The SEAI behavioural economics team reveal their findings at the 2019 Energy Show.

1. NEXT UP ON THE
ENERGY THEATRE STAGE
What drives people to retrofit their
homes?
The SEAI Behavioural Economics
Team reveal their findings
15:00-15:45

2. Presented by: Karl Purcell, Program Manager, Behavioural Economics
Unit
What Drives People to
Retrofit Their Homes?
2

3. Outline
1. What do Irish people say about their willingness to upgrade?
2. Why do Irish people fail to follow through on upgrade projects?
3. What does the wider research show is important for encouraging retrofit?
4. What works for encouraging more people to retrofit their homes?
This talk is for:
• Contractors who want to expand
their business
• Utilities who want to build
stronger EEOS programs
• Anyone working in communities
trying to increase retrofitting

4. What do people say about
their willingness to
upgrade?
4

5. Consumer Survey on Attitudes Towards Retrofitting
• Bi-annual survey of consumer attitudes towards retrofitting
– Nationally representative
– No. of responses - 651
• Includes standard questions about intention to invest, awareness of
grants, preferred method of borrowing etc.

6. How likely are people to invest in the next 18 months?
6 www.seai.ie
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Attic insulation Cavity wall insulation Internal wall insulation External wall insulation Heating controls/heat
zoning
Double or triple glazing
for windows and doors
Percentage of People Willing to Retrofit on a 1 (extremely unlikely) –
7 ( extremely likely) scale
1 2 3 4 5 6 7 No Answer
Any likely
(5-7 score)
8% 3% 6% 4% 4% 6%

7. How likely are people to invest in the next 18 months?
7 www.seai.ie
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Boiler upgrade/replacement
with heating controls
Underfloor insulation Solar hot water heating
panels
Solar PV Heat Pump
Percentage of People Willing to Retrofit on a 1 (extremely unlikely) –
7 ( extremely likely) scale
1 2 3 4 5 6 7 No Answer
Any likely
(5-7 score)
8% 3% 6% 4% 6%

8. Awareness of Different Measures
Q.30 Please indicate if you are aware of the following energy efficiency home
improvement options?
91%
79%
79%
69%
69%
67%
66%
61%
56%
49%
34%
9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%
'Attic insulation '
'Cavity wall insulation '
'Double or triple glazing for windows and doors'
'Boiler upgrade/replacement with heating controls'
'Internal wall insulation
'External wall insulation'
'Solar hot water heating panels'
'Heating controls/heat zoning'
'Underfloor insulation'
Solar PV
Heat Pump
No Answer
Percentage of Respondents Aware of Different Energy Upgrades

9. Level of Retrofit Undertaken in last few years… Base: All householders 651
Q.31a And have you undertaken any of these in the last 2 years?
21
19
23
17
18
13
10
7
7
3
4
41
38
21
25
15
19
14
14
5
4
1
38
43
55
58
66
67
76
79
89
93
95
Last 2 years More than 2 years ago Never
Attic insulation
Double or triple glazing for windows and doors
Boiler upgrade/replacement with heating controls
Cavity wall insulation
Heating controls/heat zoning
Internal wall insulation
External wall insulation
Underfloor insulation
Solar hot water heating panels
Heat pump
Solar PV

10. Why do people say they will upgrade?
22
19
9
8
8
7
6
6
4
4
2
4
17
14
13
4
4
8
7
5
18
2
3
5
39
33
22
12
12
15
13
11
22
6
5
9
I think this improvement will reduce my energy bills
I think this improvement will make my house more
comfortable
A grant will be available for the work
I know a good deal about this improvement
I am aware of others for whom it was successful
It is worth investing in energy efficiency
improvements because I own the property
I have the available funds at this time
I want my home to be more environmentally
friendly
The cost of the measure is affordable
I know how to go about arranging it/who to go to
I am in a position to apply for a loan/get a loan at
present
Other
%
Base: All likely to undertake
Q.51 Considering this list, please identify the first/second reason why you are likely to
undertake in the next 18 months.
1st reason Top 22nd reason

11. What do people say are the biggest barriers to upgrading?
11 www.seai.ie
Base: All unlikely to undertake
29
17
9
7
7
5
5
5
4
3
2
2
1
1
0
8
1
8
19
11
8
6
2
5
3
1
0
4
3
1
37
18
17
26
18
13
11
7
9
6
3
2
5
4
1
The cost of the measure is too expensive
Already done
I do not think this improvement will make my house more comfortable
I do not have the available funds at this time
I have too many other competing priorities
I do not think this improvement will reduce my bills
Getting work done now would be too disruptive
No need for it
I would prefer to get other home improvements such as
kitchen/decoration/extension done instead
I do not know enough about this improvement
I am intending to sell my property soon
Not interested
I do not want to apply for a loan at present
A grant will not be available for the work
I don’t know how to go about arranging it/who to go to
1st reason Top 22nd reason
For context:
Median household savings = €4,500
Median savings for household with 2 adults and children = €3,900

12. What do consumers say is their preferred way to finance energy
upgrades?
12 www.seai.ie
55% 44%
CU:22%
Bank:16%
Savings Loans

13. How much do consumers say they are willing to borrow?
13 www.seai.ie
*Only 87 people
answered this
Question in 20182013 2014 2016 2018
Average loan amount rounded to the
nearest €
€2,899 €4,852 €6,917 €6,127

14. How much do consumers say they are willing to repay a month?
14 www.seai.ie
€96
€164
€173
€188
€0
€20
€40
€60
€80
€100
€120
€140
€160
€180
€200
2013 2014 2016 2018
Average monthly loan repayment amount* (€)
*Only 87 people
answered this
Question

15. Who do consumers trust for advice?
15 www.seai.ie
1st 2nd 3rd
Independent BER
Assessor
Local Contractor Neighbours/Friends

16. What Correlates with Intention to Invest in Retrofit?
Male + Terraced - Employed + Higher
Education +
Higher
Income +
Aware of grant + Gas vs. solid fuel + Higher FTO +
However, our model had little explanatory power.
Other unobserved factors seem to drive the demand for retrofit.

17. 17
What does international
research suggest is important
for encouraging retrofit?

18. What’s important for encouraging retrofit?
18 www.seai.ie
Providing low cost
independent energy
audits +
Bigger families + Higher education +Higher income +
Older Homes+
BER Rating -
Higher subjective
knowledge/confidence +
Recommended +
Higher expected
savings +
Higher expected
comfort +
Impact on C02
Reduction +

19. 19
Why do people fail to
follow through on upgrade
projects?

20. Many reasons for the lack of follow through…
20 www.seai.ie
Process is Lengthy &
Complex
Procrastination
Choice Overload
Decision Fatigue
Hassle Factors
Conflicting Contractor
Advice
Ambiguity Aversion
Trust
Authority Bias
Process Harder than
Expected
Overconfidence
Planning Fallacy
Upfront Costs, Distant
Benefits
Present Bias
Loss Aversion
Low Salience of Benefits
During Process

21. What works for
encouraging more people
to retrofit their homes?
21

22. Solutions to help people follow through on their upgrade
22 www.seai.ie
Send frequent reminders Appoint a Project
Manager
Train sales/audit staff Provide financing
Provide low cost
assessments
Target communities with
old poorly rated homes
Incentivise word of mouth
referrals
Set decision deadlines to
encourage action

23. Case Study: Fort Collins Efficiency Works
• The utility carefully targeted neighbourhoods
using two main factors:
• Potential energy savings - based on year of
construction, average monthly energy use,
energy use intensity and monthly base loads.
• Propensity for participation – based on
– Household income (average household
income at least the area median income)
– Education level (average household
education level of at least a Bachelor's
degree)
– History of participation in other City
programs.
• Sent leaflets/letters, did door knocking, gave gift
vouchers for referrals, provided subsidised
audits, and provided financing
23
• Enrolled twice as many participants (with 44% of those who received the
home visit purchasing a package)
• Increased Therm savings per home by 70% and kWh saving per home by
50%

24. Thank you
Email:
Karl.Purcell@seai.ie