Energy Upgrade California Goals

Complete 130,000 retrofits!

Build awareness of Whole House Approach

Increase demand for residential energy upgrades

Create a sustained market and jobs

Change long-term behavior

Energy Upgrade California Program

Administered by California Energy Commission

Partnership with California Public Utilities Commission

Major funding from American Recovery and Reinvestment Act

Program Elements

$1,000 for basic weatherization

Up to $4,500 for more extensive upgrades

Utility Rebates for energy efficiency upgrades

Mosaic of financing options

• Insulation, sealing, duct sealing, low-flow showerhead, combustion safety testing

• Test-in, test-out

• HVAC, windows, cool roof, solar/tankless water heater, other “fixed” improvements

• Replaces PACE loans

Extensive Market Research

Alameda County

Bay Area

LA County

• 600-person survey, 3 focus groups

• 900-person survey

• 1,200-person survey, 8 focus groups

Have changed household behavior to reduce energy usage in the last few years

Total Total YesYes91%91%

Have made energy efficiency upgrades/improvements in the last few years

Total Total YesYes66%66%

Energy upgrades/improvements most needed(Grouped responses, multiple responses accepted)(Ranked by most frequently reported)

10. What upgrades or improvements do you think are most needed in your home to make it more energy efficient?

Insulation

New windows/doors

Solar panelsWeatherizing windows/caulking/weather stripping/fixing

leaking windows and doors

New air conditioning or heating

New appliances

New water heater/tankless water heaterLandscaping improvements/drought resistant

plants/irrigation improvements

New toilets/low-flow toilets

Seen/heard/read anything about programs for upgrading or remodeling homes to make them greener/more energy efficient

TotalTotalYesYes70%70%

Initial likeliness to consider taking part in program

TotalTotalNot Not

LikelyLikely47%47%

Total Total LikelyLikely52%52%

Let me tell you about a program Los Angeles County is considering to make it easier to make energy efficiency upgrades to your home. Homeowners that make home improvements or upgrades that reduce their energy consumption by 20% or more would be eligible for federal tax credits and federal and county rebates. The program offers a financing plan for those who cannot afford to pay for needed improvements at this time.

Barriers

Cost: $5,000 maximum

Program Complexity

The “band-aid” approach

Contractor Concerns

• Total project costs; Out of pocket costs; Up-front costs

• Credibility; Quality assurance

• Can’t do everything at once; fix things when they become painful

Key Target Markets

Homeowners, aged 35-54

Women (college-educated)

Incomes of $75,000-$150,000

Multicultural• Asian (63%), Latinos (62%), African-Americans (59%), White (47%)

With school age children at home (large families)

Speak Spanish as a primary language• Took survey in Spanish—68% positive responses

Key Target Markets (continued)

Homes built before 1940 (expanded to before 1978)

Have made some energy upgrades already

Transitioning (buying a house or increasing family size)

Did we mention rebates?And only for a limited time!

Key Messages

Rebates, Rebates, REBATES!

Upgrading a home to use less energy and water can reduce utility bills by 20 percent or more—saving you money over time.

Key Messages

Save on Utility Bills

Sealing and insulating your house will stop warm air leaking out in the winter and hot air being trapped in your house in the summer— which causes us to crank up the heat or air conditioner.

If you seal and insulate your home first, you can buy a smaller, more efficient air conditioner or furnace, or install fewer solar panels, saving you thousands of dollars.

Key Messages

Save on Upgrades

At a time when we are trying to reduce our dependence on foreign oil and other fossil fuels, upgrading the energy efficiency of our homes is an important step we can all take.

(In focus groups the concept of energy independence further resonated as independence from utility companies; getting off the grid).

Key Messages

Reduce Foreign Oil/Fossil Fuels

Homes that are energy-efficient and environmentally friendly are more appealing to home-buyers. These upgrades can increase your property value.

Key Messages

Increase Property Values

We all need to do our part to help the environment and slow climate change. Making our homes more green and energy efficient is an important step we should all take.

Key Messages

Help the Environment/Climate Change

Specially trained and certified contractors know how to find improvements that the average homeowner would not.

Their assessments will ensure that you find more energy savings and, therefore, save more money on your utility bills.

Key Messages

Certified Contractors Save Money

Upgrading your home’s energy efficiency—especially insulation—can make it more comfortable. No more drafty, cold rooms in the winter and hot stuffy rooms in the summer.

Key Messages

Comfort

Weatherizing your home can prevent mold and improve indoor air quality, especially important for those with asthma.

Key Messages

Indoor Air Quality

About half of homeowners react positively to Contractor Information

For upgrades other than insulation and window and door weatherizing, the program would require

homeowners to get an energy efficiency assessment by a certified contractor to determine if the home

improvements they have in mind would result in at least a 20% reduction in energy consumption.

The contractor who performs the home energy efficiency assessment could be independent from the

contractor who does the work on your home.

The home energy efficiency assessment would be far more comprehensive than those provided by utility companies, would last three to four hours and use

state-of-the-art tools and computer modeling.

The homeowner can choose to get multiple estimates for the work. While some contractors may give free assessments, others may charge a fee or apply the

cost of the assessment toward their work. The homeowner has the freedom to negotiate this directly

with the contractor.

Messengers

Building Contractors

Neighbors and other homeowners

Architects/design professionals

Gas and electric utilities

Environmental organizations

Home improvement store staff

Marketing/Advertising Program Objectives

Participants• 35% through advertising/outreach• 50% THROUGH CONTRACTORS• 15% through other partners/cities

Statewide Marketing/Advertising Program

Millions of Impressions• Mainstream and ethnic PR and media buys• Contractor contacts• Social media• Intense community outreach• Targeted direct mail

Marketing and Outreach Strategy

1. Statewide

2. Regional IOUs/Counties

• Support; Advertising; PR

• Support; Outreach; Advertising; PR

3. Cities• Outreach

Statewide: Brand

Statewide: Website

Statewide: Website

Regional: Website

Statewide: Templates

Statewide: Templates

Regional: Co-Branding

Regional: Contractor Marketing Kits

1. Replace on Burnout Contractor Marketing Kit, Retail Partners

2. Life-Stage Changes + Ads in Online Media for Families

3. Purchase + City/Utility Welcome Kits, Realtor Marketing Kits

4. Complaints + Utility Online, Direct mail

+ Architects, Ads in Media for Remodels

5. Home Remodel

Trigger-Event Marketing