SEATTLE CITY LIGHT COMMUNITY SOLAR Public Opinion Research Results

1. SEATTLE CITY LIGHTCOMMUNITY SOLARPublic Opinion Research Results March 2010 Presented by Alison Peters Consulting

2. Survey Methodology Margin of Error: +/- 4.45 % overall, but larger for subgroups

3. Survey Demographics

4. City Light Service Area

5. Research Questions • Are City Light ratepayers interested in participating in a community solar project? • What are the most appealing benefits of community solar? • What model are ratepayers more likely to join? • What are the barriers to participation?

6. Interest in Community Solar Are City Light ratepayers interested in a community solar project?

7. 29 percent of ratepayers have checked into solar but then 18 percent backed out because of cost; another 48 percent have read about solar Q: What is your current level of participation in solar energy?

8. Women over 45 have done the most early research into solar while the majority of men under 45 have read about it Q: What is your current level of participation in solar energy?

9. There are differences in behavior between “Hardcore” men and women; also note the barriers renters face Q: What is your current level of participation in solar energy? *Hardcore is defined as a respondent rating themselves 7-10 on the 1-10 Green Index, where 10 is someone who says they do as much as they can for the environment on a regular basis

10. Almost 1 in 4 ratepayers express strong interest in community solar Q: How interested are you in participating in a community solar project?

11. Interest in solar is highest within Seattle’s core Q: How interested are you in participating in a community solar project?

12. Interest is correlated with age; younger residents are more interested in a solar project Q: How interested are you in participating in a community solar project?

13. Even without information about price, higher income residents expressed more interest in solar Q: How interested are you in participating in a community solar project?

14. Those who have looked into solar already and do a lot for the environment are very interested Q: How interested are you in participating in a community solar project? *Hardcore is defined as a respondent rating themselves 7-10 on the 1-10 Green Index, where 10 is someone who says they do as much as they can for the environment on a regular basis

15. Those who were not interested in solar identified “cost” as an initial barrier to participating Q: Which of the following is the primary reason you are not interested?

16. Most cost sensitive subgroups: Q: Which of the following is the primary reason you are not interested?

17. Least cost sensitive subgroups: Q: Which of the following is the primary reason you are not interested?

18. Key Findings from this Question Series: • Awareness of solar energy in Seattle is very mainstream. 48% of customers have read something about solar and 29% of customers have looked into installing panels themselves. • Two-thirds of ratepayers rated themselves at least a 7 on a 10 point scale where a 10 is the most they regularly do to reduce their environmental impact (i.e. composting, using energy efficient light bulbs, taking transit or buying organic food). Twenty-four percent rated themselves a 5 or 6 on the 10 point scale and only 10 percent said their behavior warranted a rating of 4 or less. • Twenty-three percent of ratepayers said they were “very interested” in a community solar project at the beginning of the poll. Interest was higher among ratepayers under 45, Seattle residents north of Madison Street, hardcore environmentalists and more affluent households. Those who have checked into solar in the past are also very likely to be interested in a future community solar project. • Another 46 percent of ratepayers said they were “somewhat interested” in a community solar project. These are customers who would need quite a bit of information before they would join. • Even though the cost of the program had not been identified yet, many ratepayers had the perception that getting a community solar program up and running would be expensive. As such “Cost” was the number one initial barrier identified by survey takers who were not interested in participating in community solar. The most cost sensitive subgroups included residents outside Seattle’s core neighborhoods, senior citizens over 60 and households earning less than $50,000 in income per year.

19. Project Benefits What do ratepayers see as the benefits to community solar?

20. Ratepayers found community solar appealing for two reasons: it would reduce our dependence on other forms of energy and local workers would build the project Q: Listen and tell me which three are the most appealing aspects about this project.

21. Hardcore environmentalists believe community solar will bring more benefits to the region beyond jobs and a new source of energy production Q: Listen and tell me which three are the most appealing aspects about this project.

22. Women like that the project would add jobs and educate the community; men were persuaded by information that the project had investment potential and uses exciting, new technology Q: Listen and tell me which three are the most appealing aspects about this project.

23. Key Findings from this Question Series • Between 60 and 65 percent of all ratepayers agreed that the two most appealing benefits of community solar are that the project would employ local workers and the project would reduce our dependence on current energy sources. Other benefits were only appealing to 35 percent of ratepayers or less. • What separates the hardcore environmentalists (66% of ratepayers) from the rest of the region is the degree to which they can see broader benefits to a community solar project. In addition to bringing new jobs to the area and producing clean energy, hardcore environmentalists are excited about educating the community about solar and building the project with local materials. • Men and women had very different reactions to the messages about community solar. Women liked the jobs message and the clean energy message. In contrast, men were much more likely than women to respond to the message about the project providing an investment opportunity and “exciting new technology.”

24. Community Solar Models What model are ratepayers more likely to join?

25. 13 percent of ratepayers are “very likely” to join the Investor Model Q: How likely are you to participate in community solar if it required an upfront investment with yearly credits paying back your original investment in 10 years?

26. The most likely participants in the Investor Model are 35 to 59 years old and earn at least $50K in income Q: How likely are you to participate in community solar if it required an upfront investment with yearly credits paying back your original investment in 10 years?

27. People who have already looked into solar and consider themselves strong environmentalists are also good candidates for the Investor Model Q: How likely are you to participate in community solar if it required an upfront investment with yearly credits paying back your original investment in 10 years?

28. Over half of all potential investor model participants said they would join the program at $600 upfront Q: If you heard the cost of the panels was _______, would you participate?

29. About 40 percent of those who opt for the Investor Model would buy more than two panels, but another 44 percent two panels is all they can afford Q: Would you consider buying more than two panels if each were priced at $1200 each? If yes, how many? 38%

30. Men, affluent customers and younger residents are intrigued by purchasing additional panels through the Investor Model Q: Would you consider buying more than two panels if each were priced at $1200 each? If yes, how many? Who’s not on this list? Women & seniors!

31. Spreading out the investment doesn’t attract more participants overall, but it does spark the interest of some (18%) who were initially not interested in the Investor Model Q: Would you be interested if you could spread the investment out? So to get one panel, you could pay $100 a month for one year.

32. 13 percent of ratepayers are “very likely” to join the Monthly Model Q: Another option would allow you instead to pre-purchase a certain amount of solar energy each month. How likely are you to participate in this program? 56% 37%

33. The most likely participants in the Monthly Model are Under 45 and earn less than $100K Q: Another option would allow you instead to pre-purchase a certain amount of solar energy each month. How likely are you to participate in this program?

34. Over a third of ratepayers said they could afford $25 or more each month Q: How much would you be willing to contribute each month? At the end of the year, you would receive credit for the power produced.

35. The market opens up if City Light creates tiered participation levels Q: How much would you be willing to contribute each month? At the end of the year, you would receive credit for the power produced.

36. After information was presented, 63% of ratepayers expressed interest in community solar Q: Now that you’ve heard more about community solar projects, would you join _______? 63%

37. By the end of the survey, several groups expressed a lot of interest in community solar Q: Now that you’ve heard more about community solar projects, would you join _______?

38. But some subgroups said none of the programs appealed to them Q: Now that you’ve heard more about community solar projects, would you join _______?

39. Key Findings from this Question Series: • The level of strong interest (i.e. the percentage of ratepayers who indicated they would be “very likely” to participate) in the Investor Model and the Monthly Model is exactly the same: 13 percent. • Including soft interest (i.e. the percentage of ratepayers who indicated they would be “somewhat likely” to participate), the Monthly Model gets to 56 percent and the Investor Model ends up with 52 percent. • Interest in the Investor Model is highest among households earning at least $50K and 35-59 year olds. Cost is a significant barrier to participate, however, if the entry price to invest was only $600, many more ratepayers indicated they would participate (54%). • 38 percent of those who would invest $2400 for two panels said they would buy at least a third panel and possibly more. 44 percent said they would buy two panels at $2400 but couldn’t afford more than that. Men, especially men under 45, and households earning $100K in income, are good targets for up selling. Women and seniors over 60 were found to be fairly cost sensitive.

40. Key Findings from this Question Series: • A proposal to spread out the initial investment into twelve monthly payments did not increase interest in the Investor Model overall. However, it did drive up some interest from one key group: people who initially were NOT interested in the Investor Model. • The Monthly Model is most popular among residents under 45 and people who earn less than $100K. Among $35K to $50K households, 18 percent said they were “very likely” to join the Monthly Model. • After information was presented throughout the poll, 63 percent of all ratepayers want to join one of the programs or would join either one. The Monthly Model is preferred to the Investor Model by more than 4:1. • A high income over $100K is strongly correlated with participation. Residents under 45 and residents living in north of Madison Street (36th LD, 43rd LD and 46th LD’s) are also likely participants. Renters want to participate, but will do so at smaller dollar amounts. Younger women and hardcore women will participate, but as a group, women have been very cost sensitive since 2008. Seniors should not be targeted for this program.

41. Barriers to Participation What is holding ratepayers back from expressing interest in community solar?

42. By the end of the survey, 30% opt out because of cost but another 29% say they still want more information before joining Q: What would be the primary reason for you not participating in a community solar project? (N=188)

43. Barriers and misconceptions mentioned by different subgroups Q: What would be the primary reason for you not participating in a community solar project? (N=188)

44. Key Findings from this Question Series: • Young men and high income earners question whether solar “does enough.” The research indicates these are two important target subgroups so City Light will need to weave data that show the impact of a community project in Seattle, the financial opportunity and the exciting technology advances which were shown to appeal to men. • Some subgroups will not be able to afford to participate in the Investor Model or join the Monthly Model at $20 or $25 dollars a month on a recurring basis. However, they still might be doing positive things for the environment on a regular basis and consider community solar a great program. For these individuals and couples on a tighter budget, City Light should consider an option to capture the interest of citizens who still want to join. The likely participants in a “basic” Monthly program would include renters, 18-34 year olds, residents outside Seattle, single women and households earning less than $50,000 a year in income. • People considering the Investor Model will have a lot of questions before they join. Promotional materials, including a brochure and web site FAQ’s, will need to be developed to answer questions about how the program would work if City Light moves in the direction of an Investor Model.

45. Recommendations • The Monthly Model gives City Light more flexibility to attract a wide range of participants at 35 percent of customers would pay more than $25 a month. This may generate as much revenue as the Investor Model if participation is high. • The most likely program participants live North of Madison in three of Seattle’s central legislative districts (the 43rd, 46th and 36th). City Light’s early marketing resources should be spent signing up homeowners and renters from these areas first, and expand outside this area after several months. • The two most appealing benefits of community solar (jobs and green energy) should be used for most marketing pieces. Other benefits can be used to target smaller populations (i.e. hardcore environmentalists, Under 45 men, renters).

46. Recommendations • Stanley…I think we need some public involvement stuff here…how you would recommend City Light roll the program out, get information to people, etc. Do you have some ideas?

47. Thank You! Alison Peters Consulting EMAIL: alison@alisonpetersconsulting CELL: 206.229.4981