ENERGY STAR in CanadaA year in review

Anne P.-R. WilkinsOffice of Energy EfficiencyNatural Resources CanadaMay 4, 2006

Toronto, May 4 - 5, 2006

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Table of Contents

A year in review

• Looking at ENERGY STAR through 5As

– Some highs, some lows

– Counting widgets

– Program successes and recommendations

• Conclusions and recommendations

• Next steps

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Participation in ENERGY STAR

Association1%

Electric Utility8%

ESNH1%

Fenestration Manufacturer

27%

Fenestration Retailer/Distributor

19%

Gas Utility4%

Government4%

Manufacturer25%

Retailer5%

Promoter6%

269 signed participantsWe add to the list every day

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5 As

…..Awareness

..........Availability

..............Accessibility

....................Affordability

.........................Acceptability

5

AWARENESS

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Awareness of ENERGY STAR

Awareness levels of ENERGY STAR in Canada ( % )

2613

3217

4025

4429

80

36

020406080

100

aided awareness unaided awareness

Nov-01 Jan-03 Sep-03 Nov-04 May-05

Unaided question: Have you heard or read or seen anything about ENERGY STAR ?

Unaided question: Have you heard or read or seen anything about ENERGY STAR ?

From 2001-2004 question:Now, I would like to read you a description of the ENERGY STAR symbol. ENERGY STAR is either the word 'energy' followed by a large star underneath a curved line in one colour, or the top half of the earth in full colour behind the word 'energy' and a large star. The words 'High Efficiency' may appear underneath. Do you recall seeing this symbol ? In 2005, symbol shown to an Internet panel – aided awareness transitions from phone based question to computer screen.

From 2001-2004 question:Now, I would like to read you a description of the ENERGY STAR symbol. ENERGY STAR is either the word 'energy' followed by a large star underneath a curved line in one colour, or the top half of the earth in full colour behind the word 'energy' and a large star. The words 'High Efficiency' may appear underneath. Do you recall seeing this symbol ? In 2005, symbol shown to an Internet panel – aided awareness transitions from phone based question to computer screen.

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Where most seen

Primarily on:

• Major kitchen appliances

• Laundry appliances

And to a lesser extent:

• On computer screen

• Display in store

Very small percentage mentioned:

– On the side of a consumer electronics product such as TV, DVD, VCR

– In a brochure, a magazine or newspaper

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Provincial breakdown

Unaided awareness by Province

39%

39%

43%

40%

26%

28%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

BC

Alberta

Sask/Man

ON

Que

Atlantic

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Survey of Household Energy Use (SHEU)

% of households with an appliance less than 4 years old asked if they own an

ENERGY STAR qualified unit

65%

64%

65%

69%

18%

12%

14%

13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Main refrigerator

Freezers

Dishwashers

Clothes washers

ENERGY STAR QUALIFIED DON’T KNOWDON’T KNOW

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Survey of Household Energy Use (SHEU)

% of households with a heating or cooling system less than 4 years old asked if they own an ENERGY STAR qualified system

54%

59%

19%

31%

21%65%

0% 20% 40% 60% 80% 100%

Main window airconditioner

Central airconditioner

Furnaces ENERGY STAR qualified

Don't know

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Telephone interviews were completed with 50 appliance store sales managers:

TotalDept.

Stores Chains Independents

Halifax 10 2 3 5

Montréal 14 2 4 8

Toronto 15 2 4 9

Vancouver 11 - 4 7

Total 50 6 15 29

• 50% of Department Store Managers said that 2/3 of their customers asked for energy consumption information;

• 40% of Chain Store Managers reported that between 1/3 and 2/3 of their customers asked for energy consumption information;

• 59% of Independent Store Managers reported that less than 1/3 of their customers asked about energy consumption information.

Qualitative Interviews with Appliance Sales Managers

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What the head offices are saying

A recent survey of ENERGY STAR Participants reports that:• In three-quarters of cases, respondents train their

personnel– The amount of training and the training programs (including

sales personnel) has increased by between 50-85% since last year.

– % of respondents :

o 76% of manufacturers

o 66% of retailers

o 70% utilities

o 96% fenestration manufactures~ All said that they trained 80% or more of their

personnel

Survey was sent to 125 participants – 68 responded:~24 manufacturers~16 retailers~20 utilities~15 general participants (NGOs, promoters, others)

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Opportunities to enhance visibility of ENERGY STAR on your web site

91.3% of computer owners use their equipment for internet access

email, 87%

browse, 85%

read news,

69%

shopped but

did not buy,

43%

On-line shopping business to Canadian consumers

Number of households that are internet shoppers 4.9M

Number of consumers that bought/placed orders 3.2M

Number of households that use internet to window shop before visiting a store 1.7M

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ENERGY STAR on the Web

Visits to ENERGY STAR Web Site

ENERGY STAR web site

April 04-March 05

April 05 - March 06

% Change

Number of visits 249,000 388,000 56%

Average visits per day 681 1062 56%

Duration of average visit in minutes 13 12 -6%

International visits 40% 41% 3%

Visits from Canada 60% 59% -1%In contrast, Office of Energy Efficiency got 5.1 million visits during 2004-2005.

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What we found – the survey says:

Over 75% of manufacturers and retailers report promoting ENERGY STAR on their web sites (similar to last year)

What we found: • On one quarter of respondents’ sites, could not find ESTAR

• The ENERGY STAR symbol was displayed prominently on the homepage of only 2 company web sites; on several others, the old symbol is still being used;

• On most sites, ENERGY STAR is 2-3 layers deep with product lists or specifications. ENERGY STAR symbol was only found in relevant product lists and specifications, and only if you happen to pick the right product to review detailed specs

• ENERGY STAR qualification is not a search tool (like price, colour, brand name, size, etc.) on any retailer site;

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What we found – the survey says:

59% (16/27) of respondent fenestration manufacturers promote ENERGY STAR on their website (up from 40% last year)

• Of these, 1/3 displayed the logo prominently on their homepage, and; 75% include a link to the ENERGY STAR site (up from 50% last year).

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AVAILABILITY

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Market penetration/shipments of ENERGY STAR qualified appliances

Based on data from the Canadian Appliance Manufacturers Association, 2005

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Refrigerators 37% 40% 32,0%

Clothes washers 24% 35% 30,0%

Dishwashers 49% 76% 81,0%

2003 2004 2005

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Shipments of ENERGY STAR qualified gas furnaces*

ENERGY STAR qualified : 61%

Standard efficiency: 39%

Based on shipment data supplied by the Heating Refrigeration and Air Conditioning Institute (HRAI) March 2005

• Weighted average efficiency of these shipments are the following:

• 2nd half of 2005: 87.09%

• 2nd half of 2004: 86.82%

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Comparing with end-use data

Market penetration of ENERGY STAR qualified furnaces*, by year of dwelling construction

*Natural gas, propane, oil. Based on weighted data supplied from Survey of Household Energy Use (SHEU) 2003

37% 35% 33% 28% 29%

62%

0%

10%

20%

30%

40%

50%

60%

70%

Allhouseholds

Before 1946 1946-1969 1979-1979 1980-1989 1990-2003

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Survey of fenestration manufacturers

54 ENERGY STAR participants asked; only 27 responded.

• Almost 2 million windows and over 50,000 sliding glass doors were shipped by respondent participants in 2005

• 58% of all windows shipped in 2005 were ENERGY STAR qualified

• 36% of sliding glass doors shipped in 2005 were ENERGY STAR qualified

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ACCESSIBILITY

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Access to incentives and information

Consumers had unprecedented access to incentive programs in 2005• ENERGY STAR web site lists 23 (and counting)

number of incentives and rebates across Canada– PST rebates in Saskatchewan, British Columbia

– Shared incentives on heating equipment with NRCan with 10 utilities; coop programs with manufacturers and dealers

– Electric utilities promoting ENERGY STAR qualified appliances, lighting products, heating systems, office and consumer electronics

EnerGuide for Houses B audits have resulted in energy efficiency upgrade of 10,261 furnaces and boilers in 13 months

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Access to policies

ENERGY STAR part of Government of Canada’s Green Procurement Policy

Many organizations state that they have established a purchasing policy favouring ENERGY STAR

Procurement Workshops held across Canada to institutional sector, and development of appropriate tools and publications and ENERGY STAR calculator

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Appealing to the masses

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Access to products in stores

Growing recognition of the value of stocking ENERGY STAR qualified products, and advertising them in flyers

89% of ENERGY STAR retailers surveyed said they plan to increase the proportion of ENERGY STAR qualified products for sale in their stores in 2006• 55% increased floor space dedicated to ENERGY

STAR qualified products - with increased space estimated at 15-50%;

• 44% found that ENERGY STAR promotions increased sales - with increased sales estimated at 8-12%

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AFFORDABILITY

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Influencing the affordability factor

Driving down the incremental costs:

• Furnaces

• Compact fluorescent lamps

• Exit signs

• Major appliances

Helping consumers towards some of the up-front costs

• Incentives and rebates

• Buy down loans / preferential rates

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ACCEPTABILITY

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Technology improvements

ENERGY STAR becomes the norm

• Examples : exit signs, traffic signals, transformers

• Increased stringency of ENERGY STAR levels and technical specifications –

– Computers, office equipment

– Clothes washers, dishwashers

Product improvements, form fit and function, and reliability help the cause:

• Compact fluorescent lamps

• Front Loading Clothes Washers

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Conclusion, next steps

• Leveraging the ENERGY STAR symbol and maintaining its credibility

• Maintenance, update and increase stringency of technical specifications and levels

• Expand reach and scope of ENERGY STAR qualified products in the market place

• Impact of ENERGY STAR evaluation project

• Continue to engage Procurement Community to adopt ENERGY STAR

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Next steps

Engage stakeholders in all targetted sectors – for example:

• Cross-canada energy efficient lighting strategy:

– Goal: By 2015, 95% of lamps installed in Canada will be energy efficient, or controlled incandescents;

• National standby strategy – reduce/eliminate standby energy use in products

• Encourage and expand ENERGY STAR commercial refrigeration in Canada

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Contact Information

Anne P.-R. Wilkins

613-992-3900

awilkins@nrcan.gc.ca

energystar.gc.ca