Understanding and Influencing Consumer Behaviour Josephine Maguire 6

Understanding and Influencing Consumer Behaviour Josephine Maguire 6 March 2017

The Consumer Decision Making Process

Creating and Influencing Habitual Behaviour

Home Energy Kits Pilot Raise awareness and foster engagement Surveys and focus groups to measure effect Pathway to action on home energy upgrade Change habits and behaviour

What’s Inside the Home Energy Saving Kit? Plug-in Energy Monitor Stopwatch Thermal Leak Detector Radiator Key Fridge/Freeze r Thermometer Temperature & Humidity Meter

Creating Awareness and Engagement

3 in 5 households have carried out home improvements in the last 3 years Q: Did they consider energy efficiency in these works?

High awareness of energy initiatives Home Improvements Options available % Aware 2014 Attic insulation 90 91 Cavity wall insulation 84 Double or triple glazing for windows and doors 85 81 81 Internal wall insulation 77 External wall insulation 77 Lighting upgrade (energy efficient bulbs, etc) Draught proofing (e. g. seal doors/windows, attic hatches, etc. ) Boiler upgrade/replacement with heating controls Heating controls/heat zoning Underfloor insulation 78 73 75 72 69 66 79 75 68 64 62 71 Solar hot water heating panels n/a Solar PV (Solar cells for electricity) n/a 0 (a renewable technology that converts energy in the ground or the air into heating and hot water for your home) n/a 0 Heat Pump None of these % Aware 2016 2 58 43 36 5

But…. Energy initiatives undertaken in last 2 -3 years 47 ANY 26 Attic insulation Lighting upgrade (energy efficient bulbs, etc. ) 22 Draught proofing (e. g. seal doors/windows, attic hatches, etc. ) 11 Cavity wall insulation 28 8 14 13 14 Boiler upgrade/replacement with heating controls 6 External wall insulation 10 9 9 Heating controls/heat zoning 1 Underfloor insulation 0 3 2 Solar hot water heating panels 2 0 1 3 24 13 13 Internal wall insulation Solar PV (Solar cells for electricity) 50 15 16 Double or triple glazing for windows and doors **Heat Pump % 17 2014 2016

And……. • Only about 10% of people indicated that they were thinking of carrying out home energy upgrade work! • And for those who don’t intend to upgrade the main reasons given were…. – Measure Cost – Availability of Funds – Not wanting to apply for a loan at present – Disruption and lack of knowledge

Emotions linked to doing a project

Where do people get their advice? ? Around 1 in 6 look for help from their builder or contractor 1 in 3 go to BER assessor for advice More than 15% seek advice online. A further 1 in 6 seek advice from neighbours, family and friends

Budget: Payment Methods & Loan Repayments 13

Savings preferred, but 45% would consider a loan % 65 57 Savings 60 21 33 35 Credit Union loan 9 Interest Rate is most important feature 12 13 Bank loan 16 One off cash available (e. g. work bonus) 12 9 1 Credit card …. then payback period 4 4 8 Other loan* 4 3 34 Any loan 2013 2014 2016 44 45

Uptake rate affected by: • Payback • Cost/Benefit Analysis • Choice Modelling (Loan/Grant)

Actions from what we’ve learnt…. . • Leverage new BER • Seek to use Intermediaries and Trigger points • More trials and pilots – new and low cost finance • End to end support offering • Scaled Deep Retrofit pilot • Behavioural Economics Unit

Thank you…Questions ? The Sustainable Energy Authority of Ireland is partly financed by Ireland’s EU Structural Funds Programme cofunded by the Irish Government and the European Union.