I have a t-shirt that says that energy efficiency is sexy but no one turns their head when I walk by in it. Hmmmm. Sea Rotmann and Ruth Mourik at the IEA Demand Side Management activity on behaviour are always questioning why energy efficiency is not sexy. Well, there are not too many articles that lead on this subject but Barbara Vergetis Lundin writes about new research on how sexy retrofits are. What people say may not be what they do.
Energy efficiency still not sexy
New research from Shelton Group reveals that 26 percent of Americans say they prioritize energy-efficient home improvement over aesthetics but actual projects say something different. Projects planned for the near future indicate more kitchen and bath remodels than for energy efficiency improvements like adding insulation or replacing HVAC units, according to the research. Even under a hypothetical scenario where respondents were given money for a home improvement project, homeowners consistently prioritized remodeling a kitchen or bathroom. Replacing windows, a project with both aesthetic and energy-efficient benefits, was consistently a second priority with HVAC or furnace replacements coming in third.
Although only 11 percent of respondents admitted that “making my home more beautiful” was their top priority, a later question intended to ensure honesty about home spending priorities revealed that 55 percent were likely to make non-energy efficiency improvements to their homes (e.g., kitchen or bathroom renovations, new carpet, tile or hardwood, etc.) in the near future — significantly higher than the overall average likelihood (12 percent) for making energy-efficiency improvements in the same timeframe.
“One of the biggest barriers to making energy-efficient upgrades is a perception that it’s just not worth it — that the investment will not result in higher resale value for your home,” said Suzanne Shelton, president and CEO of Shelton Group. “Yet Americans are sold on the idea that kitchen and bath remodels allow them to command a higher price. The challenge is convincing Americans that the same is true of energy-efficient upgrades.”
A recent UC Berkeley/UCLA study of 1.6 million home transactions found that green labeling improved selling price. Controlling for all other factors, such as location, school district, crime rate, time period of sale, views and amenities, researchers found that the 4,321 homes sold with Energy Star, LEED or GreenPoint rated labels commanded an average price premium of 9 percent.
“Most homebuyers expect to make improvements, but they want to spend their money on ‘sexy’ improvements like paint and new countertops,” said Shelton. “They do not want to upgrade the HVAC, add insulation or buy a new water heater…”
The primary barrier to homeowners’ primary barrier to undertaking more energy-efficient improvements continues to be cost. When asked why they haven’t done more to improve their homes, 44 percent said that “it would be expensive.” “There are other renovations I want to do first” was the second most common answer, while 9 percent said “I’m not willing to replace things that are working fine.”
New messaging directions to elicit stronger, more emotional responses — rather than those messages that just encourage saving money — should help homeowners see the benefits of prioritizing energy-efficient improvements, according to Shelton.
“Linking energy efficiency to home value is a powerful messaging strategy,” said Shelton. “It seems we have work to do to convince homeowners that energy-efficient improvements are worth the investment…”
Energy in Demand - Sustainable Energy - Rod Janssen 
Interestingly, a similar study in the UK, overseen by the University of Cambridge, has reached very similar conclusions : basically that a home that is more energy efficient fetches a better market price than a gas guzzler. But the findings,although based upon thousands of transactions, were instantly dismissed by those representing real estate agents, who simply refused to accept that most prospective purchasers have any interests in a home’s running costs.
That remind me of the story about the shortly-to-be-bankrupt retailer, responding to a shopper’s request for one particular item: “We don’t stock this item. There is simply no demand for it. You are the tenth person today I have to say this to.”
There seems to be more work in the US on this than in Europe, according to experts such as Adam Hinge. I don’t get it. The Energy Performance Certificate is designed to help the potential purchaser use the energy performance of a building as a major criterion in the purchase decision. And this is something that real estate agents have to understand better.
Love the story about the shortly-to-be-bankrupt retailer. As we come out of a major financial crisis, surely this is an important lesson that more need to learn.