Prof. Eleanor Denny Coordinator CONSEED

Trinity College Dublin, Ireland

Energy Efficiency Symposium 6th June 2019

@EnergyWiseEU #energyefficiency

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CONSumer Energy Efficiency Decision Making • What’s important when making energy related investments?

• Five partners

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Presentation will focus on • Household results • Policy relevant results

• 3 encouraging findings • 3 key challenges • 3 proposed recommendations

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Three encouraging findings ... 1. Most European households value energy efficiency (EE) when

investing • Generally ranked in the top three attributes (which includes price) • Considered “very important” by up to 72% in appliance purchases, 57% for

property and 44% for cars

2. Most households (40-63%) see a strong link between choosing more energy efficient technologies and lowering their household environmental impact

3. Overall awareness of existing EU energy efficiency labelling is high

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Three key “Challenges” Challenge 1: Credit constraints are reducing the uptake of energy efficiency

• Many cannot afford upgrade

• 48% - 54% (property) • 22% - 74% (appliances) • 25% (cars)

• Access to finance an issue • E.g. 47% in Greece

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Recommendation for challenge #1:

Long-term low-cost financing for energy efficiency • Payback period of EE investments > term of existing consumer loans • Work with financial sector to expand green financing

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Three key “Challenges”

Challenge 2: Mistrust in energy labels • Many household do not trust energy efficiency labelling • Most (∼60%) believe that labels are “manipulated by sellers” • Misrepresentation of EE in the car industry may have affected

household trust in other sectors.

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Recommendation for challenge #2:

Unbiased consumption estimates • QR code element of new labels can potentially address this

• Tailored information • E.g. if consumers don’t use the ‘eco-setting’ then this can be reflected

• Also central product registration database (EPREL) • possibly include a reporting function for consumers?

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Three key “Challenges” Challenge 3: Knowledge gaps

• Only a third understand their energy consumption • Only a quarter are aware of the savings of upgrading

to greater energy efficiency

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Monetary labelling tested in CONSEED • Overcoming ‘knowledge’ gap – providing “Long-term” energy

information in euro

• Discrete choice experiments • Willingness to pay for EE +20% Car Sales (Norway) • Willingness to pay for EE +47% Property Sector (Slovenia)

• Two randomised controlled field trials …

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Appliances field trial • 26 small retailers operating in Spain • New label with lifetime energy savings information • Treatment increased the probability of consumers buying

more energy efficient fridges (A+++). • Not effective for washing machines and dishwashers

• Further results will follow with El Corte Ingles

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Property Field trial • Ireland new label for properties • 80,000 properties p.a. • 90% of total market

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Property field trial results • A large energy efficiency premium existed before the trial

• Indicates EE is already a very important consideration for property buyers.

• The energy efficiency premium increased in treatment counties • demand for EE property increased as a result of monetary labelling • The energy efficiency premium increased by 40%

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The monetary label worked!

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Recommendation for challenge #3 Provide comparative cost information at point of sale • Big ticket purchases – Properties & Vehicles • Framing costs over longer periods is important

• The longer the forecast the more effective i.e. a ‘shock’ factor

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CONSEED’s impact continues … • World’s first national property labelling trial • Official trial ended in September 2018

• Daft.ie have continued to use the labels ever since

• Valued by customers

• Role of industry in promoting energy efficiency

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CONSEED Summary – 3 key messages

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CONSEED is not finished!

• www.conseedproject.eu • @EnergyWiseEU • @conseedproject • Feedback forms

• Runs until Nov 2019 • Will refine policy recommendations • We want to make good and implementable

recommendations! • What should we be considering?

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