Residential Ventilation (Cleantech to Market)


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Final presentation for UC Berkeley's Cleantech-to-Market program. Project developed commercialization strategy for Lawrence Berkeley technology.

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  • Adam- Green theme- RIVEC is the next generation of home ventilation that saves energy and maintains air quality
  • Adam3 MBA's and an EE PhDScientist team at LBNL
  • AdamAir exchange is necessary for healthy homes (pollutants build up inside) But HVAC is major component of home energy use
  • AdamResponse to HVAC energy consumption --> tighter home envelopes But additional mechanical ventilation is mandated for air quality standardsASHRAE 62.2 mandates minimum ventilation level for tighter homes
  • AdamToday: 18 States and around 200,000 new single-family homes subject to ASHRAE 62.2By 2013: 36 states and estimated 800,000 new homes in ASHRAE statesMarket size: $100-300MEnergyStar offers additional value proposition, especially in short-term64,000 new builds in US in 2009 outside of ASHRAE states
  • KelvinPatent-pending algorithm incorporates key data points and activity of other fansAlgorithm informs central fan, like a bathroom fan or whole-building fan when to runResponsive system saves energy compared to running 24/7
  • KelvinTwo essential paths to market: software or hardware productsLab has developed viable standalone hardware solutions with sensors/routers, but capital intensive and no competitive advantage with hardwareTwo software routes: installing in existing environmental controls or more sophisticated home energy systems
  • AlexRIVEC best partnership options are software installs into equipment with existing network capabilitySoftware is low capital, low opex and provides differentiation
  • Kelvin-pre-1996 houses are generally not tight enough, and do not need mechanical ventilation-post-1996 houses, even if tight enough, may not have ASHRAE compliant ventilation. Adding an ASHRAE compliant ventilation is a costly operation.-Retrofits that are adding ASHRAE compliant ventilation, such as the retrofits that get EnergyStar certification, have approximately been 12.5k/yr in the past 8 years
  • Alex
  • Serge:“Value generated” by RIVEC across different parts of the value chainFor example: Energy savings: $ savings on utility bill for home-occupants, peak reduction for utilities.In terms of potential value from RIVEC, we see the largest potential for home-builders.Homebuilders care about energy efficiency because it has become part of building code and green building certifications. Green certifications increase the value of new homes… for instance Energy STAR -> Transition to next slide.
  • Energy STAR requires 15% higher energy efficieny than mandated by building code -> i.e. a energy star home should use 15% less energy. They way home builders typically achieve the 15% is from Lighthing, appliances (e.g. dishwasher) and HVAC.
  • AlexValue-Add relies on capturing value to buildersSoftware is way to goNear term: Focus on integration in EnergyStar markets like TexasLonger term: Focus on building value through increased functionality and data collectionNext StepsContinue product testing: software development and integration with environmental controlsDevelop increased functionality:Test different sensor typesEvaluate potential for data collection and remote adjustments
  • Alex
  • Serge:In 2010 new residential floor space completed in China reached 1.8bn sqmetres, slightly less than the entire housing stock of Spain.
  • SergeUse pictures.
  • SergeWe thought builders would be the biggest problem (favor low fixed cost, low efficiency solution). We discovered RIVEC can help them meet efficiency standards at LOWER costTriple Value Proposition:Lower capital cost than other efficiency measuresReduces operating costs for consumer (energy)Better air quality maintenance
  • SergeUse pictures.
  • SergeUse pictures.
  • Residential Ventilation (Cleantech to Market)

    1. 1. Residential Integrated Ventilation Energy Controller (RIVEC)<br />UC Berkeley Cleantech-to-MarketMay, 2011<br />University of California, Berkeley | Cleantech-to-Market<br />
    2. 2. Outline<br />University of California, Berkeley | Cleantech-to-Market<br />2<br />
    3. 3. The Team<br />Adam Boscoe, MBA 2012<br />Oil & Gas Consultant, PFC Energy<br />Master’s Energy Economics, ITBA<br />Financial Analyst<br />Alex Pederson, JD, MBA 2012<br />Former CFO of renewable start-up<br />Practiced as a tech-focused transactional attorney<br />LBNL Scientist Team:<br />Iain Walker, PhD, Staff Scientist<br />Max Sherman, Phd, Senior Scientist<br />Post-Doc Assistants:<br />DarrylDickerhoff<br />David Faulkner<br />Serge Stanek, MBA 2012<br />International management consulting experience emphases in sales, marketing and corporate growth strategies<br />Kelvin So, EE PhD<br />Technical expertise in software development and hardware integration<br />University of California, Berkeley | Cleantech-to-Market<br />3<br />
    4. 4. Air exchange is crucial to indoor air quality, but ventilation accounts for a large chunk of energy use<br />University of California, Berkeley | Cleantech-to-Market<br />4<br />CO<br />VOCs<br />Mold<br />Source: DOE, “2009 Buildings Energy Data Book”. <br />
    5. 5. Energy efficiency improvements come at a cost to indoor air quality<br />Challenge<br />University of California, Berkeley | Cleantech-to-Market<br />5<br />Trend<br />ASHRAE 62.2 ventilation required<br />Source: Sherman & Matson (2002) <br />ASHRAE 62.2: New standard that mandates minimum ventilation standard beyond windows<br />
    6. 6. Economics of the technology are driven by regulatory compliance with ASHRAE 62.2 rollout across US<br />University of California, Berkeley | Cleantech-to-Market<br />6<br />ASHRAE 62.2 Adoption<br />Energy Star New Homes (2009)<br />< $200k<br />2010<br />$200-1,000k <br />2013<br />> $5M<br />> 800,000 new builds subject to ASHRAE requirements by 2013<br />Market size: $100-300M<br />~64,000 new builds in states without ASHRAE adoption (2009)<br />Market Size: $10-30M<br />Texas example:<br />Largest Energy Star market (29,000 new builds in 2009)<br />120,000 new homes subject to ASHRAE beginning 2013<br />
    7. 7. RIVEC reduces ventilation energy usage while maintaining indoor air quality<br />Secondary Ventilation Activity<br />University of California, Berkeley | Cleantech-to-Market<br />Inputs<br />Outputs<br />RIVEC Software<br />Primary Fan<br />(eg. Bathroom)<br />House Characteristics<br />Size<br /># Fans/Capacity<br />Climate<br />7<br />
    8. 8. Pathway to market could be standalone hardware, or software integrated into existing controls or HEMS<br />Standalone hardware<br /> <br /><ul><li>Add-on to existing ventilation
    9. 9. Manufacturing complexity
    10. 10. One provider for ventilation
    11. 11. Require communication with sensors
    12. 12. Hardware setup allows for easy implementation
    13. 13. Infant market</li></ul>University of California, Berkeley | Cleantech-to-Market<br />8<br />Software (“RIVEC inside”)<br />Algorithm<br />Environmental Controls<br /> Home Energy Management<br />inside<br />
    14. 14. Potential partners are fragmented and don’t offer dual value proposition of efficiency and air quality<br />University of California, Berkeley | Cleantech-to-Market<br />Infant market<br />No clearly dominant player <br />Open communications standard<br />No ventilation control<br />Adjusts for temp. (not ventilation)<br />Large players with manufacturing & distribution capabilities<br />No dominant players (incumbents < 30% of market)<br />Software solution overcomes initial capital barriers and creates a competitive advantage in a highly competitive/undiversified market<br />9<br />
    15. 15. Potential to install in both new homes and retrofits, but new builds are more attractive path to market<br />University of California, Berkeley | Cleantech-to-Market<br />10<br />VS.<br />New Builds<br />Retrofits<br />Buyer<br />Installation<br />Market Size<br />
    16. 16. Most common solution for meeting minimum ventilation levels has operating cost and efficiency disadvantages<br />University of California, Berkeley | Cleantech-to-Market<br />11<br />Common Solution<br />VS.<br />RIVEC<br />How<br />Purchase Price<br />Operational Cost<br />Home builders favor cheaper, less efficient systems, transferring costs to the homeowner/utility<br />
    17. 17. Analysis of value chain indicates that minimum viable product must tap home-builder interests<br />Benefits/ unit<br />Total Value Generated= $969/unit<br />University of California, Berkeley | Cleantech-to-Market<br />Participant<br />Benefit<br />12<br />
    18. 18. Homebuilders have high costs for energy efficient HVAC equipment – RIVEC offers better value proposition<br />= 15% reduction vs. energy code<br />RIVEC<br />HVAC<br />(5%)<br />Average cost of upgrade to energy efficient central cooling unit=$400<br />Lighting<br />(6%)<br />Appliances<br />(4%)<br />RIVEC can reduce investment in expensive cooling equipment<br />2% Reduction<br />13<br />University of California, Berkeley | Cleantech-to-Market<br />
    19. 19. Summary & Next Steps<br />What have we learned?<br />Most promising segment: new homes in markets with tighter envelope specifications and ASHRAE 62.2 adoption<br />Value-add relies on capturing builder benefits (EnergyStar compliance)<br />Path-to-market: most promising is software integration into existing hardware<br />Development Timeline<br />University of California, Berkeley | Cleantech-to-Market<br />14<br />1<br />2<br />3<br />2011<br />2012<br />2014+<br />
    20. 20. Thank You!<br />UC Berkeley Business Plan Competition<br />15<br />Thanks to our sources:<br />
    21. 21. Appendix<br />UC Berkeley Business Plan Competition<br />16<br />
    22. 22. Competitive landscape (alternate slide)<br />University of California, Berkeley | Cleantech-to-Market<br />17<br />RIVEC adds value to these segments<br />Home Energy Mngmt System<br />Ventilation Controls<br />Feature Set<br />Manufacturers (Whole-Building Fans)<br />Price Point<br />
    23. 23. China is booming new home market, but for now obstacles outweigh potential for RIVEC <br />Market potential<br />Obstacles<br /><ul><li>Booming residential real estate market
    24. 24. ~ 18 million new homes built in 2010
    25. 25. Air pollution makes smart ventilation critical
    26. 26. Some government focus on energy efficiency
    27. 27. No ASHRAE 62.2 equivalent implemented
    28. 28. Only 30% of homes compliant with building code
    29. 29. No widespread adoption of Energy STAR or comparable standards
    30. 30. Real estate “bubble” about to burst?</li></ul>University of California, Berkeley | Cleantech-to-Market<br />
    31. 31. RIVEC offers benefits for home-owners, home-builders, ventilation device manufacturers and utilities<br />Benefits<br />Customers<br />Lower electricity bill<br />Comfortable air quality, no “cold spots” <br />Further tax or utility incentives<br />Home owners / tenants<br /><ul><li>Building code compliance
    32. 32. Simple, economic way for energy efficiency
    33. 33. Higher value of “green” new homes </li></ul>Home builders<br /><ul><li>Improved Energy efficiency of fans (key selling argument)
    34. 34. Potential for premium product lines</li></ul>Ventilation device & control manufacturers<br /><ul><li>Peak electricity load reduction
    35. 35. Overall load reduction</li></ul>Electrical utilities<br />University of California, Berkeley | Cleantech-to-Market<br />19<br />
    36. 36. Closer Look: RIVEC Value to Builders<br />University of California, Berkeley | Cleantech-to-Market<br />Benefits/home<br />Total Value Generated= $970<br />2% reductionhome energy use<br />RIVEC<br />Builders<br />15% Reduction<br />Appliances<br />Lighting<br />HVAC<br />Weighted energy savings<br />Heating: $550-2,000<br />Cooling: $250-450<br />20<br />
    37. 37. Closer Look: RIVEC Value to Utilities-Rebate paid to home owners much less than true value to utilities<br />University of California, Berkeley | Cleantech-to-Market<br />Benefits/home<br />Total Value Generated= $970/unit<br />Save 560 kWh/year, shift 0.2 kW<br />RIVEC<br />Total value to utilities: $422*<br />Efficiency avoided cost value: $57<br />Peak permanent load shifting (PLS): $365*<br />*Utilities benefit from peak load shifting ($500/peak kW - $2,500/peak kW), but do not currently have regulatory approval to pay for non-thermal residential load shifting<br />Amount passed to home owners for comparable energy efficiency (rebate): $30-50<br />Utilities<br />21<br />
    38. 38. Sample ASHRAE 62.2 whole-building ventilation label<br />University of California, Berkeley | Cleantech-to-Market<br />22<br />To maintain minimum levels of outside air ventilation required for good health, the fan control should be on at all times when the building is occupied, unless there is severe outdoor air contamination. <br />-California Energy Commission Indoor Ventilation Minimum Best Practices Guide<br />
    39. 39. Energy Star Market<br />Single-Family Home Sales<br />Source: US Census and Energy Star<br />23<br />Top 10 Energy Star States by Sales (2009) <br />Source: US Census and Energy Star<br />Energy Star Home Sales (2009)<br />University of California, Berkeley | Cleantech-to-Market<br />