Household refurbishment

and the Green Deal:

understanding behaviours

for effective policy

Charlie Wilson December 2013

The Green Deal: “the biggest shift in the history of

energy efficiency policy since the oil crises”

• responsibility & costs on homeowners

(not utilities)

• ‘Pay-As-You-Save’ financing

• quality assured assessors, installers, providers

Rosenow et al. 2013

DECC. Nov 13.

GD Statistics.

13

Supply chain, as at the end of October (Table 7, Chart 7)

The supply chain to support the Green Deal has been developing since October 2012. This includes individual Advisors (who carry out and produce Green Deal Advice Reports) and Assessor organisations (who employ authorised Green Deal Advisors), Green Deal Providers (who quote for and arrange Green Deal Plans with householders and arrange for the measures to be installed), and Installer organisations6 (who install energy efficiency improvements under the GD finance mechanism). Chart 7 shows the number of organisations and individuals who have been accredited as of the end of each month. Chart 7 - Development of supply chain (cumulative numbers) at end of each month

The numbers of accredited GD Assessor organisations and individual Advisors has been increasing steadily since December as individual Assessors complete their training and are accredited. At the end of October there were 302 organisations employing a total of 2,687 Advisors, compared to 48 and 270 respectively at the end of January 2013. The number of Green Deal Providers has increased to 112 from 25 at the end of January 2013. The number of accredited Installer organisations has increased steadily since the beginning of the year from 531 accredited at the end of January 2013 to 2,020 organisations accredited at the end of October 2013. These organisations will provide a wide range of different measures and in different geographical locations (see quarterly statistical release for more details). The Green Deal Oversight and Regulation Body (ORB) produces publically available information on the supply chain, and the latest figures are available by using the search tool on the ORB website. There is also information available on contacts in local areas.

6 Unlike Advisors in Assessor organisations, individual Installers within an installer organisation do not need to

register.

1. What makes homeowners start thinking about

renovations?

2. Why do homeowners decide to do

energy efficient renovations?

3. What value propositions are attractive

to renovating homeowners?

Green Deal success relies on homeowners

deciding to renovate

not thinking about

renovations

planning efficiency

renovations

planning amenity

renovations

thinking about amenity

renovations

thinking about efficiency

renovations

finalising efficiency

renovations

finalising amenity

renovations

not thinking thinking planning finalising

Stage 0 Stage 1 Stage 2 Stage 3 renovation decision process

renovation work

undertaken

We collected data through homeowner surveys, choice

experiments and interviews

11%

35%

54%

1. What makes homeowners start thinking about

renovations?

2. Why do homeowners decide to do

energy efficient renovations?

3. What value propositions are attractive

to renovating homeowners?

not thinking about

renovations

planning efficiency

renovations

planning amenity

renovations

thinking about amenity

renovations

thinking about efficiency

renovations

finalising efficiency

renovations

finalising amenity

renovations

-> they juggle competing commitments

-> they face physical issues at home, now or in the future

-> they see their home as a way of expressing themselves

Households are more likely to be considering renovations if:

-> they are open to ideas & inspiration from others

Renovations are a response to tensions and imbalances

in everyday life at home

stronger

for

amenity

renovators

1. What makes homeowners start thinking about

renovations?

2. Why do homeowners decide to do

energy efficient renovations?

3. What value propositions are attractive

to renovating homeowners?

Efficiency renovators are not more influenced

by policy or incentives

POLICIES

amount?

effectiveness?

BUSINESS ACTIVITY

amount?

effectiveness?

STIMULI

financial incentives?

reliable information?

efficiency-only

renovators

amenity-only

renovators

no difference

no difference

no difference

The drivers of renovation decisions are similar for both

efficiency and amenity renovations

not thinking thinking planning finalising

stage 0 stage 1 stage 2 stage 3 renovation decision process

Stage 01 Stage 12 Stage 23

Challenges of

everyday life ✓ ✓ ✓

Triggers ✓ ✓ ✓ Attitudes and

expected outcomes ✓ ✓

Perceived difficulty ✓ ✓ Attractiveness of

service offered ✓

The drivers of renovation decisions are similar for both

efficiency and amenity renovations

not thinking thinking planning finalising

stage 0 stage 1 stage 2 stage 3 renovation decision process

Stage 01 Stage 12 Stage 23

Challenges of

everyday life ✓ ✓ ✓

Triggers ✓ ✓ ✓ Attitudes and

expected outcomes ✓ ✓

Perceived difficulty ✓ ✓ Attractiveness of

service offered ✓

The drivers of renovation decisions are similar for both

efficiency and amenity renovations

not thinking thinking planning finalising

stage 0 stage 1 stage 2 stage 3 renovation decision process

Stage 01 Stage 12 Stage 23

Challenges of

everyday life ✓ ✓ ✓

Triggers ✓ ✓ ✓ Attitudes and

expected outcomes ✓ ✓

Perceived difficulty ✓ ✓ Attractiveness of

service offered ✓

1. What makes homeowners start thinking about

renovations?

2. Why do homeowners decide to do

energy efficient renovations?

3. What value propositions are attractive

to renovating homeowners?

Attractiveness of services offered:

1. more trustworthy, reliable contractors (v strong)

2. lower disruption to domestic life (strong)

3. lower cost (moderate)

4. lower decision effort (weak)

stronger warranties

Potential attractiveness of Green Deal to:

1. expand scope of efficiency renovations (moderate)

2. add efficiency measures to amenities (moderate)

Renovation decisions are drawn out processes,

plans can and do change

Implications: Behavioural evidence for delivering

energy efficient home renovations

KEY FINDINGS

1. Energy efficient renovations are

a response to challenges of

everyday life at home.

2. Energy efficient renovations are

not distinctive nor strongly

motivated.

3. Renovation decisions are

lengthy, and plans change.

RECOMMENDED ACTIONS

1. Shift emphasis from cost and

comfort to making everyday life

more manageable.

2. ‘Piggyback’ efficiency measures

into plans for amenity renovations.

3. Build customer relationships

throughout decision process.