Increasing Energy Efficiency Through ENERGY STAR® Promotion

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Increasing Energy Efficiency Through ENERGY
STAR Promotion

• Rebecca E. Leintz
• April 2004

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If half of all U.S. households replaced a
standard T.V. with an ENERGY STAR model, the
change would be like shutting down a power
plant.
U.S. EPA, ENERGY STAR--The Power to Protect the
Environment Through Energy Efficiency (July 2003).
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Overview

• Development of ENERGY STAR
• Public awareness and acceptance of ENERGY STAR
• Increased energy efficiency as a result of
  promotion of ENERGY STAR

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• In 1992, EPA introduced the ENERGY STAR label to
  recognize energy efficient computers
• Since the mid-1990s, EPA and DOE have
  collaborated to oversee ENERGY STAR
• In 1995, EPA approved an efficient new homes
  label
• In 1999, EPA approved an efficient building label
  
• Today, ENERGY STAR identifies energy efficient
  products in more than 35 product categories

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ENERGY STAR Tools

• Identification of energy efficient products
• Product labeling
• Advertising campaigns and materials
• Performance-rating systems
• Sales-training materials
• Educational brochures
• Awards in recognition of excellence

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ENERGY STAR Labeling

• Certification Mark
• Partnership Mark
• Linkage Phrase Mark
• Promotional Mark

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ENERGY STARCertification Mark

• Used on products, homes, or buildings that meet
  or exceed ENERGY STAR performance guidelines

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ENERGY STARPartnership Mark

• Used to demonstrate an organizations commitment
  to, and partnership in, the ENERGY STAR program
• May be used by any of the 7,000 ENERGY STAR
  partners

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ENERGY STARLinkage Phrase Mark

• Used in advertising and promotional material to
  show that a company offers ENERGY STAR qualified
  products or services
• May be used by anyone signing an agreement with
  EPA/DOE to abide by the terms of ENERGY STAR
  labeling guidelines

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ENERGY STAR Promotional Mark

• Used on materials intended to promote ENERGY STAR
  usage
• May be used by ENERGY STAR partners as well as
  non-governmental organizations and trade
  associations

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Additional EPA Recommended Labeling Guidelines

• Correct
• ENERGY STAR qualified TV
• TV that has earned the ENERGY STAR
• ENERGY STAR and the ENERGY STAR mark are
  registered U.S. marks
• ENERGY STAR guidelines

• Incorrect
• ENERGY STAR certified TV
• ENERGY STAR compliant TV
• ENERGY STAR product
• Endorsed by EPA/DOE
• ENERGY STAR standards

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Public Awareness and Acceptance

• In 2002, approximately 41 of consumers
  nationwide were aware of the ENERGY STAR label
• EPA/DOE has a goal of achieving 60 public
  awareness of the ENERGY STAR label

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2003 ENERGY STAR Household Survey

• Conducted by the Consortium for Energy Efficiency
• Sponsored by various utilities and governmental
  agencies

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Key Findings of 2003 Study

• 56 of U.S. households recognize the ENERGY STAR
  label
• Dramatic increase from the 41 who recognized the
  label the year before, in 2002
• 52 of households that purchased ENERGY STAR
  products were influenced by the ENERGY STAR label

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ENERGY STAR Recognition
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Products Associated with ENERGY STAR
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Influence of Rebates and Financing on Purchasing
Decisions
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Sources of ENERGY STAR Knowledge
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Consumer Preferred Sources of Knowledge
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Results of the Study Suggest. . .

• 2002 ENERGY STAR promotional activities were
  successful
• Rebates and financing incentives may not be the
  determinative factor for ENERGY STAR purchases
• Publicity from regional and local energy
  efficiency sponsors increases recognition and
  understanding
• Promotional efforts may be even more effective if
  presented in additional media

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ENERGY STAR Promotion in California

• ENERGY STAR product sales are rapidly increasing
• Market share of major appliances carrying the
  ENERGY STAR grew 12 percentage points to 28
  in 2001.
• California also has a large number of ENERGY STAR
  partners
• 663 total partners
• 42 partners in Utilities / States and Regional
  Energy Efficiency Groups

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ENERGY STAR Partners

• A search of the ENERGY STAR website for
  Utilities / States and Regional Energy
  Efficiency Groups received 353 results
• Many states have several ENERGY STAR partners
• However, these states have none
• Alaska
• Arkansas
• North Dakota
• South Carolina
• South Dakota
• West Virginia

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ENERGY STAR Purchasing Economics

• Consumer Energy Awareness and Attitude
• Study Survey
• March, 2003

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Money vs. Energy Savings

• When we asked if it was more important to
  consumers to save money or energy, more opted for
  "money." 49 said it was more important to save
  money, while 29 said it was more important to
  save energy.
• There were significant differences in the results
  by region. Consumers in Long Island and Rhode
  Island were the most likely to say that money was
  the more important of the two. Residents of
  Connecticut were more divided 40 said "money,"
  and 41 said "energy."

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Importance of Saving Money

• The percentage of consumers who would pay more
  for an Energy Star product if it saved them money
  varied significantly by region, from 67 in
  Connecticut to 46 in Massachusetts.
• Consumers under age 35 were much more likely to
  be willing to pay more to save money, at 73.

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Importance of Preserving the Environment

• The least compelling reason to pay more for the
  Energy Star label was to help preserve the
  environment. There were, however, significant
  differences by region. Consumers in Connecticut
  were most willing to pay more, at 45.
• Younger respondents were still most likely to be
  willing to pay more to help preserve the
  environment. 44 of those younger than age 45
  would do so. Note that this is still fewer than
  half of the consumers in that age group.

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Survey Results Suggest. . .

• The least compelling reason to pay more for
  ENERGY STAR products is for preservation of the
  environment
• Younger people may be willing to pay more mainly
  to preserve the environment
• However,
• Saving money is of greatest importance

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ENERGY STAR Rebates
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Legislation Supporting ENERGY STAR

• Marylands Clean Energy Incentive Act (HB20)
  offers tax incentives for
• ENERGY STAR appliances
• Highly efficient heating and cooling products
• Electric and hybrid vehicles
• Solar energy systems
• Renewable energy production

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Additional State Legislation

• Oregon
• Offers residential and business tax credit
  program
• Since 1979
• Minnesota
• Offers sales tax exemption for qualified products
• Since 2001

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Conclusions

• ENERGY STAR has been highly successful thus far
• Studies indicate that promotion of energy and
  cost savings benefits will increase ENERGY STAR
  usage
• Encouraging state and utility ENERGY STAR
  partnerships will increase ENERGY STAR purchasing
  and result in greater energy efficiency across
  the country