EWEB’s Energy Efficient Appliance Rebate Program for Residential Consumers

EWEB’s Energy SHARP Appliance Rebate Program Marketing Energy Efficient Appliances to Residential Consumers Bob Lorenzen Eugene Water and Electric Board Conservation or Crisis? A Northwest Choice

Program Objectives • Acquire energy savings in the residential appliance sector • Create a market for energy efficient appliances where: • Consumers ask for EE appliances • Retailers sell consumers on energy efficiency Conservation or Crisis? A Northwest Choice

Background and History • Implemented in May 1994 (pre-ENERGY STAR®) • Required eligible appliances to exceed Federal energy standards by 15% Conservation or Crisis? A Northwest Choice

Targeted Appliances • Clothes washers • Dishwashers • Refrigerators • Room air conditioners (added in 1999) Conservation or Crisis? A Northwest Choice

Program Design • Interviewed retailers on program design • Retailers preferred rebates • Rebates need to offset higher appliance cost • Rebates need to get consumers’ attention • Rely on retailers to promote program at time of purchase Conservation or Crisis? A Northwest Choice

Retailer Support • EWEB provides retailers with point of purchase materials • Appliance rebate tags • Lists of eligible appliances • Rebate coupons • Retailers supported by account managers Conservation or Crisis? A Northwest Choice

Appliance Tag Conservation or Crisis? A Northwest Choice

Program Experience • Prior to ENERGY STAR® identifying eligible appliances was a significant effort • Getting appliance Energy Factor data from manufacturers was a problem • California Energy Commission database proved to be best source of EF data Conservation or Crisis? A Northwest Choice

Program Experience • In 1999 aligned program standards with ENERGY STAR® • Since aligning with ENERGY STAR®: • No more begging manufacturers for data • No more debates with retailers over what qualifies and what doesn’t Conservation or Crisis? A Northwest Choice

Program Results • Market share (1999): • 25% of clothes washers • 20% of dishwashers • 50% of refrigerators • 4% of room air conditioners • 28% overall for all four appliance groups Conservation or Crisis? A Northwest Choice

Program Findings • Retailers are critical to marketing the program • Marketing through retailers gets results • Customer surveys indicate sales staff are selling EE appliances to consumers • ENERGY STAR® simplifies sales Conservation or Crisis? A Northwest Choice

Retailer Advertising Conservation or Crisis? A Northwest Choice

Program Findings • Incentives are a key to program success • In 2000 dropped clothes washer rebates by 60% ($175 - $75) • Rebates processed dropped by a third from 1999 • In 2001 increased rebates ($75 - $125) • Participation rate is back to 1999 levels Conservation or Crisis? A Northwest Choice

A Last Word on ENERGY STAR® • Beware the timing of changes in ENERGY STAR® and Federal energy standards • These two standards go hand-in-hand • A change in either has impacts on a program • Sometimes a change in standards is smooth, sometimes its not Conservation or Crisis? A Northwest Choice

EWEB’s Energy Efficient Appliance Rebate Program for Residential Consumers