Energy Efficiency: the Nudge AgendaTrigger Points ResearchGreg ShreeveInsight ServicesApril 2013

Policy into Practice:

2050 target of 80% carbon reduction against 1990 levels in the UK

What does that mean for homes?• Full Loft and cavity wall insulation on all suitable

homes

• Triple glazing on all poor homes

• Reduced flow hot water fittings

• Low energy light bulbs by 2016

• Draught proofing

• Heating controls – room thermostats etc

• Foam insulation on hot water tank

• Insulation/lagging on primary hot water pipe-work

• External insulation on all med and large homes

• Internal insulation on all small homes

• Insulated doors

• Floor insulation

• Reduced infiltration & heat recovery (existing homes 2007-2010 only)

• Energy efficient appliances

• All small existing and new build homes up to 2019 with gas connection – community gas CHP, if no gas connection – community biomass boiler

• All medium and large homes to have STHW and PV

• Large and medium homes in good condition to have GSHP. Large and medium homes in poor condition to have biomass boilers.

• Post-2019 homes – no modifications as they are zero carbon homes.

Plus people living differently in their homesand substantial change in the way we

generate energy

Barriers for homeowners to energy

and carbon saving improvements

Attitudes to energy saving alterations

There are different types of alterations that are considered differently…

‘Easy additions’

• Energy saving bulbs, lagging pipes/insulating water tank, (draught proofing)

• Claim they would consider these independently of other home improvement projects

‘Replacements’

• A-rated appliances, water saving devices, double or ESR glazing, A-rated boiler

• If replacing these, makes sense to consider energy saving options

• So ‘triggers’ for these are the replacement occasion itself e.g. having new kitchen (appliances), boiler breaks (boiler)

‘Major alterations’

• External wall insulation, internal wall insulation, cavity wall insulation, floor insulation

• Perceived to be big, expensive, messy jobs (except cavity walls, for some)

• At present little consideration and/or awareness of these (except cavity walls, for some)

• NB. External wall insulation rejected outright by majority – cost, looks, hassle

Most resistance

Why Nudges and Triggers?

“If you go with the grain of people's instincts you are more likely to achieve the public policy outcomes you want, rather than sitting in a government department dreaming up some rational scheme that doesn’t work in practice"

George Osborne, 2009

“There are many opportunities to provide householders with information and offer advice to coincide with other events or activities relating to homes (‘trigger points’). When people move into a new home they will see their EPC and often have the chance, as part of early changes they make to their home and with a clear loft, to address energy efficiency issues”Warmer Homes, Green Homes DECC 2010

What do we mean by trigger points?

LIFE EVENT/ LIFE STAGE

HOME SALE/RENTAL

HOME IMPROVEMENT

OTHER

Living with

children

Young

CoupleEmpty

nesters

The theory: benefits of a trigger points approach

in overcoming key barriers to energy efficiency

improvements

It’s too much trouble

I don’t have

enough

information

•Already engaging with

building professionals

who can provide advice;

•EPC is already in place

for some trigger events.

•Residents already

prepared for/ in

disruption;

I can’tafford it

•Life change triggers

(retirement,

inheritance) can

provide access to

finance;

•Finance already in

place for work on the

home;

•Can often incur the

marginal rather than

the full cost of action

(eg scaffolding is

already in place).

BUT:•Triggers aren’t a panacea

•Applicability in rented sector?Perhaps just one big trigger event there: voids.

Testing the theoryHow often do trigger events occur?

How do they relate to life stages?

How much are people willing to flex their refurbishment budget for energy efficiency?

Do people welcome advice on energy saving at trigger points?

Can action at trigger events build into a whole house refurbishment?

Can effective trigger point based advice be provided?

22% households considering refurbishment projects in next 3 years

Projects considering undertaking in the next 3 years…

Total Home-owners

(1287)

%

Fitting a new kitchen 10

Fitting a new bathroom / cloakroom

9

Fitting double glazing 6

Building a brick extension 5

Converting the loft 4

Refurbishing the entire property

2

Retiling the roof / building a new roof

2

Installing a conservatory 2

Rewiring / upgrading the electricity

2

Installing central heating 1

None of these 78

Source: Ipsos Nat Rep CapiBus – wtd data

25.7 million households in UK

Homeowners account for 70% of the population(17.5 mil households)

22% are considering

refurbishments in the next 3 yrs (3.9 mil

households)

Approaches to promoting energy efficiency at trigger points

Tradesmen feel their clients would be motivated by this idea

2%

25%

45%

28%

Not at all motivated

Not very motivated

Not sure

Quite motivated

Very motivated

Motivation for clients to include energy saving

B2 Having read the description, how motivated do you think your clients would be to include energy saving ideas when they refurbish their properties in

general?

Base: total 107

73%

13

Room by Room upgrade standards

Stepping stone standard – initial stage

based on Building Regulations Part L

2010 (consultation version)

Best practice – aimed to

achieve target EPC band Brating and based around

the Energy Saving Trust

publication Sustainable

Refurbishment (CE309)

Upgrading a kitchenStepping stone standard

Upgrading walls and floor with 80mm high

performance insulation, renewing door and

windows to band C, mastic seal to

penetrations, internal and external edges.

Low energy lighting

Best practice standard

As above with 100mm floor insulation with

35mm perimeter, renew door and windows to

band A, fit aerated low flow taps and fittings

Project Budget

A3 What sort of budget do you have in mind for this project? / A5If you were to stretch your budget to get a better quality end result , how much extra

would you be willing to add to your budget? / A10 How much would you be willing to stretch your budget to include energy saving as part of your

project?

Total Entire room Kitchen BathroomCentral heating

or boilerWindows

£5,430 £1,950 £5,760 £3,415 £3,230 £4,680

Quality Stretch £694 £399 £902 £515 £502 £572

Energy SavingStretch

£572 £521 £578 £554 £570 £1,832

Averages shown

+13% +21% +16% +15% +16% +12%

+11% +27% +10% +16% +18% +39%

Base: total (2161), entire room (572), kitchen (303), bathroom (261), heating (249), windows (199)

Home owners – potential for energy saving stretch

16

Primary influencing opportunities

SinglesYoung Children Empty NestersGrowing Children Older Children

Considering room refurbs & see the benefit in saving on energy bills & creating warmer rooms

Greater

commitment to

the environment

but limited budget.

Less likely to

spend on energy

saving, interested

mostly in draught

proofing

Lower commitment to the environment

but interested in all forms of insulation.

Higher available budgets, need

convincing that stretch should be

allocated to energy saving

Interested in

draught proofing.

Want to live in

sustainable and

energy efficient

homes - have

already introduced

proportionately

more energy

saving ideas

Recognise the

benefit of

improving their

energy rating.

Want warmth and

comfort. Have

more energy

saving measures

already in place

Show greater

commitment to

the environment

but pre 1930s

(dwelling)

reluctant to add

energy saving

measures, post

1930s could be

persuaded

Gre

ate

r o

pp

ort

un

ity f

or

influ

en

ce

Young Couples

Carefully planning their future. Starting a family, moving home, making property more contemporary, adding value

Strong functional and emotive (younger) need - running out of space. Involved in higher value projects. Recognise the benefit of future proofing and reducing CO2

Primarily driven by functional need to update their properties. Considering fewer projects overall

Preparing for retirement. Interested in specific projects -upgrading the heating, adding a conservatory

Undertaking modernisation projects. Lower budgets, willing to stretch but need a lot more convincing

LandlordsLandlords interested in improving their properties on a whole-house, rather than room-by-room, basis;

Focused on returns and feel that windows are the only energy saving product that leads to higher rents;

Nonetheless, nearly all of them also accept the logic of making energy-saving improvements as they are doing other work.

Builders

84% of builders would like to be able to offer reliable energy efficiency advice to householders.

74% of homeowners would like to hear builders’ ideas on improving energy efficiency of their homes.

BUT Builders often don’t make recommendations because of budget constraints and not wanting to lose the job by coming across as a salesman

Conclusions

Home disruption (real and perceived) is a big barrier to more complex energy saving measures.

Leveraging from existing or planned refurbishment projects is key.

Conclusions

Whole house retrofit is a minority sport.

Promoting energy saving alongside room retrofit is the way forward for many measures?

Conclusions

Reaching people at the right lifestage is key:Growing families are a big opportunity

Conclusions

Windows may be more important than we realise, in encouraging people to invest in energy saving

Conclusions

“The Green Deal will help thousands of homes stay warm for less. Those people

will benefit from energy saving improvements – and their energy bills will fall. The

UK green sector is a success story – it is the sixth largest in the world and has a

crucial part to play in building a strong economy. The Green Deal will support

thousands of jobs – not just over the next few years, but in the long-term.”

Deputy Prime Minister Nick Clegg

Conclusions

Role for additional regulation within a trigger point based framework?

Next Steps for EST

•Room in a minute project

•Trigger point householder and builder advice

•Making best use of unique data and insight