1 Driving Demand for Energy Efficiency: Understanding Residential Energy Use Jennifer Mitchell-Jackson Opinion Dynamics Corp Policy Academy on Energy Efficiency Retrofit Programs July 14, 2010
Research: In Their Own Words 2 Focus groups, Internet survey, telephone tracking survey to understand effects 800 person segmentation survey 136 in-depth interviews by trained ethnographers 110 in English and 26 in Spanish ~1.5 hour discussion General discussion Walk through kitchen and primary living space Fill out brief survey Discussion of motivations and barriers
Driving Demand for Energy Efficiency 3 Know your product Know your audience Find your place in the market Understand that one tool does not fit all
4 ENERGY EFFICIENCY: A COMPLEX ASK
Know Your Product 5 It is not as simple as selling toothpaste No guaranteed demand Not just about packaging and brand Energy efficiency is a complex product no cost, low cost, and high cost actions Different attitudes and barriers across energy efficiency i actions During winter, open oven to heat house Reuse waterfromtea tea Not using oven and going out for barbeque Use microwave more
Energy Efficiency is A Solution to A Little 6 Understood Problem Households don t fully understand or think about what uses energy in the homes Most immediate associations are with active sources and tend to be behavior-based NARROW VIEW
Energy Efficiency is A Solution to A Little 7 Understood Problem Saving energy most commonly associated with lighting Key association Turn off lights Number one association with energy Install energy efficient lighting Number one association with energy
8 Energy Efficiency Associations are Driven by Visual Cues In addition to lighting, association are active, visual Water Resources Recycling Solar Energy efficiency lacks a strong environmental signal
Energy Efficiency in Home is Invisible, Not a Status-Driven Action 9 Energy efficiency i and conservation are not visible Energy efficiency i and conservation lack the social capital of other lifestyle choices
Drilling-down to Realistic Goals 10 Determine Overall Vision Determine the overarching objective (e.g., Save energy in homes ) and work to make the intangible, tangible. Determine the Ask Narrow and define the program s ask. What do you want customers to do? Apply for a rebate? Use financing? Assess Path to Action Make sure that marketing and outreach (in combination with available programs) can get customers to reach goals /Describe path to action
Path to Action 11 Assess Path to Action Understand energy use Recognize need to save Know how to save energy in your home Make decision to take action Apply for a rebate or financing
12 AUDIENCE IS VARIED WITH COMPETING DEMANDS
Know Your Audience 13 When examining motivations for saving energy.households sometimes appear homogeneous 98% feel strongly that it s important to save energy in their home 90% report being concerned about the environment
Audience May Seem Similar But 14 Meet Primary Motivator Alex The Leading Achiever Betty The Striving Believer Carlos The Practical Spender Donna The Thrifty Conserver Eric The Disconnected Save Money Save Money Save Money Save Money Save Money Primary Non-Monetary Motivations Protecting The Environment -GHG Protecting The Environment -GHG Energy Independence -Foreign Oil Protecting The Environment -GHG Protecting The Environment -Animal & Plant Key Attitudes/ Barriers/ And Potential for Action I feel I m already doing everything I can I feel I already do more than others for the environment; I m too busy; As a renter, I m not empowered to go big on EE I feel that saving energy is really not my personal responsibility; I m about comfort and convenience I m turned off by environmental messages I feel that saving energy is not my personal responsibility; I m financially i limited; I m not willing to sacrifice my comfort, convenience and appearance I m financially limited; I feel saving energy is a hassle; It s not my personal responsibility It s the government s *The segment names shown here were developed by Interbrand.
Audiences Not Moved to Action By Saving Money 15 Why saving money alone is a weak motivator Energy costs are low and a small portion of overall spending, thus the cost incentive is weak for energy reduction Most households are willing to pay for their usage -If costs increase, customers will adjust behavior to get over the shock but don t move beyond immediate action
Audiences Not Moved to Action By Saving Environment 16 Why saving the environment is a weak motivator for saving energy The relationship between household energy use and the environment is not obvious like other resources Saving the environment requires multiple actors It s not my responsibility Household effects are viewed as relatively inconsequential There are multiple options available, not just EE or EC, to live an environmentally responsible life
Doing Everything they Can 17 Households are doing everything they can because individuals are already checking off many things within their household constraints they are not aware of smarter energy use trade-offs or actions they could be taking to reduce their overall usage energy efficiency is assumed or unnecessary New is efficient and many respondents confused about what constitutes an energy efficient appliance Current List Unplug or Turn Off Appliances Donate to Sierra Club Bike to Work Open Blinds for Light Take Shorter Showers Only Wash Full Loads Pretty sure that we have an energy efficient refrigerator?
Barriers Matter More than Motivators 18 1. Can t do anything about it 2. Doesn t meet my needs 3. Won t look good 4. No Information 5. Don t think about it 6. Not willing to sacrifice comfort 7. Small contribution to energy use
Can t Do Anything About It 19 Our power bill can be high we try to keep it low when we can, on the other hand we have such a small apartment there's only so much we can do since we don't own the apartment.. Our landlord is reluctant to replace the refrigerator
20 Energy Efficiency Doesn t Meet My Needs "When you do need to go buy [an appliance] obviously you are going to look for those ratings...i don't think I've ever bought anything that's just way over on conservation at the detriment of what I want in my appliance. " If something is more energy efficient because it doesn t work then forget it if the washer didn't wash clothes but just stir them around I wouldn't pay for it "
Energy Efficiency Won t Look Good 21 "I haven't found a fluorescent that fits there correctly, I don't like to see that spirally looking thing because the cosmetics don't look right "I was trying to talk her into getting CFLs but she said it'll make the place look ugly"
No Information 22 I don t know that [a more efficient refrigerator] is in the marketplace The reason I don't have any instant hot water heater is that I can't get any specifications on them all they show you is "how many yyou want to order? I didn t know that they had appliances that save you energy.
Don t Think About It 23 we can do more.. Its not a huge problem so we just don't think about it to do more" "I try to turn the lights off when I notice them sometimes its hard for me to notice them on or off when its bright out
Not Willing to Sacrifice Comfort 24 Convenience is up there.. I think it's way more important than stopping climate change It's not convenient to keep turning on the computer to wait up for that thing to boot up so it s a lack of convenience to say if you want to save energy not going to sacrifice personal comfort for the sake of something that is removed from them..
Small Contribution to Energy Use 25 "I think home energy use is a very small portion I think we need to look at industry when you compare the energy use, home is very very small Unless I have a sense that I'll make a significant difference in my total consumption, I will not go out of my way to change my purchasing decisions.
Overcoming Barriers 26 Barriers matter more than motivators Not going to be able to overcome every barrier Too individualized Education and thoughtful targeting can move some to action M&O ME&O
Educate in Context of Home 27 People, cultures, and social spheres differ dramatically DO: Need to find messages to speak to different groups, with different needs, and raise relative value to households DON T: Be too general with messaging g If every household installed one energy efficient light bulb, it would be like taking 100,000 cars off the road Save money, save energy
FIND PLACE IN THE MARKET 28
Educate In Context of the Marketplace 29 Utility programs K-12 programs Local government partnerships Mass media campaigns Behavior-based programs Hard-to-reach efforts
Find Ways to Complement, Leverage or Link To Existing Efforts 30 Utility programs K-12 programs Local government partnerships Mass media campaigns Behavior-based programs Hard-to-reach efforts
31 MESSAGING, MESSENGERS AND METHODS
Approaches To Driving Efficiency 32 Generally rely on simple frameworks By building type (single family, multi-family) End-use or measure Income Geographical (weather related, community-based) And simple messages Save energy, save money If you define actions and understand audience and If you define actions and understand audience and understand market, approach can be more customized and more successful
Approach To Driving Demand 33 Much harder than selling toothpaste! Where? When? How? By Whom?
Approaches To Driving Demand 34 Where? Multi-Channel Point-of-purchase DIY Contractors Upstream efforts When? Timing Varies By Product Seasonally Infrequent Need to get at the right time
Approach to Driving Demand 35 Who? Utilities State or local government Neighbors Contractors Communities Schools
Approach to Driving Demand 36 How? Mass media One-on-one targeted efforts Social norms messaging/social marketing Mass media provides market presence but cannot speak directly to customers unique needs Targeted grass-roots or new media can speak one-to-one but cannot generate a market presence
Think One-to-One, Not One-Size-Fits-All 37 Blanket marketing, education, and outreach tactics ti are increasingly ineffective in the new media marketplace Marketers are being challenged to develop program-like marketing, education and outreach strategies Marketing and outreach toolbox needs to be stocked to speak directly to customers
Path to Action 38 Social Norms, Other Messaging Informed contractors, POP Materials Assess Path to Action Understand energy use Recognize need to save Know how to save energy in your home Make decision to take action Apply for a rebate or financing Educational Efforts (mass or one-on-one), Online audits Audits, Websites or 800 Numbers, Smart Meters
The New Challenge for ME&O 39 ME&O efforts need to find the tools to make energysaving actions easy
SUMMARY 40
Turning Lessons Learned Realistic and Specific Goals into Best Practices Energy efficiency is an Pinpoint desired intangible and actions complex ask 41 Relevance to M lti l b i Household Multiple barriers and competing priorities Thoughtful targeting, Educate in context Relevance in the Market Lots of Messaging Find niche or integrate/link Consider Pick the One tool does balanced Right Tools not fit all outreach: Mass and One-to-One
Contact Information 42 Jennifer Mitchell Jackson Jennifer Mitchell-Jackson Opinion Dynamics Corp 1999 Harrison Street, Suite 650 Oakland, California 94612 510-444-5050 x 101 jmj@opiniondynamics.com
Thank you 43 Research mentioned in this presentation was done under the auspices of the California Public Utilities Commission on behalf of the California ratepayers. Thank you to: Pam Wellner California a Public Utilities t Commission o