The Mind of the Home Performance Customer

Transcription

1 The Mind of the Home Performance Customer Affordable Comfort Denver, CO May 1,

2 Introduction & Background 2

3 Session Objectives Better understand homeowners' attitudes, knowledge, motivations, and activities with regard to energy efficiency, and the barriers that prevent them from making energy improvements Learn the strategies that are most effective at providing a more complete and believable customer relationship Identify market and program strategies to overcome customer barriers 3

4 Agenda Fill in. 4

5 Vermont Energy Investment Corporation Mission-driven nonprofit 25 years reducing economic, environmental costs of energy 3 regional hubs 35 states, 6 Canadian provinces 6 Countries in Europe, Asia Energy efficiency, renewable energy & transportation 5

6 Vermont Energy Investment Corporation National & international consulting & implementation Program design, planning, & evaluation; policy & advocacy, research & development 3 Energy Efficiency Utilities Efficiency Vermont: nation s 1 st energy efficiency utility Efficiency Smart: efficiency services to 48 Midwest municipal electric systems DC SEU: sustainability services in the nation s capital 6

7 Efficiency Vermont Statewide energy efficiency utility Provides technical assistance, rebates, and financing to help homes and businesses save energy Funded by electric ratepayer charges, RGGI, and FCM funds Operated by VEIC under appointment by the Vermont Public Service Board Vermont sponsor for market-based Home Performance with ENERGY STAR program 7

8 Home Performance with ENERGY STAR in Vermont Market-based program operated since 2005 Began offering rebates in 2009 with new funding from RGGI and FCM Building Performance program offers similar services to small businesses and small multifamily buildings Vermont homes are old and heated primarily with a mix of oil, propane, and wood Typical projects include air sealing, insulation, and ventilation and save 20-25% of heating energy savings 8

9 Home Performance with ENERGY STAR in Vermont 80 participating contractors Contractor model with most contractors doing a mix of home performance and general renovation work 9

10 HPwES Completions by Year 1200 Number of HPwES Jobs Year 10

11 Vermont Thermal Efficiency Goals Improve the energy fitness of 25% of the state s housing stock by 2020 (approximately 80,000 housing units) Reduce annual fuel use and fuel bills by an average of 25% in housing units served Increase weatherization services to low income Vermonters 11

12 Thermal Efficiency Taskforce Based on current programs and funding, Vermont will achieve about half of the 80,000 unit goal That s more than 5,000 HPwES jobs per year by

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14 Research Partnership Process evaluation of Efficiency Vermont Home Performance with ENERGY STAR program Focus on program participants and stalled participants Funded by VT Department of Public Service Market research on Vermont nonparticipants Focus on program participants and stalled participants Funded by High Meadows Fund in partnership with Efficiency Vermont Research conducted by Research Into Action and GDS Associates 14

15 Research Into Action Overview Better understand homeowners' attitudes, knowledge, motivations, and activities with regard to energy efficiency, and the barriers that prevent them from making energy improvements Learn the strategies that are most effective at providing a more complete and believable customer relationship Identify market and program strategies to overcome customer barriers 15

16 Research Questions Barriers to and motivations for participation Awareness of programs Coordination with program staff and contractors Audit experiences and results Satisfaction with program processes and results Interest and activities related to energy efficiency Homeowners decision stages for adopting energy efficient behavior 16

17 Research Methodology Fill in. 17

18 Research Findings 18

19 Customers want to lower bills Improve comfort (18%) To lower my bills Save energy to help the environment (16%) (62%) Replace broken equipment (11%) 19

20 Participants learned of program in nontypical ways Word of mouth (26%) Newspapers (19%) 82% aware Efficiency Vermont Participation Energy Audits Not just CFLs 20

21 Participants satisfied; often upper-income Satisfied Satisfaction the same between Incomes differ with contractor (92%) with audit report (89%) Efficiency Vermont Heat Squad EVT = Higher Income Heat Squad = Middle Income 21

22 Financing and incentives can t overcome all barriers Ways to Increase Participation Barriers 22

23 Overall cost is the biggest barrier, financing could help Barrier n=36 Stalled Participants n=28 Overall cost is too high 43% Project cost 78% Financing issues 50% Amount money we'd save is small 31% Up-front cost is too high Didn t want to take on debt 32% 21% Needed financing 14% 23

24 Who doesn t participate? Compared to participants Concern for Finances Concern for Environment Age of Home Duration Owned Home Income Stalled Participants Engaged Nonparticipants Standard Nonparticipants 24

25 Confidence in the energy savings is the most desired program Confidence that estimated energy savings would be realized (n=604) Rebates that offset the cost of equipment (n=602) Access to attractive financing options (n=610) A third-party inspection to guarantee quality (n=608) 32% 37% 76% 74% Assistance finding a contractor (n=613) 22% A third- party project advisor to manage the project for me (n=606) 11% 0% 80% Percent Rating "Valuable" 25

26 Most customers who have already taken some action and most want to do more 52% interested in EE improvements Most cited reason: Desire to lower heating/electricity bills (71%) 28% 72% 60% interested in more EE improvements Completed projects Not completed projects More interested in insulation than those with no previous projects (34% vs. 20%) 26

27 Customers are already taking action outside of the program Added Insulation (30%) Replaced Windows (26%) 17% Ideal for EE: Got an estimate for a renewable energy system Replaced furnace (22%) Replaced Appliances (10%) Installed CFLs (10%) 27

28 Recommendations and Next Steps 28

29 Key Recommendations Improve confidence in energy savings through a variety of strategies Create a long-term relationship with customers that encourages customers to take the next step, and allows them to complete the work in stages Create alternative pathways to bring in more out of program work (DIY, fuel dealers, incentive structure changes) Improve and expand financing options, with a focus on positive cash flow 29

30 Recommendations will be expanded and concluding slides added 30