1. ENERGY STAR ® in Canada Participant Survey on the Program’s Impact 2003 - 2004 By Bronson Consulting Group May 11, 2005

2. 2 Outline Questionnaires to Participant –Manufacturers, –Retailers, –Utilities and –General Participants Questionnaire to Participant Window and Sliding Glass Door Manufacturers Workshops for Public Sector Purchasing General Conclusions

3. 3 Manufacturers, Retailers, Utilities & General Participants Purpose: –To investigate promotional efforts, in-house training efforts, success, barriers and recommendations. –To assemble manufacturing shipment data for 2003 – 2004. –To assemble retail sales data for 2003 – 2004. –To estimate GHG emissions reductions resulting from manufacture or sale of ENERGY STAR qualified products.

4. 4 Manufacturers, Retailers, Utilities & General Participants Method: –ENERGY STAR Account Managers contacted participants by telephone to inform them of upcoming questionnaire. –Bronson followed-up by phone and email. Most participants completed the questionnaire and faxed or emailed results while a few completed the questionnaire over the phone. –Results compiled in databases and spreadsheets. –Energy and GHG emissions savings estimates generated from averages provided in the ENERGY STAR Simple Savings Calculator version 2.1. NOTE: –Results and data in this presentation only represent what was provided by ENERGY STAR participants who responded to the questionnaire. The findings in this presentation do not represent the industry as a whole.

5. 5 Manufacturers, Retailers, Utilities & General Participants Response Rate: –36 of 55 participant manufacturers responded; 26 of 36 provided shipment data. –12 of 18 participant retailers responded; 5 of 12 provided sales data. –10 utilities responded; 5 provided GHG emissions reductions estimates. –12 general participants responded. –70 total responses.

6. 6 Manufacturers General Findings: –91% find that the ENERGY STAR symbol adds value. –65% have trained staff on ENERGY STAR qualification – 500+ total staff trained. –80% promote ENERGY STAR on company website. –20% include a link from company website to Canadian ENERGY STAR website.

7. 7 Manufacturers Shipments – Appliances % ENERGY STAR qualified*: Product Jan-Jun 03Jul – Dec 03Jan – Jun 04Jul – Dec 04 Clothes Washers 16172730 Refrigerators 35515253 Freezers 001713 Dishwashers 39749296 Commercial Clothes Washers 0000 * These numbers do not represent the industry as a whole.

8. 8 Manufacturers Shipments – HVAC % ENERGY STAR qualified*: Product Jan-Jun 03Jul – Dec 03Jan – Jun 04Jul – Dec 04 Room A/C 0n/a26n/a Central A/C 31122 Gas Furnaces 62586763 Gas Boilers 20253135 Oil Boilers 39385187 ASHP 56586066 Ventilating Fans 0010 Programmable Thermostats 100 * These numbers do not represent the industry as a whole.

9. 9 Manufacturers Shipments – Lighting % ENERGY STAR qualified*: Product Jan-Jun 03Jul – Dec 03Jan – Jun 04Jul – Dec 04 CFLs 96979998 Exit Signs 54495155 Traffic Signal – Red Only 91 7075 Traffic Signal – R,A,G 61666064 Traffic Signals – Pedestrian Stop & Go 9192024 * These numbers do not represent the industry as a whole.

10. 10 Manufacturers Estimated GHG Emissions Reductions: Product Type # E* Qualified Units Manufactured (2003-04) Lifecycle (years) Tonnes CO 2 e AnnualLifecycle Appliances1,311,80013-1777,4171,116,175 HVAC587,22312-18366,0836,504,210 Lighting9,366,4725-10560,1573,361,452 Total11,265,4951,003,65710,981,836 * These numbers do not represent the industry as a whole.

11. 11 Manufacturers Successes: –20 have participated in incentive/rebate programs. –14 indicated that promotional efforts (most notably incentives & rebates) have increased shipments of ENERGY STAR qualified products from 15-100%. –In 2005, many are planning to upgrade websites, increase production of ENERGY STAR qualified products and develop programs, strategies and partnerships to increase sales of specific qualified products.

12. 12 Manufacturers Barriers: –Introduction of new products requires on- going negotiation between Canadian and U.S. ENERGY STAR initiatives to finalize qualification specifications. –Extra cost for components required to meet qualification specifications is passed on to consumers, increasing purchase price.

13. 13 Retailers General Findings: –92% find that the ENERGY STAR symbol adds value. –58% promote ENERGY STAR on company website. –25% include a link from company website to Canadian ENERGY STAR website. –42% have trained staff on ENERGY STAR qualification – as part of new hire training, and during annual seminars.

14. 14 Retailers Sales Data: –Only one large retailer provided sales data on a range of appliances and HVAC equipment. –One small retailer provided total sales of appliances, but no % ENERGY STAR. –Three retailers provided sales data for CFLs. –Therefore, insufficient data to present results. –Retail sales data might have included significant double counting of manufacturers shipment data.

15. 15 Retailers Successes: –67% have increased floor/shelf space dedicated to ENERGY STAR qualified products since joining the initiative (5-50%). –67% found that promotional efforts generated increased sales of ENERGY STAR qualified products – generally 30-40% increases during PST/utility company rebates or promotions. –One retailer saw an 80% increase in sales of CFLs during promotional campaign. –92% plan to increase the proportion of ENERGY STAR qualified products for sale in 2005. –Retailers did not indicate any barriers to the sale or marketing of ENERGY STAR qualified products.

16. 16 Manufacturers & Retailers Recommendations to NRCan: –Increase awareness: Expand consumer education programs; Link ENERGY STAR to OTC promotions; Differentiate between EnerGuide and ENERGY STAR; Integrate flow of communication materials between manufacturers, retailers, utilities and consumers; Launch “ENERGY STAR Month” in May; Promote energy efficiency as a “sexy” home renovation.

17. 17 Manufacturers & Retailers Recommendations to NRCan: –Incentive & rebate programs: Continue to fund programs and work closely with manufacturers, retailers and utilities; Assist in development/cost of promotional materials; Launch nation-wide rebate programs – either GST rebates, or all provinces participating in PST rebates at the same time – to ensure consistent messaging and consumer access to rebates. –Monitor compliance with specifications. –An “ENERGY STAR for New Homes” initiative would broaden “brand” awareness and increase demand for all types of ENERGY STAR qualified products.

18. 18 Utilities General Findings: –Electric and natural gas utilities have promoted ENERGY STAR through incentive and rebate programs, promotional literature, corporate websites, bill stuffers, CFL giveaway campaigns, and as part of overall DSM/efficiency efforts. –80% indicated that these promotional efforts generated significant, on-going increases in installations of ENERGY STAR qualified products.

19. 19 Utilities Successes: –Over 1,300 staff and contractors have been trained on ENERGY STAR. –PST and on-bill rebates, incentives and low interest loans have generated significant increases in installations of qualified HVAC equipment. –Estimated total annual GHG emissions reductions from five reporting utilities = 20,633 tonnes – directly attributable to installations of ENERGY STAR qualified equipment.

20. 20 General Participants General Findings & Successes: –General participants include provincial climate change hubs, ENGOs, municipalities, associations and others. –Participants promote ENERGY STAR and energy efficiency to clients in local areas. –Participants distribute NRCan literature and develop promotional materials specific to the local area. –75% indicated that their promotional efforts have increased awareness of ENERGY STAR.

21. 21 Utilities & General Participant Barriers: –On-going effort to address the perception that ENERGY STAR qualified products are more expensive than non-qualified products – and to demonstrate that lifecycle energy cost savings almost always offset upfront price differential. –Where natural gas is new to a market, contractors must source new HVAC equipment and actively educate consumers in order to participate in incentive programs.

22. 22 Utilities & General Participants Recommendations to NRCan: –Increase awareness: Promote efforts of utilities more prominently; NRCan staff participate at training seminars; Develop training video for distributors, contractors and retailers – those on the “front line” influencing consumers’ purchasing decisions; Develop case studies demonstrating lifecycle cost savings for various product types; Provide “templates” for media releases and other promotions to ensure consistent messaging across the country.

23. 23 Utilities & General Participants Recommendations to NRCan: –Incentive & rebate programs: Continue to support various incentive/rebate programs and associated promotional efforts; Make equipment replacement a key component of rebate and incentive programs to eliminate old, inefficient equipment and reduce overall energy demand. –Strengthen qualifying specifications for products where the % of qualified products is already high – e.g. appliances and CFLs. –Expand product range – e.g. non-programmable thermostats, torchières, natural gas & propane appliances, vehicles, homes. (Many other products have been suggested at public sector workshops.)

24. 24 Window & SGD Manufacturers Purpose: –To investigate promotional efforts, in-house training efforts, success, barriers and recommendations. –To assemble manufacturing shipment data for 2004. –To provide a model for potential survey of non-participant manufacturers.

25. 25 Window & SGD Manufacturers Response Rate: –15 of 24 participant manufacturers responded. –13 of 15 provided shipment data.

26. 26 Window & SGD Manufacturers General Findings: –87% find that the ENERGY STAR symbol adds value. –93% promote ENERGY STAR in company literature. –67% promote ENERGY STAR on company website. –33% include a link from company website to Canadian ENERGY STAR website.

27. 27 Window & SGD Manufacturers Awareness: –87% find that most customers are aware of the ENERGY STAR symbol. –60% find that most customers understand the meaning of the ENERGY STAR symbol. –67% find that customers appreciate the simplicity of the ENERGY STAR symbol.

28. 28 Window & SGD Manufacturers Canadian Shipment Data for Windows: –1,742,674 total window units shipped in 2004.

29. 29 Window & SGD Manufacturers Canadian Shipment Data for Windows: –60% of all windows shipped by participant manufacturers in 2004 were ENERGY STAR qualified.

30. 30 Window & SGD Manufacturers Canadian Shipment Data for SGDs: –25,780 total sliding glass door units shipped in 2004

31. 31 Window & SGD Manufacturers Canadian Shipment Data for SGDs: –43% of all sliding glass doors shipped by participant manufacturers in 2004 were ENERGY STAR qualified.

32. 32 Window & SGD Manufacturers Successes: –80% of manufacturers have trained staff on ENERGY STAR qualification – 225+ total staff trained. –73% of manufacturers label products with one or more of the ENERGY STAR symbols. –73% of manufacturers plan to increase their total production of ENERGY STAR qualified windows & sliding glass doors in 2005. –Only minor barriers identified.

33. 33 Window & SGD Manufacturers Recommendations to NRCan: –Increase awareness: Promote the various labels used on windows; Launch advertising campaigns similar to those for appliances; Develop ROI/payback data or success stories to help convince consumers to make upfront investment; Highlight to consumers the importance of selecting windows qualified to their geographic zone. –Develop rebate programs to help offset higher upfront cost of qualified products. –Link ENERGY STAR to EnerGuide for Houses retrofit incentive program.

34. 34 Conclusions Estimated Annual GHG Emissions Reductions (tonnes CO 2 e): Manufacturers1,003,657 Utilities20,633 Public Sector991 TOTAL1,025,281

35. 35 Conclusions Continue to promote awareness of ENERGY STAR at all levels – consumers, retailers, manufacturers, utilities, ENGOs. Continue to work in partnership with manufacturers, retailers and utilities – to expand product lineup; to ensure most appropriate qualification specifications; and to promote consistent messaging. Continue to fund incentive and rebate programs, as the single most significant contributor to consumer awareness and purchasing behaviour modification.

36. 36 Contact Coordinates Steve Crighton Bronson Consulting Group 78 Orange Street Saint John, NB E2L 1M3 Phone: 506-652-1218 Fax: 506-652-1007 Email: shc@nbnet.nb.ca