TECHNICAL BRIEF BACKGROUND THE BIDGELY SOLUTION. Bidgely Hybrid Model. 100% Appliance Itemization

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TECHNICAL BRIEF 100% Appliance Itemization Technical Brief 100% Appliance Itemization THE GOAL: 100% Energy Breakdown BACKGROUND It is well-established that customer engagement - regardless of industry - is a critical element that separates great companies from the rest. In the residential energy sector, one proven way to engage customers is through energy disaggregation: taking the customer s total energy consumption and attributing it to different appliances in the home. Yet as energy disaggregation continues to become more mainstream in its applications, there remain instances where data limitations can cause the end user to have disaggregation for only a portion of their consumption. Unfortunately, in these scenarios the opportunity to educate customers on appliances that are not disaggregated is lost. THE BIDGELY SOLUTION To address this limitation, Bidgely has developed a hybrid approach that combines its industry-leading disaggregation algorithms with a localized rule-based model, the combination of which provides 100% itemization of energy consumption. There are a number of benefits to this type of approach: Data Flexibility Works with all types of energy data: - HAN (better than 1 minute sampling rate); - AMI (15/30/60 minute sampling rate); - Monthly (1 sample per month). - It also works for gas consumption Localization Minimal development required to localize for a given state, region, or country Self-Improving As the end user engages more, the accuracy of the results continues to improve Bidgely Hybrid Model HOW DOES IT WORK? To create 100% appliance itemization, Bidgely utilizes a rule-based hybrid model with 3 main inputs: 1. Disaggregated customer energy data; 2. An established set of rules, weights, and conditions; and 3. Available localized energy consumption information info@bidgely.com 1 2016 Bidgely, Inc

100% APPLIANCE ITEMIZATION PIPELINE 1. Import geography-specific public appliance usage data into the model 2. Get home energy usage for the month 3. Fetch all available attributes for the user/home 4. Run our standard disaggregation algorithms. This will typically disaggregate 50-70% of the energy usage depending on the home. 5. Pass the results from (3) and (4) into the rule-based model. 6. Get the complete appliance breakdown of energy usage. Creating the Rule-Based Model Creating the rule-based model is an offline information-gathering exercise that needs to occur before the solution is deployed. The information sought for creating the model centers around recent reports on residential energy consumption in the local geography, typically covering the following information/categories: Electricity Gas Consumption Variables Refrigeration Space Heating Property Type Heating Water Heating Property Size Cooling Property Age Water Heating Own vs Rent # Occupants Occupant Life Stage Space Heating Type Water Heating Type Month of Year Weather BIDGELY 100% ITEMIZATION RESULTS Bidgely has evaluated 100% itemization in the UK. Below is a comparison of the profiles 1 and results from two home types. is a newer 2-bedroom, all-electric flat (apartment), with 2 adult occupants. Property Type: Flat (apartment) Size: 2 Bedroom Built: Post-2000 Occupants: 2 Adults Gas Appliances: None Main Electric Appliances: Heating, Water Heating, Refrigeration, Oven, Hob (stove), Kettle, Dishwasher, Washing Machine, Dryer is an older 4-bedroom, gas and electric semi-detached home, with 2 retired occupants. Property Type: Semi-Detached Size: 4 Bedroom Built: 1925-1976 Occupants: 2 Retired Adults Gas Appliances: Heating, Water Heating, HOB Main Electric Appliances: Refrigeration, Oven, Kettle, Dishwasher, Washing Machine, Dryer 1 - detailed profile information for the example homes can be found in the Appendix info@bidgely.com 2 2016 Bidgely, Inc

I was amazed at how the chart represented my own June Energy Usage view of how my energy is broken down for June. - Occupant 6% 9% 1 7% 10% 35% June Energy Usage 10% 9% 61% This looks like the real picture. - Occupant Always On Space Heating Refrigeration Water Heating Always On Refrigeration In comparing the June energy usage for the two homes, a few differences become apparent. Although is larger, is an all-electric flat. As such, has more appliances making up the pie, as well as a much higher energy use. Because has some significant gas appliances, it has a higher percentage of electricity usage coming from Always On (61% vs 35%). But in terms of total Always On consumption, (173 kwh) and (171 kwh) are quite similar. This can be justified by the fact that the additional electric appliances in - Heater, Water Heater, HOB - do not contribute much (if anything) to Always On usage. January Energy Usage 7% 6% 8% 5% 21% 6% January Energy Usage 18% 41% 42% 8% 15% Always On Refrigeration Always On Refrigeration Space Heating Water Heating info@bidgely.com 3 2016 Bidgely, Inc

In comparing the June/January energy usage for the two homes, the first notable difference is the increase in overall energy usage in winter. For, much of that higher usage is due to the increase in Electric Heating. For, there is a significant increase in, as well as a notable increase in. As the winter months are darker and colder in the UK, it makes sense that the retiree occupants would be using more lighting and electric cooking. CONCLUSION In the residential energy sector, one proven way to engage customers is through energy disaggregation: taking the customer s total energy consumption and attributing it to different appliances in the home. However, with current disaggregation algorithms, end users typically only see a portion of their total energy consumption. To address this shortcoming, Bidgely has developed a hybrid disaggregation approach that combines its industry-leading disaggregation algorithms with a localized rulebased model. The combination of these two elements provides 100% itemization of energy consumption, creating a more engaging experience for our end users throughout the globe. info@bidgely.com 4 2016 Bidgely, Inc

APPENDIX Profile Information Parameter Property Type Flat Semi-Detached Size 2 Bedroom 2 Bedroom Age Post-2000 1925-1976 # Occupants 2 2 Occupant Type Working Adults Retirees Heating Electric Gas Boiler Water Heating Electric Immersion Gas Boiler Refrigeration Yes Yes Oven Electric Electric Grill Electric Electric HOB Electric Gas Microwave Yes Yes Toaster Yes Yes Kettle Yes Yes Dishwasher Yes Yes Washing Machine Yes Yes Dryer Yes Yes Iron Yes Yes TV Yes Yes DVD/BluRay Yes Yes Digital TV Box Yes Yes Game Console No No Computer Yes Yes Tablet Yes Yes Electric Shower No No Pool No No Sauna No No Electric Vehicle No No info@bidgely.com 5 2016 Bidgely, Inc