Household refurbishment and the Green Deal: understanding behaviours for effective policy. Dr. Charlie Wilson, University of East Anglia, December 2013

1. Household refurbishment
and the Green Deal:
understanding behaviours
for effective policy
Charlie Wilson
December 2013

2. The Green Deal: “the biggest shift in the history of
energy efficiency policy since the oil crises”
Rosenow et al. 2013
Supply chain, as at the end of October (Table 7, Chart 7)
• responsibility & the Green Deal hashomeowners
costs on been developing since October 2012. This
The supply chain to support
includes individual Advisors
produce
Advice Reports) and
(not utilities) (who (who carry out andGreen DealGreen Deal Green Deal Providers
Assessor organisations
employ authorised
Advisors),
(who quote for and arrange Green Deal Plans with householders and arrange for the measures
• ‘Pay-As-You-Save’ financingenergy efficiency improvements under
to be installed), and Installer organisations (who install
the GD finance mechanism). Chart 7 shows the number of organisations and individuals who
have been
• qualityaccredited as of theassessors, installers, providers
assured end of each month.
6
Chart 7 - Development of supply chain (cumulative numbers) at end of each month
DECC. Nov 13.
GD Statistics.
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.

3. Green Deal success relies on homeowners
deciding to renovate
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?

4. We collected data through homeowner surveys, choice
experiments and interviews
renovation
decision
process
Stage 0
Stage 1
Stage 2
Stage 3
not thinking
thinking
planning
finalising
not thinking
about
renovations
thinking about
efficiency
renovations
thinking about
amenity
renovations
planning
efficiency
renovations
finalising
efficiency
renovations
finalising
amenity
renovations
planning
amenity
renovations
renovation
work
undertaken
11%
35%
54%

5. 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?

6. Renovations are a response to tensions and imbalances
in everyday life at home
not thinking
about
renovations
thinking about
efficiency
renovations
thinking about
amenity
renovations
planning
efficiency
renovations
planning
amenity
renovations
finalising
efficiency
renovations
finalising
amenity
renovations
Households are more likely to be considering renovations if:
-> they juggle competing commitments
stronger
for
amenity
renovators
-> they see their home as a way of expressing themselves
-> they are open to ideas & inspiration from others
-> they face physical issues at home, now or in the future

7. 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?

8. Efficiency renovators are not more influenced
by policy or incentives
efficiency-only
renovators
POLICIES
amount?
effectiveness?
BUSINESS ACTIVITY
amount?
effectiveness?
STIMULI
financial incentives?
reliable information?
amenity-only
renovators
no difference
no difference
no difference

9. The drivers of renovation decisions are similar for both
efficiency and amenity renovations
renovation
decision
process
stage 0
stage 1
stage 2
stage 3
not thinking
thinking
planning
finalising
Stage 01
Stage 12
Stage 23
Challenges of
everyday life
✓
✓
✓
Triggers
✓
✓
✓
Attitudes and
expected outcomes
✓
✓
Perceived difficulty
✓
Attractiveness of
service offered
✓
✓

10. The drivers of renovation decisions are similar for both
efficiency and amenity renovations
renovation
decision
process
stage 0
stage 1
stage 2
stage 3
not thinking
thinking
planning
finalising
Stage 01
Stage 12
Stage 23
Challenges of
everyday life
✓
✓
✓
Triggers
✓
✓
✓
Attitudes and
expected outcomes
✓
✓
Perceived difficulty
✓
Attractiveness of
service offered
✓
✓

11. The drivers of renovation decisions are similar for both
efficiency and amenity renovations
renovation
decision
process
stage 0
stage 1
stage 2
stage 3
not thinking
thinking
planning
finalising
Stage 01
Stage 12
Stage 23
Challenges of
everyday life
✓
✓
✓
Triggers
✓
✓
✓
Attitudes and
expected outcomes
✓
✓
Perceived difficulty
✓
Attractiveness of
service offered
✓
✓

12. 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?

13. Renovation decisions are drawn out processes,
plans can and do change
Attractiveness of services offered:
1. more trustworthy, reliable contractors
2. lower disruption to domestic life
3. lower cost
4. lower decision effort
stronger warranties
Potential attractiveness of Green Deal to:
1. expand scope of efficiency renovations
2. add efficiency measures to amenities
(v strong)
(strong)
(moderate)
(weak)
(moderate)
(moderate)

14. Implications: Behavioural evidence for delivering
energy efficient home renovations
KEY FINDINGS
RECOMMENDED ACTIONS
1. Energy efficient renovations are
a response to challenges of
everyday life at home.
1. Shift emphasis from cost and
comfort to making everyday life
more manageable.
2. Energy efficient renovations are
not distinctive nor strongly
motivated.
2. ‘Piggyback’ efficiency measures
into plans for amenity renovations.
3. Renovation decisions are
lengthy, and plans change.
3. Build customer relationships
throughout decision process.