Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015

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Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
Home Retrofit:
Planning for the Future

Consumer Research, Pilots & Trials
CA EED meeting 20th October 2015
Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
Objective

• Develop a Strategy for the Future of Home Retrofit
  through :

•   -Consumer Research (Better Energy Financing project)
•   -Modelling for Pathways to Energy Efficiency (Report)
•   -Consultation with the Supply Market
•   -Design Thinking including Citizen Engagement
•   -Trials, Pilots and focused Communities strand
Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
Consumer Research
Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
Consumer Mindset
Prevailing consumer trends are reflected in the research:
 • My Wallet – My Way
    – Self reward, convenience and control

 • The energy improvement journey
    – an on-going journey towards incremental improvement
    – What I can afford right now

 • Demand and Command
    – transparency, value and accountability in return for investment decisions
    – What’s the right thing for me, can I trust it will work

 • Home central
    – comfort and value drive investment decisions
    – House warmer, more comfortable, less draughts
Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
Awareness and Attitude to Energy Improvement

   – 82% of respondents believe their home would benefit from some form of
     energy efficiency improvement (increase of 8% on 2013)
   – Most favoured measures attic insulation, solar panels and window glazing

• Future interest is somewhat muted when action involved(14%)
   – Most likely measures are lighting improvement, draught proofing, boiler and
     controls upgrade and attic insulation

   – I think I want to do something

   – Not sure if do now or what to do

   – Not a financial barrier – havent got to that decision yet

   – Awareness engagement knowledge
Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
Energy Improvements: Funding profile

• 44% willing to take some form of loan to cover part of costs

• When seeking a loan, the interest rate is most important (37%)
    – The flexibility of the loan in terms of timing   24%
    – The payback period                               21%
    – The ease of securing approval                    18%
Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
Unlocking the Energy Efficiency Opportunity
Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
A worked example showing how the consumer decision making process
affects the uptake of the ‘Medium’ energy efficiency package

                                                                           Uptake
                    Awareness
                                         Decision                         based on            Annual
                       and                             Budget limit
                                        frequency                         costs and           uptake
                   engagement
      100                                                                  savings

                        75

                                            9               6                 2                 2

   Number of       Around 75% of       Consumers         70% of the      Uptake rate is    Annual uptake
   consumers     the stock is aware   make decisions      stock has     33% based on        (number of
  in archetype      and engaged       every ~9 years   enough budget   costs and savings    consumers)
Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
Design Thinking and Market Consultation

• Pre-Works
   – Reluctance and Fear

• During Works
   – Hassle

• Post Works
     Happy they did it!
Home Retrofit: Planning for the Future Consumer Research, Pilots & Trials - CA EED meeting 20th October 2015
Financing Trials and Pilots
• €1m in funding provided by SEAI
• 1. Credit Unions – 3 Trials
   – St Canices and Carlow Kilkenny Energy Agency
   – Progressive CU and REIL (oil suppliers under Art 7)
   – South Leitrim CUs and REIL (at application)

• 2. Banks – 1 Trial
   – Tipperary Energy Agency and AIB

• 3. Salary Incentive Scheme – 2 Trials
   – EPS with REIL
   – Tara Mines with SSE (at application)
Communities Financing Strand

• Six Projects totalling just over €2m in funding
   – Dublin City Council -Cromcastle
   – Kingspan and Castleblaney CU
   – NABCO
   – Fingal County Council
   – Energy Wise Cavan
   – Irish Wheelchair Association
Summary of Retrofitting Challenges –The Consumer Journey

    Information                Knowledge                 Upheaval            Financing

   Where do I go           What specifically do     Disruption of       Ability to repay
    to source                I need to do to my        home
                                                                           Accessible, flexible
    info…to learn?           house?
                                                      Disturbance to       and cost effective
   What are the            Where to source           life                 finance
    grants,                  trusted suppliers for
                                                      Fear Factor…new     Hidden costs
    incentives etc.          larger jobs?
                                                      Organising and      Lack of grants or
   What are the            How will I know it’s
                                                       project managing     some incentive
    benefits?                done to the proper
                             standards?                                    Unaware of savings
                                                                            or inability to
   …Message that                                                           calculate savings
    the home, like a
    car, needs to be
    kept serviced
    (boiler upgrade)

                       Emotional engagement required to break inertia.
Sustainable Energy Communities
Innovative Cross-sectoral Partnerships
Pioneered by SEAI

October 2015
1. Context: Evolution of SECs

• A Sustainable Energy Community                       Smart
  (SEC) is a group that achieves                      Clusters
  sustainable, cost-effective energy                               Internationally
  management across all sectors of the                                 Award
  community                                                           Winning
                                                                    Communities
• Over 100 SECs across Ireland have
  become a vehicle for cross-sectoral
  collaboration and innovation (65% of
  SECs formed new partnerships)                                  Innovation
                                           Potential for
• SECs deliver tangible social,              Energy
  economic and energy sustainability       Independen
  benefits in local economies                  ce

• A platform now exists to build
  capacity and leverage funding to
  enable
  communities in energy transition with:

  a) SEAI 3 Year Partnership
  b) SEC Network in Ireland
2. Platform in 2015…Future Vision for a National
       SEC Network
2005           2012 SEC Pilot          2013 - Consolidation        2014 – Building
                                                                                                Vision
               Scheme                                              Capacity
                                                                                            •   SEC process
                                                                                                normalised –
                                                                                                better
Pioneere
                                                                                                engagement
d
Approach                                                                                    •   Better
                                                                                                community
in
                                                                                                facilities and
Dundalk                                                                                         homes
2020
                                                                                            •   Successful
                                                                                                partnerships
                                                                                                with a self-
                                                                                                sustaining
                                       •   Consolidation of        •   100 SECs across          future
           •    Dispersed pockets of
                                           established                 Ireland
                activity                                                                    •   Virtuous circle
                                           communities             •   Impact as catalyst
                                       •   Increased activity in       evident                  of savings
                                           urban communities       •   Expansion –              funding new
                                                                       geographically, by       projects
                                                                       sector, and by
                                                                       project type
Future Fit Ltd
3. Snapshot of Diversity        Nationwide energy
of SECs                         efficiency project with 25
                                sports clubs. Upgrades
                                included efficient flood lights,
The Aran Islands Energy         boiler replacement, solar hot
Cooperative                     water and insulation.
10 year project to make the     Project Cost €394,000
islands carbon neutral by       Project Payback
4. Building Capacity and Leveraging Funding

  Communities
   Funds as a
    Catalyst
                                                                Activity
                  Leveraged                                    Accelerat
                 investment                                       ion
                   in 2015 is
                   13 times
                 that of 2012

                                               Typical
                                               Project
                                               Value
                                               Pathway
                Leveraged
                Project Value

                                2012    2013         2014   2015
                                (Pilo
                                t)
Thank you…Questions ?
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