ENERGY STAR in Canada

1
ENERGY STAR in Canada

• Participant Survey on the Programs Impact
• 2003 - 2004

By Bronson Consulting Group May 11, 2005
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Outline

• Questionnaires to Participant
• Manufacturers,
• Retailers,
• Utilities and
• General Participants
• Questionnaire to Participant Window and Sliding
  Glass Door Manufacturers
• Workshops for Public Sector Purchasing
• General Conclusions

3
Manufacturers, Retailers, Utilities General
Participants

• Purpose
• To investigate promotional efforts, in-house
  training efforts, success, barriers and
  recommendations.
• To assemble manufacturing shipment data for 2003
  2004.
• To assemble retail sales data for 2003 2004.
• To estimate GHG emissions reductions resulting
  from manufacture or sale of ENERGY STAR qualified
  products.

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Manufacturers, Retailers, Utilities General
Participants

• Method
• ENERGY STAR Account Managers contacted
  participants by telephone to inform them of
  upcoming questionnaire.
• Bronson followed-up by phone and email. Most
  participants completed the questionnaire and
  faxed or emailed results while a few completed
  the questionnaire over the phone.
• Results compiled in databases and spreadsheets.
• Energy and GHG emissions savings estimates
  generated from averages provided in the ENERGY
  STAR Simple Savings Calculator version 2.1.
• NOTE
• Results and data in this presentation only
  represent what was provided by ENERGY STAR
  participants who responded to the questionnaire.
  The findings in this presentation do not
  represent the industry as a whole.

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Manufacturers, Retailers, Utilities General
Participants

• Response Rate
• 36 of 55 participant manufacturers responded
• 26 of 36 provided shipment data.
• 12 of 18 participant retailers responded
• 5 of 12 provided sales data.
• 10 utilities responded
• 5 provided GHG emissions reductions estimates.
• 12 general participants responded.
• 70 total responses.

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Manufacturers

• General Findings
• 91 find that the ENERGY STAR symbol adds value.
• 65 have trained staff on ENERGY STAR
  qualification 500 total staff trained.
• 80 promote ENERGY STAR on company website.
• 20 include a link from company website to
  Canadian ENERGY STAR website.

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Manufacturers

• Shipments Appliances ENERGY STAR qualified

8
Manufacturers

• Shipments HVAC ENERGY STAR qualified

9
Manufacturers

• Shipments Lighting ENERGY STAR qualified

10
Manufacturers

• Estimated GHG Emissions Reductions

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Manufacturers

• Successes
• 20 have participated in incentive/rebate
  programs.
• 14 indicated that promotional efforts (most
  notably incentives rebates) have increased
  shipments of ENERGY STAR qualified products from
  15-100.
• In 2005, many are planning to upgrade websites,
  increase production of ENERGY STAR qualified
  products and develop programs, strategies and
  partnerships to increase sales of specific
  qualified products.

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Manufacturers

• Barriers
• Introduction of new products requires on-going
  negotiation between Canadian and U.S. ENERGY STAR
  initiatives to finalize qualification
  specifications.
• Extra cost for components required to meet
  qualification specifications is passed on to
  consumers, increasing purchase price.

13
Retailers

• General Findings
• 92 find that the ENERGY STAR symbol adds value.
• 58 promote ENERGY STAR on company website.
• 25 include a link from company website to
  Canadian ENERGY STAR website.
• 42 have trained staff on ENERGY STAR
  qualification as part of new hire training, and
  during annual seminars.

14
Retailers

• Sales Data
• Only one large retailer provided sales data on a
  range of appliances and HVAC equipment.
• One small retailer provided total sales of
  appliances, but no ENERGY STAR.
• Three retailers provided sales data for CFLs.
• Therefore, insufficient data to present results.
• Retail sales data might have included significant
  double counting of manufacturers shipment data.

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Retailers

• Successes
• 67 have increased floor/shelf space dedicated to
  ENERGY STAR qualified products since joining the
  initiative (5-50).
• 67 found that promotional efforts generated
  increased sales of ENERGY STAR qualified products
  generally 30-40 increases during PST/utility
  company rebates or promotions.
• One retailer saw an 80 increase in sales of CFLs
  during promotional campaign.
• 92 plan to increase the proportion of ENERGY
  STAR qualified products for sale in 2005.
• Retailers did not indicate any barriers to the
  sale or marketing of ENERGY STAR qualified
  products.

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Manufacturers Retailers

• Recommendations to NRCan
• Increase awareness
• Expand consumer education programs
• Link ENERGY STAR to OTC promotions
• Differentiate between EnerGuide and ENERGY STAR
• Integrate flow of communication materials between
  manufacturers, retailers, utilities and
  consumers
• Launch ENERGY STAR Month in May
• Promote energy efficiency as a sexy home
  renovation.

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Manufacturers Retailers

• Recommendations to NRCan
• Incentive rebate programs
• Continue to fund programs and work closely with
  manufacturers, retailers and utilities
• Assist in development/cost of promotional
  materials
• Launch nation-wide rebate programs either GST
  rebates, or all provinces participating in PST
  rebates at the same time to ensure consistent
  messaging and consumer access to rebates.
• Monitor compliance with specifications.
• An ENERGY STAR for New Homes initiative would
  broaden brand awareness and increase demand for
  all types of ENERGY STAR qualified products.

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Utilities

• General Findings
• Electric and natural gas utilities have promoted
  ENERGY STAR through incentive and rebate
  programs, promotional literature, corporate
  websites, bill stuffers, CFL giveaway campaigns,
  and as part of overall DSM/efficiency efforts.
• 80 indicated that these promotional efforts
  generated significant, on-going increases in
  installations of ENERGY STAR qualified products.

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Utilities

• Successes
• Over 1,300 staff and contractors have been
  trained on ENERGY STAR.
• PST and on-bill rebates, incentives and low
  interest loans have generated significant
  increases in installations of qualified HVAC
  equipment.
• Estimated total annual GHG emissions reductions
  from five reporting utilities 20,633 tonnes
  directly attributable to installations of ENERGY
  STAR qualified equipment.

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General Participants

• General Findings Successes
• General participants include provincial climate
  change hubs, ENGOs, municipalities, associations
  and others.
• Participants promote ENERGY STAR and energy
  efficiency to clients in local areas.
• Participants distribute NRCan literature and
  develop promotional materials specific to the
  local area.
• 75 indicated that their promotional efforts have
  increased awareness of ENERGY STAR.

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Utilities General Participant

• Barriers
• On-going effort to address the perception that
  ENERGY STAR qualified products are more expensive
  than non-qualified products and to demonstrate
  that lifecycle energy cost savings almost always
  offset upfront price differential.
• Where natural gas is new to a market, contractors
  must source new HVAC equipment and actively
  educate consumers in order to participate in
  incentive programs.

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Utilities General Participants

• Recommendations to NRCan
• Increase awareness
• Promote efforts of utilities more prominently
• NRCan staff participate at training seminars
• Develop training video for distributors,
  contractors and retailers those on the front
  line influencing consumers purchasing
  decisions
• Develop case studies demonstrating lifecycle cost
  savings for various product types
• Provide templates for media releases and other
  promotions to ensure consistent messaging across
  the country.

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Utilities General Participants

• Recommendations to NRCan
• Incentive rebate programs
• Continue to support various incentive/rebate
  programs and associated promotional efforts
• Make equipment replacement a key component of
  rebate and incentive programs to eliminate old,
  inefficient equipment and reduce overall energy
  demand.
• Strengthen qualifying specifications for products
  where the of qualified products is already high
  e.g. appliances and CFLs.
• Expand product range e.g. non-programmable
  thermostats, torchières, natural gas propane
  appliances, vehicles, homes. (Many other
  products have been suggested at public sector
  workshops.)

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Window SGD Manufacturers

• Purpose
• To investigate promotional efforts, in-house
  training efforts, success, barriers and
  recommendations.
• To assemble manufacturing shipment data for 2004.
• To provide a model for potential survey of
  non-participant manufacturers.

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Window SGD Manufacturers

• Response Rate
• 15 of 24 participant manufacturers responded.
• 13 of 15 provided shipment data.

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Window SGD Manufacturers

• General Findings
• 87 find that the ENERGY STAR symbol adds value.
• 93 promote ENERGY STAR in company literature.
• 67 promote ENERGY STAR on company website.
• 33 include a link from company website to
  Canadian ENERGY STAR website.

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Window SGD Manufacturers

• Awareness
• 87 find that most customers are aware of the
  ENERGY STAR symbol.
• 60 find that most customers understand the
  meaning of the ENERGY STAR symbol.
• 67 find that customers appreciate the simplicity
  of the ENERGY STAR symbol.

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Window SGD Manufacturers

• Canadian Shipment Data for Windows
• 1,742,674 total window units shipped in 2004.

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Window SGD Manufacturers

• Canadian Shipment Data for Windows
• 60 of all windows shipped by participant
  manufacturers in 2004 were ENERGY STAR qualified.

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Window SGD Manufacturers

• Canadian Shipment Data for SGDs
• 25,780 total sliding glass door units shipped in
  2004

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Window SGD Manufacturers

• Canadian Shipment Data for SGDs
• 43 of all sliding glass doors shipped by
  participant manufacturers in 2004 were ENERGY
  STAR qualified.

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Window SGD Manufacturers

• Successes
• 80 of manufacturers have trained staff on ENERGY
  STAR qualification 225 total staff trained.
• 73 of manufacturers label products with one or
  more of the ENERGY STAR symbols.
• 73 of manufacturers plan to increase their total
  production of ENERGY STAR qualified windows
  sliding glass doors in 2005.
• Only minor barriers identified.

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Window SGD Manufacturers

• Recommendations to NRCan
• Increase awareness
• Promote the various labels used on windows
• Launch advertising campaigns similar to those for
  appliances
• Develop ROI/payback data or success stories to
  help convince consumers to make upfront
  investment
• Highlight to consumers the importance of
  selecting windows qualified to their geographic
  zone.
• Develop rebate programs to help offset higher
  upfront cost of qualified products.
• Link ENERGY STAR to EnerGuide for Houses retrofit
  incentive program.

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Conclusions

• Estimated Annual GHG Emissions Reductions (tonnes
  CO2e)

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Conclusions

• Continue to promote awareness of ENERGY STAR at
  all levels consumers, retailers, manufacturers,
  utilities, ENGOs.
• Continue to work in partnership with
  manufacturers, retailers and utilities to
  expand product lineup to ensure most appropriate
  qualification specifications and to promote
  consistent messaging.
• Continue to fund incentive and rebate programs,
  as the single most significant contributor to
  consumer awareness and purchasing behaviour
  modification.

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Contact Coordinates

• Steve Crighton
• Bronson Consulting Group
• 78 Orange Street
• Saint John, NB E2L 1M3
• Phone [phone]
• Fax [phone]
• Email shc_at_nbnet.nb.ca