Energy Upgrade California Goals Complete 130,000 retrofits! Build awareness of Whole House Approach Increase demand for residential energy upgrades Create a sustained market and jobs Change long-term behavior
Energy Upgrade California Program Administered by California Energy Commission Partnership with California Public Utilities Commission Major funding from American Recovery and Reinvestment Act
Program Elements $1,000 for basic weatherization Up to $4,500 for more extensive upgrades Utility Rebates for energy efficiency upgrades Mosaic of financing options <ul><li>Insulation, sealing, duct sealing, low-flow showerhead, combustion safety testing </li></ul><ul><li>Test-in, test-out </li></ul><ul><li>HVAC, windows, cool roof, solar/tankless water heater, other “fixed” improvements </li></ul><ul><li>Replaces PACE loans </li></ul>
Extensive Market Research Alameda County Bay Area LA County <ul><li>600-person survey, 3 focus groups </li></ul><ul><li>900-person survey </li></ul><ul><li>1,200-person survey, 8 focus groups </li></ul>
Have changed household behavior to reduce energy usage in the last few years Total Yes 91%
Have made energy efficiency upgrades/improvements in the last few years Total Yes 66%
Energy upgrades/improvements most needed (Grouped responses, multiple responses accepted) (Ranked by most frequently reported) 10. What upgrades or improvements do you think are most needed in your home to make it more energy efficient? Insulation New windows/doors Solar panels Weatherizing windows/caulking/weather stripping/fixing leaking windows and doors New air conditioning or heating New appliances New water heater/tankless water heater Landscaping improvements/drought resistant plants/irrigation improvements New toilets/low-flow toilets
Seen/heard/read anything about programs for upgrading or remodeling homes to make them greener/more energy efficient Total Yes 70%
Initial likeliness to consider taking part in program Total Not Likely 47% Total Likely 52% Let me tell you about a program Los Angeles County is considering to make it easier to make energy efficiency upgrades to your home. Homeowners that make home improvements or upgrades that reduce their energy consumption by 20% or more would be eligible for federal tax credits and federal and county rebates. The program offers a financing plan for those who cannot afford to pay for needed improvements at this time.
Barriers Cost: $5,000 maximum Program Complexity The “band-aid” approach Contractor Concerns <ul><li>Total project costs; Out of pocket costs; Up-front costs </li></ul><ul><li>Credibility; Quality assurance </li></ul><ul><li>Can’t do everything at once; fix things when they become painful </li></ul>
Key Target Markets Homeowners, aged 35-54 Women (college-educated) Incomes of $75,000-$150,000 Multicultural <ul><li>Asian (63%), Latinos (62%), African-Americans (59%), White (47%) </li></ul>With school age children at home (large families) Speak Spanish as a primary language <ul><li>Took survey in Spanish—68% positive responses </li></ul>
Key Target Markets (continued) Homes built before 1940 (expanded to before 1978) Have made some energy upgrades already Transitioning (buying a house or increasing family size)
<ul><li>Did we mention rebates? </li></ul><ul><li>And only for a limited time! </li></ul>Key Messages Rebates, Rebates , REBATES !
<ul><li>Upgrading a home to use less energy and water can reduce utility bills by 20 percent or more—saving you money over time. </li></ul>Key Messages Save on Utility Bills Sealing and insulating your house will stop warm air leaking out in the winter and hot air being trapped in your house in the summer— which causes us to crank up the heat or air conditioner.
<ul><li>If you seal and insulate your home first, you can buy a smaller, more efficient air conditioner or furnace, or install fewer solar panels, saving you thousands of dollars. </li></ul>Key Messages Save on Upgrades
<ul><li>At a time when we are trying to reduce our dependence on foreign oil and other fossil fuels, upgrading the energy efficiency of our homes is an important step we can all take. </li></ul><ul><li>(In focus groups the concept of energy independence further resonated as independence from utility companies; getting off the grid). </li></ul>Key Messages Reduce Foreign Oil/Fossil Fuels
<ul><li>Homes that are energy-efficient and environmentally friendly are more appealing to home-buyers. These upgrades can increase your property value. </li></ul>Key Messages Increase Property Values
<ul><li>We all need to do our part to help the environment and slow climate change. Making our homes more green and energy efficient is an important step we should all take. </li></ul>Key Messages Help the Environment/Climate Change
<ul><li>Specially trained and certified contractors know how to find improvements that the average homeowner would not. </li></ul><ul><li>Their assessments will ensure that you find more energy savings and, therefore, save more money on your utility bills. </li></ul>Key Messages Certified Contractors Save Money
<ul><li>Upgrading your home’s energy efficiency—especially insulation—can make it more comfortable. No more drafty, cold rooms in the winter and hot stuffy rooms in the summer. </li></ul>Key Messages Comfort
<ul><li>Weatherizing your home can prevent mold and improve indoor air quality, especially important for those with asthma. </li></ul>Key Messages Indoor Air Quality
About half of homeowners react positively to Contractor Information For upgrades other than insulation and window and door weatherizing, the program would require homeowners to get an energy efficiency assessment by a certified contractor to determine if the home improvements they have in mind would result in at least a 20% reduction in energy consumption. The contractor who performs the home energy efficiency assessment could be independent from the contractor who does the work on your home. The home energy efficiency assessment would be far more comprehensive than those provided by utility companies, would last three to four hours and use state-of-the-art tools and computer modeling. The homeowner can choose to get multiple estimates for the work. While some contractors may give free assessments, others may charge a fee or apply the cost of the assessment toward their work. The homeowner has the freedom to negotiate this directly with the contractor.
Messengers Building Contractors Neighbors and other homeowners Architects/design professionals Gas and electric utilities Environmental organizations Home improvement store staff
Marketing/Advertising Program Objectives Participants <ul><li>35% through advertising/outreach </li></ul><ul><li>50% THROUGH CONTRACTORS </li></ul><ul><li>15% through other partners/cities </li></ul>
Statewide Marketing/Advertising Program Millions of Impressions <ul><li>Mainstream and ethnic PR and media buys </li></ul><ul><li>Contractor contacts </li></ul><ul><li>Social media </li></ul><ul><li>Intense community outreach </li></ul><ul><li>Targeted direct mail </li></ul>
1. Replace on Burnout Contractor Marketing Kit, Retail Partners 2. Life-Stage Changes + Ads in Online Media for Families 3. Purchase + City/Utility Welcome Kits, Realtor Marketing Kits 4. Complaints + Utility Online, Direct mail + Architects, Ads in Media for Remodels 5. Home Remodel Trigger-Event Marketing