ENERGY STAR ® in Canada Participant Survey on the Program’s Impact 2003 - 2004 By Bronson Consulting Group May 11, 2005.

ENERGY STARENERGY STAR®® in Canada in CanadaParticipant Survey on the

Program’s Impact2003 - 2004

By

Bronson Consulting GroupMay 11, 2005

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OutlineOutline

• 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

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Manufacturers, Retailers, Manufacturers, Retailers, UtilitiesUtilities & General & General PParticipantsarticipants

• 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, Manufacturers, Retailers, Utilities & General Utilities & General ParticipantsParticipants

• 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, Manufacturers, Retailers, Utilities & General Utilities & General ParticipantsParticipants

• 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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ManufacturersManufacturers

• 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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• Shipments – Appliances % ENERGY STAR qualified*:

Product Jan-Jun 03 Jul – Dec 03

Jan – Jun 04

Jul – Dec 04

Clothes Washers

16 17 27 30

Refrigerators

35 51 52 53

Freezers 0 0 17 13Dishwashers

39 74 92 96

Commercial Clothes Washers

0 0 0 0

* These numbers do not represent the industry as a whole.

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• Shipments – HVAC % ENERGY STAR qualified*:

Product Jan-Jun 03 Jul – Dec 03

Jan – Jun 04

Jul – Dec 04

Room A/C 0 n/a 26 n/a

Central A/C 3 1 12 2

Gas Furnaces 62 58 67 63

Gas Boilers 20 25 31 35

Oil Boilers 39 38 51 87

ASHP 56 58 60 66

Ventilating Fans

0 0 1 0

Programmable Thermostats

100 100 100 100


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• Shipments – Lighting % ENERGY STAR qualified*:

Product Jan-Jun 03

Jul – Dec 03

Jan – Jun 04

Jul – Dec 04

CFLs 96 97 99 98Exit Signs 54 49 51 55Traffic Signal – Red Only 91 91 70 75Traffic Signal – R,A,G 61 66 60 64Traffic Signals– Pedestrian Stop & Go

9 19 20 24


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• Estimated GHG Emissions Reductions:

Product Type

# E* Qualified Units

Manufactured (2003-04)

Lifecycle (years)

Tonnes CO2e

Annual Lifecycle

Appliances 1,311,800 13-17 77,417 1,116,175

HVAC 587,223 12-18 366,083 6,504,210

Lighting 9,366,472 5-10 560,157 3,361,452

Total 11,265,495 1,003,657

10,981,836


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• 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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• 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.

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RetailersRetailers

• General Findings:– 92% find that the ENERGY STAR symbol

adds value.



– 42% have trained staff on ENERGY STAR qualification – as part of new hire training, and during annual seminars.

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RetailersRetailers

• 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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RetailersRetailers

• 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 & RetailersManufacturers & 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 & RetailersManufacturers & 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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UtilitiesUtilities

• 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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UtilitiesUtilities

• 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 ParticipantsGeneral 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 Utilities & General ParticipantParticipant

• 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 Utilities & General ParticipantsParticipants


• 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 Utilities & General ParticipantsParticipants

• 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 Window & SGD ManufacturersManufacturers

• 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 Window & SGD Manufacturers Manufacturers

• Response Rate:– 15 of 24 participant manufacturers

responded.

– 13 of 15 provided shipment data.

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• General Findings:– 87% find that the ENERGY STAR

symbol adds value.

– 93% promote ENERGY STAR in company literature.



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

Destination Market for Windows in 2004

Residential New Construction

31%

Non-Residential1%

Residential Replacement

68%

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Window & SGD Window & SGD Manufacturers Manufacturers

• Canadian Shipment Data for Windows:– 60% of all windows shipped by participant

manufacturers in 2004 were ENERGY STAR qualified. Proportion of ENERGY STAR

qualified windows shipped by zone

3 60 29 9

0% 20% 40% 60% 80% 100%

A B C D

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

Destination Market for Sliding Glass Doors in 2004

Residential New Construction

30%

Non-Residential2%

Residential Replacement

68%

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WindowWindow & SGD & SGD ManufacturersManufacturers

• Canadian Shipment Data for SGDs:– 43% of all sliding glass doors shipped by

participant manufacturers in 2004 were ENERGY STAR qualified.

Proportion of ENERGY STAR qualified SGDs shipped by zone

6 69 19 6

0% 20% 40% 60% 80% 100%

A B C D

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• 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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• 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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ConclusionsConclusions

• Estimated Annual GHG Emissions Reductions (tonnes CO2e):

Manufacturers 1,003,657

Utilities 20,633

Public Sector 991

TOTAL 1,025,281

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ConclusionsConclusions

• 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 CoordinatesContact Coordinates

Steve CrightonBronson Consulting Group

78 Orange StreetSaint John, NB E2L 1M3

Phone: 506-652-1218Fax: 506-652-1007

Email: [email protected]

ENERGY STAR ® in Canada Participant Survey on the Program’s Impact 2003 - 2004 By Bronson Consulting Group May 11, 2005.

Documents

energy star participants

energy star qualification

energy star symbol

energy star initiatives

canadian energy star

energy star account

company website

participant retailers