specific area ($ per m2) depending on home category, minimizes transaction costs and complexity.

The delivery of standardized retrofits at high volumes to Windsor homeowners is an essential feature of the Business Case and has been designed to drive market transformation. The business model reduces the cost of the average retrofit by 33%. This is achieved through efficiencies in:

• reduced selling costs through standardized offerings and pricing;

• elimination of contractors’ costs to promote and prepare customized proposals;

• increased contractor labour productivity;

• volume pricing for key material categories; and

• lower cost financing through consolidation.

As the market transforms and the experience of the program administrator grows, it is anticipated that greater program flexibility may be possible without undermining the core business model. In the beginning, certain exemptions may be tolerated by the business model. For example, if the homeowner has recently replaced their furnace with one that meets the energy performance standards of the program, this investment could be recognized as a credit to the standard retrofit price.

3.2.3.2 Market Analysis

One of the more challenging features of this business model is understanding the market for a fixed offering rather than a more traditional “a-la-carte” retrofit approach. To begin to understand the market, the PWT explored several marketing approaches:

• mapping of homes by type and age (Appendix E);

• mapping of residential energy consumption, emissions, cost and demographics (e.g., household income) by energy planning district (EPD) (Appendix E);

• home energy modelling by type and age (Appendix E);

• homeowner personas (Appendix H);

• homeowner surveys (Appendix I); and

• homeowner focus group (Appendix C).

A more rigorous market analysis, using this data and additional primary (e.g., additional surveys and focus groups) and secondary research (e.g., sources of existing market data), would be conducted by the Entity to support the development of the Business Plan and a successful program launch.

3.2.4 Project Measures

The R-DEER Business Case assumed that the Entity’s early offering would be comprised of energy and water efficiency measures. A review of the measures assumed in the Business Case would minimize any impact on Building Department workflows (Appendix J – Energy Efficiency Retrofits & the Ontario Building Code). Over time, and in consultation with municipal stakeholders, it is expected the Entity would consider offering other energy-related retrofit options (e.g., solar power, solar hot water, vehicle charging stations, air and ground source heat pumps). It is recognized that the R-DEER Entity could serve as an effective platform from which to promote other CEP strategies (e.g., the promotion of solar PV) as well as other complementary government, regulator and utility programs.