Case Study: NV Energy’s Smooth Transition to an All-LED Program

The Ecova Efficiency Platform’s data and analytics help maximize program success in the first year.

For years, NV Energy has encouraged its customers to purchase and install CFL bulbs for longer life and energy savings. Recently those same customers gained interest in more information about switching from CFLs to LEDs. NV Energy knew the time was right to change direction and exclusively promote LED lighting to the consumer marketplace.

In collaboration with Ecova, its longstanding implementation partner on energy efficient lighting programs, NV Energy concluded that an all-LED program would prove cost-effective and warrant inclusion in its rate base. In-store promotions and instant discounts on LEDs were launched in
February 2014.

“The extreme energy savings, longevity and low environmental impact of LEDs make them the lighting technology of the future,” said Doug Eddie, program manager for NV Energy.

THE ECOVA EFFICIENCY PLATFORM

Ecova launched the program on its newly released Efficiency Platform, which integrates point-of-sale data. Manufacturer and retailer partners—whose popular LED products are stocked on Nevada store shelves—upload weekly sales data directly into the Platform, which then automatically flows into a rigorous review workflow with built-in validations and oversight from Ecova’s expert processors. Ecova’s field team makes regular store visits to educate and aid compliance while gathering additional market data for the Platform via mobile devices. The data is automatically connected to retailer records and drives partner performance tracking.

The Efficiency Platform provides access points to all of the key stakeholders involved in program implementation. NV Energy and Ecova are able to track program status via an online dashboard accessible 24/7. Here, graphics and reports provide an overview of key performance indicators, and users can also drill into the detail or generate additional on-demand reports and queries.

This amount of readily-available insight and visibility allows the team to review sales down to a store and/or measure level against what is budgeted, monitor incentive funds and track program kWh goals. Ecova can then make appropriate adjustments to products and incentive levels to balance and achieve program targets. Additionally, the Efficiency Platform’s capabilities help make the most of NV Energy’s budget and drive down costs. Built-in workflows and automated QA/QC increase efficiency and streamline processing, and its analytics allow the team to optimally calibrate incentives to reach sales goals without wasting incentive dollars.

It was precisely this level of visibility that was needed to carefully monitor program activity as NV Energy transitioned to an LED-only program. Any imbalances in performance were quickly flagged and addressed through the various program levers in order to ensure the program was on track towards meeting its goals.

SIGNIFICANT RESULTS IN YEAR ONE

Ecova and NV Energy saw impressive results in the first year of the program:

  • Doubled goals. NV Energy nearly doubled its energy savings goals in two geographic markets.
  • Faster launch. The new flexible architecture enabled the program to be launched 37 percent faster.
  • More efficient processing. The new point of sale portal allowed partners to upload sales data directly into the Platform, and the QA/QC built into the processing workflow yielded 20 to 30 percent increased efficiency in incentive processing.
  • Effective rebates. Through field surveys, more than 92 percent of NV Energy customers credited the lighting rebate with motivating their LED purchases.
  • Savings and longevity. More than nine in 10 NV Energy customers surveyed reported that energy savings and bulb longevity were the LED attributes they valued most.

“Customer feedback from the program has been great,” NV Energy’s Eddie said. “Customers appreciate the LED information they’re getting in the store aisle from program marketing communications pieces as well as the tips on how to save energy at home.”

PROGRAM FORECAST IS BRIGHT

NV Energy was satisfied with the Ecova Efficiency Platform’s ability to provide real-time visibility into program performance. Ecova’s strong retailer/manufacturer network, localized and broader program team, and deep understanding of the technology and the market all combined to make a potentially challenging and risky transition to an exclusively-LED program predictable and manageable.

“Ecova’s Efficiency Platform and their data expertise enables us to deliver next-generation energy efficiency programs that make our customers and regulators happy. And that makes us happy.”
-Doug Eddie, program manager for NV Energy

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