Unlocking Residential Electrification with Inclusive Utility Investments in Ipswich

In a groundbreaking effort to accelerate the transition to clean energy, CET and the Ipswich Electric Light Department (IELD) launched an Inclusive Utility Investments (IUI) pilot program in Ipswich, Massachusetts.

This innovative program, the first of its kind in Massachusetts, aims to make residential electrification accessible by eliminating the financial barriers that often prevent residents from adopting energy-efficient technologies.

Table Of Contents

Program Overview
Key Results and Impacts
Customer Engagement and Project Execution
Lessons Learned
Conclusion
- the full report

Program Overview

The pilot program, initiated in July 2023, expanded on the existing ReSource Ipswich decarbonization assessment program by offering IUI to a select group of customers. The primary objectives were to demonstrate the viability of IUI across various customer types, validate its potential to finance priority measures like weatherization and heat pumps, and create a framework that could be scaled to other utilities.

With a capital investment ceiling of $100,000, the program targeted 4-5 homes with different customer profiles, including multifamily properties with renters, low-income households, and homeowners using oil or natural gas heating. The goal was to show that IUI could work for a diverse range of customers, even those who typically face financial constraints.

Key Results and Impacts

Electrification Enabled in All Participating Homes: The program enabled full or partial HVAC electrification in all participating homes.

Cost Reduction: Customers experienced a reduction in upfront costs by 84%, making clean energy investments more feasible.

Long-term Savings: Participants saw an average of 20% savings on their energy bills over their historical costs.

Environmental benefits: The program mitigated over 400 tons of lifetime CO2 emissions.

Customer Engagement and Project Execution

Out of six initial candidates, three projects were successfully completed, serving single-family homes heated by oil. The projects typically took about six months to complete, with the most extended phase being measure installation and invoicing. The program reduced customer costs significantly, with average project costs at $35,370 and upfront customer contributions averaging $6,217.

Lessons Learned

Customer and Contractor Communication is Crucial: Effective communication with contractors was necessary to explain program rules and billing requirements, ensuring smooth project implementation.

Securing Capital Takes Time: Obtaining the necessary funding can be time-consuming due to regulatory hurdles, such as town voting requirements.

Upfront Costs May Persist: Despite reduced costs, some upfront expenses remain inevitable due to the high cost of whole-home heat pumps in the area. Additional funding sources will be necessary to alleviate these costs for income-eligible customers.

Tariff design matters: Tariffs should be applied per measure rather than as a single line item to enhance clarity and facilitate easier cost recovery.

Varied installation timeline: The time required for project completion varied widely, with customer and contractor coordination and external factors contributing to delays.

Conclusion

The Ipswich IUI pilot has demonstrated that utilities can play a pivotal role in accelerating the residential energy transition by investing directly in their customers’ energy efficiency and electrification improvements. While the pilot faced challenges, it provided valuable insights and developed a toolkit to help other utilities replicate its success. The future looks promising for expanding this innovative approach to more communities across Massachusetts and beyond.

the full report

Resource Ipswish Final Report