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Adelaide Solar City Final Report

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Adelaide Solar City

Final Report
26 June 2013
The Adelaide Solar City Program Team

Gemma Opie Amanda Murray Dario De Bortoli Cathy Pathammavong


Customer Service Advisor Communications Manager Program Manager Customer Service Advisor

Acknowledgement
The Adelaide Solar City Consortium acknowledges the households and businesses who
have taken part in the program, who took the time to complete the data questionnaire and
provide information which has made completing this report possible.
The Consortium also acknowledges the assistance of suppliers, supporting organisations
and community groups who have assisted with the delivery of the program.

Adelaide Solar City • Final Report • June 2013 Page 2 of 59


Contents
Executive Summary........................................................4

1.0 Introduction..........................................................6 7.0 Solar Hot Water and Heat Pumps......................38


1.1 Program Overview.........................................................6 7.1 Objectives..................................................................38
1.2 The Adelaide Solar City Community................................6 7.2 Recruitment.................................................................38
1.3 Program Elements..........................................................7 7.3 Implementation...........................................................38
7.4 Results........................................................................38
2.0 Consortium Structure............................................9 7.5 Lessons Learnt.............................................................38
2.1 Consortium Member Activities......................................10
2.2 Consortium Structure Review........................................11 8.0 Technology.........................................................39
8.1 In-home displays.........................................................39
3.0 Communications.................................................12 8.2 Web Portal Access.......................................................40
3.1 Background................................................................12 8.3 Solar In-home displays.................................................41
3.2 Marketing Objectives...................................................13
3.3 Marketing Strategies....................................................13 9.0 Energy Efficiency................................................43
9.1 Background................................................................43
4.0 Community Engagement....................................15 9.2 Home Energy Audits....................................................43
4.1 Background................................................................15 9.3 Business Energy Efficiency Program...............................45
4.2 Community Engagement Strategy.................................15 9.4 Ceiling Insulation........................................................46
4.3 Engaging with the Community......................................16 9.5 Energy Efficiency Packs.................................................47
4.4 Program Launch..........................................................16
4.5 Extending Awareness Beyond the Local Community........16 10.0 Home Energy Assistance Program.....................48
4.6 Educating the Community............................................16 10.1 Program Delivery.........................................................48
4.7 Empowering the Community.........................................17 10.2 Recruitment.................................................................48
4.8 Equipping the Community............................................17 10.3 Barriers to Behavioural Change....................................49
4.9 Outcomes...................................................................17 10.4 Outcomes...................................................................49
10.5 Lessons Learnt.............................................................52
5.0 Demand Management.......................................20
5.1 Overview....................................................................20 11.0 GreenPower.......................................................53
5.2 Background................................................................20 11.1 Objectives..................................................................53
5.3 Objectives..................................................................21 11.2 Delivery......................................................................53
5.4 Implementation...........................................................21 11.3 Outcomes...................................................................53
5.5 Cost Reflective Pricing Products.....................................22 11.4 Lessons Learnt.............................................................53

6.0 Solar Program....................................................26 12.0 Data...................................................................54


6.1 Program Objectives.....................................................26 12.1 Data Collection...........................................................54
6.2 Iconic Solar PV Installations..........................................26 12.2 Measurement..............................................................54
6.3 Residential Solar PV Trial..............................................31 12.3 Data Analysis..............................................................55
6.4 Solar Energy Efficiency Program....................................36 12.4 Reporting....................................................................59
6.5 Summary....................................................................37 12.5 Residential Control Group............................................59
12.6 Lessons Learnt.............................................................59

Adelaide Solar City • Final Report • June 2013 Page 3 of 59


Executive Summary
The Solar Cities program is a $94 million Australian Government initiative delivered in seven key locations
around Australia. The program has created new partnerships to save energy, increase uptake of leading-
edge solar technologies, reward energy efficiency and solar power generation, and showcase the economic
and environmental benefits of wiser energy choices.
Adelaide was primarily chosen as a Solar City due to the high proportion of sunny days, peaky demand profile and relatively high
electricity costs.
The program commenced in October 2007 and concludes on 30th June 2013.
The Adelaide Solar City Consortium (the Consortium) led by Origin, includes ANZ, Big Switch Projects, BP Solar, Delfin Lend Lease,
and the City of Salisbury in association with Adelaide City Council, and the Cities of Tea Tree Gully and Playford.
The funding contributed to the program by the Australian Government and the Consortium was $65 million.

Program Outcomes
The program included a market trial of commercial and residential solar photovoltaic (PV) systems, cost reflective pricing, smart meter
technology, energy efficiency products, low-income energy assistance programs and community engagement initiatives. The trial results are
summarised below.
• 1,685 Adelaide Solar City participants have trialled innovative cost reflective pricing products. This included 1,495 participants trialling
Critical Peak Pricing and 190 participants trialling the Time of Use pricing product.
Preliminary analysis indicates that Critical Peak Pricing participants have reduced their electricity use by an average of 14 per cent (2009-
2011) during the peak period on days when a critical peak event was called.
Studies to date also indicate that Time of Use participants have experienced a load shift in their energy usage. For example, during the
2010/11 peak season, Time of Use participants on average shifted seven per cent of their consumption from peak to off-peak periods
when compared to the control group.
• 481 in-home displays have been provided to participants of the cost reflective pricing trials enabling them to monitor their electricity
usage in real time, resulting in an estimated reduction of peak electricity consumption of 10.9 per cent during the 2012 critical peak
period.
• 25 Origin solar PV participants trialled a solar version of the in-home display, enabling them to view their solar generation and
household electricity usage. A survey of participants has indicated that 94 per cent agreed that the device has helped them to understand
their energy consumption.
• The program utilised smart metering technology to empower 2,803 households with greater visibility of their energy consumption, solar
generation (if applicable) and associated energy costs through the provision of online access to 30 minute energy use data. The website
which has been available since 2008 has had more than 60,000 hits, averaging between 900 -1,500 hits per month.
• Eight iconic solar PV installations (one of which powers the world’s first solar electric bus) have been installed in the trial area. The
installed capacity is 244 kW generating approximately 342,000 kWh of renewable energy which saved 339 tonnes of greenhouse gas
emissions from being released into the atmosphere.
• 492 residential and Housing SA participants have installed a solar PV system with an installed capacity of 570 kW generating about
870,000 kWh of renewable energy.
• 879 energy efficiency audits conducted, with three of the top five opportunities for saving energy related to appliance use behaviours.

Adelaide Solar City • Final Report • June 2013 Page 4 of 59


Executive Summary Continued...
• 24 Business Energy Efficiency programs undertaken, allowing participants to save an estimated 6,808,000 kWh.
• 453 energy assessments conducted with households needing help to pay their electricity bills, including 246 provided to low-income
households, in particular new arrivals to Australia and refugees.
• 22,254 energy efficiency packs have been distributed throughout the trial area with recipients saving around $8,050,000 on their energy
bills and avoiding the release 30,900 tonnes of greenhouse gas emissions over the life of the program.
• 101 ceiling insulation packages were installed with a small number of participants also involved in a comfort trial to test the effectiveness
of ceiling insulation in moderating household temperatures.
• 21,745 program households purchased an Origin accredited GreenPower product, resulting in an estimated 37,700 tonnes of
greenhouse gas emissions avoided during the life of the Adelaide Solar City program.

Adelaide Solar City has also focussed on innovation by trialling new product and technology initiatives with the objective of replicating the
outcomes on a state or national basis. The key initiatives first trialled in Adelaide Solar City include:
• April 2008 - Introduction of the first residential on-line access to smart meter data in Australia, which included information on electricity
usage in 30 minute intervals, greenhouse gas emissions and solar generation data
• April 2008 - The first rollout of smart meters and cost reflective pricing products to residents in South Australia
• February 2009 - The world’s first solar electric bus powered by a solar PV system installed as part of the program
• March 2009 – First residential rollout of in home displays in South Australia
• October 2011 – We implemented Australia’s first energy assistance program focused on refugees and new arrivals to Australia
• May 2012 – We introduced the first solar in-home display in Australia, which provided gross generation, import, export and consumption
data in near real-time.

Community Benefits
Some of the key benefits to the community resulting from the Adelaide Solar City program include.
• The recruitment of about 3,500 participants for product trials and around 500 residents attending energy education sessions.
• A total of 836 kW of solar PV system generation installed with an estimated energy generation of 1,247,000 kWh which saved around
1,072 tonnes of CO2-e per annum being released into the atmosphere.
• A total of 21,600 tonnes per year of greenhouse gas emissions has been saved from being released into the atmosphere.
Over the life of the program, an estimated 68,600 tonnes of greenhouse gas emissions have been avoided through the distribution of
energy efficiency packs and the adoption of GreenPower accredited products alone. Combined, these greenhouse gas emission offsets
are equivalent to taking more than 17,000 cars off the road.
• The Business Energy Efficiency Program has provided participants with an estimated saving of $961,000 in financial benefits and a
greenhouse gas emission offset of 5,980 tonnes per annum.
In addition, a number of lessons learnt through the implementation of the program are also outlined in this report along with recommendations
to help develop initiatives aimed at encouraging communities to use energy more efficiently.

Dario De Bortoli
Program Manager, Adelaide Solar City
Date: 26 June 2013

Adelaide Solar City • Final Report • June 2013 Page 5 of 59


1.0 Introduction
1.1 Program Overview
Adelaide Solar City is part of the Australian Government’s $94 million Solar Cities program designed to trial new sustainable energy models.
Adelaide was primarily chosen as a Solar City due to the high proportion of sunny days, peaky demand profile and relatively high electricity
costs.
The primary aim of this final report on the Adelaide Solar City program is to provide an overview of the activities and findings associated with
the program’s market trial of commercial and residential solar photovoltaic (PV) systems, cost reflective pricing, smart meter technology, energy
efficiency products, low income energy assistance programs and community engagement initiatives.
During the course of the Adelaide Solar City program, retail electricity prices in South Australia have risen significantly with a corresponding
impact on consumers, particularly low income households. Electricity prices rose by 18 per cent in 2012-13 and the Essential Services
Commission of South Australia (ESCOSA) has estimated that the average annual electricity bills for South Australian households is
approximately $2 2571, which for low income households equates to approximately 8 per cent of their gross household income.
A key barrier to consumers better understanding how their energy use behaviours impact on their energy bills is that they do not have access to
their energy consumption in a timely manner.
An important feature of the Adelaide Solar City program is the use of innovation and technology to influence behavioural change and provide
households with the tools to monitor and therefore, better understand their energy consumption.

1.2 The Adelaide Solar City Community


The Adelaide Solar City community incorporates approximately 130,000
households across four Council jurisdictions including the CBD and northern
suburbs of Adelaide. The geographic area is included in the boundaries of the
Cities of Salisbury, Tea Tree Gully, Playford and Adelaide City Council.
The area covers a wide cross section of the Adelaide population. North Adelaide
represents predominantly high income residents and is one of the wealthiest
suburbs in the state. However, areas in the cities of Salisbury and Playford
include a high proportion of disadvantaged households compared to other local
government areas within South Australia.
For instance, the median house price ranges from $288,000 in Playford
to $1,030,000 in North Adelaide which illustrates the relative difference in
community wealth within the geographic area.2
The Adelaide Solar City geographic area is shown in Figure 1.2.

Figure 1.2: Adelaide Solar


City Geographic Area

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
1. Determinations, fact sheets and media releases by ESCOSA,
2. Real Estate Institute of S.A – Median House Prices Sept Qtr 2012

Adelaide Solar City • Final Report • June 2013 Page 6 of 59


1.3 Program Elements
The Adelaide Solar City Consortium has implemented a range of program elements designed to engage and encourage the residential and
business communities to embrace energy efficiency, technology, and renewable energy to reduce their electricity use and electricity bills.
The overall program consists of six core elements ranging from solar power to the implementation of smart meter technology.
The program elements are shown in Figure 1.3.1.
Figure 1.3.1: Adelaide Solar City Program Elements

A description of the elements is included in Figure 1.3.2


Figure 1.3.2: Description of Program Elements

Element Module Description


Solar Iconic PV Eight iconic solar installations were installed ranging from 4 to 50kW to demonstrate how renewable
energy could be effectively incorporated into Adelaide’s public infrastructure, transport system,
recreational centres and cultural landscapes including public art. Locations have been selected
throughout the Adelaide CBD and northern suburbs.
Commercial PV Commercial solar PV systems were bundled with a Business Energy Efficiency Program (BEEP) audit to
create the Solar Energy Efficiency Program (SEEP). The offer included a BP Solar 5kW or 10kW solar PV
system.
Residential PV Residential solar PV systems were available to new home buyers and customers retrofitting existing homes.
BP Solar primarily provided solar PV systems which included financing from ANZ to new home buyers
while Origin provided 1.0 - 1.5kW systems to participants who were retrofitting existing homes.
Solar hot water & Solar hot water and heat pump products were provided to both Housing SA and residential participants.
heat pumps With Housing SA, this consisted of the replacement of existing hot water systems with a solar hot water
system. Both offers included the installation of a smart meter.
Housing SA: Consisted of the installation of 1.1- 1.6kW solar PV systems on Housing SA residential sites. The
Solar PV installations were provided by BP Solar and Origin.

Adelaide Solar City • Final Report • June 2013 Page 7 of 59


Element Module Description
Energy Business Energy The Business Energy Efficiency Program initiative provided an extensive audit of business premises aimed
efficiency Efficiency at identifying energy efficiency opportunities, and providing assistance to a number of building owners/
Program major tenants to implement the identified initiatives.
Home energy Energy audits of residential sites including a comprehensive assessment of home energy consumption and
audits behaviour. A personalised report detailed a range of measures that could be undertaken to save money,
energy and greenhouse emissions. Energy saving devices were also provided to households to address
barriers to effective action.
Ceiling insulation Discounted installation of ceiling insulation to help reduce household reliance on heating and cooling
appliances. A small number of households also participated in a “comfort” trial which measured changes
in household temperatures following the installation of the insulation.
Power On/Home Origin’s Power On program provided assistance to Origin customers experiencing difficulties in paying
Energy Assistance their energy bills.
Program
Introduced in 2011, the Home Energy Assistance Program targeted 450 households on low incomes, in
particular refugees and new arrivals to Australia, with free energy assistance to help manage their energy
bills. The program also includes an energy assessment and the provision of energy saving devices.
Energy efficiency Energy efficiency packs, which included energy saving devices such as six CFL light globes and a
packs showerhead, or an energy efficient power board and shower timer, were provided to participants in a
number of trials.
The packs were also distributed as part of the Adelaide Solar City program community engagement
activities.
Cost Critical Peak Energy plans incorporating energy rates which differ during peak and off-peak periods were developed to
reflective pricing test consumer behaviours during times of high energy consumption.
pricing
The energy rate during a critical peak period is far more expensive than the rate applicable for the rest
of the year to reflect the increased cost of energy, sending a price signal to participants about the cost of
their consumption at that point in time.
Time of Use Time of Use energy plans which include flat energy rates during peak and off-peak periods, and seasonal
pricing pricing where different peak rates apply during the summer and non summer periods. The off-peak rate
remains the same throughout the year.
Smart Meters installed The installation of smart meters for participants in the cost reflective pricing, solar hot water, solar PV and
meter Housing SA solar trials.
technology
In home displays In-home displays provide households with near real-time information about their energy use and
carbon emissions in half hourly intervals to help them to understand how much electricity they are using
throughout the day.
A solar enabled in home display was introduced in May 2012.
On line access The Adelaide Solar City metering and communication platform enables access to energy use and carbon
emissions information to cost reflective pricing, Origin solar PV and Housing SA participants via a web
portal.
Users are able to view their energy consumption, solar generation (if applicable) and greenhouse gas
emissions data via the “Your Power” website. The information includes both current and historical data in
30 minute intervals enabling the participant to compare their energy usage over time from the date the
smart meter was installed.
Green GreenPower A range of Origin GreenPower electricity products were available to help household to reduce their
Power impact on the environment.
Control Control group A residential control group was established to help measure the impact of the interventions in the different
group trials.

Adelaide Solar City • Final Report • June 2013 Page 8 of 59


2.0 Consortium Structure
The Adelaide Solar Citizens Consortium was selected to host the Adelaide Solar City trial in August 2006 as announced by the then Prime
Minister John Howard.
The Consortium was successful based on a business case proposing the implementation of a range of innovative commercial and residential
trials including energy efficiency, solar power, smart metering and cost reflective pricing initiatives. The overall funding for the program was $65
million, with $15 million provided by the Australian Government and $50 million contributed by Consortium members and associate members
of the Consortium.
The Consortium was formed through an unincorporated joint venture by six core members, all party to the Adelaide Solar City Consortium
agreement. This agreement defined member obligations, program governance and the management requirements of Origin, the lead
proponent. Origin contracted with the Australian Government on behalf of the Consortium to deliver the program.
The Adelaide Solar City core members were Origin Energy Retail Ltd, BP Solar Pty Ltd, City of Salisbury, Delfin Lend Lease, ANZ Banking Group
Ltd, and Big Switch Projects Pty Ltd.
Adelaide City Council and the Cities of Tea Tree Gully and Playford are associate Consortium members, providing additional expertise and
resources to strengthen the Consortium’s capability to successfully deliver the program. Associate members provided either cash or in-kind
contributions to the program. The Adelaide Solar City Consortium structure is shown in Figure 2.1.
Figure 2.1: Adelaide Solar City Consortium Structure

Adelaide Solar City Core Consortium Members

Adelaide Solar City Associate Members

CITY OF

In addition, a number of suppliers were subcontracted to provide specialist capability in program elements including product development and
delivery, marketing, communications and information technology.
Both government and private organisations have also supported the Consortium in implementing key activities. For instance, the South
Australian Government contributed funding for the Adelaide Railway Station solar PV installation, while the Goodman Group contributed
funding for the installation of a solar PV system at the MTU Detroit Diesel facility in Edinburgh.

Adelaide Solar City • Final Report • June 2013 Page 9 of 59


2.1 Consortium Member Activities
Section 2.1 provides a summary of the key activities undertaken by Consortium members.

2.1.1 Core Consortium Members

Origin Energy
Origin is a leading Australian integrated energy company with diverse operations spanning across the energy supply
chain; from gas exploration and production to power generation and energy retailing.
In Australia, Origin has 4.3 million customers and is the largest energy retailer. Origin has a strong focus on ensuring
the sustainability of its operations, is the largest green energy retailer in Australia and has significant investments in
renewable energy technologies.
As lead proponent, Origin was responsible for program management, governance, marketing and communications,
community engagement, data management and program reporting. In addition, Origin delivered the cost reflective
pricing, solar power, solar hot water and Housing SA trials*. Origin also established the residential control group,
delivered the Home Energy Assistance Program, Power On program and the distribution of energy efficiency packs.
Origin was also responsible for the installation of several iconic solar PV installations.

CITY OF

BP Solar
BP Solar, a former subsidiary of BP, was a manufacturer and installer of photovoltaic solar cells for the residential,
commercial and utility sectors. The company ceased operations in Australia on 21 December 2011.
BP Solar was responsible for the delivery of the residential solar PV and commercial solar PV trials. BP Solar also
delivered the Housing SA trials* and was responsible for the installation of several iconic solar PV installations.
Note (*): Both BP Solar and Origin provided residential solar PV and solar hot water systems for Housing SA tenants.

Big Switch Projects


Big Switch Projects is a sustainability consultancy specialising in energy efficiency, project management and the delivery
of energy efficiency programs.
Big Switch Projects delivered the Business Energy Efficiency Program, Home Energy Audit, and Ceiling Insulation trials.
Big Switch Projects also delivered a number of seminars to educate households on the opportunities for saving energy.

City of Salisbury
The City of Salisbury is located on the northern fringes of Adelaide. It has an estimated population of 132,500 people
and encompasses an area of 158 km². The City of Salisbury includes university and TAFE campuses, military base,
airport and a major bus and train hub.
The City of Salisbury’s activities included facilitation of activities to generate program awareness, community
engagement and participation, and education as well as supporting the marketing and implementation of the
Consortium’s product offerings. Council also funded an iconic solar PV installation.

CITY O

ANZ
The ANZ Banking Group Ltd (ANZ) provides a range of banking and financial products and services to retail, small
business, corporate and institutional clients. ANZ conducts its operations primarily in Australia, New Zealand and the
Asia Pacific region.
ANZ offered financing arrangements to participants of the residential solar PV trial delivered by BP Solar. ANZ also
contributed with the promotion of the solar PV trial and in branch promotion.

Delfin Lend Lease (Now trading as Lend Lease Communities) CITY OF

Delfin Lend Lease operates as a master planned community developer in Australia. It provides a range of housing
options, including designed homes, medium density housing, townhouses and rental services.
Delfin Lend Lease’s activities included the promotion of solar PV, solar hot water and energy efficiency devices within
new dwellings. Delfin engaged with builders operating in the Mawson Lakes development to promote the inclusion of
solar PV and hot water systems on new housing sites.

Adelaide Solar City • Final Report • June 2013 Page 10 of 59


2.1.2 Associate Members

CITY OF

Adelaide City Council


Established in 1840, Adelaide City Council is the oldest municipal authority in Australia. Adelaide City Council includes
the central business district (CBD), residential areas to the south and the suburb of North Adelaide. The city has an
estimated population of 22 000 people and encompasses an area of 15.7 km², of which more than 50 per cent is
made up of parklands.
The Adelaide City Council facilitated activities to generate program awareness, community engagement and
participation, and education. Council also funded the installation of four iconic solar PV installations.

City of Tea Tree Gully


CITY OF

The City of Tea Tree Gully is located in Adelaide’s north eastern suburbs, between nine and 25 kilometres north-east of
the Adelaide GPO. The city has an estimated population of 98,000 people and encompasses an area of 95 km².
The City of Tea Tree Gully facilitated activities to generate program awareness, community engagement and
participation, and education. Council also funded the installation of two solar PV installations.

City of Playford
CITY OF

The City of Playford is the most northern local government area of metropolitan Adelaide. It has an estimated
population of 80,750 people and encompasses an area of 345 km².
The City of Playford facilitated activities to generate program awareness, community engagement and participation,
and education. Council also funded the installation of an iconic solar PV installation.

2.2 Consortium Structure Review


The Adelaide Solar City Consortium developed a business model to suit the unique nature of its membership and the delivery of program
activities. The business model leveraged several advantages including:
• Consortium and associate members included a mix of commercial entities and local governments. This combination enabled the
program to develop and deliver a number of complex trials while utilising local council’s knowledge of and direct relationship with the
community to garner their support and involvement.
• Although many of the product concepts were new, most of the supporting activities were business-as-usual for Consortium members
which enabled for a smoother delivery.
The Consortium was made up of established, reputable local, national, and international brands who were experienced in managing and
delivering large, complex projects.

2.2.1 Lessons Learnt


A number of lessons have been learnt resulting from the implementation of the business model. These are outlined in Section 2.2.1.1.

2.2.1.1 Contractual arrangements


The following lessons learnt relate to the Consortium’s commercial arrangements:
• Formally ratifying changes in responsibilities between Consortium partners requires considerable time and can incur significant legal
costs due to changes to program funding arrangements. More flexibility in both the Consortium Agreement and the Funding Agreement
was required to enable the program to promptly respond to changes in the market or within the Consortium. For example, BP Solar’s
withdrawal from the global solar market affected Big Switch Projects who were jointly delivering the Solar Energy Efficiency Program.
• Managing Consortium member engagement throughout the lifetime of a six-year program can be challenging, particularly when a
Consortium member may have achieved their targets in the early stages of the program. An option may be to consider having temporary
Consortium members who are effectively contractors responsible for a given activity and who can then exit the program when the activity
is completed.
• In-kind contributions from Consortium members should be clearly defined, particularly where deliverables are difficult to quantify, to
enable greater visibility of the value of all program contributions.
• Community engagement activities were an important aspect in encouraging support for and participation in the program as well as
encouraging long-term behavioural change. It is recommended that the community engagement component of future government
programs is subject to specific targets and be fully funded rather than considered to be a primarily an in-kind activity.
• Whilst a robust reporting arrangement with the Australian Government is necessary, the timeframe for the submission of reports needs to
be practical. The Consortium was required to submit quarterly reports within 10 business days from the end of the quarter. Meeting this
deadline was not always feasible due to the length of time required to undertake analysis, financial reporting, and obtaining Consortium
approvals.

Adelaide Solar City • Final Report • June 2013 Page 11 of 59


3.0 Communications
3.1 Background
The Adelaide Solar City program presented an interesting challenge from a marketing perspective. The challenge was that the concept of the
“Adelaide Solar City program” was in reality, a collection of product offerings to market. These products were offered by different Consortium
members who leveraged the overall marketing of the Solar Cities brand to reach their specified target uptake.
To tie the products together, Origin undertook marketing and communication activities on behalf of the Consortium to launch the program and
generate and maintain awareness throughout the program lifecycle. Consortium members were then responsible for undertaking acquisition
activities for their own products with their own marketing budgets.

3.1.1 Motivators of Consumer Behavioural Change


In May 2008, the program undertook research into community views on energy use and other energy related matters. The research was
conducted with 230 households randomly selected from within the catchment area to determine their attitudes towards the program and energy
efficiency behaviours.
The research revealed that although most people feel motivated towards helping the environment, this does not necessarily translate into
behavioural change.
The key findings of the study revealed that:
• all respondents claimed that they had made some form of energy saving measure in the preceding 12 months
• the main motivator for behavioural change is to save money, although climate change and global warming concerns did strike a chord
with residents.
These results influenced the development of the communications plan resulting in the implementation of a two-phased approach which
included:
• an awareness program to educate consumers within the trial area of the Adelaide Solar City program and the benefits of more
sustainable energy use
• product focussed advertising and communications, which include more detailed messages regarding the financial and qualitative benefits
of the product offers.
The research also asked participants to identify barriers to taking up a program product offering within the near future. The key findings were:
• lack of information / confusion about energy efficient products
• procrastination / lack of time
• waiting to move home.
Based on the market research, specific messages were designed and built into the program and product communications to help households
overcome potential barriers to participation. Messages regarding product features were simplified, and the enquiry and purchase process was
structured in a way that didn’t overload prospective participants with information, or undue effort.
As the program progressed, key differences in community attitudes towards energy use developed, driven by factors such as rising electricity
prices, energy affordability, media attention and deteriorating economic conditions.

Adelaide Solar City • Final Report • June 2013 Page 12 of 59


3.2 Marketing Objectives
The key objectives underlying the program’s marketing strategies were to:
• understand the needs of the community and the potential barriers to participation in the program
• build credibility for the Consortium and encourage community and business involvement
• inform, educate and motivate households and businesses in northern Adelaide to participate in the program
• develop innovative program product offers
• build and maintain awareness of the program and its outcomes over the program’s life cycle
• demonstrate the economic and environmental benefits of participating in the program.

3.3 Marketing Strategies


The program’s high level marketing strategies were developed to:
• provide an overarching, integrated marketing campaign to generate awareness and engagement with the Adelaide Solar City brand
• use the brand campaign exposure to leverage the launch of a series of simultaneous targeted acquisition campaigns
• promote the program product offers
• create awareness and positive attitudinal support for the program
• educate the community on energy use and encourage positive behavioral change
• provide engagement opportunities for Council partners.
The diverse socio-demographics of the trial area, program complexity, market conditions and need to generate ongoing communications to
maintain consumer awareness required the use of a broad range of communication channels.
The key messaging used in program communications is shown in Figure 3.3.
Figure 3.3: Adelaide Solar City Program Messaging

Adelaide Solar City • Final Report • June 2013 Page 13 of 59


3.3.1 Marketing Channels
A number of marketing channels were used at various stages of the program lifecycle, these are shown in Figure 3.3.1.
Figure 3.3.1: Marketing Channels

Customer Interactions
Channels
Information Product Sign Up Fulfilment Support
Adelaide Solar City contact centre 3 3 3 3
Website 3 3 3
Direct mail 3
Digital advertising 3
Origin shops 3 3 3
Bank branches 3 3 3
Councils 3
Consortium partners 3
Media 3
Telemarketing 3 3

For example, the following marketing channels were used to provide information on the program:
• online communication through the Adelaide Solar City website was a critical strategy for the Consortium and had an audience ranging
from participants in the program to the broader Adelaide community.
• the Adelaide Solar City call centre had designated staff, trained in all aspects of the program and able to respond to participant
enquiries.

3.3.2 Lessons Learnt


Some of the key lessons learnt from the marketing and communication activities were:
• underestimating the time involved in product development which led to delays in product launches
• smart metering was an additional complexity to the fulfilment of product offerings and the management of participant expectations
• the socio economics and demographics of households within the Adelaide Solar City trial area required messaging to be very focused on
the financial benefits for the participant
• maintaining consumer awareness was an ongoing challenge requiring a significant spend on communications
• a challenge in product advertising was the development of residential offers that required participants to switch retailers.

Adelaide Solar City • Final Report • June 2013 Page 14 of 59


4.0 Community Engagement
4.1 Background
The Adelaide Solar City Consortium has undertaken a broad program of activities to successfully engage with the local community.
Community engagement played a key role in raising community awareness and encouraging support for, and participation in the program.
The model adopted by the Consortium was based on the premise that sustainable, long-term behavioural change is best achieved through
an integrated and staged approach to community engagement. A central tenet of the model was to integrate community engagement with
marketing and communication activities, utilising a range of media and communication channels, and Consortium and Council consumer
touch points.
The strategy adopted was to encourage residents and businesses to become ‘Adelaide Solar Citizens’ through a program of phased activities
designed to connect, educate, empower and provide the community with the resources to enable the adoption of positive energy behaviours.

4.2 Community Engagement Strategy


The model of engagement adopted by the Consortium seeks to demonstrate the economic and environmental benefits, both at a personal and
community level, of adopting more sustainable energy offerings and changing the way in which energy is currently being used.
Specifically, the Consortium sought to achieve the following objectives:
• create a level of general awareness of the program within the trial area to encourage interested consumers to take up the Consortium’s
product offerings
• educate and encourage participants and local households to change the way they think about energy consumption, resulting in improved
energy efficiency
• foster a sense of pride with participants that they are part of a unique trial and that the outcomes of their participation may be used to
influence government energy and sustainability policy Australia wide
• demonstrate that some of the initiatives and outcomes of the program can be replicated outside of the trial area
• validate a business model that demonstrates all levels of government effectively working together with the private sector over a significant
timeframe to deliver viable, new energy efficiency measures.

The Consortium undertook an integrated approach with its engagement and marketing communication strategies, using a phased
approach to deliver program activities designed to:
• Engage with the community about climate change, the Solar Cities program and how their individual behaviour can impact the
environment.
• Educate households on how they can change their behaviour to minimise their energy use and reduce greenhouse gas emissions.
• Empower consumers to make positive behavioural change.
• Equip households with information and products to encourage behavioural change on a personal and community level.
The community engagement strategy was developed by the Consortium with significant input from supporting Councils. This enabled the
program to leverage the experience and local knowledge of Councils in implementing successful community-based activities.

Adelaide Solar City • Final Report • June 2013 Page 15 of 59


4.3 Engaging with the Community
The first step in engaging the community involved developing a brand and logo identity that delivers an ongoing and unique perception of the
program, while building and maintaining awareness.
The program brand was created to be inventive, refreshing, uplifting and approachable and is represented by a logo that unifies stakeholders in
the shape of the sun. The logo uses the colours of South Australia to enhance community ownership, while the use of line drawing illustrations
compliments the brand’s identity.
Program communications and initiatives were strongly branded to maximise program awareness and deliver compelling messages of the
benefits of becoming Adelaide Solar Citizens.
With the creation of the brand, the Consortium subsequently launched a number of communication activities to introduce the program,
generate community interest and encourage participation.
The branding component of the program was marketed through a combination of activities undertaken across channels such as television,
press, direct mail, council and Consortium touch points, and through key stakeholder groups within the catchment area.
Initially, communications and activities were focussed on reinforcing the benefits of sustainable energy use behaviours. This approach enabled
the Consortium to highlight the role of the program in helping to address climate change, in addition to providing a medium for raising
awareness and initiating consumer interest.
Subsequently, the Consortium developed a comprehensive set of energy packages, some of which included new product concepts designed
to engage participants and test barriers to take up. The up-take of these products was a key indicator of the program’s success at moving the
community beyond awareness to active program participation.

4.4 Program Launch


The launch of the program was celebrated with a street party in the heart of the catchment area in Salisbury. The event was attended by several
hundred people and led to many households registering their interest to take part in various trial initiatives. The event obtained significant news
coverage across several Adelaide television stations, print media outlets and radio.
Hosting solar city specific events and participating in community events has also played an important role in interacting with the community at
a personal level. Each event has provided the opportunity to distribute program information, energy efficiency advice, and product offers, in
addition to receiving feedback from residents.

4.5 Extending Awareness Beyond the Local Community


Informing key stakeholders and interested parties outside of the catchment area with the progress of the trial and key outcomes has been an
essential part of the program’s strategy.
Trial progress has been communicated at conferences in all mainland states and New Zealand. Including the 2008 International Solar Cities
Congress and the 2009 ISES Solar World Congress held in Johannesburg, South Africa.
In addition, a documentary on Adelaide and Dezhou Solar Cities was shown on China Central Television (CCTV-4) “City 1 on 1” program in
January 2012. The program, which attracted a worldwide audience of over seven million viewers, also featured Mr Huang Ming, winner of the
2011 Honorary Right Livelihood Award (also known as the Alternate Nobel Prize).
The outcome of these activities has been to foster awareness of the program as well as the overall Solar Cities program initiatives with a wider
national and international audience.

4.6 Educating the Community


The second phase of engagement involved undertaking educational activities to reinforce the benefits of more positive energy use behaviours,
communicate high level messaging regarding the program’s objectives, what it offered, and how households and businesses could benefit from
their involvement.
These activities were implemented using a range of channels to maximise the number of residents and businesses reached, and to enable
messaging to be tailored for specific audiences.
Educating potential trial participants also involved engaging in conversations about energy, climate change, and the Solar Cities program to
provide an understanding of what could be achieved, both at an individual and broader community level.
This included holding “Town Hall” style public meetings held within each supporting Council. In addition, a series of briefings and updates
on the program were delivered to key stakeholder groups including the Energy Consumer Council of SA as well as industry, state government
departments and educational groups (e.g. SA Governor’s Leadership Foundation Program).
The core and associate Council members played a critical role in informing households, helping to generate awareness of the trial and
recruit participants. This direct involvement enabled the program to inform households on a more personal level through a range of Council
communication touch points. These included community briefings and events, newsletters, rates notices, websites and information at council
centres.
Strong Council involvement also provided additional credibility, increasing the program’s capacity to influence the community’s decisions and
behaviours.
A key platform in facilitating change was to incorporate messages about the benefit of positive energy use behaviours. Cost reflective pricing
trial advertising included primary messages focussed on the potential energy bill savings as a result of shifting their energy usage to off-peak
periods.

Adelaide Solar City • Final Report • June 2013 Page 16 of 59


Secondary messaging conveyed the associated environmental benefits of changing energy use behaviours, as our experience suggests that
messages around potential monetary savings resonate more strongly.
Other forms of education included conducting information sessions, either directly with interested groups, or in conjunction with Councils.
These information sessions have predominately focused on providing free energy efficiency advice, which enabled the Consortium to reach a
broader target audience, without requiring significant upfront costs to enact.
Unfortunately, while these sessions are excellent vehicles for two-way feedback with the target audience, they have not been a successful
channel for the marketing of Consortium products.

4.7 Empowering the Community


The third step in engagement was to empower individuals to view themselves as “Solar Citizens” with the ability to directly control their use and
sourcing of energy.
To achieve this outcome the Consortium enlisted a local family to serve as program ambassadors and share their experiences and perceived
benefits of trial involvement.
To empower participants, the Consortium also developed and implemented products that provided households with the tools to better
understand their energy consumption and manage their energy usage. This included the use of in-home displays and access to online
electricity consumption via a web portal.

4.8 Equipping the Community


Equipping households and businesses with the information and products to facilitate behavioural change is the final stage of the community
engagement model.
In facilitating this phase the Consortium encouraged the community to interact with the program through a variety of channels.
Maintaining an on-line presence via the program website was a particularly important channel in providing regular updates on the progress of
the trial.
The Adelaide Solar City call centre, available during working hours provided residents and businesses with the expertise to advise households
on the offers to best suit their needs.
Information and display material was also made available to trial households through a variety of channels, including:
• Council publications, community centres, libraries, call centres and ANZ branches
• Consortium’s member publications, websites and call centres.
Using Council touch points, such as rates notices, was an effective way of generating awareness and advertising the program product offers.
Origin also distributed over 20,000 free energy efficiency packs, with assistance from the Cities of Salisbury, Tea Tree Gully and Adelaide City
Council to help households improve their energy efficiency, reduce water waste, save money and cut their environmental impact.

4.9 Outcomes
The level of awareness within the community is a critical measure of engagement and it was periodically tracked by Origin during the initial
phases of the program. This research indicated that on average more than 50 per cent of households within Greater Adelaide were aware of
the program when prompted, and around 60 per cent are aware of it within the program catchment area.

4.9.1 Energy Attitudes and Behaviours


Research was conducted over a six month period from late 2012 to early 2013 to determine broader community understanding of energy
consumption and participant attitude and behaviours towards energy bills, energy use and the environment.
A total of 759 households (see Figure 4.9.1) from within and outside the trial area took part in the research.
Figure 4.9.1: Questionnaire Responses by Council

Adelaide Solar City • Final Report • June 2013 Page 17 of 59


4.9.2 Household Attitude to Energy Consumption
The energy consumption attitudes of households were surveyed (see Figure 4.9.2) by asking participants to indicate whether they agreed or
disagreed with a series of statements related to their energy bills and behaviours to reduce energy use and their impact on the environment.
The scale of responses ranged from ‘strongly disagree’, ‘disagree’, ‘neither agree nor disagree’, ‘agree’, ‘strongly agree’, and ‘unknown’.
Participants were asked to indicate the extent to which they agreed that their energy bills were not large enough for them to care about them.
Only 15 per cent of households (n=111) either ‘agree’ or ‘strongly agree’ with the statement.
Only 14 per cent of respondents (n=109) either ‘agree’ or ‘strongly agree’ that their individual behaviour has very little or no impact on the
environment.
About 35 per cent (n=265) of households either ‘strongly disagree’ or ‘disagree’ with the statement that they did not know how much money
they could save by using less energy, indicating that respondents were sensitive to energy bills.
Regarding energy use, 63 per cent of households ‘strongly disagree’ or ‘disagree’ with the statement that convenience and comfort was more
important than saving energy, indicating that households were prepared to reduce energy use to enable bill savings.
Figure 4.9.2: Energy Consumption Attitudes of Households

Neither
Strongly Strongly
Question Disagree disagree Agree Unknown
disagree agree
nor agree
My energy bills are not large enough to care
44% 31% 9% 10% 5% 1%
about them
My individual behaviour has very little or no
34% 39% 12% 10% 4% 1%
impact on the environment
I don’t spend any time thinking about my
38% 45% 7% 6% 4% 1%
energy use
I don’t know what I should be doing to
20% 46% 18% 13% 3% 1%
reduce my impact on the environment
Convenience and comfort are more
23% 40% 22% 11% 3% 1%
important than saving energy
Climate change is a threat to our way of life 10% 8% 14% 37% 30% 1%
I don’t know how much money I can save
10% 25% 21% 36% 7% 1%
when I use less energy

4.9.3 Energy Saving Behaviours


Household were asked to indicate how often they undertook a range of behaviours to reduce their energy consumption. Household responses
included ‘never’, ‘rarely’, ‘sometimes’, ‘usually’, and ‘always’.
The results indicate that while households may report they don’t know what measures they should be taking to reduce their impact on the
environment, many are actually undertaking a range of simple actions to conserve energy.
From the responses provided in Figure 4.9.3 (with the exception of turning off appliances at the wall), it appears that the majority of households
either ‘usually’ or ‘always’ undertake a number of energy conservation activities.
Figure 4.9.3: Energy Saving Behaviours

Activity Never Rarely Sometimes Usually Always Unknown


Turning off appliances at wall 9% 14% 26% 25% 23% 2%
Minimising use of heating and cooling 2% 5% 23% 37% 30% 2%
appliances
Use a clothes line instead of a clothes dryer 3% 2% 5% 21% 66% 2%
Choosing energy efficient appliances 1% 4% 15% 39% 39% 2%
Wash clothes in cold water 3% 6% 14% 18% 57% 2%

Adelaide Solar City • Final Report • June 2013 Page 18 of 59


4.9.4 Energy Efficiency Measures
Participants were also asked to provide information on the energy efficiency measures they had undertaken.
Figure 4.9.4 illustrates the proportion of respondents who have installed solar technologies, water saving equipment, energy efficient lighting or
purchased a GreenPower product.
Figure 4.9.4: Energy Efficiency Measures

4.9.5 Lessons Learnt


Some of the key lessons learnt from the community engagement program were:
• completion of a highly detailed residential questionnaire was a barrier to program uptake and resulted in significant numbers of potential
participants not proceeding with the cost reflective pricing trial
• community engagement information sessions whilst useful to those attending, did not attract large numbers of attendees
• ongoing management of community expectations was difficult when product launches were delayed.

Adelaide Solar City • Final Report • June 2013 Page 19 of 59


5.0 Demand Management
5.1 Overview
In South Australia, growth in peak load has been a driver of network augmentation, with the costs of infrastructure upgrades flowing through to
higher electricity prices for consumers. With an air conditioning penetration rate of more than 90 per cent in South Australian households, air
conditioning usage particularly on days of extreme temperature is considered a key driver of peak demand.1
Despite the financial and environmental impacts of peak electricity demand, the current pricing structure in the state does not incentivise
households to reduce their energy consumption, especially during peak periods.
While there are several different approaches to managing demand, the Consortium proposed the use of cost reflective pricing to encourage
households to shift their energy use to off-peak periods. This section of the report discusses the cost reflective pricing trial delivered by Origin
which involved about 1,685 participants trialling innovative electricity tariffs combined with smart metering and interactive communication
technology.
The implementation of the demand management trial was one of the most significant initiatives in the program, with the roll out of smart meters
in the residential market being the first of its kind in South Australia.

5.2 Background
Adelaide typically experiences days of extreme temperatures during the warmer months.
Between January 2008 and March 2013, Adelaide recorded 138 days where the maximum temperature was in excess of 35 degrees.
Adelaide also often experiences heatwaves of consecutive days of extreme temperatures. During March 2008, 15 consecutive days recorded a
temperature in excess of 35 degrees.
Electricity use in the residential sector, driven by air conditioning use is a key driver of demand.
Figure 5.2 shows the total electricity demand in South Australia during the month of March 2008. As the chart illustrates, there is a strong
relationship between electricity consumption and temperature.2
Figure 5.2: South Australian Electricity Consumption Compared to Temperature: March 2008

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
1. Evaluation Report – Electricity Supply to the Northern Suburbs 66kV Network RFP-ER 008/06 – Issue 1.0 October 2007
2. http://www.aemo.com.au/Electricity/Data/Price-and-Demand/Aggregated-Price-and-Demand-Data-Files/Aggregated-Price-and-Demand-2006-to-2010#2008

Adelaide Solar City • Final Report • June 2013 Page 20 of 59


On 13 March 2008 the average peak regional reference price (RRP) from 7.00am to 10.00pm reached $2,334.88 per MWh. In comparison,
the average peak price across the five other regions (NSW, VIC, TAS, QLD and Snowy Hydro) on this day was $84.45.1
Up until February 2013, the Essential Services Commission of South Australia (ESCOSA) calculated the standing tariffs that the incumbent
retailer, AGL, could charge to its customers in the state. While spot electricity prices are not directly passed on to residential consumers,
the Australian Energy Market Commission noted that wholesale electricity prices, which were used to calculate South Australian residential
electricity prices, were approximately 20 per cent to 30 per cent higher than in other NEM regions.2

5.3 Objectives
The primary objective of the demand management trial was to test consumer behaviours towards cost reflective electricity pricing products,
smart metering and telecommunication technologies.
The objectives of the cost reflective pricing trial were to:
• identify customer preferences for different pricing structures
• quantify the impact of behavioural change on energy consumption
• determine the potential for replicating the pricing structure outside of the trial area.
The demand management trial was developed on the premise that providing pricing signals in conjunction with smart meter technology would
facilitate the reduction in the total cost of supplying energy by minimising the peaks in demand and shifting demand to lower cost periods of the
day. Consequently, this would assist in postponing the requirement to build new electricity infrastructure in South Australia.

5.4 Implementation
In implementing the demand management trial, Origin introduced two cost reflective pricing products, implemented a metering and
communications platform and provided participants with on line access and in-home displays to enable them to better understand their
electricity consumption.

5.4.1 Technology
The components of the demand management trial are shown in Figure 5.4.1. The trial can be segmented into three broad categories:
• Smart meters: installation of Type 4 remotely read meters
• Pricing products: consisting of two Critical Peak pricing and two Time of Use pricing options
• Communication platform: supporting on line access and in home displays provided to pricing product and solar PV participants.
Figure 5.4.1: Demand Management Trial Components

–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
1. http://www.aemo.com.au/Electricity/Data/Price-and-Demand/Average-Price-Tables/Daily-Price-Tables-0505to0708?year=2008&month=03
2. AEMC, November 2011. “Possible future Retail Electricity Price Movements: 1 July 2011 to 30 June 2014.

Adelaide Solar City • Final Report • June 2013 Page 21 of 59


5.4.2 Metering and Communication Platform
The implementation of a flexible metering and communication platform was a key requirement for the deployment of the demand management
trial.
On this basis, in March 2007 Origin requested expressions of interest from a number of suppliers to provide an end-to-end technology
solution. This included the sourcing and installation of meters, in-home displays, the communication links connecting them and a data
management system to send and receive data, collect it and provide reports.
In May 2007, the following suppliers were selected:
• EDMI to supply the smart meters (i.e. Type 4 remotely read meters)
• Metropolis Metering Assets to install the smart meters
• Centurion Metering Technologies to read the meters and provide the back office support services, including sending peak notifications
• Millennium Electronics to supply the in-home displays.
The mobile (GPRS) network was selected as the communication link because of its capacity to deal with the anticipated data requirements. The
smart meter was installed with a zigbee device to enable communication between the meter and the in-home displays.
The roll out of smart meters commenced in April 2008 and was completed in May 2011.

5.4.3 Communications
One of the key benefits of smart meters is that they can facilitate the visibility of energy use in half hourly intervals which can then be displayed
to the participant via in-home displays and a web portal. The ability to monitor electricity use is a major step in providing households with the
tools to manage their energy consumption.
On this basis, the marketing strategy focussed on participants being able to reduce their electricity bills by better managing their energy
consumption.
Customer touch points were utilised to communicate key messages regarding their electricity plans and the benefits of smart meters. These are
shown in Figure 5.4.3.
Figure: 5.4.3: Demand Management Trial Communications

Communication Key messages


Advertising • Product benefits
• Online access
• Provision of in-home display to selected customers
Fulfilment communications • Product benefits
(energy plan contract) • Online access
• Provision of in-home displays to selected customers
• Energy saving tips
Smart meter installation • How to read your smart meter
In-home display dispatch (targeted) • How to install your in-home display brochure
In home assessment (optional) n/a

5.4.4 Trial Recruitment


The development of the pricing products was based on the assumption that the products would appeal to households who had the ability to
shift their discretionary peak electricity usage from appliances such as air conditioners, pool pumps and second fridges.
It was also anticipated that households with higher energy consumption would have a higher propensity to respond to pricing signal and
therefore generate higher bill savings than low energy users.
However, this approach ceased early in the trial enabling participants to self select the pricing product they felt would best suit the needs of their
household.
The primary messaging used in communication of the pricing products was:
• Critical peak pricing is about providing a real choice in controlling peak energy consumption and realising real savings
• Time of use pricing is about better managing daily energy consumption by being compensated by shifting usage from peak to off-peak
periods.
The products were promoted through a number of channels including paid advertising, direct mail, and promotion through Council channels.
However, direct mail combined with follow up outbound telemarketing proved most successful.

5.5 Cost Reflective Pricing Products


Origin developed two electricity pricing products for the cost reflective pricing trial, two variations of a Time of Use tariff and two variations of
a Critical Peak pricing tariff. The products were designed to encourage consumption during off-peak periods with a lower rate than the price
charged during peak periods.

Adelaide Solar City • Final Report • June 2013 Page 22 of 59


The products included the following elements:
• installation of a smart meter at no cost
• access to half hourly consumption data (energy usage and greenhouse gas emissions data) via a web portal
• an in-home display provided at no cost (to a maximum of 470 cost reflective pricing participants)
• a complimentary home assessment which included the replacement of inefficient showerheads and light bulbs.

5.5.1 Time of Use Pricing


The purpose of the time of use product was to encourage households to make regular, long term changes to the times in which they use
electricity.
Time of Use pricing includes an all year price where the peak and off-peak components are applicable throughout the entire year and a
seasonal price where participants are charged peak rates which differ during the summer and non summer periods. The off-peak rate remains
the same throughout the year.
The time of use pricing structure is illustrated in Figure 5.5.1(a).
Figure 5.5.1(a): Time of Use Pricing Structure

Peak Off-Peak
Supply Charge
Product Pricing Structure (7am-9pm, Mon-Fri) (Other Times)
(cents)
(c/kWh) (c/kWh)
Summer: 1 Jan - 31 March 61.3
Time of Use (Seasonal) 68.5
Non Summer: other times 50.5 16.9
Time of Use (All Year) Same all year 53.8 71.1

Note: Prices as at 1 July 2012 (GST inclusive).


The number of Time of Use participants at the end of the trial and the pricing option they selected is shown in Figure 5.5.1(b).
Figure 5.5.1(b): Time of Use Pricing: Participants by Product

Pricing Product Participants %


Time of Use 170 88%
Time of Use Seasonal 20 12%
Total 190 100%

The attrition rate for the Time of Use product over a four year period was 48 per cent with 99 participants still active at the completion of the
trial.

5.5.1.1 Outcomes
Studies to date indicate that Time of Use participants have experienced a load shift in their energy usage.
For example, during the 2010/11 peak season, participants on average shifted 7 per cent of their consumption from peak to off-peak periods
when compared to the control group.
This is illustrated in Figure 5.5.1.1 which shows the average proportional energy consumption on weekdays of time of use participants
compared to the control group.
Figure 5.5.1.1: Average Proportional Time of Day Consumption (Weekdays)

Adelaide Solar City • Final Report • June 2013 Page 23 of 59


An analysis of the graph indicates that participants showed a higher proportion of energy consumption outside the peak periods (before 7am
and after 9pm). They also showed a more pronounced spike in consumption in the period 11.00pm-11.30pm and 6.00am-7.00am, possibly
indicating the load shift of high energy consumption appliances.
The load shift was approximately uniform, regardless of temperature. This suggests participants apply the same load shifting behaviour to air
conditioners and similar high-consumption appliances, delaying their use during peak periods and thus reducing overall network load during
those periods.
The study also indicated that the average quarterly bill saving on energy consumption charges compared to standard peak only gazetted tariffs
was $139.14.

5.5.2 Critical Peak Pricing


The Critical Peak pricing product was primarily developed to manage consumption during times of high electricity demand.
The pricing options have a differential pricing structure that targets critical peak periods with an increased rate for six hours, up to 10 days per
year. The rest of the time is a flat energy rate.
The energy rate during the critical peak period is far more expensive than the flat rate to reflect the increased cost of energy, sending a price
signal to households about the cost of their consumption at that point in time. For 355 days of the year, a lower off-peak rate applied to
consumption. A description of the Critical Peak pricing structure is shown in Figure 5.5.2(a).
Figure 5.5.2(a): Critical Peak Pricing Structure

Peak Off-Peak
Product Pricing Structure (2pm-8pm, up to 10 days p.a.) (Other Times) Supply Charge
(c/kWh) (c/kWh)
Critical Peak Pricing (Version 1) 1 Dec - 31 March 390.4 28.6 71.1
Critical Peak Pricing (Version 2) 1 Dec - 31 March 179.4 32.8 71.1

Note: Prices as at 1 July 2012 (GST inclusive).


Prices were reviewed on a yearly basis to ensure that they remained comparable to the pricing offered in other Origin South Australian market
contracts.
At the time of signing up to participate in the Critical Peak pricing trial, customers were requested to select a method of communication for
receiving peak notification messages. Participants could elect to receive notifications either through telephone broadcast, SMS, email or in-
home display messages.
The significant energy rate increase during the critical peak period necessitated the development by Origin of the following guidelines for the
calling of peak events.
• Events to be called during the summer season defined as between 1 December and 31 March.
• A maximum of 10 peak events were to be called per season on weekdays (excluding public holidays).
• The event applied from 2pm - 8pm on the specified day.
• Participants notified of a peak event at least 24 hours in advance.
• Provide participants with a range of options to select how they would be notified of a peak event
• Events to be called on 30 degree plus days (though in practice a number of events have been called below that threshold in order to
obtain an understanding of behavioural change at different temperature points).
• Events not to be called on more than two consecutive days.
The number of participants at the completion of the trial and the pricing options they selected is shown in Figure 5.5.2 (b).
Figure 5.5.2(b): Critical Peak Pricing: Participants by Product

Pricing Product Participants %


Critical Peak Pricing (Version 1) 1439 96%
Critical Peak Pricing (Version 2) 56 4%
Total 1495 100%

The attrition rate for the participants was 26 per cent, with 1,066 participants still active at the end of the trial.

5.5.2.1 Outcomes
In early 2009, Origin recruited nine participants to test meter installation processes, in home displays and billing functions. Subsequently,
critical peak events were called on 26 February, 30 and 31 March 2009 with messages sent via SMS and email to the participants. The
maximum daily temperatures recorded on the three days (averaged across the three weather stations within the trial area i.e. Kent Town,
Parafield Gardens, Edinburgh RAAF) were 38.8, 32.4 and 33.8 degrees respectively.

Adelaide Solar City • Final Report • June 2013 Page 24 of 59


The participants were also asked to indicate the measures they took to conserve energy during the peak period. These are shown in Figure
5.5.2.1 (a).
Figure 5.5.2.1(a): Critical Peak Pricing: Measures Taken to Reduce Energy Consumption

Examples of measures undertaken by participants to conserve energy during the peak periods:
Participant 1: We didn’t use any of the large appliances, i.e. we cooked on the gas stove, used the fan instead of the air conditioner and
didn’t use the washing machine.
Participant 2: We turned off all of our appliances, we took extra measures – we stayed out until 8pm.
Participant 3: Advised family members to reduce their electricity consumption during the peak period.
Participant 4: Requested family to reduce energy use i.e. not using the reverse cycle air conditioning or the electric oven
Participant 5: At 2pm we switched off the air conditioner and all non essential appliances (i.e. air conditioner, TV, lights etc) and only left
the fridge on.
Participant 6: Checked all appliances were switched off.

In 2010, one peak event was called on 24 March which utilised an automated communications system to send peak notifications. There were
357 participants recruited to the trial at this point, with the average temperature across the three weather stations within the trial area averaging
30.3 degrees.
Figure 5.5.2.1(b) compares the aggregated half hourly consumption of 54 Critical Peak Pricing participants, 84 Time of Use (All year), 16 Time
of Use (seasonal) and nine control group participants.
Figure 5.5.2.1(b): Comparison of Consumption: Pricing Product Participants (24 March 2010)

A high level analysis over the trial period indicates that Critical Peak pricing participants have reduced their overall energy use by an average of
14 per cent (2009-2011) on the days where a critical peak event was called. However, additional analysis is required with a larger sample to
confirm the results.
Initial indications are also that cost conscious participants are more likely to modify their behaviour on critical peak days.
Additional leanings from the cost reflective pricing trials are:
• The off-peak period associated with Time of Use pricing currently concludes at 9pm, which is well after the usual residential peak
demand period.
• Reinforcing the peak and off-peak periods for Time of Use participants may have resulted in greater shift of electricity use to off-peak
periods. This could have been achieved through the provision of a visual reminder, such as fridge magnet incorporating the peak and
off-peak periods. This is particularly important for Time of Use participants on the seasonal plan where the peak price increases during
the summer period.
• Participant touch points could have been better utilised to prompt ongoing behavioural change.
• Education is critical for delivering consistent messages and resolving participant enquiries given the increased complexity of cost reflective
pricing.
• The trial of in-home displays was mostly undertaken with Critical Peak pricing participants, however the provision of real-time energy use
data to Time of Use participants and the resultant impact on energy behaviours would have been a valuable learning.

Adelaide Solar City • Final Report • June 2013 Page 25 of 59


6.0 Solar Program
The use of solar photovoltaic technology in South Australia has grown rapidly over the past ten years with more than 190,000 households
installing solar panels to help reduce their energy bills and environmental impact.
The growth in solar panel installations has been driven by a number of factors including local, state and federal government incentives,
decreasing supply costs and increased electricity costs making the installation of panels more attractive.
The Adelaide Solar City solar program was designed to encourage the up-take of distributed solar photovoltaic (PV) technology by both
households and businesses within the trial area.
The program was divided into three key components: residential, commercial trials and iconic installations. The residential component of the
solar program was delivered by Consortium partners BP Solar and Origin, while the commercial solar trial was delivered by BP Solar and Big
Switch Projects.
The design and installation of the iconic solar PV systems was managed by either BP Solar or Origin.
This section of the report details the initiatives undertaken in this element of the program.

6.1 Program Objectives


The objectives of the solar program were to:
• raise awareness and provide enduring, visual reminders of the value of renewable energy
• introduce and leverage smart meter technology to provide participants with access to timely solar related data through a web portal and
in-home displays
• test a range of innovative financing options to overcome the upfront capital costs of purchasing solar panels
• expand standard solar PV offers to include additional products such as GreenPower and energy efficiency devices that improve the
overall economics of investments
• obtain information, including gross solar PV generation and household metering data.

6.2 Iconic Solar PV Installations


Eight ‘iconic’ solar PV installations strategically located within the Adelaide CBD and northern suburbs played a key role in maximising
community awareness and engagement.
The installations demonstrate how renewable energy can be effectively incorporated into Adelaide’s public infrastructure including the transport
system, recreation and arts centres, and cultural landscapes such as public art.
The key requirement of the iconic solar PV installations was to incorporate either a high degree of innovation or strategic location to maximise
exposure and program visibility.
All the installations were jointly funded by the Australian Government in conjunction with the South Australian Government, Consortium
Councils or private industry. The total cost of the iconic installations was approximately $2.5 million.
To assess potential locations, the Consortium established a set of principles and criteria to consider the suitability of projects. These guidelines
included:
• the site would be generally regarded by the community to be an iconic location, particularly if located in the Adelaide CBD
• have high volume pedestrian traffic, providing an opportunity to increase consumer awareness
• provide a visible reminder of Adelaide’s commitment to sustainability
• multipurpose if possible (e.g. solar generation plus pedestrian shelter)
• innovative design which could be roof or ground mounted

Adelaide Solar City • Final Report • June 2013 Page 26 of 59


• potential to be a tourist attraction
• be of historical significance or on the Heritage Register
• act as a model to encourage other industrial / commercial sector organisations to invest in solar PV.
The iconic installations were supported by a comprehensive community engagement program which included activities such as:
• an on-site media launch to generate awareness with media outlets and the local community
• utilising visible displays and signage to inform visitors of system performance
• conveying progress to the community through editorials in council publications, the program website and call centre channels.
The Consortium faced several challenges in identifying suitable locations for a number of installations, mostly due to shading issues caused by
high rise buildings in the Adelaide CBD. This constraint meant that several potential projects were not commercially viable due to the reduced
solar output expected from the systems.
Issues relating to the roof type were also a potential constraint. In one instance, the roof of a heritage building had fragile slate tiles which were
unable to support a solar PV system. In the case of one of project that did proceed, the roof required strengthening to enable the solar PV
system to be installed, adding to installation timeframes and costs.
A description of the iconic solar PV installations is included in the following section.

6.2.1 Adelaide CBD installations


Adelaide Central Bus Station
The installation of a 50 kilowatt solar PV system at the Adelaide Central Bus Station is the solar program’s most visible example of the practical
use of solar energy.
The bus station and solar PV system were launched in February 2009 by Minister Penny Wong and Lord Mayor Michael Harbison. At the time,
the system was the largest grid connected solar PV system in South Australia.
The system was installed by BP Solar and includes 320 panels which were estimated to generate approximately 70,000 kilowatt hours of solar
electricity per year. As at April 2013, the system had generated almost 415,500 kilowatt hours of solar electricity.
The system provides 100 per cent of the energy requirements for “Tindo” - the world’s first solar electric bus. Tindo is powered by batteries
that are recharged using the solar energy generated by the solar installation on the roof of the bus station. The bus is part of Adelaide City
Council’s free Adelaide Connector bus service. The Adelaide Central Bus Station solar PV installation includes information displays to educate
visitors on the benefits of solar energy, how the installation generates solar energy, and converts the energy to electricity used by Tindo, as well
as information about the program. A digital display board on the lower ground level of the bus station shows the amount of energy generated
as well as the amount of greenhouse gas emissions abated.
In addition, Adelaide City Council has facilitated guided tours of the bus station with schools and interested groups to help educate and build
community awareness of solar energy.

Tindo, the world’s first


solar electric bus

Rundle Lantern
The Rundle Lantern is an award winning artistic light installation in the centre of Adelaide which was designed to enliven one of Adelaide’s
busiest intersections. In total, 297 panels provide the power to illuminate a LED (Light Emitting Diode) display which wraps around the Rundle
Street U-Park parking facility, creating a moving display of colour and imagery standing nine stories high.
A 50 kilowatt solar PV system was installed by BP Solar on the roof of the Rundle Street U-Park which generates about 140 per cent of the
power needed for the Lantern’s light and colour show. The Lantern is an innovative example of how solar technologies can be incorporated
into public art to limit the environmental impact of the site.
The Rundle Lantern installation was launched by Minister Kate Ellis and Adelaide Lord Mayor Michael Harbison in September 2009.

Adelaide Solar City • Final Report • June 2013 Page 27 of 59


Rundle Lantern, Adelaide

Adelaide Central Market


A 50 kilowatt solar PV system has been installed on the roof of the Adelaide
Central Market which is one of Adelaide’s best known landmarks. The market was
established in 1869 and is South Australia’s second most popular tourist attraction.
The solar PV system has an output of more than 70,000 kilowatt hours and avoids
approximately 70 tonnes of greenhouse gas emissions each year.
The installation of the solar system was undertaken in conjunction with a number
of environmental initiatives implemented by the Market. These include traders
diverting 90 per cent of their waste from land fill each year, purchasing 50 per cent
GreenPower for the market, and the installation of fuel cell powered electric car
charging stations.
The installation at the Adelaide Central Market illustrates how solar technology can
be successfully integrated with heritage listed buildings without detracting from the
historic value of their facade.
The installation was launched in April 2011 by Lord Mayor Stephen Yarwood and
Minister Kate Ellis.

ABOVE: Central Markets, Adelaide


RIGHT: Adelaide Railway Station

Adelaide Railway Station


Adelaide Railway Station is the heritage listed central terminus of the Adelaide Metro railway network. Adelaide’s first railway station opened
on this site in 1856 with the current building being completed in 1928. Almost all trains on the metropolitan network either depart from or
terminate at the station.
Over 10 million commuters pass through the station every year.
A 21.6 kW solar PV system capable of generating approximately 29,000 kilowatt hours was installed by Origin at the station in July 2012.
The installation was jointly funded with the South Australian Government (Department of Planning, Transport and Infrastructure). A display
screen showing live data directly from the solar system is located in the concourse area of the station. The community can view how much solar
electricity is generated, its dollar value, as well as the carbon offset equivalent to kilometres travelled by car.

Adelaide Solar City • Final Report • June 2013 Page 28 of 59


6.2.2 Industrial Installations
Keylink Industrial Estate
The MTU Detroit Diesel Australia industrial facility at the Keylink Industrial Estate in Edinburgh was the program’s first commercial solar PV
installation. The Keylink Estate is a greenfields industrial site developed by the Goodman Property Group and is approximately 24 kms north of
Adelaide. A 300 panel, 50 kW solar PV system has been installed on the roof of the facility. The site also includes the construction of a viewing
platform. In addition, a website has been established (www.keylinksolar.com.au) with an educational focus where live performance data for the
system can be found. Minister Penny Wong launched the installation in July 2010.The installation provided an example of how sustainability
can be integrated within the industrial sector.

MTU Detroit Diesel


building, Keylink Estate

6.2.3 Suburban Installations


Playford Aquadome
The Aquadome in the suburb of Elizabeth in the City of Playford is a major recreation and leisure centre in the northern suburbs of Adelaide.
In 2009, the Aquadome received a $15.8 million re-development, including an upgraded 50m pool. In conjunction with the upgrade, a 15
kW solar PV system was installed by Origin in June 2009. The system was jointly funded by the Australian Government and the City of Playford.
The installation produces approximately 20,700 kilowatt hours of renewable energy and avoids the emission of about 20 tonnes of greenhouse
gas emissions each year.

RIGHT: Playford Aquadome


BELOW: Golden Grove Arts and
Recreation Centre

Golden Grove Arts and Recreation Centre


Also in 2009, a 4 kW solar PV system was installed at the
Golden Grove Arts and Recreation Centre in the City of Tea
Tree Gully.
The Centre is the premier indoor sports centre in Adelaide’s
north eastern suburbs. Award winning in its design, the
multipurpose centre includes a three court stadium offering
junior and senior netball and basketball competitions. The
Centre has been the venue for a number of interstate and
international sporting competitions. Approximately 4,000 users
attend the Centre each week. The solar PV system generates
approximately 5,600 kilowatt hours of renewable energy each
year and was jointly funded by the Australian Government and
the City of Tea Tree Gully.

Adelaide Solar City • Final Report • June 2013 Page 29 of 59


Watershed Sustainability Centre
In late 2004, Delfin Lend Lease donated its old sales office building, which was to be demolished, to the City of Salisbury. The building was
transported to the Greenfields Wetlands, which is part of the extensive network of wetlands that has been established in Salisbury.
At its new location, the building was reassembled and renamed the Watershed Sustainability Centre, incorporating environmental trails,
displays, along with function rooms and conference facilities.
The Watershed Centre was developed as a centre of excellence to promote environmental sustainability in the northern suburbs of Adelaide.
In April 2009, Origin installed a 4 kW solar PV system at the Watershed Centre. The system included the application of SLIVER solar panel
technology and was the first SLIVER installation in South Australia. The installation was jointly funded by the Australian Government and the City
of Salisbury.

Watershed, Salisbury

6.2.4 Funded Iconic Installations that did not Proceed


In early 2010 Adelaide City Council announced a $95 million master plan to redevelop Victoria Square, which is the principal square
in Adelaide and the symbolic and geographic centre of the city. About 200,000 commuters pass through the square every day. The
redevelopment of the square included the requirement to generate 132 kW of solar energy to offset the power used for the square’s public
lighting.
To satisfy this requirement, the square’s design included an innovative ground mounted solar PV installation with solar panels on covered
walkways (arbours) that were about half a kilometre long. The installation would also showcase the multiple uses of solar PV (i.e. renewable
energy generation, pedestrian shelter and artistic design). The installation was to be highly visible, particularly from the buildings surrounding
the square and lit at night. On 18 August 2010, a ministerial announcement that the Australian Government would provide funding for the
solar system was jointly made by Ministers Penny Wong and Kate Ellis in conjunction with Michael Harbison, Lord Mayor of Adelaide. The
funding of 60 per cent of the cost of the solar installation was also included in the Australian Government’s 2010 Federal Election initiatives.
While Australian Government funding for the solar system was committed, Council was unable to obtain the overall funding for the
redevelopment of the square. This was primarily due to competing large scale infrastructure development projects including the re-development
of the North Terrace Precinct and Adelaide Oval.
Therefore, given funding and timing challenges, it was not possible for the installation of a solar PV system in Victoria Square to occur as part
of the Adelaide Solar City program.

Proposed solar PV design


for Victoria Square

Adelaide Solar City • Final Report • June 2013 Page 30 of 59


6.3 Residential Solar PV Trial
The residential solar PV trial commenced late 2007, at a time when market conditions were favorable to purchasing a solar PV system.
Subsequently, conditions became less favorable due to a changing economic and regulatory environment.
In particular, changes in Federal and South Australian Government policy, such as the discontinuation of the Photovoltaic Rebate Program
(PVRP), Green Loans scheme and reduced feed-in tariffs (FIT), have impacted participant take-up rates.
In September 2006, the South Australian Government announced that the Electricity (Feed-In Scheme-Solar Systems) Amendment Bill 2008
would come into force on 1 July 2008, offering householders a FIT of 44 cents per kilowatt of energy exported to the grid.
In November 2007, the Australian Government rebate provided under the Solar Homes and Communities program (SHCP) doubled to
$8,000.
The combination of the FIT and the SHCP rebate had a positive effect on demand, and were key drivers of consumer interest in the program’s
residential solar PV offers.
When the residential solar offers were introduced, they were initially segmented into two categories: new builds (i.e. new home owners) and
retrofits (i.e. householders retrofitting existing homes).
BP Solar was to deliver offers across both categories with two offers featuring financing options in conjunction with ANZ.
Origin was to provide a cash only offer focused on the retrofit category.

6.3.1 BP Solar Residential Installations


In March 2008, BP Solar launched two solar packages which were designed to test a known barrier to purchasing solar power, the upfront
capital costs. The offer was based on bundling a solar PV system with home loan financing options from ANZ. A third (cash) offer was intended
to be launched after June 2009.
The first offer, for a 1.0 kW solar PV system was structured so that the cost of the solar PV system was included in a discounted ANZ home loan,
without increasing monthly repayments. The offer was aimed at potential participants who had an existing home loan from any bank, with the
objective of including the solar PV system as an investment.
The offer was priced at $3,495 including the SHCP rebate of $8,000. Participants were also offered a $1,500 discount as an additional
program incentive.
The second offer included a 1.5 kW BP Solar system available to new builds, which was also financed by a discounted ANZ home loan. The
offer was priced at $8,995 and included the SHCP rebate of $8,000. In both options, the participant was required to transfer their home loan
to ANZ.
Most of the offer advertising targeted households within the Delfin Lend Lease Mawson Lakes Estate. Delfin Lendlease (a Consortium member)
assisted in the promotion of the offers with advertising, publications and editorials on the Mawson Lakes website.
After a period in the market, BP Solar and ANZ assessed that the refinance offers were unlikely to succeed. Feedback from potential participants
indicated that it was a hindrance to change banks to refinance their home loans for the relatively small amounts (i.e. less than $10,000)
associated with purchasing a solar PV system. Consequently, the marketing strategy was revised to target existing ANZ customers who were in
the process of applying for a new home loan and builders.
ANZ conducted training with local branch managers, while BP Solar approached builders to encourage them to include solar PV systems in
land and house packages, particularly in the Mawson Lakes Estate.
However, there were some issues with the application of this approach as:
• New homes can have a delay of up to 1.5 years between initial purchase of the land and the completion of the house. Hence, solar PV
system installations associated with new homes can experience the same delays resulting in sale leads becoming inactive.
• Builders were ineligible to apply for the PVRP rebate either on the homes they built or retrospectively after the sale to an owner occupier.
This acted as a disincentive to the bundling of solar PV systems with new home sales.
• Technical issues prevented the installation of smart meters at many sites in Mawson Lakes due to the service pit being buried and hence
inaccessible to the meter installers.
In May 2008, the Minister for the Environment announced that a means test would apply restricting PVRP rebates to households with an annual
taxable income of less than $100,000.
BP Solar estimated that the majority of potential Adelaide Solar City participants would be over the $100,000 household taxable income and
no longer eligible for the solar offers.
Representations were subsequently made to the Minister who agreed to provide further funding to ensure that households in the trial area on
incomes above $100,000 could continue to participate in the program.
At this time, the existing offers were revised to include new ANZ financing options of a credit card and a standard variable home loan. Figure
6.3.1 illustrates the BP Solar advertising material.

Adelaide Solar City • Final Report • June 2013 Page 31 of 59


have made things easy. for your existing home?
Exclusive to the Adelaide Solar City project, you can purchase a
BP Solar Energizer 1000 system with a new or existing ANZ credit Then you may be eligible for one of the following system offers:3
card. If you are purchasing a BP Solar Energizer 1000 for your
current home, you have the choice to finance your purchase with
an Instalment Plan on an ANZ First Visa or ANZ Rewards Visa,
allowing you to spread the total cost of your purchase over 24
BP Solar Energizer 1000
System size: 990 watts
$3,495
monthly instalments, at a special low interest rate of 9.99% p.a.4 Number of panels: six
Figure 6.3.1: BP Solar Advertising Material for the solar electricity system purchase. Only available for purchase via:

ANZ
credit card
Interested in a BP Solar system
Are you building a new home? Price includes standard installation and GST.1
for your existing home? Only available to customers eligible for the Australian Government
SHCP rebate and with a household income less than $100,000 p.a.

Then you may be eligible for the following system offer:3 Then you may be eligible for one of the following system offers:3

BP Solar Energizer 1000


System size: 990 watts
$3,495 BP Solar Energizer 1000
System size: 990 watts
$3,495 BP Solar Energizer 1500
System size: 1,650 watts
$8,995
Number of panels: six Number of panels: six Number of panels: ten
Only available for purchase via: Only available for purchase via: Only available for purchase via:

ANZ ANZ ANZ ANZ The first 40 qualifying applicants also


Cash credit card home loan home loan
credit card receive $1,500 cash back.2
Price (includes standard installation and GST. 1
Price includes standard installation and GST. 1 Price (includes standard installation and GST.1
Available to all customers, including those who do not qualify for the Only available to customers eligible for the Australian Government Only available to customers eligible for the Australian Government
Australian Government SHCP rebate and/or those with a household SHCP rebate and with a household income less than $100,000 p.a. SHCP rebate and with a household income less than $100,000 p.a.
income of more than $100,000 p.a.

1
Prices include applicable Australian Government rebates and BP Solar Enviro-cashback
rebate. Price calculated assuming a standard installation without any variations required.
While the new offers (particularly the credit card option)
The price may vary for a non-standard installation.
2
Terms and conditions available on application. Please visit your local ANZ branch for
BP Solar Energizer 1500
Systemimproved
$8,995
customer uptake,
size: 1,650 watts there was little demand for the financing options due to the
uncertain
details. Purchase economic climate
of the BP Solar Energizer 1500 mustat that
be through antime. On
eligible ANZ
loan to qualify for savings. All lending is subject to ANZ’s normal lending and credit
homethis basis,
Numberthe offers
of panels: were
ten withdrawn
Only available for purchase via:
on 9 June 2009.
criteria. Fees and charges apply. You should consider whether this product is appropriate

AforOffers
3
new
you.
offer was subsequently developed which includedANZ
are limited – available until sold out and may be withdrawn at any time
a 1.5kWThesolar
first 40PV system,
qualifying available
applicants also to retrofit and new builds as well as investors and
home loan receive $1,500 cash back. 2
developers. Payment options included both cash and finance options.
without notice.
4
Instalments will form part of your minimum monthly payment, with the actual Price (includes standard installation and GST.1
instalment amount confirmed over the phone and on the first statement following your
However, there were several barriers that needed toOnly
beavailable
overcome before the offer could be launched, which considerably delayed its entry in
to customers eligible for the Australian Government
activation of the Instalment Plan offer. See ANZ Credit Cards Adelaide Solar City Offer
SHCP rebate and with a household income less than $100,000 p.a.
– Terms and Conditions for full terms and conditions. Standard ANZ First Visa and ANZ

the market.
Reward Visa interest rates will apply for all other purchases.

The first barrier related to the introduction of regulatory requirements for retailers to hold a builder’s licence under revisions to the Building
Work Contractor Act 1995. BP Solar did not hold a builder’s licence as it was commercially not viable for them to hold one. A solution was for
BP Solar to transfer its installation obligations to their sub-contractor to install the solar panels on their behalf.
The second barrier was that not all South Australian energy retailers had the operational systems or agreements in place with meter data agents
to manage residential interval metered sites.
To overcome this issue, the offer was to be restricted to sites where Origin was the electricity retailer, or where the participant agreed to transfer
their electricity account to Origin. This solution, while limiting the market reach of the offer, would enable the smart meter to be installed.
However, this solution required approval from the ACCC to ensure that there was no breach to the third line forcing provisions of the
Competition and Consumer Act. New operational arrangements were also implemented to integrate the offer into Origin’s existing business
systems.
The offer was due to be launched in August 2011. However, the launch did not eventuate as BP Solar subsequently announced that as a
consequence of a change in the strategic direction of its global operations, it would be discontinuing all solar PV sales in Australia.
In order to complete all elements of the solar residential trial, BP Solar’s remaining product delivery activities were transferred to Origin in early
May 2012.
Housing SA
The solar program also included the installation of solar PV and solar hot water systems on Housing SA residential sites.
The objective of this component was to provide solar power to households who do not usually have access to renewable and energy efficiency
technologies because they are in rental accommodation.

Installation with
Housing SA

BP Solar completed seven installations prior to the transfer of product responsibilities to Origin.
Origin completed the installation of the remaining sites in June 2013.

Adelaide Solar City • Final Report • June 2013 Page 32 of 59


6.3.2 Origin Residential Installations
Origin delivered two residential solar PV trials during the program.
The first was launched in October 2007 and focussed on the retrofit segment. The offer consisted of:
• 1 kW solar PV system priced at $2,995
• PVRP rebate of $8,000
• 25 per cent GreenPower at no additional cost for 12 months
• an energy efficiency pack (valued at $80)
• access to half-hourly electricity usage and solar generation data via a web portal
• installation of a smart meter at no cost
Consumer interest in the offer resulted in Origin meeting its overall program target in May 2008. The price point was very competitive in the
market and was one of the key drivers of demand.
Origin implemented a second residential PV offer in May 2012 as a consequence of the transfer of the BP Solar product responsibilities (see
Section 6.3.1: BP Solar Residential Installations for details).
The offer comprised:
• $1,000 off an Origin 1.5 kW solar PV system
• installation of a smart meter at no cost
• access to half-hourly electricity usage and solar generation data via a web portal
• a free energy efficiency pack (consisting of an energy saving power board and shower timer).
A direct mail campaign targeted Origin electricity account holders in the trial area who did not have solar panels installed. This included a
personalised direct mail piece which was sent to 17,500 households resulting in approximately 250 sales enquiries which converted to 130
sales. Examples of the Origin advertising are shown in Figure 6.3.2.
Figure 6.3.2: Origin Advertising Material

EXCLUSIVE ADELAIDE TA
GE
P
SOLAR CITY OFFER
S

AI
PO

Take part in the Adelaide Solar City


solar electricity trial, and
A

you can purchase the solar electricity U


A

package which includes: S T L


I

R A
• $1,000 off an Origin1500 1.5 kW solar
electricity system#
• A smart metering solution installed
1199 Adelaide SA 5001

at no cost which measures half-hour


electricity usage and solar generatio ly
n
• A FREE energy efficiency pack
• Access your half-hourly electricity

$1,990*
usage and solar generation via a web

LAR FOR
portal

ORIGINERESO
You’ll need to be an existing Origin
If undeliverable return to GPO Box

residential electricity customer in


area and agree to take part in research the ASC trial
to help us understand how much
your household saves by installing money
solar power.

PLAN^
ST FREE WITH OUR PAYMENT
OFFER WON’T LAST. NUMBERS
STRICTLY LIMITED.
2 YEARS INT
CALL 1800 226 066 AND QUOTE
PROMO CODE ASCPV.
Terms and conditions: All amounts
are GST inclusive. *Price for Origin1500
System purchased must be eligible 1.5 kW system includes STCs and
for the solar credits scheme and is valid until 25/5/2012.
installation within 100km of Adelaide you must assign the rights to the
GPO and in STC Zone 3. #$1,000 STCs to us. Price for a standard
the Origin1500 1.5 kW solar electricity discount applies only to the purchase
system at the time you take up the and installation of
households residing in the Cities package. The solar electricity package
of Salisbury, Tea Tree Gully, Playford is available to
already received a smart meter through and Adelaide City Council (excluding
the Adelaide Solar City project, or households who have
of an interval meter and satellite households residing in Mawson
meter is at no cost for standard Lakes). The installation
before 30/6/2012. This offer can meter replacement only. Solar panel
be withdrawn or changed without installation must occur
explained to you at the time of your notice. Full terms and conditions
enquiry. ^Payments via credit card of sale and installation will be
ABN 33 071 052 287. Origin Energy in equal monthly instalments. Origin
Retail Ltd ABN 22 078 868 425. Origin Energy Electricity Ltd
Energy Retail Limited, OCBA Licence
No: BLD 174850

6.3.3 Residential Solar PV Analysis


The average daily gross solar generation has been measured against the daily solar exposure for the period December 2012 – March 2013.
The solar exposure is the total solar energy in kwh per m2 as measured at the North Adelaide weather station. Solar exposure is measured from
midnight to midnight, with the values usually highest in clear sun conditions during the summer and lowest during winter or very cloudy days.
The graphs included in section 6.3.3 include half hourly data from 87 residential sites with a 1 kW solar PV system through the Origin
residential solar trial. A satellite meter recorded the half hourly gross solar generation. Figure 6.3.3(a) shows the solar generation and solar
exposure in December 2012.
Figure 6.3.3 (a) December 2012 Solar Generation & Solar Exposure

Adelaide Solar City • Final Report • June 2013 Page 33 of 59


The 10th December recorded the highest average daily solar generation with 6.8 kwhs, with solar exposure recorded as 9.4 kWh per m2.
The 14th December recorded the lowest average daily solar generation of 1.1 kWhs. On this day, the highest daily generation recorded by a
site was 1.765 kwhs and the lowest was 0.605 kwhs. This day is also the day on which solar exposure was at its lowest during the month, which
was recorded as 4.2 kWh per m2.
Figures 6.3.3 (b), 6.3.3(c) and 6.3.3 (d) show the trend between average daily solar generation and solar exposure during the months of
January, February and March 2013 which indicates that there is a strong relationship between the two variables.
Figure 6.3.3(b): January 2013 Solar Generation & Solar Exposure

Figure 6.3.3(c): February 2013 Solar Generation & Solar Exposure

Figure 6.3.3(d): March 2013 Solar Generation & Solar Exposure

Adelaide Solar City • Final Report • June 2013 Page 34 of 59


Figure 6.3.3(e) shows the total solar generation from the same 87 residential sites for the reads taken half hourly between 6.30 am – 7.30 pm
Eastern Standard Time (i.e. 5.30 am – 6.30 pm Central Standard Time) for the period December 2012 to March 2013.
During this four month period, the peak solar generation consistently occurred between 12 – 1pm Central Standard Time. During the hours of
2-5.30 pm Central Standard Time, a total of 12.6 MWhs of solar energy was generated, at a time when household energy could spike.
Figure 6.3.3(e): Gross solar generation December – February 2013

6.3.4 Outcomes
The total number of residential solar PV systems installed as part of the Adelaide Solar City program is 481 (see Figure 6.3.4).
Figure 6.3.4: Residential Solar PV Systems Installed

Campaign Commencement Date System Size (Kw) Systems Installed (number)


BP Solar
New Home (with mortgage financing) March 2008 1.0 36
Retrofit (with mortgage financing) March 2008 1.5 18
New Home (Loan: Income >$100k) Nov 2008 1.0 6
New Home (Loan: Income <$100k) Nov 2008 1.0 1
Retrofit (Credit Card) Nov 2008 1.0 17
Residential PV Offer (Retrofit/New Home)* Aug 2011 1.5 0
Total 78
Origin
Residential PV Offer (Phase 1): Oct 2007 1.0 273
Residential PV Offer (Phase 2): May 2012 1.5 130
Total 403
Total Residential Solar PV installations 481

Note (*): Offer was not implemented.

6.3.5 Lessons Learnt


A number of factors impacted the rollout of the residential solar PV trials. In particular, the removal of the PVRP rebate, the reduction in the
RECs, and the South Australian Government’s FIT adversely impacted on the attractiveness of several product offers.
Other limiting factors included:
• Lack of understanding in the market as to the benefits, payback and cost savings that could be achieved with the installation of a solar PV
system.
• Difficulty in persuading new home owners who were likely to have large mortgages to purchase solar systems given the high upfront cost
of the systems and the desire to fit out the home first with appliances such as TVs and other consumer durables.
• Several of the offers trialled financing arrangements which did not generate sufficient consumer interest, most likely due to the reluctance
of participants to change financial institutions to access the offer.
• Take up was impacted by the lengthy time it takes to complete the construction of a new house and the lack of incentives for builders to
promote the solar program.
• Lack of builder interest in promoting the solar program due to low financial margins.
• Initially the offer was only available to new build owner/occupiers, it was not available to the investor market, which was a large
component of purchases at Delfin new home developments.
• Increased competition within the solar PV market due to cheaper and lower quality components when pricing for offers was already
locked in and there was little financial margin available to reduce the price.

Adelaide Solar City • Final Report • June 2013 Page 35 of 59


• The offer was limited to participants who were already signed up or willing to switch over to Origin in order for the smart meter to be
installed. Some potential participants were not willing to switch retailers to qualify for the offer.
• Operational issues in installing smart meters in the Mawson Lakes Estate due to the difficulty in locating the distributor’s meter pits which
were buried underground.
• Participants sometimes perceived that the offers included additional features. For example, a small number of solar PV participants
expected to receive an in-home display when the offer was for online access only.
• The necessity to be compliant with the SA Building Work Contractors Act required BP Solar to transfer its product responsibilities
(including marketing) to its installers. This required changes in operational, contractual and marketing arrangements between BP Solar,
its installers and Consortium members which led to significant delays in product launches.
• Technical issues with meter changeover arrangements which resulted in delays in the rollout of the solar PV smart metering solution.

6.4 Solar Energy Efficiency Program


In early 2010, Consortium member Big Switch Projects indicated that there was interest within the Adelaide business community to access a
commercial solar PV offer through the program.
To address this opportunity and to maximise the potential energy savings for the participant, Big Switch Projects and BP Solar jointly developed
and delivered the Solar Energy Efficiency Package. The package incorporated an energy audit from Big Switch Projects to identify energy
efficiency and energy conservation opportunities and a 5 kW or 10 kW solar PV system from BP Solar.

6.4.1 Objectives
The strategy behind the Solar Energy Efficiency Package was to:
• determine participant take-up / identify barriers in providing solar PV and energy efficiency products together instead of as separate
offers
• test the provision of an end-to-end service to business customers
• install small scale solar PV systems to develop a cluster of solar sites within the Adelaide CBD.

6.4.2 Implementation
The offer was launched in April 2011 and was aimed at building owners and occupiers of commercial, industrial, educational and hospital
premises in eligible areas.
The offer consisted of discounts of:
• up to 60 per cent off a Level 2 business energy efficiency audit
• 50 per cent off a 5 kW or 10 kW solar PV system.
Participants were required to undertake the business energy efficiency audit prior to the installation of the solar PV system.

Hurry!
6.4.3 Recruitment
The Solar Energy Efficiency Package was promoted through print, digital advertising, direct mail and public relations activities targeting
businesses within the Adelaide CBD and northern suburbs.
Big Switch Projects also targeted participants of the Business Energy Efficiency Program. Figure 6.4.3 illustrates the promotional material used
to advertise the offer.
Reducing your carbon footprint
Figure 6.4.3: Solar Energy Efficiency Package advertisement
has never been so economical!
with the Adelaide Solar City project
We’re inviting 20 businesses to partner
fits of combining energy efficiency and solar power.
to showcase the bene

Hurry!
cy Package is offering
For a limited time, the Solar Energy Efficien
or industrial businesses
medium to large sized commercial, retail
an unbeatable package:
2† energy audit from Big Switch Projects
• Up to 60% off an intensive Level ty
BP Solar 5 kW or 10 kW solar electrici
• Plus 50% off the installation of a^
system from Solaris Technol ogy .

business has never been so easy.


Improving the energy efficiency of your
Or so economical!

Reducing your carbon footprint The Solar Energy Efficiency Package is


which is part of the Australian Governm
available through Adelaide Solar City
ent’s $94 million Solar Cities program
The Solar Energy Efficiency Package combine
.
s energy efficiency solutions and solar

has never been so economical! to help businesses cut energy costs and carbon emissions
power T E C H N O L O G Y

to obtain a quote,
For more inFormation or
now on 1300 55 77 27.
call big Switch ProjectS
We’re inviting 20 businesses to partner
with the Adelaide Solar City project
to showcase the benefits of combining
energy efficiency and solar power.
Projects on 1300 55 77 27 for more details.
*
Terms and conditions apply. Call Big Switch
(AS/NZS 3598:2000). Terms and conditions
^ apply.

As defined by the Australian Standard

For a limited time, the Solar Energy Efficie


ncy Package is offerin
g
Adelaide
mediuSolar Citysized
m to large • Final Report
commercial, retail•orJune
indust2013
rial businesses Page 36 of 59
an unbeatable package:
• Up to 60% off an intensive Level †
2 energy audit from Big Switch Project
• Plus 50% off the installation of a s
BP Solar 5 kW or 10 kW solar electric
ity
Due to a change in BP Solar’s strategic direction, the offer was subsequently suspended until completion of contractual arrangements to
transfer BP Solar product responsibilities to Origin.
The offer recommenced in May 2012 with new pricing and quotes provided to potential participants including a hospital. However, as all
Adelaide Solar City product sales were due to cease on 30 June 2012, there was insufficient time for the revised offers to be adequately
considered by the interested parties.

6.4.4 Outcomes
Two 10 kW solar PV installations were completed in December 2011 as part of the Solar Energy Efficiency Program.
Whilst not part of the Solar Energy Efficiency Program, the program’s final commercial solar PV installation was a 5 kW system installed in July
2012 at the John G. Tilley Community Centre in Surrey Downs. The installation was jointly funded with the City of Tea Tree Gully.

6.4.5 Lessons Learnt


The Solar Energy Efficiency Program being a bundled commercial offer took more time for participants to consider given the potential capital
outlay required.
Also potential participants were very price sensitive and expected significant price reductions from the bundled offer. Whilst it was possible for
one component of the offer to significantly reduce its price, it was not commercially viable for the other offer component to do the same. The
product offer was in market for an insufficient time to enable participants to adequately consider it prior to program sales closure on 30 June
2012.

6.5 Summary
A summary of the Adelaide Solar City solar PV program is shown in Figure 6.5.
Figure 6.5: Total Solar PV Program Installations

Category Location Installed Capacity (kW) Date Installed


Iconic PV Golden Grove Arts & Recreation Centre 4 December 2008
Central Bus Station 50 February 2009
Watershed Sustainability Centre 4 April 2009
Playford Aquadome 15 July 2009
Rundle Lantern 50 September 2009
Keylink Industrial Estate 50 July 2010
Central Markets 50 April 2011
Adelaide Railway Station 21 July 2012
Commercial PV Solar Energy Efficiency Package Sites 20 (2 sites) December 2011
John G. Tilley Community Centre 5 July 2012
Residential PV Various locations, 1.0 – 1.5 kW systems 555 (481 sites) 2007 - 2012
Housing S.A Various locations 12 (11 sites) 2009-2013
Total PV All locations 836 (503 sites) 2007 - 2013
Estimated generation (kWh/year) 1,246,900

Adelaide Solar City • Final Report • June 2013 Page 37 of 59


7.0 Solar Hot Water and Heat Pumps
The residential trial of the solar hot water and heat pump products was launched by Origin in July 2011.

7.1 Objectives
The objective of the trial was to encourage the implementation of solar technologies to improve household energy usage associated with hot
water consumption.
To encourage households to consider solar and heat pump technologies, a package was developed which included a discount of $500 off
an Origin solar hot water or heat pump, an energy efficiency pack, a smart metering solution, and access to half hourly electricity usage data
online.

7.2 Recruitment
The offer was promoted through a combination of direct marketing activities, online promotion, and telephone and Origin store enquiries.
Figure 7.2 shows the advertising used to market the products.
Figure 7.2: Solar Hot Water & Heat Pumps advertisement

How do I purchase the hot water


package?
To be eligible for this package, you
need to meet certain conditions.
residential electricity customer residing These include being an Origin
in the Adelaide Solar City trial area,

Limited offer
or heat pump system from Origin, purchasing a solar hot water
having a smart meter installed and
about your energy usage. If you’re agreeing to take part in research
er
$500 Off solar hot watns Only 200 solar hot water packages
not with Origin already, it’s a great
and 100 heat pump packages are
opportunity to make the switch.

and heat pump solutio


# available!
The Adelaide Solar City project is part
of the Australian Government’s $94
SAVE
million Solar Cities initiative.
Hot Water Package*
Don’t miss out on Origin’s exclusive
which is only available to resident
s in the cities of Salisbury,
Call 1800 226 006 and quote
originenergy.com.au/solarhot
promotional code ASC, or
visit
$500! #
City Council. water for more details.
Tea Tree Gully, Playford and Adelaide
ts in
Package* is available to participan
Terms and conditions: #$500 discount
The Adelaide Solar City Hot Water
includes GST and applies only to the
to the STCs to Origin. *The hot water purchase of an Origin fully installed
package is available to households solar hot water system or heat pump
trial and includes: Solar City project, households residing residing in the Adelaide Solar City at
catchment area. Not available to households the time you take up the package. You agree to assign the rights
the Adelaide Solar City Hot Water or changed without notice. Full terms
in Mawson Lakes, or to households
with 2 or 3 phase power. The installation
and conditions of sale and installation of an interval meter is at no cost for
who have already received a smart
meter through the Adelaide
standard meter replacement only.
heat pump solutions# approximately 5% of the total cost will be explained to you at the time
3 $500 Off solar hot water system and
plus approximately 95% of the remaining of your enquiry. Our Interest-free This offer can be withdrawn
Energy Retail Ltd ABN 22 078 868 total cost paid over 24 months via payment plan ^Our payment plan
425. Energy Retail Limited, OCBA Licence equal monthly instalments on your requires an initial payment of
half hourly electricity usage
No: BLD 174850 credit card. Origin Energy Electricity
3 A fREE smart meter which measures your HURRY
Ltd ABN 33 071 052 287. Origin

electricity usage ONLY 300


3 Online access to view your half hourly PACKAGES CITY OF

a power saving AVAILABLE


3 A fREE energy efficiency pack which includes
powerboard and shower timer
Pay only 5% upfront^ 4389.Jul11.SA
3 Our 24 month interest free payment plan.

7.3 Implementation
The offer was in market for approximately six months before being revised due to low levels of consumer interest.
In February 2012, the original targets were reduced and the subsidy of $500 was increased to $750. However, the higher discount was not
enough to increase take-up rates, with a small number of households purchasing the package.
The package was subsequently withdrawn from the market in June 2012.

7.4 Results
Two households took part in the trial which was a disappointing result, with trial numbers insufficient to undertake meaningful analysis.

7.5 Lessons Learnt


The solar hot water and heat pumps trial was unsuccessful due to a number of factors including the:
• higher upfront cost of solar hot water and heat pumps compared to electric or natural gas heaters (though the running costs are lower)
• removal of the Australian Government solar hot water and heat pump rebate of up to $1,000
• increased competition in a contracting market resulting in potentially unsustainable price reductions
• installation of a smart meter which required potential participants to be either current Origin electricity customers, or be willing to
transfer to Origin from their existing retailer.

Adelaide Solar City • Final Report • June 2013 Page 38 of 59


8.0 Technology
The residential trials delivered by Origin leveraged the implementation of smart meter technology to provide participants with the capability to
monitor their energy use and solar generation data through in home displays and on line access.
About 480 cost reflective pricing participants were provided with in-home displays enabling them to view in close to real-time data in 30 minute
intervals, including household energy use, greenhouse gas emissions as well other information such as weather reports. In addition, 25 solar PV
participants were provided with a solar version of the in home display where they could view their 30 minute energy use and solar generation
data.
All cost reflective pricing, solar hot water and solar PV participants were also able to view their 30 minute energy consumption, greenhouse gas
emissions and solar generation data (if applicable) on the “Your Power” website.

8.1 In-home displays


Households in South Australia typically receive an electricity bill every 90 days following the on-site reading of their meter by their distributor.
Whilst this is suitable for billing purposes, the lack of more frequent information on electricity consumption impacts the household’s ability to
better manage their energy use.
The Adelaide Solar City program provided an opportunity to test in home display technology as a means of providing households with close to
real-time information on their energy usage. The Adelaide Solar City rollout of in home displays was the first of its kind in South Australia.

8.1.1 Objectives
The in home display is an easy to use, touch screen device which provides household’s with the ability to view their energy use in close to real-
time. The primary objectives of the trial were to;
• determine consumer interest in using an in-home display
• understand consumer behavioural change as a result of using in-home displays
• identify which features on the in home display were most valued by consumers
• use the trial as a means of communicating advance notice of a peak event to critical peak pricing participants
• test the communication technology, including the link between the in home display, zibee device and the smart meter.

8.1.2 Implementation
The in-home display was developed in conjunction with Millennium Electronics, who manufactured the device and designed the software, and
Metropolis Metering Assets who tested the software.
The development of the in-home display included significant innovation, for example the provision of content from third parties (i.e. weather
reports from the Bureau of Meteorology). However, this resulted in software design and hardware testing taking considerably longer than
anticipated.
A small market trial of in-home displays began in March 2009 with the main rollout commencing in February 2010.
The devices were sent to participants with instructions enabling them to self install the units. Initially, participants also received a telephone call
from Metropolis to confirm if the participant required assistance in activating the unit.
Some examples of the in-home display screens are shown in Figure 8.1.2.

Adelaide Solar City • Final Report • June 2013 Page 39 of 59


Figure 8.1.2: Examples of In Home Display Screens

Energy Usage Screen Weather Forecast Screen

8.1.3 Outcomes
Market research has been conducted on participant attitudes to in-home displays and an analysis undertaken on the impact of the device on
energy consumption.
Market research was conducted in December 2010, when Origin surveyed a small number of respondents who had been provided with the
device.
The key outcomes of the survey were:
• 75 per cent of respondents were positive to very positive about the device. With most of them believing they saved energy.
• All respondents liked having a physical device and would have recommended it to others.
• Respondents found energy consumption and weather reports to be the most popular features. However, there was very little interest in
greenhouse gas emissions information.
• All respondents found the installation process very easy and about 50 per cent were prepared to pay a small amount for the device.
The survey also indicated that the device is seen to address a pre-existing need to monitor energy usage and as a means of managing the
household’s budget.
Analysis was also conducted in May 2012 on the impact of in-home displays on household energy consumption. The analysis compared the
energy consumption of critical peak pricing participants with the control group during peak events called between January and March 2012.
In this survey, in-home display respondents were segmented into “active” and “passive” user categories.
The “active” category was defined has those users who successfully received software updates and were therefore more likely to have been
frequently using the in-home display.
The general conclusion was that in-home display use appears to be correlated with a decrease in energy consumption during critical peak
events.
The survey also highlighted the following:
• Passive in home display users consumed 4.4 per cent less energy during peak events when compared to the control group.
• Active in-home display users (with software updates) consumed 10.9 per cent less energy during the same events compared to the
control group.

8.2 Web Portal Access


The Adelaide Solar City metering and communication platform also includes the provision of access to energy usage and other information to
around 2,600 cost reflective pricing, solar PV, and solar hot water participants via a web portal. The web portal was introduced in April 2008
and provided the first residential on line access to smart meter data in Australia.

8.2.1 Objectives
The availability of timely, detailed energy information on-line was identified with the development of the smart meter and communication
platform as a key requirement to enable participants to better understand their energy consumption and manage their energy use.

8.2.2 Implementation
Users are able to view their energy consumption and greenhouse gas emissions data on the “Your Power” website.
The information includes both current and historical data in 30 minute intervals, enabling the user to compare their energy usage over time
from the date the smart meter was installed.
A screenshot of the Energy Usage graph on the “Your Power” web page is shown in Figure 8.2.2.

Adelaide Solar City • Final Report • June 2013 Page 40 of 59


Figure 8.2.2: “Your Power” Website Screen

8.2.3 Outcomes
The “Your Power” website has had more than 60,000 sessions since launch, with more detailed reporting indicating that about 900 - 1,500
sessions were hosted per month over the period April 2012 to April 2013. See Figure 8.2.3 for details.
Figure 8.2.3: “Your Power” Website: Monthly Sessions

Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13

8.3 Solar In-home displays


The in-home display was originally developed for the cost reflective pricing trial. Subsequently, has a result of participant feedback, the device
was enhanced to incorporate solar PV specific information.
The solar in-home display was introduced in May 2012 with 25 trial participants.
The device provides near real-time information on how much electricity:
• the solar PV system is generating
• the household is using
• is imported from the electricity grid
• is exported to the electricity grid.
Some examples of the solar in-home display screens are shown in Figure 8.3.
Figure 8.3: Examples of Solar In Home Display Screens

Summary screen Solar Generation screen

Adelaide Solar City • Final Report • June 2013 Page 41 of 59


For technical reasons, information on electricity rates could not be offered to solar in-home display participants.
The devices were sent to participants with instructions enabling them to self install the units.
The information provided is similar to that shown on the Adelaide Solar City “Your Power” web site, which has been accessible to trial
participants since 2008.

8.3.1 Market Research


Solar in-home display participants were requested to complete two questionnaires. These surveys were completed when they first received the
device and in March 2013.
The 25 participants were contacted during the week commencing 11 March 2013 and were requested to complete a 15 question telephone
questionnaire. Respondents were offered a $25 Coles Myer Gift Card for their participation.
The primary objective of the survey was to obtain feedback on the features offered and the perceived impact of the in-home display on energy
consumption behaviours.
Responses were subsequently received from 17 of the 25 participants.

8.3.1.1 Survey Categories


The survey responses were segmented under the following categories:
• user demographics
• attitude to device features
• impact on behavioural change
• overall satisfaction.
An assessment of the survey responses from the solar in-home display trial indicates the following outcomes.
• Respondents have found the device activation arrangements easy to follow.
• The in-home display is commonly located in the lounge or kitchen and is used by the respondent mostly (i.e. 76 per cent) on a daily
basis.
• Respondents use all the features on the device, though there appears to be less interest in greenhouse gas emission data. The most
helpful features are total household electricity consumption and generation. Respondents also consider the device to be a convenient
way of monitoring the generation from their solar systems.
• With regard to additional features, respondents favoured the inclusion of information on electricity pricing and billing, as well as data on
gas and water consumption.
• 65 per cent of respondents exclusively use the in-home display, with 35 per cent using both the device and the Adelaide Solar City ‘Your
Power’ website. This is likely to be due to the fact that the device provides near real-time data compared to the 24 hour delay associated
with the on line option.
• The survey indicates that the overwhelming majority of trial respondents (94 per cent) agree that the in-home display has helped them
to understand their energy consumption with 70 per cent also stating that this has helped them to save money. The estimated saving is
about $50 per quarterly bill.
• Examples of behavioural change undertaken as a result of using the in-home display include limiting appliance use, running appliances
at night, changing appliances from electric to gas and installing energy efficient lighting.
• About 65 per cent of respondents were prepared to pay for the in-home display with the majority (53 per cent) prepared to pay from $50
to over $100 for the device.
• There are some software issues which require investigation (e.g. export screen not operating in some instances).
• In conclusion, 76 per cent of respondents were ‘satisfied’ or ‘very satisfied’ with the device and 88 per cent prepared to recommend it to
others.

Adelaide Solar City • Final Report • June 2013 Page 42 of 59


9.0 Energy Efficiency
Educating consumers across both the residential and commercial sectors on how to use energy more efficiently and embrace energy
conservation behaviours has been an important initiative of the Adelaide Solar City program.
The Adelaide Solar City business case incorporated a number of initiatives based on the premise that energy efficiency measures could be a
cost effective and relatively low risk approach to reducing energy demand and greenhouse gas emissions.
It was recognised at that time that adoption of energy efficiency measures by consumers and businesses was relatively low. To address this, the
Consortium designed and delivered an energy efficiency program aimed at increasing the adoption rate. This section of the report discusses
each of these initiatives delivered primarily by Consortium member Big Switch Projects and Origin.

9.1 Background
The aim of the energy efficiency program was to test a range of approaches to deliver energy savings to households and businesses. The
energy efficiency initiatives delivered through the program are shown in Figure 9.1.
Figure 9.1: Adelaide Solar City Energy Efficiency Initiatives

Initiative Program delivery Commenced Concluded Target (no.) Outcome (no.)


Home Energy Audit Big Switch Projects 6 Oct 07 30 June 10 879 879
Business Energy Efficiency Program:
• Business Audits 6 Oct 07 30 June 12 53 24
Big Switch Projects
• Follow Up Audits 16 Aug 10 30 June 12 53 15
• Facilitations 16 Aug 10 30 June 12 9 4
Ceiling Insulation Big Switch Projects 6 Oct 07 30 June 09 101 101
Energy Efficiency Packs Origin 6 Oct 07 30 June 13 23,723 22,254

In addition, the Home Energy Assistance Program, which is an energy efficiency program aimed at low income communities (specifically
refugees and new arrivals to Australia) was also introduced. Details of this program can be found in Chapter 10 of this report.

9.2 Home Energy Audits


Home assessments played a key role in educating households and assisting them to identify where savings could be made in the home with the
more efficient use of energy.
The Home Energy Audit service, delivered by Big Switch Projects, provided an on-site energy assessment and recommendations for the
household on how to become more energy efficient.

9.2.1 Objectives
There were several objectives of the home energy audits service, including:
• testing the price elasticity of audits by identifying demand at different price points
• providing households with the knowledge they need to reduce their energy costs and carbon emissions
• providing participants with a list of tailored energy efficiency opportunities, which can be implement at no or low cost
• encouraging the adoption of energy saving devices and equipment.

Adelaide Solar City • Final Report • June 2013 Page 43 of 59


9.2.2 Delivery
The Home Energy Audits were delivered by trained energy auditors employed by Big Switch Projects. The audit consisted of a 90 minute energy
assessment conducted on-site with the householder.
The auditor reviewed the type of appliances in the home and noted the way in which energy consuming appliances were being used and then
prepared a written report for the participant.
The report was provided approximately two weeks following the assessment and included the audit findings and a list of recommendations to
reduce energy costs.
To assist households to make energy savings, households also received up to six compact fluorescent light globes and a low flow shower head,
where conditions permitted.
The service was introduced in October 2007 with the service initially priced at $90. The price was subsequently reduced twice before the
service was finally offered at no cost. The service ceased in May 2010 when sales reached the target of 879.

9.2.3 Recruitment
Big Switch Projects was responsible for promoting the service, responding to enquiries and generating sales.
Marketing activities included direct marketing such as letterbox drops, inserts in Council rate notices, and through to paid advertising in local
community newspapers. Editorial content also featured in publications distributed by Council partners and Consortium members.
The marketing activities were supported by the delivery of a number of energy efficiency seminars, which provided attendees with an opportunity
to converse directly with an energy efficiency expert who provided energy saving tips and advice.

9.2.4 Outcomes
Some of the outcomes arising from energy audit trial are described in sections 9.2.4.1 and 9.2.4.2.

9.2.4.1 Price Elasticity


Price clearly had an impact on sales volumes, with the number of sales increasing as the priced decreased relative to the length of time the
service was offered at that price point.
Figure 9.2.4.1 plots the number of sales made at each of the four price points adopted during the trial.
Figure 9.2.4.1: Home Energy Audit Sales at Different Price Points

The price of the audits was reduced over time to $0 in response to changing market conditions, which saw free energy audits being provided
through the Australian Government’s Green Loans Scheme and State Government programs.
The reduced price was supported by a marketing campaign which commenced in November 2009. The campaign used a combination of
paid advertising, Council rate notice inserts, editorials in Delfin Lend Lease publications distributed throughout the Mawson Lakes Estate and
letterbox drops. The marketing campaign generated in excess of 600 enquiries over the following three months, resulting in 450 sales.
A subsequent press campaign in April and May 2010 resulted in the remaining sales required to achieve the product target of 879.
Take-up was also assisted by the media highlighting climate change and related issues creating a wider community awareness due to the early
onset of summer with a heatwave in November. Whereby households voiced concerns about their air conditioner use so early in the season,
which was reflected in higher electricity bills for the quarter.

Adelaide Solar City • Final Report • June 2013 Page 44 of 59


9.2.4.2 Energy Efficiency Opportunities for Households
Arising from the audits, a series of recommendations were made to households on how to reduce their energy consumption. Analysis of the top
five recommendations made to 823 households reveals that the top three recommendations involve changing behaviors related to appliance
use. The majority of the recommendations (shown in Figure 9.2.4.2) could be implemented by the householder at no additional cost.
Figure 9.2.4.2: Home Energy Audit: Top Five Energy Efficiency Opportunities
Number of recommendations

9.3 Business Energy Efficiency Program


The Business Energy Efficiency Program (BEEP) was developed as a transformation program designed to encourage businesses to accelerate the
adoption of energy efficient practices and technologies to deliver energy saving and carbon reduction outcomes. The program was developed
and delivered by Big Switch Projects.

9.3.1 Objectives
The objective of the program was to provide business participants with the analysis needed to make informed decisions about energy saving
and carbon reduction opportunities.
The program was also designed to capture data and information on participants to better understand how future programs could be developed
to encourage positive energy changes in the business community.

9.3.2 Implementation
BEEP was launched in Adelaide in July 2007 targeting medium to large-sized businesses and government facilities within the trial area.
Potential participants included manufacturers, office buildings, office tenancies, hotels, hospitals, and Council facilities typically with annual
energy bills over $75,000.
The initial BEEP offer provided a rebate of $2,000 from the Australian Government and $2,000 from Big Switch Projects on a Level 2 business
audit. From the audit program participants received a detailed written report listing energy saving opportunities, estimated capital costs of
implementation, as well as the projected energy, financial returns and carbon savings.
While a number of organisations expressed an interest in the program this was not reflected in take-up, particularly in view of the adverse
economic conditions at the time (i.e. the 2008 global financial crisis). Further, many businesses did not recognize the potential value of energy
efficiency programs which made it difficult to gain traction with the Adelaide business community.
As a result of the low take-up, the Australian Government approved in August 2010 a revised BEEP offer which increased the government
rebate, providing participants with an average 80 per cent rebate on the overall cost of the energy audit.
Despite the price reduction, there were still a number of issues which were a barrier to participation from the business community including:
• Recovery was quite slow in many sectors of the economy, especially in tourism (hotels) and mid-sized manufacturers with non-essential
spending postponed.
• The most common add-ons to the BEEP audit requested by participants were NABERS ratings, water and waste reviews, cogeneration
pre-feasibility studies and carbon footprints. However, as the BEEP subsidies could not be offered for such add-ons, this reduced potential
take up of the service.
In June 2010, the Australian Government approved a revised BEEP program which included new project facilitation and follow–up services
offered from September 2010 at no additional cost to the existing BEEP participants. The facilitation service was to assist the participant to
move from the energy efficiency identification stage to the implementation stage. The follow-up service was a detailed phone interview with
each participant, 12 months after the business has received the initial energy efficiency audit report.

Adelaide Solar City • Final Report • June 2013 Page 45 of 59


9.3.3 Project Facilitation Service
The Project Facilitation Service (PFS) was designed to assist businesses to move from the identification of energy efficiency improvements to
implementing them. The service was based on energy advisors identifying best practices, creating scopes of work for tendering, assisting in
tendering, producing technical guides and case studies and assisting in measurement and verification.
It included 40 hours of technical support to assist in the realisation of the savings identified in the BEEP report.
Four organisations took advantage of the Service from August 2010 to June 2012.

9.3.4 Follow-Up Review


The final component of the offering was a follow-up review of each BEEP participant 12 months after submitting the initial audit report to
assess progress in energy performance, as well as identifying any hurdles preventing the business from implementing the recommended energy
efficiency measures.
A total of fifteen follow-up audits were conducted from August 2010 to June 2012.

9.3.5 Recruitment
The marketing activities were managed by Big Switch Projects who promoted the program through a combination of direct marketing, direct
sales and public relations initiatives.
Activities were designed to raise awareness of the program and target decision makers within the business with details of the program.

9.3.6 Outcomes
The BEEP program (including the project facilitation and follow-up services) resulted in 24 business participants obtaining an estimated energy
saving of 6,808,000 kWh, a saving of $961,000 in financial benefits and a greenhouse gas emission reduction of 5,980 tonnes per annum.

9.3.7 Lessons Learnt


BEEP has been difficult to market due to a number of factors including:
• The cost of the service and the uncertain economic environment where many companies advised that they had expenditure freezes
mandated.
• Significant price competition (e.g. a S.A Government offer of 75 per cent off the cost of an energy assessment up to $10,000).
• A lack of awareness of the potential benefits in the business community.
• The cost of electricity at that time was a comparatively small part of a company’s operational costs and therefore not the subject of
much attention.
• Businesses were reluctant to invest in energy efficiency measures until the Federal Government advised what approach they would be
taking with a number of initiatives including the price on carbon.
• Energy retailers were offering free business energy audits as part of their electricity contract negotiations.
• The small size of the potential market in the Adelaide Solar City area.

9.4 Ceiling Insulation


Ceiling insulation is an effective measure in reducing heat gains during summer and heat losses during the cooler months.
It can make a house more comfortable all year round, helping to reduce reliance on heating and cooling appliances.

9.4.1 Objectives
The ceiling insulation trial aimed to determine the effect of insulation on household comfort levels.
The trial also intended to test the provision of a cash incentive (i.e. $400) off the supply and installation of R3.8 Pink Batts ceiling insulations on
200 households.

9.4.2 Implementation
The ceiling insulation trial was delivered from October 2007 until February 2009 by Big Switch Projects.
A local contractor was engaged to undertake the installation of the insulation, while an energy auditor delivered an energy audit which was
offered at no cost as part of the offer.
In conjunction with the trial, 10 people participated in a comfort trial, which involved the installation of discrete temperature monitors to test the
effectiveness of the ceiling insulation in moderating internal temperatures.
Ceiling insulation sales were encouraging up until the announcement of the Australian Government’s Energy Efficient Homes Program (EEHP)
in early February 2009. The EEHP included rebates up to $1,600 per household for the installation of ceiling insulation after 1 July 2009.

Adelaide Solar City • Final Report • June 2013 Page 46 of 59


9.4.3 Outcomes
After consultation with the Australian Government, the ceiling insulation offer concluded on 30 June 2009 with a total of 101 participants.

9.4.4 Lessons Learnt


The introduction of the EEHP had a considerable impact on ceiling insulation sales, rendering the Adelaide Solar City offer much less attractive
to potential participants.

9.5 Energy Efficiency Packs


Origin distributed 22,254 energy efficiency packs as part of an initiative
to provide households within the trial area with tangible energy efficiency,
cost-saving benefits and as a means of fostering direct community
involvement in the Adelaide Solar City program.
The energy efficiency pack contained equipment to help households
improve their energy efficiency, reduce water waste, save money and cut
their environmental impact.

9.5.1 Objectives
The packs played a central role in the community engagement, customer
acquisition and data collection strategies.

9.5.2 Implementation
When the packs were initially distributed, they included six compact
fluorescent light (CFL) globes and a low-flow shower head. The packs were
distributed as part of the product offers such as the cost reflective pricing
trial, solar PV packages, and some of the GreenPower products.
Distribution of the packs was discontinued in 2010 due to:
• the market for the packs having become saturated with free offers
from utilities and State Government entities Thank you for
• at that time, the packs were primarily linked to GreenPower sales participating in the
which had slowed significantly. Adelaide Solar City
Project
It is estimated that about 46,000 CFL light globes were distributed in the
trial area prior to the packs being replaced with a complimentary in-home
assessment in early 2009.
The in home assessment included the replacement of showerheads with Together we can
make a difference.™
ratings of two stars or less with three star rated water saving showerheads,
and/or incandescent light globes. However, this program was discontinued
in November 2010 due to reduced demand arising from numerous offers
in the market providing free showerheads. Your home energy
New energy efficiency packs including an energy saving power board and efficiency pack
shower timer were subsequently introduced and distributed as part of the By installing and using the power
saving
eco
powerboard (Watt Stopper™) and
product offers, as well as in community engagement activities undertaken designed shower timer (ShowerWatch)
, you
reduce
could save on electricity costs and
with Councils. The new packs (the power board in particular) seemed to your greenhouse gas emissio ns.
the
If you have any queries relating to
have been well received in the trial area. operation of these products please
contact
us during busines s hours:
Actual pack may vary.
Only one pack available per household.
Powerboard Shower timer
9.5.3 Outcomes WattStoppers™ ShowerWatch
Phone 1800 706 258 Phone 1300 366 182

Over 22,000 energy efficiency packs were distributed as part of the


2960.v2.Mar11.ADE

ABN 22 078 868 425 •


33 071 052 287, Origin Energy Retail Limited
Origin Energy Electricity Limited ABN
• Telephone 1300 134 138 •
Adelaide Solar City program. 1 King William Street Adelaide SA 5000
originenergy.com.au/city • solarcity@o
riginenergy.com.au

It is estimated that participants could have saved approximately


$8,050,000 and reduced their greenhouse gas emissions by 30,900
tonnes over the life of the program by using the packs.

9.5.4 Lessons Learnt


The key learning from the distribution of the packs is that the equipment included in the packs needs to be regularly reviewed to ensure that the
items are still relevant to households.
For instance, the original packs that included the compact fluorescent light globes were discontinued primarily as a result of market saturation
due to other government and non- government entities providing the same service.

Adelaide Solar City • Final Report • June 2013 Page 47 of 59


10.0 Home Energy Assistance Program
In April 2011, the Adelaide Solar City Councils indicated that refugee and new arrival communities within the trial area were in urgent need of
assistance in understanding and managing their energy use.
To meet this need, Origin developed the Home Energy Assistance program which was launched in October 2011. The program is a free
service available to 450 low-income households within the Adelaide Solar City catchment area and is provided by Uniting Communities on
behalf of Origin.
The program targets refugees and new arrivals to Australia with assistance in understanding and managing their energy use. These
communities often face additional challenges to understand or manage their energy bills due to language and cultural barriers, unemployment
and difficulties in finding suitable housing.
The initiative includes an in-home assessment of energy use, identification of opportunities for reducing consumption and the retrofit of low-cost
energy saving devices. Participants also receive referrals to financial and social support services if required.

10.1 Program Delivery


The primary objective of the program is to assist disadvantaged households experiencing or at risk of experiencing energy poverty manage their
future energy use.
The program provides a one-on-one consultation with the participant, offering the following services:
• analysis of the household’s energy bill and discussion with them on the relationship between energy consumption, affordability and
household energy behaviour and habits
• an assessment of how much and where energy is being used in the home
• help to explain appliance running costs and suggested ways to use appliances more efficiently
• energy saving tips that will help in reducing the household’s bills while maintaining or increasing comfort levels within the home
• provide a pack of energy efficiency products, which currently includes a power saving board and a shower timer valued at approximately
$80
• provide low-cost energy efficient devices specific to the householder and their circumstances (e.g. door and fridge seals, small fans) up to
a maximum value of $100
• undertake a basic financial assessment of the household with regard to expenditure and income
• provide information on existing social support services and refer the householder to the appropriate service if necessary/requested.
In order to be eligible for the program, participants must reside in the trial area and be the holder of, or be eligible for a Low Income Health
Care card.
The program is open to participants from any energy retailer.

10.2 Recruitment
The strategy to engage with low-income households within the Adelaide Solar City area was developed to include three key principles. These
were to:
• develop relationships with householders, community groups and other service organisations
• provide advice and devices for program participants to better manage their energy use.
These principles were identified as factors required for the successful engagement of low-income households which often have diverse socio-
demographics. These principles defined they way in which the program was structured, promoted and delivered.
The strategy incorporated activities designed to overcome the barriers often faced by low-income households in managing their energy usage.
These barriers included reduced levels of financial and language literacy, language barriers, new arrival or refugee status, reluctance to trust or
engage with government agencies, and low levels of employment.
These activities predominantly relied on face-to-face interactions through community leaders and community organisations.

Adelaide Solar City • Final Report • June 2013 Page 48 of 59


10.2.1 Engagement through Community Leaders
Identifying and engaging with community leaders was a key strategy in influencing involvement from refugee and new arrival communities. This
was undertaken through extensive liaison with Consortium councils and Uniting Communities staff from a multi-cultural background.
Energy auditors developed a relationship of trust with many community leaders to obtain their support as “ambassadors” for the program and
to encourage their communities to participate. Many households were more likely to take part in the program if it was know and recommended
by the community leader. This was especially important in African communities.
The program was launched at the Northern Area Migrant Resource Centre in Salisbury with a number of community leaders present. The event
was organised as a ‘drop-in’ session where community members could find out more about the program, obtain educational information and
sign up for the audit visit.
The Hon. Mark Dreyfus launched the event, which was also attended by the Mayor of Playford and a number of South Australian Government
and senior Australian Government officials.

10.2.2 Engagement through Community Organisations


In addition to interfacing with community leaders, Uniting Communities interfaced with community organisations, welfare workers, interpreters,
financial counsellors, community groups, and Consortium councils to raise awareness and refer potential participants to the program.

10.3 Barriers to Behavioural Change


The perception of the energy auditors is that recommendations made during the audit that are simple to implement such as changing
thermostat settings on air-conditioners and refrigerators are likely to be continued by program participants. Most participants are also keen to
utilise retrofit items such as draught seals, exterior blinds, light globes, low flow shower heads and energy-saving power boards.
However, the continuation of energy-efficient behaviour in the longer term is often dependent on the program household overcoming in some
instances, significant barriers to change.
The barriers to change for 184 participants were identified in the energy audit reports and are shown in Figure 10.3.
Figure 10.3: Barriers to Change

As Figure 10.3 indicates, 93 per cent (i.e. 172 of 184) of respondents identified insufficient funds as the key barrier to implementing energy
efficiency measures. In addition, quality of housing, residence in rental accommodation and behavioural barriers are also identified as key
barriers to change.
Behavioural barriers, which relate either to lack of awareness/understanding of how to reduce energy use, or willingness to make changes was
preventing 56 per cent of participants from implementing changes to use energy more efficiently.

10.4 Outcomes
Analysis has been undertaken on the data provided by program participants with the aim of understanding the characteristics of low-income
households and how these impact on energy attitudes and behaviours.
The survey included data (e.g. demographic and other key household characteristics) obtained from written questionnaires completed by
participants at the time of their energy audit.
The energy consumption attitudes of participants was surveyed by asking them to indicate whether they agreed or disagreed with a series of
statements related to their energy bills, behaviours to reduce energy use and their impact on the environment. The scale of responses ranged
from ‘strongly disagree’, ‘disagree’, ‘neither agree nor disagree’, ‘agree’, ‘strongly agree’, and ‘unknown’. The details of the responses are
shown in Figure 10.4(a)
Participants were asked to indicate the extent to which they agreed that their energy bills were not large enough for them to care about them.
Only 11 per cent of program respondents agreed with the statement.

Adelaide Solar City • Final Report • June 2013 Page 49 of 59


Participants were also asked the extent to which they agreed with the statement “I don’t spend much time thinking about my energy use”. About
81 per cent of respondents either strongly disagree or disagree with this statement, indicating that participants spend considerable time thinking
about their energy use.
In addition, 60 per cent ‘agree’ or ‘strongly agree’ that they did not know how much money they could save by using less energy.
This indicates that while participants are sensitive to energy bills, they don’t perceive themselves to be knowledgeable of the relationship
between energy use and the cost of energy.
In relation to energy use, 40 per cent of participants either ‘strongly agree’, or ‘agree’ that convenience and comfort was more important than
saving energy. This response may be influenced by several factors including a lower level of awareness of energy use and energy costs, or lower
tolerance levels for the climate that they find themselves in.
Figure 10.4(a): Participant Attitudes towards Energy Use

Participants were asked to indicate how frequently they undertook a range of energy efficiency measures and were able to select from a scale
including ‘Never’, ‘Rarely’, ‘Sometimes’, ‘Usually’ and ‘Always’.
The results (see Figure 10.4(b), indicate that more than 80 per cent of participants consistently use a clothes line instead of a dryer, and 68
per cent wash in cold water. However, there was significant scope for behavioural change when it comes to minimising the use of heating and
cooling appliances, turning off standby power and choosing energy efficient appliances.
Feedback from the energy auditor indicates that some new arrivals have had difficulty in adapting to the cool climate and as a result rely
heavily on heating appliances during winter to maintain comfort levels.
Given that insufficient funds is a key barrier to change for 93 per cent of participants, it is not surprising that almost one quarter of households
never choose energy efficient appliances given the high upfront costs.
Figure: 10.4(b): Energy Efficiency Behaviours

Adelaide Solar City • Final Report • June 2013 Page 50 of 59


An assessment of both the quantitative survey data and the energy auditors qualitative feedback, indicates that a key issue facing many
program respondents is a lack of understanding of how to use appliances efficiently and how this affects their energy bills.
This lack of knowledge of the relationship between high energy use and the cost of energy is a significant financial risk for low income
community groups, particularly new arrivals and refugee communities.
Whilst program respondents experience lower incomes and higher levels of unemployment than the broader Adelaide Solar City community,
refugees and new arrivals also experience an additional major inhibiting factor in that they frequently come from non-English speaking
backgrounds.
The survey indicates that irrespective of their income and employment status, program respondents have the major electrical appliances (e.g.
refrigerators and air conditioners) in their household. Air conditioners in particular, are very widely used. However, it is questionable if the
appliances are energy efficient.

10.4.1 Energy Efficient Devices


A unique part of the program was the provision of energy efficient devices tailored to the participant’s individual needs. This approach
recognised differing circumstances of households, and that the provision of stock energy efficiency devices alone may not have the same impact
or be relevant to all households. The devices provided included light globes, showerheads and door and fridge seals.
Participants also received an energy efficiency pack which included an energy saving power board and a shower timer.
A summary of the devices provided to participants is shown in Figure 10.4.1 which indicates that 95 per cent of households received energy
saving light bulbs, while 40 per cent received pedestal fans, low flow showerheads are also commonly provided.
Figure 10.4.1: Energy Efficiency Devices provided to participants

It is also worth noting that the tools to install the devices, such as Teflon tape and wrenches were purchased for more than 20 per cent of
households. Overall, program respondents have indicated that they saw value in both the energy efficiency packs and other devices they
received as part of the audit.
The total value of energy efficiency equipment provided to 184 participants included in this analysis was $30,700, of which $14,700 related to
the total cost of providing the energy efficiency pack.
The energy auditors made a series of recommendations to the participant to help improve their energy efficiency. These recommendations are
listed in Figure 10.4.2.

Adelaide Solar City • Final Report • June 2013 Page 51 of 59


Five of the top six recommendations made to participants relate to changing current behaviours, rather than the purchase of equipment and
devices. About 95 per cent of households could reduce their energy consumption by changing the temperature settings of their heating or
cooling appliances. The length of time in which heating and cooling appliances were being used could also be reduced to lower energy
consumption for 85 per cent. Turning off the standby power of appliances was identified as an opportunity for conserving energy for 81 per
cent of participants.
Figure 10.4.2: Recommendations to Improve Energy Efficiency

At 31 May 2013, there were 405 referrals to the Home Energy Efficiency program with 282 audits completed by Uniting Communities.

10.5 Lessons Learnt


Below are the key lessons learnt from the Home Energy Assistance Program. The lessons are based on the information provided in the survey.
• Identifying and engaging with community leaders is a key strategy in influencing involvement from refugee and new arrival communities.
• Over 80 per cent of all respondents agreed that their energy bills were significant enough for them to care about them.
• 93 per cent of respondents indicated that insufficient funds is a barrier to implementing energy efficiency measures. In addition, more
than half the respondents have identified energy behaviours and rental accommodation as barriers to implementing change.
• Program respondents reported a high frequency of energy efficiency behaviours such as using a clothes line instead of a clothes dryer
and washing in cold water. However, participants are less likely to choose energy efficient appliances possibly due to their non English
speaking background.
• Respondents were satisfied with the energy efficient devices provided by the auditor. However, some enhancements such as the provision
of thermometers marked with energy efficient appliance temperatures have been recommended by the auditors.
• A key barrier to successful program implementation has been the number of cancellations and “no shows”, which is currently about 17
per cent of all referrals.

Adelaide Solar City • Final Report • June 2013 Page 52 of 59


11.0 GreenPower
An effective way for households to reduce the greenhouse gas emissions associated with their energy use is to purchase accredited renewable
energy offset products.
On this basis the Consortium marketed Origin’s GreenPower products sourced from renewable electricity generation, independently audited
and accredited under the National Green Power Accreditation program.

11.1 Objectives
The Consortium had an objective to attract 12,000 households within the trial area to reduce their greenhouse gas emissions through the
purchase of GreenPower products.

11.2 Delivery
Participants were able to purchase a minimum of 20% GreenPower for a fixed price of $1.00 week. At that time, it was the cheapest product
with that percentage of GreenPower available in the market. It was also one of the most cost effective ways by which participants could reduce
their greenhouse gas emissions.
At the commencement of the program, Origin’s GreenPower products were marketed under the GreenEarth brand and included the options
shown in Figure 11.2.
Figure 11.2: GreenPower Product Options

Electricity Products GreenPower % Typical Cost


20% New Wind/
GreenEarth 20% $1/week extra
80% Old (Low impact Hydro)
50% New Wind /
GreenEarth Extra 50% $3/week extra
50% Old (Low impact Hydro)
GreenEarth Wind 100% New Wind 100% $5/week extra
GreenEarth Solar 100% New Solar 100% $6/week extra
Natural Gas Products Typical Cost
GreenEarth Gas 100% Greenhouse Friendly 100% $1/week extra

11.3 Outcomes
The GreenPower product offer ceased on 30 June 2011 with 21,745 participants compared to a target of 12,000.
It is estimated that the participants will have reduced their greenhouse gas emissions by 37,700 tonnes during the life of the program.

11.4 Lessons Learnt


There were no significant learnings arising from the GreenPower component of the program.

Adelaide Solar City • Final Report • June 2013 Page 53 of 59


12.0 Data
In order to measure the impact of the Solar Cities program, a monitoring and measurement process was implemented to evaluate the
program’s success and report on the outcomes of trial interventions.
Origin, as lead proponent was responsible for managing the collection of data by Consortium members including data collation, storage,
quality assurance, transfer and reporting.
The direct measurement of residential participant and control group energy use was achieved through the use of smart meter technologies
which measured electricity consumption in half hourly intervals. A number of covariates relating to energy use were also captured through the
completion of a questionnaire by program participants.
The monitoring and report process involved a number of separate, but interlinked processes which are described in Section 12.1.

12.1 Data Collection


The purpose of the data collection activities was to provide the information to measure the outputs and to analyse the impacts of the program.
The collection of data was undertaken via several methods, including on site direct measurement, participant surveys, market research and
anecdotal feedback from program participants, Consortium and associate members, and other key stakeholders.
The data collected on the program participants can be summarised as follows:
• number and type of program participants recruited
• number, type, timing and capacity of solar technology installations, energy-efficiency measures and demand management interventions
• number, type, timing and effectiveness of the installed interval metering and cost reflective pricing arrangements
• energy billing data and household/site data pre and post intervention
• costs incurred by program participants to implement the program at their sites
• greenhouse gas emission factors
• gross solar PV generation captured from approximately 95 residential solar PV sites
• data on 480 in home displays provided to critical peak pricing participants
• temperature loggers fitted at 15 sites participating in the residential energy efficiency comfort trial
• residential and commercial covariates which include dimensions and variables likely to influence energy consumption such as
demographic and lifestyle variables, building attributes such as building size, type and age, and major energy system characteristics
• daily temperature and solar exposure data.

12.2 Measurement
The data collected from participants enabled the measurement of key outcomes, including:
• energy consumption and energy demand profiles of participants
• greenhouse gas emissions
• energy expenditure
• demand changes as a result of interventions
• barriers to the take up of sustainable energy offerings
• energy attitudes and behaviours of participants in the program.

Adelaide Solar City • Final Report • June 2013 Page 54 of 59


12.3 Data Analysis
A sample of the residential co-variate data provided by respondents appears in the following sections. It is important to note that this data
was collected over a period of five years, during which time changes in attitudes and behaviours, as well as changes in market and regulatory
conditions may have impacted on participant responses.

12.3.1 Demographics

12.3.1(a): Gross Household Income


Respondents self-reported their gross yearly household income in the Adelaide Solar City questionnaire which was completed at trial entry.
Figure 12.3.1(a) provides a breakdown of responses across each trial.
The Home Energy Assistance Program has the highest proportion of participants with a yearly income of less than $20,000, with 75 per cent
reporting an income in this bracket. Across the solar PV trial, the Home Energy Audit, and control group trials, households reporting an income
of $50,000 - $100,000, were over-represented in comparison to the other income brackets. Households earning in excess of $150,000 per
year were most under-represented across all trials, ranging from 6 per cent of participants in the Origin solar PV trial, to 2 per cent in the
ceiling insulation and Home Energy Audit trials.
Figure 12.3.1(a): Gross Household Income

12.3.1(b): Level of Education


Participants were asked to provide the highest level of education attained by an adult permanently residing in the home. Respondents were
asked to select from a scale which included ‘primary school’, ‘high school – level 10’, ‘high school – year 12’, ‘high school – unspecified’,
‘TAFE’, ‘Tertiary’, ‘Other’, and ‘Unknown’. For the purposes of comparison, the three high school responses have been reported as ‘High
School’. Responses reported as ‘Other’ have been removed, due to their small number. ‘Unknown’ responses have also not been included in
the analysis.
As Figure 12.3.1 (b) indicates, the Home Energy Assistance Program has the highest proportion of participants who report ‘High School’ as
their highest level of education, with residents in both solar trials reporting the lowest percentage of participants with this education level.
The Home Energy Audit Trial has the smallest proportion of respondents with a tertiary education, with 13 percent reporting this education level.
Figure 12.3.1(b): Highest Level of Education

Adelaide Solar City • Final Report • June 2013 Page 55 of 59


12.3.1(c): Number of Occupants in House
Participants were asked to report the number of people permanently residing in the house. Figure 12.3.1(c) displays the number of occupants
in each site across each trial.The results indicate that in all trials, with the exception of the Home Energy Assistance Program, households with 1
or 2 people were most likely to reside in the house. The Home Energy Assistance Program had the highest proportion of households reporting
more than five occupants, with 33 per cent.
Figure 12.3.1 (c): Number of Occupants In House

12.3.1(d): Primary Language Spoken at Home


Participants were also asked to indicate the primary language spoken at home. Figure 12.3.1(d) shows the proportion of respondents that
indicated that English is the primary language spoken (where a response was provided). With the exception of the Home Energy Assistance
Program, at least 92 per cent of respondents recorded English as the primary language.
Just over half the respondents in the Home Energy Assistance Program speak English as their primary language at home. Other languages most
frequently noted as the primary language spoken by participants of this program include Nepali, Kirundi, Dinka, and Swahili.
Figure 12.3.1 (d): Primary Language Spoken at Home (English response)

12.3.1(e): Employment Status


Participants were asked to select their employment status from responses which included: ‘Full time homemaker’, ‘Full time’, ‘Part time’,
‘Casual’, ‘Self employed’, ‘Study – secondary’, ‘Study – tertiary’, ‘Retired’ and ‘Unknown’. The results of the responses (excluding ‘Unknown’,
‘Study – secondary’ and ‘Study – tertiary’ (less than 1 per cent) are displayed in Figure 12.3.1(e).
Of note, is the high proportion of participants in the Home Energy Assistance Program who are unemployed, which is 42 per cent. The
unemployment status across the other trials ranges from zero per cent in the BP Solar Trial, to 4 per cent in the Home Energy Audit Trial.
Figure 12.3.1 (e): Employment Status

Adelaide Solar City • Final Report • June 2013 Page 56 of 59


12.3.2 Site Details
Site details were collected from participants and included data on a number of building attributes. Following are examples of three attributes,
i.e. size of house, age of house and gas connection.

12.3.2(a): Size of House


Participants were asked to describe the size of their house (Figure 12.3.2(a)) by selecting from the following responses: ‘Compact (<100 m2)’,
‘Small (100 – 149 m2)’, ‘Medium (150 – 249 m2)’, ‘Large (250 – 349 m2)’ and ‘Spacious (> 350 m2)’. Across all trials, participants most
commonly reported a medium sized house.
Figure 12.3.2(a) Size of House

12.3.2(b): Age of House


Participants were asked to select the decade in which their home was built. The choices included ‘pre-1950’, ‘1950’s’,
‘1960’s’,’1970’s’,’1980’s’, ‘1990’s’ and ‘Post 2000’. The responses indicate that there is a reasonable spread of homes built across the
decades in each trial. In the BP Solar trial there is a higher proportion of residents residing in homes built ‘Post 2000’, which is due to the solar
PV offer targeting new housing estates. See details in Figure 12.3.2(b).
Figure 12.3.2 (b): Age of House

12.3.2(c): Gas Connection


Participants were asked to indicate the type of gas connection to the home. As Figure 12.3.2(c) shows, most respondents across all trials have a
gas connection. Home Energy Assistance Program respondents were the least likely to have a gas connection, with one third indicating that they
had no connection to gas.
Figure 12.3.2 (c): Gas Connection

Adelaide Solar City • Final Report • June 2013 Page 57 of 59


12.3.3 Energy Efficiency Measures
Participants were also requested to provide information on the energy efficiency measures they had undertaken in the home. An example of the
analysis is the take up by respondents of water-saving measures.
The responses on the take up of low flow showerheads, dual flush toilets and rainwater tanks is shown in Section 12.3.3(a).

12.3.3(a): Water Saving Measures


Figures 12.3.3(a1) to 12.3.3(a3) illustrate the proportion of sites within each trial which have reported at least one water-saving measure on
site.
Figure 12.3.3(a1): Sites with Low Flow Showerhead

Figure 12.3.3(a2): Sites with a Dual Flush Toilet

Figure 12.3.3(a3): Sites with a Rainwater Tank

Adelaide Solar City • Final Report • June 2013 Page 58 of 59


Overall, results were consistent across most trials with the exception of the BP Solar and Home Energy Assistance Program participants, who
had a lower take up of low flow showerheads (BP Solar: 28 per cent) and rainwater tanks (Home Energy Assistance Program: 27 per cent).

12.4 Reporting
Reporting was undertaken in accordance with the requirements described in Appendix 1 of the Adelaide Solar City Funding Agreement.
Information was also provided to the Department of Climate Change and Energy Efficiency through uploads of data to the Department’s Solar
Cities database.
A number of reports on core program elements have also been published.

12.5 Residential Control Group


The Adelaide Solar City control group was launched in June 2010 with the objective of recruiting 300 households who would provide electricity
and co-variate data to measure the impact of program interventions.
The control group was initially launched with an incentive of a $150 ($50 applied after six months, and $100 applied on 30 June 2013) credit
to be applied directly to the participant’s electricity account. In order to receive this rebate, participants were required to sign up to a new
Origin energy plan and agree to the installation of a smart meter.
Advertisements were placed in the local Messenger newspapers and the Adelaide Advertiser during August and September 2010, with Council
partners also helping to raise awareness of the offer within their local communities. However, the offer generated a low level of interest and a
total of 26 households signed up for the control group.
In May 2011, the offer was redesigned to provide a greater incentive for households to participate in the trial. The offer now included an
incentive of a $200 Coles Myer gift card to be provided following the installation of the smart meter. In addition, participants were no longer
required to change from their existing Origin energy plan, which was perceived to be a barrier with the initial offer. The marketing strategy was
also revised to incorporate outbound telemarketing.
On completion of the program, a total of 241 households were recruited to the control group.

12.6 Lessons Learnt


Some of the lessons learnt from the development of the data-base include:
Incomplete Questionnaires
Initially, the Consortium experienced significant difficulties in obtaining fully completed questionnaires from pricing and solar PV participants
despite repeated attempts. The completion rate at the start of the program was around 35 per cent. This resulted in a high dropout rate of
potential pricing product participants because it was not possible to install the meter until a completed questionnaire was submitted.
To remedy this situation, a proposal was submitted to the Australian Government in December 2009 to reduce the survey length, which was
taking around 30 minutes to complete.
The new arrangements included Origin undertaking a telemarketing campaign to obtain completed questionnaires for participants of the cost
reflective pricing trial who were yet to submit a questionnaire.
For prospective customers, the shortened questionnaire enabled it to be completed during the sign up process over the phone.
The revised strategy resulted in an additional 300 questionnaires being completed.
Collection of quarterly (NEM 13) billing data
A component of the data collection was for quarterly billing (NEM 13) data to be obtained from the local distributor (S.A Power). However, due
to some difficulties including the inability in some cases to validate participant name or address matches it was decided not to seek further NEM
13 data from the distributor. As the option of sourcing the data from retailers was deemed impractical, NEM 13 data was subsequently sourced
from Origin participants only.

Adelaide Solar City • Final Report • June 2013 Page 59 of 59

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