (standard deviation of 15.1
kWh/d) and would in part arise from the various types and modes of operation of HWSs and other
appliances connected to the controlled load supply, but also due the (presumably small) fraction of
households that incorrectly identified the type of HWS installed.
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Figure 2-3 Histogram of before and after controlled load consumption for participants claiming to switch
from controlled load to continuous tariff but still have controlled load consumption
Figure 2-4 Histogram of before and after consumption for participants switching from controlled load to gas
but still have controlled load consumption
2.2 TARIFF ANALYSIS
Analysis of specific tariff data (as opposed to supply category) shows that many households have a
poor understanding of which electricity tariff(s) they are using. As detailed in Table 2-2, some 28% of
participants incorrectly nominated their pre-intervention tariff (a statistic unaffected by the new hot
water system type field). The biggest confusion with existing tariffs lay with households who were
actually on an off-peak 2 tariff but reported being on off-peak 1 (36%). The second largest error was
for the 20% of households who were on a continuous tariff but reported being on off-peak 1. The
highest level of agreement was with households who were on an off-peak 1 tariff, where 79% of
households reported it correctly. Full breakdowns of tariff switches by HWS type according to the
OEH and Ausgrid data sets are given in Appendix B.
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Table 2-2 Percentage of households who nominated the correct original tariff
Actual original tariff (Ausgrid)
Reported original tariff (OEH)
Continuous Off-peak 1 Off-peak 2 Electric
(not reported)
Continuous 70 20 7 3
Off-peak 1 5 79 12 4
Off-peak 2 5 36 54 4
Electric 3 31 32 34
TOTAL 22 55 18 4
The data presented in Table 2-3 shows a further analysis of the tariff changes and the main reasons
for the discrepancies found. The three left hand columns shows what was recorded on the OEH
rebate form as the before and after tariff as a result of a hot water system replacement. Columns 4
and 5 show the agreement with the Ausgrid data. The following columns show the three most
common forms of discrepancy between the Ausgrid and OEH data.
It can be seen that many households do not realise that they are changing electricity tariffs. For
example, 45% and 38% of households thought they were staying with OP1 or OP2 respectively,
despite switching between the two controlled load meters. Similarly 51% and 43% of households
thought they were remaining on the continuous tariff, despite switching to OP1 or OP2 respectively.
Households that received a gas or solar gas system appear to be more aware of their electricity
metering arrangements. For example, 76%, 53% and 77% of households correctly identified being on
OP1, OP2 or Continuous tariff before installing a gas system. By comparison, 68%, 48% and 68% of
households correctly identified going to continuous electricity when on OP1, OP2 or Continuous in
the before period. Hence households that installed a gas system are consistently more correct than
other households. Part of this difference could be explained by households who stayed on electricity
for hot water not realising that they are changing tariffs, whereas with gas the change is much more
obvious.
It should be noted Table 2-3 was constructed based on the assumption that the field describing the
type of HWS installed was 100% accurate. While this is unlikely to be the case, it can be reasonably
assumed that the degree of accuracy is much higher than the tariff fields given that the selection of
the type of system has a significant bearing on cost and would in most cases require some
engagement from the participant. Accordingly, Table 2-3 may be considered a good indication of the
level of understanding in relation to tariff changes amongst the participant population.
With only 52% overall agreement between OEH and Ausgrid data, it is clear that many householders
are not familiar with or do not understand their electricity tariffs.
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Table 2-3 Summary of discrepancies in the tariff data
OEH tariff change
OEH form Ausgrid data agrees Largest discrepancy 2nd largest discrepancy 3rd largest discrepancy
Number of households
% of all participants
Number of households
% of
households
Ausgrid Tariff
change
% of
households
Ausgrid Tariff
change
% of
households
Ausgrid Tariff
change
% of
households
OP1 to OP1 15117 39 7088 46 OP1 to OP2 18 OP1 to C 11 OP2 to OP2 7
OP1 to OP2 977 3 236 24 OP1 to OP1 45 OP2 to OP2 11 C to C 7
OP1 to CTS 655 2 449 68 C to C 13 OP2 to C 10 OP1 to OP2 6
OP1 to G 4860 12 3715 76 OP2 to G 13 C to G 8 E to G 1
OP2 to OP2 4951 13 2023 40 OP1 to OP2 17 OP1 to OP1 15 C to C 6
OP2 to OP1 749 2 75 10 OP2 to OP2 38 OP1 to OP1 24 C to C 7
OP2 to C 201 1 98 48 OP1 to CTS 29 C to CTS 11 OP2 to OP1 3
OP2 to G 1051 3 563 53 OP1 to G 36 C to G 7 E to G 3
C to C 4414 11 3019 68 C to OP1 8 OP1 to C 7 C to OP2 5
C to OP1 786 2 251 31 C to C 51 C to OP2 11 C to E 1
C to OP2 218 1 52 23 C to C 43 C to OP1 19 OP1 to OP2 5
C to G 3456 9 2675 77 OP1 to G 15 OP2 to G 7 E to G 0
E to E 761 2 26 3 OP1 to OP1 28 C to C 14 OP1 to OP2 14
E to G 829 2 96 11 OP1 to G 48 C to G 24 OP2 to G 15
TOTAL 39025 100 20366 52
Households that nominated the given tariff switch on their rebate form
Note: OP1 = Off-peak 1 tariff, OP2 = Off-peak 2 tariff
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3 BACKGROUND INFLUENCES ON ELECTRICITY CONSUMPTION
There are a number of background factors that should be taken into account when considering the
results of the HSRP.
3.1 ELECTRICITY CONSUMPTION TRENDS
Electricity consumption has been trending down over the past several years. This is a pattern found
in many parts of Australia. In its household expenditure survey, IPART found that average annual
household demand for electricity fell by around 6 per cent between 2005-06 and 2008-09 for the
Sydney metropolitan, Blue Mountains and Illawarra areas (IPART 2009).
As Figure 3-1 shows, average electricity consumption has dropped significantly since 2006 amongst
non-participant households in Ausgrid’s distribution area.
Figure 3-1 Trend in average monthly electricity consumption of non-participant households over timeframe
of HSRP
This drop in electricity consumption has probably been in part due to efficiency improvements and
also rising prices. As well as encouraging households to use less energy, rapidly rising electricity
prices have spurred efficiency improvements over the past several years, as have state and Federal
government energy efficiency programs. Figure 3-2 shows the rise in the regulated Energy Australia
residential electricity usage price over the past 10 years. The usage charge accounts for about 85 –
90% of a typical household’s electricity bill.
Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13
14
16
18
20
22
24
26
Co
nsum
ptio
n (
kW
h/d
)
0
400
800
1,200
1,600
Th
ou
sa
nds o
f h
ouseh
old
s
Average household consumption
Number of households used to determine average consumption
21
Figure 3-2 Energy Australia regulated Domestic All Time residential electricity tariff
A consequence of this drop in electricity consumption is that there is less scope for additional energy
savings due to efficiency programs.
Table 3-1 shows the average daily electricity consumption by participant household before the HSRP
intervention according to their tariff type.
Table 3-1 Average daily participant household consumption pre-intervention by tariff
Tariff Average
kWh/day
consumption
kWh/year
Households with continuous tariff only 21.6 7,889
Households with a controlled load Off-peak tariff
Continuous component 19.3 7,049
Off-peak component 8.7 3,177
Total 28.0 10,226
The average electricity consumption of participant households prior to the intervention is shown in
Table 3-2 by the various rebate options adopted.
10
12
14
16
18
20
22
24
26
28
c/kW
h
22
Table 3-2 Average pre-intervention electricity consumption by rebate item
Rebate Item Average Household Occupancy
Average Electricity Consumption
Before Rebate
kWh/day kWh/year
Gas HWS 3.19 22.7 8,291
Solar Gas HWS 3.52 24.6 8,985
Solar Electric HWS 3.01 24.7 9,021
Heat Pump HWS 3.01 24.4 8,912
3.2 THE TAKE-BACK EFFECT
A further influence when considering the results from the program is the rebound or take-back
effect. This is where households ‘take back’ some of the potential energy saving benefits from an
intervention in the form of an increased level of service. The take back effect has been most widely
studied for insulation programs. Installing insulation may mean households will take back some of
the potential energy saving in increased comfort levels rather than an energy reduction, or in some
cases even increase their energy use as they now see from benefit from using it. There is little data
available on any take-back associated with the replacement of hot water systems.
Although estimates of take-back vary widely, it is an accepted factor in retrofit programs and will
most likely have reduced the theoretical achievable savings HSRP. However, these benefits are not
easily assessable by a quantitative analysis that uses only total electricity consumption data and they
have therefore not been taken into account in this analysis.
23
4 METHODOLOGY
The primary method used for determining savings from the two HSRPs was mixed effects modelling;
an extension of conventional regression modelling that is most suited to unbalanced panel data
(combined cross-sectional and longitudinal data). Mixed modelling may also be classified as a form
of conditional demand analysis (CDA), which is widely used to model energy consumption (e.g. Vines
& Sathaye 1999, Bartels and Fiebig 2000, Isaacs et al 2006). Data supplied by OEH and Ausgrid were
first combined and processed using algorithms implemented in the Python programming language.
The modelling was then performed using the R statistical software environment. Validation of the
mixed effects modelling was also undertaken using the matched pairs means comparison (MPMC)
approach that ISF has developed specifically for this kind of billing data analysis and has previously
applied to evaluations of water and energy efficiency programs (e.g. Turner et al. 2013, Fyfe et al.
2011, Rickwood et al. 2012).
4.1 DATA PRE-PROCESSING
Data supplied by OEH data contained information on the timing and nature of participant
involvement in the rebate programs as well as some information on participant household
characteristics. Data provided by Ausgrid comprised individual metered consumption data for all
active tariffs as listed in Table 4-1. Ausgrid also supplied consumption data for approximately 1.38
million non-participating households to provide controls for the analysis. Ausgrid collects meter data
on a quarterly basis; however for the purposes of the analysis, the quarterly data were converted or
binned into monthly consumption figures by Ausgrid.
The OEH and Ausgrid participant data sets were linked using DPID and NMI numbers. Individual
participant household consumption on each tariff was then allocated to either continuous or
controlled load supply categories as per Table 4-1 in order to align with the non-participant (control)
data (which was supplied already aggregated into the two supply categories). Keeping controlled
load and continuous consumption separate helped to isolate consumption specifically related to
HWSs as controlled load meters predominantly supply HWSs (but in some instances may be
connected to pool pumps or air conditioning units). Consumption on the various tariffs was also
summed to provide a time series of total consumption for each household. Monthly consumption
figures were then converted to average daily figures by dividing by the number of metered days in
the given month (which was a separate field in the Ausgrid data). Finally, all consumption figures in
the two months immediately before and after the date of installation were removed from each
household’s record as quarterly meter reads prevent a clean demarcation of the installation in the
consumption data.
24
Table 4-1 Ausgrid electricity consumption tariffs and corresponding supply categories
Tariff Ausgrid Code Supply category
Inclining block tariff SC Continuous
Time of Use - Peak Consumption LVP
PK
Time of Use - Shoulder Consumption LVS
SH
Time of Use - Off Peak Consumption OP
Controlled load – Off peak 1 OP1 Controlled load
Controlled load – Off peak 2 OP2
4.1.1 FILTERING
Participant households were removed from the analysis under the following conditions:
Where a DPID was not given in the OEH data
Where the participant’s DPID could not be found in the Ausgrid data
Where no date of installation was recorded in the OEH data
Where there was a discrepancy in unit numbers between the OEH and Ausgrid data (this was
necessary where electricity data applied all units in a block of flats and while the rebate
applied to just one or vice versa; however if unit number only recorded in one data set, the
household was retained).
Where there was a discrepancy in street numbers between the OEH and Ausgrid data
(however if street number was supplied in only one of the two data sets, the household was
retained)
Where there were more than two discrepancies in address fields between the OEH and
Ausgrid data (to accommodate different versions of suburb names such as suburb ‘x’ and
suburb ‘x Heights’)
Where the participant has net solar generation metering
Where a participant has two differing entries in the OEH data (if the second record is a
duplicate) the duplicate (only) was removed
Some filtering was also applied to the control data set. Control households were removed from the
analysis if their consumption records contained a null entry, or if they used more than 250
kWh/hh/d in any month. There were also a number of non-residential properties that had to be
removed from the control data set.
Finally, to ensure outliers in the consumption data did not exert leverage bias on the modeling,
values that exceeded a statistically derived threshold were eliminated. The threshold was defined as
where
= the mean of the logarithmically transformed consumption data (for a given supply
category) and
= the standard deviation of the logarithmically transformed consumption data.
25
4.1.2 INTERVENTION DATE
A key explanatory variable used is the date at which the HWS was installed, which defines the before
and after program intervention periods. Data supplied by OEH provided several fields related to the
timing of rebate process.
This included the ‘Date Purchased’, ‘Date Received’ and ‘Date Installed’. It was assumed for the
purposes of this analysis that date of installation was correct and most appropriately reflected the
actual timing of the program intervention. However, in approximately 2.8% of cases the installation
date preceded the purchase date, by an average of 22 days.
4.2 MIXED EFFECTS MODELING IN R
The combination of cross-sectional participant household data and longitudinal household billing
data produces a form of panel data, with individual households constituting the subjects or panels.
Building a model to estimate savings from efficiency programs involves regressing the consumption
data (the response variable) against explanatory variables that describe individual household
consumption patterns together with their response to the program. This requires a specialised
modeling approach that is capable of accounting for innate variability between subjects (in this case
households) as well as variability over time caused by program interventions and other background
trends and shifts. Mixed modeling is essentially an extension of conventional regression modeling
that uses ‘random’ effects to help explain inter-subject (household) variability together with
conventional ‘fixed’ effects, which are equivalent to standard regression model parameters. The
general form of a mixed effects model is:
where
is the value of the response variable for the th household at time ;
are the fixed effects coefficients, which are common to all households, a subset of
which explain the effect of the efficiency program;
are the fixed effect regressors for observation in the household ;
are the random effect coefficients for household , assumed to be normally
distributed;
are the random effect regressors;
is the error for observation in group
For the purposes of electricity savings estimation, the response variable was total or controlled load
consumption, while fixed effects included HWS type (incorporating old and replacement systems),
occupancy (and its interaction with HWS type), a savings decay term, and aggregated non-
participant consumption (to control for broader trends in electricity consumption). Detailed
explanations of mixed effects modeling can be found in the extensive and diverse literature on the
topic, for example Pinheiro & Bates (2000), Verbeke & Molenberghs (2000) or West et al. (2007).
To build the model specifications for each of the rebate types a manual step-up strategy (West et al.
2007) was adopted. The strategy starts with a simple ‘unconditional’ model incorporating only the
26
most fundamental variables to explain baseline consumption and the effect of the rebate in
question, and iteratively moves towards a more sophisticated specification that accounts for other
factors that might influence consumption and savings such as occupancy, and includes additional
random effects that help explain the variance in the data. Ultimately, two criteria were applied in
selecting final model specifications:
1) The model had to make intuitive sense. In other words, model structure and coefficients had
to have a plausible link to real-world behaviour. It makes little intuitive sense, for instance,
to have a model where a variable explaining the type of new hot water system installed is
interacted with a variable for the age of the old system.
2) Model parsimony - simpler model specifications were preferred to more complex models
unless the more complex model performed significantly better than the simpler model and
also resulted in a significant change to the savings estimate.
Flow charts documenting the model specification processes for the models used to generate savings
estimates and quantify influential factors are presented in Appendix C.
Final models were fitted using the restricted maximum likelihood (REML) method, which is
considered to produce the least biased estimates of model coefficients. The inclusion of additional
variables in each step of the model specification process was tested using maximum likelihood (ML)
and REML likelihood ratio tests for fixed and random effects, respectively, to determine whether the
variable significantly improved the model fit. Confidence intervals were generated using Markov
chain Monte Carlo samples (derived from the posterior distribution of the parameters in the model)
and the highest posterior density (HPD) interval function to identify the shortest interval with a 95%
probability within the sample distribution.
4.2.1 OVERALL SAVINGS AND CONTROLLED LOAD SUBSETS
Overall program savings by HWS type were generated using the entire sample of valid participants
and total electricity consumption (sum of all tariffs) as the response variable.
Most electric HWSs tend to be connected to controlled load supply (approximately 75% of existing
HWSs amongst HSRP participant households were on an off peak tariff), which presents an
opportunity to generate savings estimates using billing data that is largely unaffected by other forms
of household consumption. As such, two additional savings analyses were performed using the
subset of participants that replaced systems on a controlled load supply with an electric system that
remained on controlled load supply or a gas system. The first quantified net electricity savings from
these off peak systems based on total consumption savings. The second considered savings on the
controlled load supply only. These analyses not only provided ‘clean’ savings estimates, but also
allowed a direct comparison with the savings estimates from an earlier study on HWS replacement
savings undertaken by Energy Australia (2009) (see Section 5.5), as well as an approximation of post-
installation contributions to continuous supply consumption from the new hot water system that
would reduce the overall saving.
The subset of participants with HWSs on controlled load supply was defined by pre- and post-
intervention tariffs using the OEH tariff data and inference from the Ausgrid data. Initially the subset
was restricted to households for which there was direct agreement between OEH and Ausgrid data.
However, the OEH data contained no information at all about post-intervention tariffs for
households that installed a heat pump. Thus to generate a controlled load savings estimate for heat
27
pumps (and a larger sample of electric-boosted solar systems), the subset was expanded to include
households that had failed to identify either the pre- or post-intervention tariff on their form by
assuming that the original tariff was retained on new electric systems. Repeating the analysis of
controlled load savings using the two subsets produced almost identical results, hence the estimates
reported in the following sections were drawn from the larger subset.
28
5 SAVINGS ESTIMATES
Table 5-1 shows the average net saving estimates for all participant households over the timeframe
of the analysis, along with the percentage of household electricity saved based on average pre-
intervention participant consumption relative to non-participant consumption. The savings
estimates are derived from the total electricity consumption of all the viable participant households
and are not based on tariff specific savings.
All results include the 95% confidence interval. The model specifications used to produce these
overall estimates are presented in Appendix C. Outputs generated by the R statistical package are
given in Appendix D.
Table 5-1 Average net electricity saving due to replacement HWS
Rebate item kWh/day kWh/year % of household
consumption
Gas HWS 7.44 ± 0.03 2,717 ± 11 29 ± 0.1
Solar Gas HWS 6.43 ± 0.09 2,348 ± 33 25 ± 0.3
Solar Electric HWS 4.11 ± 0.02 1,501 ± 7 16 ± 0.1
Heat Pump HWS 3.68 ± 0.03 1,344 ± 11 14 ± 0.1
The above results were derived from a basic model specification designed to produce overall
program savings estimates (model specification 2 in Appendix C). A second, more complex model
was formulated to quantify the effects of occupancy and time on savings (model specification 4 in
Appendix C), the results from which are presented in section 5.6. Note that the relationship between
RECs and electricity savings could not be explored as the data was incomplete. Of the 30,113
systems installed the REC data was provided for only 21,860.
Table 5-2 presents net household electricity savings for the subset of participants replacing an old
off peak system with a new gas or off peak solar or heat pump system The model specification used
for the analysis of the off peak system subset was the same used to produce the savings estimates
for total consumption (see Appendix C), with total consumption as the response variable. An
additional model using controlled load consumption as the response variable was also produced to
determine savings from replacing off peak systems.
29
Table 5-2 Average net electricity saving due to replacement of off peak HWSs (on controlled load supply).
Rebate item kWh/day kWh/year % of household
consumption
Gas HWS 8.82 ± 0.05 3223 ± 19 33 ± 0.2
Solar Gas HWS 8.46 ± 0.13 3090 ± 48 31 ± 0.5
Solar Electric HWS 4.68 ± 0.03 1710 ± 11 17 ± 0.1
Heat Pump HWS 4.37 ± 0.03 1597 ± 12 16 ± 0.1
Figure 5-1 compares the electricity savings for the overall program (based on the entire sample of
valid participants) and savings for participants replacing systems on controlled load supply by system
type. Replacement of controlled load systems produced higher net savings for all system types,
which would be expected since HWSs on continuous supply have been shown to use less electricity
on average than off peak systems (Bartels and Fiebig 2000), and therefore offer less to electricity
save. The higher consumption profile of off peak HWSs is related to the larger capacity required to
compensate for the inability to heat water during peak time.
Figure 5-1 Average overall savings and savings from replacement of off peak HWSs by system type
It is critical to note here that results for the controlled load analyses are still affected to some degree
by the uncertainty associated with electricity supply/tariffs. Due to the presence of secondary HWSs
and other appliances on off peak tariffs, we could never be 100% sure of what supply the old or new
HWS was attached to, even when OEH data appeared to agree with Ausgrid data. This is likely to
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Heat pump Electric boosted solar Gas boosted solar Gas
Ave
rage
sav
ings
(kW
h/d
ay)
Overall savings Off peak system replacement
30
have resulted in some households that switched to a continuous supply but retained an active off
peak meter, or whose HWS was not on controlled load in the first place, being included in the
controlled load analysis. The uncertainty surrounding tariffs does not affect the overall savings
estimates, but together with the ‘dilution’ effect of other appliances, was the basis for deciding not
to report results from an analysis of savings on continuous supply. Further research is required to
understand this complexity and the implications of this for the uncertainty in the savings estimates.
5.1 HOUSEHOLDS THAT INSTALLED A GAS HOT WATER SYSTEM
Table 5-3 shows the average daily electricity savings over the timeframe of the analysis for all
households that installed a gas HWS, and for those households whose old system was on controlled
load (off peak) supply. According to the results, overall average electricity savings accruing from
switching from an electric HWS to a gas system amount to around 29% of total household demand.
Savings from off peak systems are slightly higher at 33%.
Table 5-3 Average electricity saving for households that installed a gas HWS
Saving kWh/day kWh/year % of household
consumption
All system replacements (overall saving)
Net 7.40 ± 0.03 2,717 ± 12 29 ± 0.1
Off peak system replacements (controlled load savings)
Net 8.82 ± 0.05 3,223 ± 19 33 ± 0.2
Controlled load only
9.10 ± 0.02 3,325 ± 7 100 ± 0.6
The model estimate was slightly greater than 100% due the model implicitly explaining the
variance caused by occupancy and savings decay.
Figure 5-2 shows the change in overall saving for gas systems over the timeframe of the program.
This chart is taken from the validation MPMC analysis (refer to section 6). The plot shows the strong
seasonality of savings as well as a slight but consistent decline in savings over time. The maximum
saving occurs in winter which is to be expected, as that is the time of year when typically more
energy is used for hot water.
The decay in savings could be due to a number of factors including:
A more rapid decline in general electricity consumption amongst non-participants relative to
participants.
The smaller number of participant households at the start of the program means there is
less confidence in the saving estimate at the start of the program, as can be seen from the
95% confidence interval lines.
Households that signed up early may have been more motivated by high electricity use and
therefore had the potential to save more.
The control group would contain a small percentage of households that would have
switched from electric systems to gas, solar or heat pump systems without a rebate in the
post intervention timeframe.
31
There may have been a change in the type of households that signed up over time. For
example, occupancy is the biggest factor influencing hot water use. However, an analysis
showed no difference in the occupancy of participant houses over time.
Figure 5-2 Average daily saving over time for gas HWS
Bartels and Fiebig (2000) estimated that an off-peak 1 hot water system uses approximately 3,560
kWh/year, an off-peak 2 system approximately 3,890 kWh/year and a continuous tariff system
approximately 2,700 kWh/year based on data collected in the mid-1990s. An Energy Australia (2009)
study of solar electric boost and heat pump hot water system savings found that the average
consumption of electric storage systems was approximately 3,350 kWh/year for both off-peak 1 and
off-peak 2 tariffs in 2005-2006.
It might be expected that a household switching from electric to gas water heating would save all
the electricity previously used for heating water. However, the overall savings estimate is only
slightly higher than consumption of a HWS on continuous supply despite only 31% of the water
heaters replaced in the OEH program being on a continuous tariff, while the savings from replacing
off peak systems are lower than the past estimates of consumption of those systems. These
discrepancies can be partly explained by a number of factors.
Firstly, average HWS consumption would have declined since both the previous studies were
undertaken due to measures such as minimum energy performance standards for electric storage
hot water systems and the widespread uptake of water efficient showerheads. The saving figure of
2,717 kWh/year across all tariffs and previous system types appears reasonable in this context, as
does the closeness between the savings from replacing off peak systems and the Energy Australia
(2009) off peak system consumption figure relative to the difference between savings and the
corresponding Bartels and Fiebig (2000) figures.
32
Secondly, not all of the households that switched to gas hot water would have saved all the
electricity previously used for water heating. A large number of households switched to gas
instantaneous units which use some continuous tariff electricity both in standby mode and also
when heating water. A typical instantaneous system uses about 5-10 W in standby and about 50 W
when operating, a total of about 50 - 100 kWh/year. For off peak systems replaced with gas storage
and instantaneous systems, the controlled load saving was 9.1 kWh/day, which amounts to 100% of
what demand would otherwise be without replacing the system. This equates to 3,325 kWh per
year, which is very close to the annual electricity consumption found by Energy Australia (2009) for
off-peak electric storage systems of 3,350 kWh/year. Moreover, the difference between the net and
controlled load savings from replacing off peak systems (111 kWh/year) may be interpreted as the
average electricity consumption associated with replacement gas systems and agrees with the
engineering estimate given above.
5.2 HOUSEHOLDS THAT INSTALLED A GAS-BOOSTED SOLAR HWS
Table 5-4 shows the average electricity savings over the timeframe of the analysis for all households
that installed a gas-boosted solar HWS and for those that replaced an off peak system with gas-
boosted solar. As for gas hot water systems, there was a small decline in the saving over the
timeframe of the analysis (refer to Appendix E).
Table 5-4 Average electricity saving for households that installed a gas-boosted solar HWS
Saving kWh/day kWh/year % of household
consumption
All system replacements (overall saving)
Net 6.43 ± 0.09 2,348 ± 33 25 ± 0.3
Off peak system replacements (controlled load savings)
Net 8.46 ± 0.13 3090 ± 48 31 ± 0.5
Controlled load only
8.98 ± 0.05 3,281 ± 18 100 ± 0.6
The model estimate was actually slightly greater than 100% due the model
implicitly explaining the variance caused by occupancy and savings decay.
At 6.43 kWh/day or 25% of household demand, overall savings from solar gas systems are less than
those for conventional gas systems (7.40 kWh/day). This is likely to be due to the additional power
consumption of pumps and controllers associated with split solar HWSs. Split systems use small
electric pumps to circulate water between the tank (at ground level) and the panels on the roof. A
100-W pump operating for four hours per day on average with a controller that uses 5W would
together use about 0.5 kWh/day. The control panel that monitors water temperatures and operates
the pump would also apply a small, but continuous draw on the power supply. In addition, some in-
tank gas boosters on thermosiphon and split systems use electronic ignition to start the burner.
These factors would account for some of the difference between the conventional and solar gas
systems.
The analysis of savings from replacing off peak systems detected a saving for gas-boosted solar
systems of 8.46 kWh/day, which equates to approximately 3,090 kWh/year or 31% of total
33
household consumption. The controlled load saving from off peak systems was slightly higher at 8.98
kWh/day, confirming that solar gas systems are using additional continuous tariff electricity and
thereby reducing the net saving. The difference between the net and controlled load savings for
replacing off peak systems may be considered a measure of the energy consumption of additional
electrical and electronic componentry, which at 0.52 kWh/day (190 kWh/year) is very similar to the
engineering approximation of pump consumption. Importantly, and as would be expected, the
difference is higher than the corresponding difference between net and controlled load savings for
conventional gas systems, which do not incorporate electrical pumps.
5.3 HOUSEHOLDS THAT INSTALLED ELECTRIC-BOOSTED SOLAR HWS
Table 5-5 shows the average daily saving in total electricity consumption over the timeframe of the
analysis for all households that installed an electric-boosted solar HWS and those that replaced a
conventional off peak system with an electric-boosted solar system.
Table 5-5 Average saving in total electricity per household that installed an electric-boosted solar HWS
Saving kWh/day kWh/year % of household
consumption
All system replacements (overall saving)
Net 4.11 ± 0.02 1,500 ± 9 16 ± 0.1
Off peak system replacements (controlled load savings)
Net 4.68 ± 0.03 1,710 ± 11 17 ± 0.1
Controlled load only
4.53 ± 0.01 1,651 ± 4 53 ± 0.1
It can be seen from Figure 5-3 that the savings are much less uniform than for gas systems and have
declined significantly over time. The maximum saving occurs in summer rather than in winter, as
summer is when the solar contribution to water heating is greatest and therefore results in the
highest savings. Solar radiation also varies significantly, resulting in a more irregular saving pattern.
The larger decline in the saving over time for electric-boosted solar systems compared with gas
systems can be partly explained from an analysis of solar radiation data from the Bureau of
Meteorology. Figure 5-4 shows that the average daily solar radiation in the Ausgrid area has trended
downwards between 2009 and 2012. This would reduce the solar contribution to hot water heating
and therefore also the electricity savings.
34
Figure 5-3 Average daily saving over time for electric-boosted solar HWS
Figure 5-4 Variation in average monthly solar exposure for Sydney 2009-2012
Source: Bureau of Meteorology solar exposure data for Sydney (Observatory Hill), Newcastle (Nobby’s Head) and Maitland
(Visitors’ Centre).
The analysis of replacement of off peak systems produced very similar net and controlled load saving
estimates of 4.68 kWh/day and 4.53 kWh/day, respectively. As for gas-boosted solar systems, split
5
10
15
20
25
30
Jan
-09
Mar
-09
May
-09
Jul-
09
Sep
-09
No
v-0
9
Jan
-10
Mar
-10
May
-10
Jul-
10
Sep
-10
No
v-1
0
Jan
-11
Mar
-11
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-11
Jul-
11
Sep
-11
No
v-1
1
Jan
-12
Mar
-12
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-12
Jul-
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Sep
-12
No
v-1
2
Sola
r ra
dia
tio
n (
MJ/
m2)
Sydney Newcastle Maitland
35
solar electric systems will use some electricity for pumping and controls which should cause
controlled load savings to be higher than net savings. The results here contradict this expectation,
although the apparent difference is not substantially greater than the confidence bounds of the
savings estimates, and may in part be due to misreporting of tariffs.
5.4 HOUSEHOLDS THAT INSTALLED A HEAT PUMP HWS
Table 5-6 shows the average daily savings in electricity consumption over the timeframe of the
analysis for households that installed a heat pump HWS. As mentioned earlier, data supplied by OEH
contained no information on post-installation tariffs for heat pumps. This required that the subset
used in the controlled load analysis rely on inference from the Ausgrid data and, where the post-
intervention tariff was not clear from the Ausgrid data, the assumption that the original HWS tariff
was retained. The heat pump subset so defined could well include households with HWSs falsely
identified to have stayed on controlled load when they actually switched their new HWS to
continuous supply while retaining a secondary HWS or another appliance on the controlled load
meter. Indeed according to this approach more than 2,000 out of a total of nearly 13,000
participants (15%) would theoretically have stayed on the off-peak 1 tariff, when heat pumps are
generally advised to be connected to an off-peak 2 or continuous supply to work effectively.
While repeating the analysis on a more tightly defined subset verified the savings estimates for the
other HWS types, with no OEH data on post-intervention tariffs, the heat pump estimate could not
be verified in this manner. However, the net and controlled load estimates for savings from
replacing off peak systems are very similar, which would suggest that the large majority of the off
peak subset were accurately identified. Nevertheless, the estimates for savings from heat pumps
replacing conventional off peak systems must be treated with caution and additional analysis would
be required to properly gauge the accuracy of the estimates.
Table 5-6 Average electricity saving for households that installed heat pump HWS
Saving kWh/day kWh/year % of household
consumption
All system replacements (overall saving)
Net 3.68 ± 0.03 1,347 ± 10 14 ± 0.1
Off peak system replacements (controlled load savings)
Net 4.37 ± 0.03 1,597 ± 12 16 ± 0.1
Controlled load only
4.32 ± 0.01 1,578 ± 5 51 ± 0.1
5.5 COMPARISON WITH ENERGY AUSTRALIA FINDINGS FOR HWS REPLACEMENT
Energy Australia (2009) undertook an analysis of the savings from the installation of heat pump and
electric-boosted solar hot water systems installed by some of their customers between December
2006 and June 2008. A total of 136 electric-boosted solar and 17 heat pump systems were analysed.
For ease of analysis Energy Australia (2009) only considered households that remained on an off-
peak tariff as the consumption is separately metered. The analysis did not separate OP1 and OP2
36
tariffs. Nor did it use a control group, relying instead on a simple before and after analysis of
consumption, and is therefore fundamentally different to the analysis approach used in this report,
and is not directly comparable. Simple before and after savings analyses tend to over- or under-
estimate savings as they do take into account background changes in consumption.
The Energy Australia study found that heat pumps saved an average of approximately 1,500
kWh/year, which agrees very closely with the controlled load saving of 1,578 kWh/year determined
in this analysis. Electric-boosted solar systems were found by Energy Australia to save approximately
2,200 kWh/year. The present study produced a corresponding estimate of 1653 kWh/year for
controlled load savings. However, there are several factors that could account for some of this
difference.
Firstly, the annual average solar radiation over the post installation 12 month billing period used for
the EA study was significantly higher than in the pre installation 12 month billing period, 18.4 MJ/m2
compared to 16.4 MJ/m2, which would have increased the solar savings due to a 12% higher solar
contribution.
Secondly, the EA study households also had lower average occupancy than the OEH participants at
2.7 compared to 3.1. Smaller households generally mean larger savings with solar systems as less
boosting is required to meet the additional demand. The EA study found that the households that
had an average occupancy of 2.0 saved more electricity (2,658 kWh/year) while those with an
average occupancy of 3.8 actually saved less (1,115 kWh/year). The impact of occupancy on savings
from the HSRP is discussed in the following section.
5.6 THE EFFECT OF OCCUPANCY AND TIME ON HWS SAVINGS
Figure 5-5 and Figure 5-6 show the effect of occupancy and time on the saving for each hot water
system type. For all systems except solar electric boost, the saving increases with occupancy. For all
gas systems, the increase with occupancy is explained by the fact that hot water energy use is
strongly correlated with the number of people in a household, and almost all the electricity used for
hot water is saved by installing a gas system. For solar electric systems, more people in a household
means that more electric boosting will be required to meet the hot water demand, hence while the
saving increases between 1 and 2 person households, it tapers off again when occupancy is higher
than 3. This agrees with the finding of the Energy Australia (2009) study.
There was a noticeable decline in savings over time with the exception of gas instantaneous and
storage systems which demonstrated only a very small decline in savings over time. Decay in savings
is not surprising given the drop in residential electricity consumption shown in Figure 3-1. It is likely
that part of this reduction is due to the decline in electricity demand for hot water in non-participant
households due to the implementation of minimum energy performance standards for electric
storage hot water systems and the presumably small voluntary (non-rebated) uptake of solar, gas
and heat pump systems amongst non-participants. It is also possible that the take up of water
efficient showerheads may have been greater in the non-participant control group than in the
participant group.
It was also observed that a number of participant households who switched from controlled load to
gas started to consume some controlled load electricity at varying times after the new HWS was
installed. The reasons for this are not clear, but may be due to connecting some other item such as a
second HWS or a pool filter pump to the controlled load supply. Determining the significance of this
37
change on the decline in savings is not within the scope of this study as it would require a different
type of analysis on both the participant and control groups.
Figure 5-5 Saving by HWS and household occupancy 3 months after installation
Figure 5-6 Saving by HWS and household occupancy 24 months after installation
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
1 2 3-5 6+
Ave
rage
sav
ings
(kW
h/d
)
Occupancy
3 months after installation
Heat pump Electric boosted solar Gas boosted solar Gas
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
1 2 3-5 6+
Ave
rage
sav
ings
(kW
h/d
)
Occupancy
24 months after installation
Heat pump Electric boosted solar Gas boosted solar Gas
38
6 VALIDATION OF MIXED MODELLING RESULTS USING MPMC
In past efficiency program evaluation studies, ISF has applied an alternative methodology to
estimating savings that is founded upon overcoming common data limitations associated with such
programs. The matched pairs means comparison method (MPMC) requires only billing data and
intervention dates to generate savings estimates. To control for external factors that influence
household consumption it draws on the pool of non-participants to identify control households that
are paired with participants according to their pre-intervention consumption patterns. The MPMC
method was applied in this study both as a preliminary analysis and as a means of validating the
results produced by the mixed modelling approach.
No two techniques are likely to produce identical results, as they will rely on different underlying
mathematical assumptions. Nevertheless, the estimates of savings from the two techniques agree
fairly closely. It can be seen from Table 6-1 that although there are slight differences in the estimates
for overall net savings, they are similar in magnitude and relativity, providing confidence in the
mixed modelling results. In addition, the time series of savings produced by the MPMC exhibited
decay trends that agreed closely with the decay variable coefficients derived through the mixed
modelling approach. The basic MPMC methodology and the outputs from the analysis are presented
in Appendix E.
Table 6-1 Comparison of regression and MPMC saving results
Mixed modeling estimate
MPMC
estimate
Program measure kWh/day kWh/day
Gas HWS 7.44 ± 0.03 7.16 ±0.04
Solar Gas HWS 6.43 ± 0.09 5.61 ±0.12
Solar Electric HWS 4.11 ± 0.02 3.69 ±0.03
Heat Pump HWS 3.69 ± 0.03 3.15 ±0.03
39
7 COMMENTARY ON HSRP DATA
The household data collected by OEH via the rebate application forms provided a sound platform for
the mixed modeling CDA approach used to estimate savings. However, the analysis could have been
further enriched by the collection of a handful of additional pieces of information, while the useable
samples could potentially have been larger and the reliability of the estimates been stronger with a
number of simple quality control measures.
For the HWS savings analysis it would have been of value to know whether the solar systems
installed were split systems or roof top thermosiphon systems. This may have allowed an estimate of
how much continuous tariff electricity is used by pumps and controls in split systems. It would also
have been useful to have had the data on whether a gas system was storage or instantaneous made
available to this analysis (the rebate form did in fact include fields for this distinction) as this could
allow an analysis of the electricity consumed by mains powered instantaneous systems. Inclusion on
the rebate form of a data field describing the type of showerheads installed in the main bathroom(s)
would have allowed some exploration of their impact on the savings achieved and also a comparison
with the broader non-participant ownership to inform the understanding of the savings.
For future reference in relation to data quality, data on tariffs may have been more reliable if the
installer was required to record and sign off on the before and after electricity tariffs, as they should
have a better understanding than the householder based on the findings in this study. The installer
could also have checked whether secondary HWSs or other appliances were connected to off peak
meters. In addition, it could have been suggested on the rebate form that a recent electricity bill be
used to help identify existing tariffs. Finally, in order to maximise sample numbers for billing data
analysis by simplifying the process of matching participants to their consumption data records, NMI
could have been made a compulsory field on the rebate form.
40
8 CHANGES TO PARTICIPANTS’ ELECTRICITY BILLS
Changes to electricity bills are based on the current Energy Australia regulated electricity prices
shown in Table 8-1.
Table 8-1 Energy Australia regulated electricity prices 2012-2013, c/kWh
Continuous OP1 OP2
First 1000 kWh/quarter
(Less than 11kWh/day)
26.84 11.11 14.63
Next 1000 kWh/ quarter
(Between 11-22 kWh/day)
28.05
Remaining usage
(more than 22 kWh/day)
37.73
On average, the participant households with a continuous only supply prior to installing a new hot
water system used 21.6 kWh/day, and would therefore fall within the second block of the tariff
structure for the purpose of estimating bill savings.
Table 8-2 shows the average savings made by replacing a hot water system when switching from off-
peak or continuous tariffs electric storage systems. As it was not possible to isolate the average
usage or savings for electric HWSs on continuous supply from the data4, the same (overall) saving
has been assumed for continuous and off peak systems. As such, estimated bill savings do not
account for details such as the price differential between electricity saved an on off peak tariff and
additional energy consumed on the continuous tariff when replacing an off peak system with a
conventional or solar gas HWS, making the estimates of bill savings very coarse. Similarly, estimating
savings on time-of-use tariffs was not feasible as there was no means of determining when
electricity for water heating is used. An arbitrary allocation of savings to different times of the day
would be highly likely to produce misleading results. It must also be noted that the savings from
switching to gas are electricity savings only, and would be offset by gas costs. No gas consumption
data was provided to be able to calculate overall energy bill savings.
4 Attempts to do so produced contradictory and unreliable estimates, mainly due to the poor reporting
of tariffs
41
Table 8-2 Average annual electricity bill saving for different hot water systems
Replacement HWS Original tariff
Off-peak 1 Off-peak 2 Continuous
Gas - instantaneous or storage* 302 398 729
Solar Gas boost* 261 344 660
Solar Electric OP1 172 282 639
Solar Electric OP2 118 227 586
Solar Electric continuous -72 38 403
Heat Pump OP1 149 251 572
Heat Pump OP2 95 197 525
Heat Pump Continuous -62 7 361
*Additional gas costs not included
42
9 CONCLUSIONS AND RECOMMENDATIONS
Overall the electricity savings from hot water systems were in close alignment with what would be
expected from simple ‘engineering’ calculations and previous studies. Validation using MPMC
indicated the magnitude and relativity of savings estimates are reliable.
Households that switched to gas systems showed the highest level of electricity savings as would be
expected. No analysis was undertaken of gas usage. Heat pumps showed the lowest level of savings.
Electric boosted solar had a negative relationship with the occupancy level due to greater boosting
required in larger households.
Households that switched to gas-boosted solar systems saved less electricity overall on average
compared to those who switched to gas storage or instantaneous systems. This would likely be due
to the monitoring and pumping ignition requirements of split solar systems. Unfortunately the OEH
rebate form data did not indicate if a system was a split or all-in-one system so this could not be
investigated in detail.
Amongst households that had been on a controlled load supply (off peak) HWS and switched to a gas
supply, net savings were less than the savings on the controlled load supply only. This would in part
be due to the electricity use of gas instantaneous systems that use electronic ignition. The data
provided by OEH did not indicate if a gas system was storage or instantaneous (although this data
was collected on the rebate application form) so this could not be investigated in detail.
Many households had a poor understanding of which tariff(s) they were using for their electricity
supply. For example, approximately half of those who remained on a continuous tariff after the
installation of a new hot water system reported that they had changed to an off-peak tariff. This
made it difficult to undertake an analysis of tariff based savings and creates unquantifiable
uncertainty in the controlled load savings estimates.
Recommendation: In future programs of this type the system installer should be required to verify
the previous and new tariffs used for the HWS
An analysis of controlled load to gas system switches found many instances where controlled load
consumption did not drop to zero after the installation or started up again several months after the
installation. In some cases the increase is large. Overall the post-intervention controlled load
consumption amongst households that supposedly discontinued using an off peak tariff averaged 1.5
kWh/day, and indicates that there are other appliances such as pool filter pumps or possibly
secondary HWSs connected to controlled load supply. The impact of this on the estimated saving is
not known and would require further analysis to investigate. The same issue could also contribute to
the observed decline in savings over time. This would require further analysis beyond the scope of
this study.
Recommendation: Future programs related to hot water electricity consumption should require
the installer to investigate if there is any other equipment connected to the controlled load supply.
Recommendation: Undertake a follow-up survey and/or further analysis of the data to determine
the significance of the post installation increase in controlled load consumption.
Decay in savings over time was observed for all the rebate items. This could be due to several
factors:
43
‘efficiency creep’ amongst non-participant households that is not reflected amongst
participant households e.g. new electric hot water systems being more efficient due to
MEPS;
‘voluntary’ system changes amongst non-participants, such as installing solar water heaters
without a rebate.
Random follow-up audits could be considered to check the overall standard of installations to
determine whether workmanship quality plays a role in the savings achieved. For example, a survey
undertaken in 2000 by the ISF of solar hot water systems installed in a Sydney LGA found that two of
the 15 systems examined had been incorrectly installed, resulting in very low or possibly no
electricity savings.
Recommendation: Subsidised installations of large energy efficiency measures should be backed
up by a small number of random audits some months post the installation to confirm the correct
installation of equipment. This could also be used to ascertain if any new equipment has been
connected to the controlled load supply.
Finally, to improve the robustness of ex-post evaluation, a greater emphasis could be placed on
reliable data collection, requiring installers to assist with particular pieces of information that the
householder may not be familiar with (in particular electricity tariffs) and householders to provide
their NMI number from their electricity bill to assist with data matching with electricity distributors.
Recommendation: Consider provision of NMI number being made a pre-requisite to receiving a
rebate or subsidy under future energy efficiency programs.
44
10 REFERENCES
Bartels, R. and Fiebig, D. 2000. Residential end-use electricity demand: Results from a designed
experiment. Energy Journal, 21(2):51–81.
Energy Australia (2009). Efficiency of electrically boosted solar and heat pump hot water systems.
Prepared for DEWHA.
Fyfe, J., May, D. & Turner, A., 2010. Techniques for estimating water saved through demand
management and restrictions. In Integrated resource planning for urban water—resource papers.
Waterlines. Canberra: National Water Commission, pp. 145-194.
Fyfe J, Mohr S, May D & Rickwood P 2011b, Statistical Evaluation of Water, Electricity and
Greenhouse Gas Savings from the Think Water, Act Water Residential Efficiency Programs, prepared
for the ACT Environment and Sustainable Development Directorate by the Institute for Sustainable
Futures, UTS, Sydney.
IPART 2006. Residential Energy use in Sydney, the Blue Mountains and Illawarra. Research Paper
RP28, Independent Pricing and Regulatory Tribunal of NSW, Sydney ISBN 9781921328008.
IPART, 2009. Review of regulated retail tariffs and charges for electricity 2010-2013, Independent
Pricing and Regulatory Tribunal of NSW, Sydney.
IPART, 2012. Changes in regulated electricity retail prices from 1 July 2012, Independent Pricing and
Regulatory Tribunal of NSW, Sydney.
Milne G., Boardman B., 2000. Making cold homes warmer: The effect of energy efficiency
improvements in low income households, Energy Policy, Volume 28, Number 6, pp. 411-424.
Pinheiro, J. & Bates, D., 2000. Linear mixed-effects models: basic concepts and examples, New York:
Springer.
Rickwood, P., 2009 Residential Operational Energy Use. Urban Policy and Research, 27(2).
Rickwood, P., Mohr, S., Nguyen, M., Milne, G., Fyfe, J. 2012, Evaluation of the home power savings
program – Phase 2, prepared for the NSW Office of Environment and Heritage by the Institute for
Sustainable Futures, UTS.
Turner, A. et al., 2013. ARE WE THERE YET ? The importance of evaluating efficiency programs.
Water, May, pp.2–7.
Verbeke, G. & Molenberghs, G., 2000. Linear mixed models for longitudinal data, New York:
Springer-Verlag.
Vines, E. and J. Sathaye, 1999. Guidelines for the Monitoring, Evaluation, Reporting, Verification, and
Certification of Energy-Efficiency Projects for Climate Change Mitigation. Berkely, CA.
West, B., Welch, K. & Galecki, A., 2007. Linear mixed models: a practical guide using statistical
software, Boca Raton: Taylor & Francis Group.
45
APPENDIX A: Breakdown of hot water systems installed by manufacturer and type
Brand (from OEH data) Gas Heat Pump Solar - Electric Boosted
Solar - Gas Boosted
Grand Total
AAE Solar 7 295 11 313
ABTT 3 3
Apricus Australia 2 889 42 933
AquaMax 6 82 19 107
Aqua-Max 25 25
Aquamax (External) 118 118
Aquamax 135 (External) 7 7
Aquamax 300 (External) 6 6
Aquamax Continuum 20 & 24 (External) 2 2
Atlas Trading 1 1
Beasley 136 63 199
Bosch 1 1 3 1 6
Bosch 10H External Models 3 3
Bosch 16H External Models 29 29
Bosch Commercial Internal/External 3 3
Bosch Highflow 70 Series External 677 677
Bosch Highflow External 6 6
Bosch Internal Instantaneous Water Heaters 1 1
Bosch Internal Models 1 1
Bosch13H External Models 3 3
Chromagen 445 556 24 1025
Chromogen Models 21 21
Conergy 9 628 7 644
Douglas Solar 1 1
Dux 2045 2819 122 4986
Dux Endurance 20i (Internal Water Heaters 1 1
46
Brand (from OEH data) Gas Heat Pump Solar - Electric Boosted
Solar - Gas Boosted
Grand Total
Dux Endurance External Mains Pressure Water Heater 6 6
Dux Endurance Instantaneous Water Heater 80 80
Dux Prodigy Storage Water Heater 17 17
Easy Being Green 4 4
ECCO Solar 98 98
Ecosmart 58 1394 70 1522
Edwards 30 1613 68 1711
Edwards Comfort Models 1 1
Endless Solar 1 269 41 311
Everhot 3 62 4 2 71
Everhot Models 124 124
GREENLAND SYSTEMS 1 1
Hills Solar 55 3 58
Icon Solar 1 1
Instantaneous Water Heater Model 1 1
Invert Energy 4 4
J V Solar 3 3
Natural Heat 2 2
Neopower 1 1
Paloma Models 1 1
Quantum 502 5 507
Radiant 3 3
Rheem 82 7116 949 89 8236
Rheem Integrity Models 923 923
Rheem Optima 850 Series 880 880
Rheem Rheemglas 350 Series 14 14
Rinnai 1 18 12 31
Rinnai V Series 282 282
Rinnai Beasley 4 4 8
47
Brand (from OEH data) Gas Heat Pump Solar - Electric Boosted
Solar - Gas Boosted
Grand Total
Rinnai Demand Duo 1 1
Rinnai Eviro Smart (External) 1 1
Rinnai External (HD250e) 1 1
Rinnai External (Infinity 32) 142 142
Rinnai External Models 2259 2259
Rinnai Models 2 2
Rinnai Prestige 143 42 185
Rinnai Roofmaster 2 2
Rinnai Sunmaster 6 581 557 1144
Rinnai V Series 9 9
Run On Sun Australia 1 1 2
Saxon 2017 20 2037
Siddons Solarstream 74 74
Sidek Solar 1 7 8
SKYSOLAR 28 2 30
Solahart 78 5098 79 5255
Solahart Models 2 2
Solar Lord 45 3 48
SolarArk 45 1 46
Solitaire 2 10 1 13
Stiebel Eltron 459 4 1 464
SUN RAY 1 1
Sunheat 2 2
Sunrain 10 1 11
Suntrap 2 71 8 81
Thermapower 1 1
THERMOTEC 2 2
Velux-Dux 1 1 2
Vulcan 1 5 6
48
Brand (from OEH data) Gas Heat Pump Solar - Electric Boosted
Solar - Gas Boosted
Grand Total
Unspecified 3172 3172
Grand Total 8912 12923 15906 1284 39025
49
APPENDIX B: Detailed tariff analysis
Table of tariff change for participants that obtained a gas instantaneous or storage HWS
Ausgrid data
OEH data OP1 to G OP2 to G CTS to G E to G Total
OP1 to G 3213 554 354 53 4174
OP2 to G 328 481 57 31 897
CTS to G 479 223 2389 9 3100
E to G 362 112 181 86 741
Total 4382 1370 2981 179 8912
Table of tariff change for participants that obtained a solar gas boost HWS
Ausgrid data
OEH Data OP1 to G OP2 to G CTS to G E to G Total
OP1 to G 502 92 76 16 686
OP2 to G 51 82 18 3 154
CTS to G 46 23 286 1 356
E to G 39 14 25 10 88
Total 638 211 405 30 1284
50
Table of tariff change for participants that obtained a heat pump HWS,
(note that the tariff the participants went to was not stated, hence OEH data assumed no tariff change)
Ausgrid data
OEH data OP1 to OP1
OP1 to OP2
OP1 to CTS
OP1 to E
OP2 to OP1
OP2 to OP2
OP2 to CTS
OP2 to E
CTS to OP1
CTS to OP2
CTS to CTS
CTS to E
E to OP1
E to OP2
E to CTS
E to E
Total
OP1 to OP1 2058 2095 1082 258 11 389 128 1 76 43 254 28
15 3 6441
OP2 to OP2 389 696 166 46 26 1256 177 61 24 67 144 12
30 20 23 3137
CTS to CTS
116 280 4 1
88
331 224 1524 129
1
2698
E to E 172 102 89 6 4 97 22
12 6 86 4
9 16 22 647
Total 2619 3009 1617 314 42 1742 415 62 443 340 2008 173 0 39 52 48 12923
51
Table of tariff change for participants that obtained a solar electric boost HWS
Ausgrid data
OEH data OP1 to OP1
OP1 to OP2
OP1 to CTS
OP1 to E
OP2 to OP1
OP2 to OP2
OP2 to CTS
OP2 to E
CTS to OP1
CTS to OP2
CTS to CTS
CTS to E
E to OP1
E to OP2
E to CTS
E to E
Total
OP1 to OP1 5030 665 690 118 132 783 66
285 56 778 28 28 2 13 2 8676
OP1 to OP2 442 236 61 3 16 113 5 1 15 10 69
1 2 3 977
OP1 to CTS
44 449
2
66
3 1 89
1
655
OP2 to OP1 187 33 21 6 75 286 35
18 22 56 3 1 3 1 2 749
OP2 to OP2 382 146 52 2 62 767 77 29 25 63 177 6
17 9
1814
OP2 to CTS
5 59
8
98
2 24
1 4
201
CTS to OP1
11 11
4
1
251 91 404 12
1
786
CTS to OP2
12 3 1
4
42 52 95 9
218
CTS to CTS
14 68
3
33
46 37 1495 18
2
1716
E to E 44 6 7
2 10 2 1 6
27 2
3 4 114
Total 6085 1172 1421 130 304 1959 387 31 691 334 3214 78 29 24 36 11 15906
52
APPENDIX C: Mixed effects model specifications
The step-up model specification process for the HWs rebate model based on total electricity
consumption is pictured in Figure C-1. Each number represents a permutation of the model equation
5 in section 4.2 as detailed in Table C-1. The model variables are explained in Table C-2.
Table C-1 Model equations tested in the HWS model step-up specification process
Model Equation Explanation
1 Rudimentary marginal model for savings by
HWS type.
1a Include random effects to explain variation
inherent to participant households (intercept
term plus a term related to average non-
participant demand)
1b As above Assuming uncorrelated household random
effects
2
Population-wide fixed effect for non-
participant demand (uncorrelated random
effects)
3
Add a fixed effect to explain overall decay in
savings
3a
Replace overall decay term with interaction
term making decay specific to system type
4
Add an interaction term to explain the effect
of occupancy on savings (by HWS type)
5
Incorporate a seasonal component to the
random effect related to average non-
participant demand
53
Table C-2 Variables used in the HWS mixed modeling for total electricity consumption
Variable Description Type Levels Notes
Total electricity
consumption for
household at time
(kWh/d)
Continuous NA Sum of all tariffs
HWS type by
household and time
Categorical Electric (pre-
intervention only);
gas; gas-boosted
solar; electric-
boosted solar; heat
pump
Fundamental program effect
variable – the corresponding
regression coefficients for each
level provide the savings estimate
Average non-
participant
consumption at time
Continuous NA Accounts background for trends
and shifts in electricity
consumption
Month relative to
new HWS
installation (integer
count)
Continuous Simple time elapse variable
quantifies the decay in savings over
time
Occupancy in
participant
household
Categorical 1; 2; 3-5; 6+;
unknown
Using a categorical variable instead
of a continuous specification
prevented data loss associated
with missing occupancy data and
simplified the explanation of the
model outputs
Season during which
consumption record
for household
was generated
Categorical Summer; autumn;
winter; spring
Provides greater resolution to
household random effects
54
Figure C-1 Mixed model specification flow chart. Numbers correspond to models listed in Table A-1. Red
lines indicate REML log likelihood ratio tests, blue maximum likelihood log likelihood ratio tests, and green
model outputs.
The Model 2 specification in Table C-1was also adopted for analysing total savings from the subset of
participants with HWSs on controlled load supply. The same model specification was used to analyse
savings on the actual controlled load supply for the same subset, but using consumption on the
controlled load supply as the response variable (as opposed to total consumption) and the
normalised non-participant control data:
Where
Controlled load supply electricity consumption for household at time ;
Average non-participant controlled load supply consumption at time (kWh/d).
1
1a1b
2
33a
4 5
Overall savings
estimates
Savings decay and occupancy
effects
Significant increase in time to solution formarginal gain in explanation of variance andnegligible change in savings estimate
Significant improvement to model fit
Significant increase in time to solution formarginal gain in explanation of variance andnegligible change in savings estimate
55
APPENDIX D: Mixed modelling outputs (from R)
OVERALL SAVINGS MODEL (MODEL SPECIFICATION 2)
Linear mixed model fit by REML
Formula: tot ~ (1 | id) + (0 + nct | id) + nct + system
Data: hws
AIC BIC logLik deviance REMLdev
18812586 18812702 -9406284 18812532 18812568
Random effects:
Groups Name Variance Std.Dev.
id (Intercept) 124.3693 11.1521
id nct 1.3197 1.1488
Residual
38.4918 6.2042
Number of obs: 2850854, groups: id, 38490
Fixed effects:
Estimate
Standard error t value
(Intercept) 25.93313 0.057111 454.1
nct 1.263098 0.006094 207.3
Gas -7.40133 0.017758 -416.8
Heat pump -3.69525 0.01383 -267.2
Electric boosted solar -4.1122 0.012699 -323.8
Gas boosted solar -6.44461 0.045314 -142
Correlation of Fixed Effects:
(Intr) nct systmG systHP syS-EB
nct -0.005 systemGas -0.032 0.04
systemHtPmp -0.039 0.049 0.003 systmSlr-EB -0.041 0.054 0.003 0.004
systmSlr-GB -0.012 0.016 0.001 0.001 0.001
Confidence intervals by MCMCsamp:
Fixed effects
Estimate
MCMC mean
HPD95 lower
HPD95 upper pMCMC Pr(>|t|)
56
(Intercept) 25.933 25.936 25.879 25.992 0.0001 0
nct 1.263 1.264 1.252 1.275 0.0001 0
Gas -7.401 -7.438 -7.471 -7.4 0.0001 0
Heat pump -3.695 -3.688 -3.715 -3.66 0.0001 0
Electric boosted solar -4.112 -4.107 -4.131 -4.08 0.0001 0
Gas boosted solar -6.445 -6.428 -6.517 -6.338 0.0001 0
Random effects
Groups Name Std.Dev. MCMC median
MCMC mean
HPD95 lower
HPD95 upper
id (Intercept) 11.1521 5.4903 5.5096 5.4698 5.5104
id nct 1.1488 1.1254 1.1255 1.1172 1.1341
Residual
6.2042 6.3416 6.3409 6.3361 6.3475
MODEL INCORPORATING OCCUPANCY AND SAVINGS DECAY (MODEL SPECIFICATION 4)
Linear mixed model fit by REML
Formula: tot ~ (1 | id) + (0 + nct | id) + nct + system + system * occ + months.after.int.date:system
Data: hws
AIC BIC logLik deviance REMLdev
18800684 18801121 -
9400308 18800459 18800616
Random effects:
Groups Name Variance Std.Dev.
id (Intercept) 103.3225 10.1648
id nct 1.3145 1.1465
Residual
38.4252 6.1988
Number of obs: 2850854, groups: id, 38490 Fixed effects:
Estimate
Std. Error t value
(Intercept) 15.69159 0.192775 81.4
nct 1.276403 0.006091 209.57
systemGas -6.26257 0.075239 -83.24
systemHeat Pump -3.55013 0.051323 -69.17
systemSolar - Electric Boosted -4.20164 0.048384 -86.84
systemSolar - Gas Boosted -6.49688 0.295066 -22.02
occ2 6.581685 0.213144 30.88
occ3-5 13.9616 0.20645 67.63
occ6+ 20.05263 0.346473 57.88
occUnknown 10.304 0.267768 38.48
systemGas:occ2 -0.67483 0.079653 -8.47
57
systemHeat Pump:occ2 -0.58228 0.053324 -10.92
systemSolar - Electric Boosted:occ2 -0.85606 0.049961 -17.13
systemSolar - Gas Boosted:occ2 -0.66184 0.304815 -2.17
systemGas:occ3-5 -1.86876 0.076164 -24.54
systemHeat Pump:occ3-5 -0.99773 0.051766 -19.27
systemSolar - Electric Boosted:occ3-5 -0.4283 0.048885 -8.76
systemSolar - Gas Boosted:occ3-5 -0.81125 0.29536 -2.75
systemGas:occ6+ -3.61939 0.122174 -29.62
systemHeat Pump:occ6+ -0.93602 0.091999 -10.17
systemSolar - Electric Boosted:occ6+ -0.05909 0.082019 -0.72
systemSolar - Gas Boosted:occ6+ -2.89156 0.365582 -7.91
systemGas:occUnknown -1.45109 0.093917 -15.45
systemHeat Pump:occUnknown -0.74068 0.071802 -10.32
systemSolar - Electric Boosted:occUnknown 0.445831 0.063904 6.98
systemSolar - Gas Boosted:occUnknown -0.25784 0.342527 -0.75
systemELEC:months.after.int.date 0.009325 0.000372 25.08
systemGas:months.after.int.date 0.004752 0.001014 4.69
systemHeat Pump:months.after.int.date 0.02061 0.000845 24.39
systemSolar - Electric Boosted:months.after.int.date 0.018323 0.000784 23.39
systemSolar - Gas Boosted:months.after.int.date 0.034265 0.002881 11.89
Correlation of Fixed Effects:
(Intr) nct systmG systHP syS-EB syS-GB occ2 occ3-5 occ6+ occUnk sysG:2 syHP:2
nct 0
systemGas -0.035 0
systemHtPmp -0.048 0 0.021
systmSlr-EB -0.051 0 0.023 0.032
systmSlr-GB -0.009 0 0.004 0.005 0.006
occ2 -0.903 0 0.027 0.036 0.039 0.007
occ3-5 -0.932 0 0.028 0.038 0.04 0.007 0.843
occ6+ -0.555 0 0.017 0.022 0.024 0.004 0.502 0.518
occUnknown -0.718 0 0.021 0.029 0.03 0.005 0.65 0.671 0.4
systmGs:cc2 0.028 0 -0.871 -0.001 -0.001 0 -0.031 -0.026 -0.016 -0.02
systmHPmp:2 0.039 0 -0.001 -0.834 -0.002 0 -0.043 -0.036 -0.022 -0.028 0.001
systmS-EB:2 0.041 0 -0.001 -0.002 -0.844 0 -0.046 -0.039 -0.023 -0.03 0.001 0.002
systmS-GB:2 0.007 0 0 0 0 -0.935 -0.008 -0.007 -0.004 -0.005 0 0
systmGs:3-5 0.029 0 -0.911 -0.001 -0.001 0 -0.026 -0.032 -0.016 -0.021 0.86 0.001
systmHP:3-5 0.04 0 -0.002 -0.859 -0.002 0 -0.036 -0.043 -0.022 -0.029 0.001 0.827
sysS-EB:3-5 0.042 0 -0.001 -0.002 -0.863 0 -0.038 -0.045 -0.024 -0.03 0.001 0.002
sysS-GB:3-5 0.007 0 0 0 0 -0.965 -0.007 -0.008 -0.004 -0.005 0 0
systmGs:c6+ 0.018 0 -0.568 -0.001 -0.001 0 -0.017 -0.017 -0.033 -0.013 0.536 0.001
systmHPm:6+ 0.023 0 -0.001 -0.483 -0.001 0 -0.02 -0.021 -0.041 -0.016 0.001 0.465
systS-EB:6+ 0.025 0 -0.001 -0.001 -0.514 0 -0.023 -0.024 -0.046 -0.018 0.001 0.001
systS-GB:6+ 0.006 0 0 0 0 -0.78 -0.005 -0.006 -0.011 -0.004 0 0
58
systmGs:ccU 0.023 0 -0.743 0 0 0 -0.021 -0.022 -0.013 -0.032 0.698 0.001
systmHPmp:U 0.029 0 -0.001 -0.621 -0.001 0 -0.026 -0.027 -0.016 -0.041 0.001 0.596
systmS-EB:U 0.032 0.001 0 0 -0.664 0 -0.029 -0.03 -0.018 -0.044 0.001 0.001
systmS-GB:U 0.006 0 0 0 0 -0.834 -0.006 -0.006 -0.004 -0.009 0 0
sysELEC:... 0.045 0.038 -0.119 -0.165 -0.185 -0.03 0 0 0 0.002 0.001 0.002
systmGs:... 0.001 0.019 -0.256 -0.005 -0.006 -0.001 0 0 0 0 0.001 0
systmHP:... 0 0.023 -0.002 -0.328 -0.003 -0.001 0 0 0 0 0 -0.003
sysS-EB:... 0 0.026 -0.004 -0.006 -0.314 -0.001 0 0 0 0 0 0
sysS-GB:... 0 0.007 -0.001 -0.001 -0.002 -0.184 0 0 0 0 0 0
sS-EB:2
sS-GB:2
sG:3-5
sHP:3-
sS-EB:3
sS-GB:3
syG:6+
sHP:6+
sS-EB:6
sS-GB:6
sysG:U
syHP:U
nct
systemGas
systemHtPmp
systmSlr-EB
systmSlr-GB
occ2
occ3-5
occ6+
occUnknown
systmGs:cc2
systmHPmp:2
systmS-EB:2
systmS-GB:2 0
systmGs:3-5 0.001 0
systmHP:3-5 0.002 0 0.001
sysS-EB:3-5 0.835 0 0.001 0.002
sysS-GB:3-5 0 0.934 0 0 0
systmGs:c6+ 0.001 0 0.561 0.001 0.001 0
systmHPm:6+ 0.001 0 0.001 0.479 0.001 0 0.001
systS-EB:6+ 0.498 0 0.001 0.001 0.509 0 0.002 0.002
systS-GB:6+ 0 0.754 0 0 0 0.778 0 0 0.001
systmGs:ccU 0.001 0 0.73 0.001 0.001 0 0.455 0.001 0.001 0 systmHPmp:
U 0.001 0 0.001 0.614 0.001 0 0.001 0.346 0.001 0 0.001
systmS-EB:U 0.639 0 0.001 0.001 0.653 0 0.001 0.001 0.389 0 0.001 0.002
systmS-GB:U 0 0.805 0 0 0 0.831 0 0 0 0.671 0 0
sysELEC:... 0 0 0.001 0.003 0 0 0 0.001 0 0 -0.006 -0.001
systmGs:... 0 0 0.001 0 0 0 -0.001 0 0 0 0.021 0
systmHP:... 0 0 0 -0.003 0 0 0 -0.002 0 0 0 0.006
sysS-EB:... 0.001 0 0 0 0.002 0 0 0 0.001 0 0 0
sysS-GB:... 0 0.002 0 0 0 0.002 0 0 0 0.005 0 0
sS-EB:U sS-GB:U sELEC: sG:... sHP:.. sS-EB:.
nct
59
systemGas
systemHtPmp
systmSlr-EB
systmSlr-GB
occ2
occ3-5
occ6+
occUnknown
systmGs:cc2
systmHPmp:2
systmS-EB:2
systmS-GB:2
systmGs:3-5
systmHP:3-5
sysS-EB:3-5
sysS-GB:3-5
systmGs:c6+
systmHPm:6+
systS-EB:6+
systS-GB:6+
systmGs:ccU
systmHPmp:U
systmS-EB:U
systmS-GB:U 0
sysELEC:... -0.006 -0.001
systmGs:... 0 0 0.033
systmHP:... 0 0 0.018 0.001
sysS-EB:... 0.018 0 0.036 0.002 0.001
sysS-GB:... 0 0.015 0.009 0 0 0
Confidence intervals by MCMCsamp:
Fixed effects
Estimate MCMC mean
HPD95 lower HPD95 upper pMCMC Pr(>|t|)
(Intercept) 15.6916 15.6808 15.4692 15.8765 0.0001 0
nct 1.2764 1.2769 1.2652 1.2884 0.0001 0
systemGas -6.2626 -6.2766 -6.4228 -6.1289 0.0001 0
systemHeat Pump -3.5501 -3.5374 -3.6396 -3.4366 0.0001 0
systemSolar - Electric Boosted -4.2016 -4.1963 -4.2943 -4.102 0.0001 0
systemSolar - Gas Boosted -6.4969 -6.4196 -7.0315 -5.8531 0.0001 0
occ2 6.5817 6.5901 6.3612 6.8111 0.0001 0
occ3-5 13.9616 13.9748 13.7562 14.189 0.0001 0
occ6+ 20.0526 20.0717 19.7051 20.4277 0.0001 0
occUnknown 10.304 10.3148 10.0375 10.6036 0.0001 0
60
systemGas:occ2 -0.6748 -0.706 -0.8642 -0.5512 0.0001 0
systemHeat Pump:occ2 -0.5823 -0.5926 -0.6991 -0.487 0.0001 0
systemSolar - Electric Boosted:occ2 -0.8561 -0.842 -0.9409 -0.7418 0.0001 0
systemSolar - Gas Boosted:occ2 -0.6618 -0.7332 -1.3489 -0.1299 0.0188 0.0299
systemGas:occ3-5 -1.8688 -1.9081 -2.0559 -1.7563 0.0001 0
systemHeat Pump:occ3-5 -0.9977 -0.9902 -1.094 -0.8874 0.0001 0
systemSolar - Electric Boosted:occ3-5 -0.4283 -0.419 -0.5131 -0.3186 0.0001 0
systemSolar - Gas Boosted:occ3-5 -0.8113 -0.919 -1.5122 -0.3308 0.0026 0.006
systemGas:occ6+ -3.6194 -3.6976 -3.9297 -3.4572 0.0001 0
systemHeat Pump:occ6+ -0.936 -0.9612 -1.1421 -0.7792 0.0001 0
systemSolar - Electric Boosted:occ6+ -0.0591 -0.0239 -0.1865 0.1321 0.7792 0.4713
systemSolar - Gas Boosted:occ6+ -2.8916 -2.8986 -3.6346 -2.1827 0.0001 0
systemGas:occUnknown -1.4511 -1.4638 -1.6567 -1.2856 0.0001 0
systemHeat Pump:occUnknown -0.7407 -0.7498 -0.8893 -0.6062 0.0001 0
systemSolar - Electric Boosted:occUnknown 0.4458 0.4545 0.3286 0.5817 0.0001 0
systemSolar - Gas Boosted:occUnknown -0.2578 -0.3575 -1.0146 0.3566 0.3066 0.4516
systemELEC:months.after.int.date 0.0093 0.0091 0.0084 0.0099 0.0001 0
systemGas:months.after.int.date 0.0048 0.0048 0.0026 0.0067 0.0001 0
systemHeat Pump:months.after.int.date 0.0206 0.0208 0.0191 0.0225 0.0001 0
systemSolar - Electric Boosted:months.after.int.date 0.0183 0.0183 0.0167 0.0198 0.0001 0
systemSolar - Gas Boosted:months.after.int.date 0.0343 0.0338 0.028 0.0394 0.0001 0
Random effects
Groups Name Std.Dev. MCMC median MCMC mean HPD95 lower HPD95 upper
1 id (Intercept) 10.1648 5.3377 5.3531 5.316 5.3564
2 id nct 1.1465 1.1236 1.1235 1.1149 1.1323
3 Residual
6.1988 6.3136 6.3131 6.308 6.319
OFF PEAK SYSTEM REPLACEMENT SUBSET – NET SAVINGS (MODEL SPECIFICATION 2)
Linear mixed model fit by REML
Formula: tot ~ (1 | id) + (0 + nct | id) + system + nct
Data: hws_cl
AIC BIC logLik deviance REMLdev
11125998 11126109 -
5562990 11125946 11125980
Random effects:
Groups Name Variance Std.Dev.
61
id (Intercept) 121.1728 11.0079
id nct 1.2643 1.1244
Residual
35.2221 5.9348
Number of obs: 1708962, groups: id, 22627
Fixed effects:
Estimate
Std. Error t value Pr(>|t|)
(Intercept) 27.03369 0.073464 368 <2e-16 ***
systemGas -8.82303 0.026298 -335.5 <2e-16 ***
systemHeat Pump -4.37219 0.016916 -258.5 <2e-16 ***
systemSolar - Electric Boosted -4.68156 0.01443 -324.4 <2e-16 ***
systemSolar - Gas Boosted -8.46129 0.065649 -128.9 <2e-16 ***
nct 1.261335 0.007744 162.9 <2e-16 ***
Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
Correlation of Fixed Effects:
(Intr) systmG systHP syS-EB syS-GB
systemGas -0.024 systemHtPmp -0.037 0.002
systmSlr-EB -0.042 0.003 0.004 systmSlr-GB -0.009 0.001 0.001 0.001
nct -0.005 0.032 0.049 0.058 0.013
Confidence intervals by MCMCsamp:
Fixed effects
Estimate MCMCmean HPD95lower HPD95upper pMCMC Pr(>|t|)
(Intercept) 27.034 27.036 26.965 27.104 0.0001 0
systemGas -8.823 -8.819 -8.872 -8.766 0.0001 0
systemHeat Pump -4.372 -4.378 -4.411 -4.345 0.0001 0
systemSolar - Electric Boosted -4.682 -4.683 -4.712 -4.654 0.0001 0
systemSolar - Gas Boosted -8.461 -8.414 -8.545 -8.284 0.0001 0
nct 1.261 1.262 1.246 1.276 0.0001 0
Random effects
Groups Name Std.Dev.
MCMC median MCMC mean
HPD95 lower
HPD95 upper
1 id (Intercept) 11.0079 5.2989 5.3193 5.2758 5.3252
2 id nct 1.1244 1.1015 1.1015 1.0908 1.1117
62
3 Residual
5.9348 6.0722 6.0715 6.0652 6.0794
OFF PEAK SYSTEM REPLACEMENT SUBSET – CONTROLLED LOAD SAVINGS (MODEL
SPECIFICATION 2)
Linear mixed model fit by REML
Formula: cl ~ (1 | id) + (0 + nct_cl | id) + system + nct_cl
Data: hws_cl
AIC BIC logLik deviance REMLdev
7843266 7843377 -
3921624 7843203 7843248
Random effects:
Groups Name Variance Std.Dev.
id (Intercept) 7.6322 2.76264
id nct_cl 0.6305 0.79404
Residual
5.2616 2.29382
Number of obs: 1707364, groups: id, 22627
Fixed effects:
Estimate
Std. Error t value Pr(>|t|)
(Intercept) 8.516074 0.018529 459.6 <2e-16 ***
systemGas -9.1022 0.009814 -927.5 <2e-16 ***
systemHeat Pump -4.31889 0.006339 -681.3 <2e-16 ***
systemSolar - Electric Boosted -4.52555 0.005394 -839 <2e-16 ***
systemSolar - Gas Boosted -8.98204 0.024526 -366.2 <2e-16 ***
nct_cl 1.001313 0.005522 181.3 <2e-16 ***
Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1
Correlation of Fixed Effects:
(Intr) systmG systHP syS-EB syS-GB
systemGas -0.036 systemHtPmp -0.055 0.003
systmSlr-EB -0.062 0.003 0.005 systmSlr-GB -0.014 0.001 0.001 0.001
nct_cl -0.005 0.022 0.039 0.042 0.009
63
Confidence intervals by MCMCsamp:
Fixed effects
Estimate
MCMC mean
HPD95 lower
HPD95 upper pMCMC Pr(>|t|)
(Intercept) 8.516 8.516 8.4914 8.539 0.0001 0
systemGas -9.102 -9.08 -9.0995 -9.061 0.0001 0
systemHeat Pump -4.319 -4.319 -4.3314 -4.306 0.0001 0
systemSolar - Electric Boosted -4.526 -4.533 -4.5435 -4.522 0.0001 0
systemSolar - Gas Boosted -8.982 -8.963 -9.0129 -8.915 0.0001 0
nct_cl 1.001 1.001 0.9914 1.012 0.0001 0
Random effects
Groups Name Std.Dev.
MCMC median
MCMC mean
HPD95 lower
HPD95 upper
1 id (Intercept) 2.7626 1.7655 1.7679 1.7539 1.7761
2 id nct_cl 0.794 0.7429 0.743 0.7356 0.7499
3 Residual
2.2938 2.3183 2.3182 2.3157 2.3208
64
APPENDIX E: MPMC methodology and detailed results
The MPMC procedure is conceptually simple but computationally intensive, and is specifically
designed for estimating energy and/or water savings using only billing data and an intervention date
for each participant household5. The core logic is:
Each participant household is ‘paired’ with a non-participant household that has a similar
consumption pattern prior to the start of the HPSP.
Since each paired non-participant household had a similar consumption pattern to its paired
participant household, it serves to indicate what the participant household’s consumption
would have been had it not participated in the program.
Since we have an estimate of what each participant household would probably have
consumed, and we observe what each participant household did consume, taking the
difference of these gives us an estimate of the savings attributable to participation.
For more detail on the method, see Fyfe et al. (2010).
The MPMC approach implicitly controls for factors such as weather, changes in appliance ownership
and other trends.
HOUSEHOLDS THAT SWITCHED TO GAS HOT WATER
The average saving for households that switched to gas storage or instantaneous hot water systems
is 7.13 ± 0.19 kWh/day. This is the figure for all tariffs combined. The percentage saving for
participants are based on the average post intervention consumption of the corresponding control
group cohort.
The average saving estimate, the difference between the blue (non-participant) and red
(participants) cohorts is shown in Figure E-1. A five month period of two months either side of the
intervention month plus the intervention month is excluded from the analysis due to billing data
potentially covering both the pre and post intervention period. The saving by calendar month
demonstrating the seasonality of the saving is shown in Figure E-2.
5 Where detailed demographic and other data is available about both the participant and non-participant
households (such as dwelling type, household income and structure, appliance ownership, and so on), a regression model may be more appropriate, and provide more detailed results.
65
Figure E-1 Pre and post intervention consumption of gas HWS participant and matched pair control cohorts
Figure E-2 Gas HWS savings time series
HOUSEHOLDS THAT SWITCHED TO GAS-BOOSTED SOLAR HOT WATER
The average saving for households that switched to a solar gas boosted system is 5.61 ± 0.55
kWh/day.
66
Figure E-3 Pre and post intervention consumption of gas-boosted solar HWS participant and matched pair
control cohorts
Figure E-4 Gas-boosted solar HWS savings time series
HOUSEHOLDS THAT SWITCHED TO ELECTRIC-BOOSTED SOLAR
The average overall saving for households that switched to a electric-boosted solar system is 3.64 ±
0.12 kWh/day.
67
Figure E-5 Pre and post intervention consumption of electric-boosted solar HWS participant and matched
pair control cohorts
Figure E-6 Electric-boosted solar HWS savings time series
HOUSEHOLDS THAT INSTALLED A HEAT PUMP
The average saving for households that switched to a heat pump system is 3.14 ± 0.14.
68
Figure E-7 Pre and post intervention consumption of heat pump HWS participant and matched pair control
cohorts
Figure E-8 Heat pump HWS savings time series