Increasing Energy Efficiency Through ENERGY STAR®

Promotion

Rebecca E. Leintz

April 2004

“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).

Overview

• Development of ENERGY STAR

• Public awareness and acceptance of ENERGY STAR

• Increased energy efficiency as a result of promotion of ENERGY STAR

• 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

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

ENERGY STAR Labeling

• Certification Mark

• Partnership Mark

• Linkage Phrase Mark

• Promotional Mark

ENERGY STARCertification Mark

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

ENERGY STARPartnership Mark

• Used to demonstrate an organization’s commitment to, and partnership in, the ENERGY STAR program

• May be used by any of the 7,000+ ENERGY STAR partners

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

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

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

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

2003 ENERGY STAR Household Survey

• Conducted by the Consortium for Energy Efficiency

• Sponsored by various utilities and governmental agencies

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

ENERGY STAR Recognition

Products Associated with ENERGY STAR

Influence of Rebates and Financing on Purchasing

Decisions

Sources of ENERGY STAR Knowledge

Consumer Preferred Sources of Knowledge

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

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”

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

ENERGY STAR Purchasing Economics

Consumer Energy Awareness and Attitude

Study Survey

March, 2003

Money vs. Energy Savings49%

29%

17%

5%

Money

Energy

Both

Don't know/refused

0% 25% 50% 75% 100%

56%

54%

49%

47%

40%

21%

24%

24%

35%

41%

19%

19%

27%

8%

13%

NY Long Island

Rhode Island

Massachusetts

Vermont

Connecticut

0% 25% 50% 75% 100%

Percent of Respondents

Percent of Respondents by Region

MoneyEnergy

Both

All Respondents (N=518)

MoneyEnergy

Both

MoneyEnergy

Both

MoneyEnergy

Both

MoneyEnergy

Both

• 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."

Importance of Saving Money55%

30%

5%

2%

8%

67%

55%

54%

52%

46%

73%

59%

59%

47%

44%

Very likely

Somewhat likely

Not very likely

Not at all likely

Don't know/refused

Connecticut

Vermont

Rhode Island

NY Long Island

Massachusetts

Under 35

35-44

45-54

55-64

65 & Over

0% 25% 50% 75%Percent of Respondents

All Respondents (N=518)

% Saying "Very Likely" by Region

% Saying "Very Likely" by Age

• 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%.

Importance of Preserving the Environment

36%

44%

8%

3%

9%

45%

42%

34%

30%

28%

44%

44%

39%

29%

26%

Very likely

Somewhat likely

Not very likely

Not at all likely

Don't know/refused

Connecticut

Vermont

Rhode Island

NY Long Island

Massachusetts

Under 35

35-44

45-54

55-64

65 & Over

0% 25% 50% 75%Percent of Respondents

All Respondents (N=518)

% Saying "Very Likely" by Region

% Saying "Very Likely" by Age

• 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.

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

ENERGY STAR Rebates

Legislation Supporting ENERGY STAR

• Maryland’s “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

Additional State Legislation

• Oregon– Offers residential and business tax credit

program– Since 1979

• Minnesota– Offers sales tax exemption for qualified

products– Since 2001

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