Energy efficiency still not sexy

November 18, 2013 | By Barbara Vergetis Lundin

Americans are not considering energy efficiency, even when they are already making home improvements.

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 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…"

For more:
- see this report

http://www.fierceenergy.com/story/energy-efficiency-still-not-sexy/2013-11-18