WELCOME HOME TO SAVINGS

TEAM BEEC POTENTIALDHRUV VARMA

ASHWIN MYSOREAMAN MEHRA

SHANKAR DAS

2

AGENDA

The problem

Solution

Implementation

Summary

3

ENERGY CHALLENGES IN MULTI FAMILY HOUSING

SPLIT INCENTIV

E• Cost -

owners• Benefits -

tenants, HUD

FINANCING

• Risk-averse• Complex

approvals

AWARENESS

• Cost savings

4

TARGET LARGEST SEGMENT

Market Based Rent

Budget Based Rent

Utility cost not included in rent amount

Quadrant 1 Quadrant 2

Utility cost included in rent amount

Quadrant 4 Quadrant 3

• 2/3rd of the rent agreements do not include utilities• Market Based Rent represent majority

5

SOLVING PROBLEM OF SPLIT INCENTIVES

The problem

Solution Owner

Adopt Distributive Generation

Tenant

Promote Energy Efficiency

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THE CHALLENGE WITH BUILDING OWNERS

No incentive

Owners running new

utility business

Investment difficulty

ESCOs

7

HOW IT WORKS FOR BUILDING OWNERS

Tota

l co

st o

f occ

upancy

8

PROFITABILITY FOR BUILDING OWNERSMONTE-CARLO SIMULATION

Owner’s profitability in utility business

9

TOTAL PROFIT FOR BUILDING OWNERSMONTE-CARLO SIMULATION

Total annual profit from utility business

10

SOLVING PROBLEM OF SPLIT INCENTIVES - TENANTS

The problem

Solution Owner Tenant Others

Implementation

Summary

11

THE CHALLENGE WITH TENANTS

Energy conservation

Separate utility

expenditure from subsidy

Energy efficiency

Alignment of savings provides

motivation

12

HOW IT WORKS FOR TENANTSTo

tal co

st o

f occ

upancy

13

UPDATED SUBSIDY CALCULATION METHOD (OLD VS NEW)

Tenant minimum contribution

• TTP (Total Tenant Payment) = 30% * Adjusted income • TRP (Total Rent Payment) = 30% * Adjusted income – UtilityBenchmark

Benchmark rent

• Using payment standard• Using rent standard (=payment standard – UtilityBenchmark)

HUD Subsidy

• HAP = MIN[(Rent + Utilityallowance – TTP) , (payment standard – TTP)]

• HAP = MIN[(Rent – TRP) , (rent standard – TRP)]

Actual tenant contribution

• TTP• TRP + UtilityActual

• TTP (Total Tenant Payment) = 30% * Adjusted income • TRP (Total Rent Payment) = 30% * Adjusted income – UtilityBenchmark

Tenant minimum contribution

• Using payment standard• Using rent standard (=payment standard – UtilityBenchmark)

Benchmark rent

• HAP = MIN[(Rent + Utilityallowance – TTP) , (payment standard – TTP)]

• HAP = MIN[(Rent – TRP) , (rent standard – TRP)]

HUD Subsidy

• TTP• TRP + UtilityActual

Actual tenant contribution

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SOLVING PROBLEM OF SPLIT INCENTIVES - OTHERS

The problem

Solution Owner Tenant Others

Implementation

Summary

15

BENEFIT FOR OTHER STAKEHOLDERS

• Increased adoption of distributed generation

• Share the savings in the long-term

HUD

• See benefits practically• Reduced risk aversion to financing

Financers

• Reduced dependence eases capacity constraints

• Can move into on-bill financing

Utility Companies

16

IMPLEMENTATION

The problem

Solution

Implementation

Summary

17

SITE SELECTION CRITERIAPICK LOW HANGING FRUIT AND BUILD ON SUCCESS

Map Cheapest

Technology to Region

Prioritize by Potential Savings –

LCOE

Choose Easily Replicable

Pilot Projects

Ease of Implementati

on – Net metering, Subsidy

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KNOWLEDGE SHARING

Success Stories

Open Collaborative Platform

Savings Calculator

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SUMMARY

The problem

Solution

Implementation

Summary

20

ECOSYSTEM

ESCO

OWNER

HUDRent Subsidy

TENANT

Utility Subsidy

Thank You

THANK YOU