EWEB’s Energy SHARP Appliance Rebate Program

1. 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

2. 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

3. 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

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

5. 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

6. 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

7. Appliance Tag Conservation or Crisis? A Northwest Choice

8. 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

9. 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

10. 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

11. 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

12. Retailer Advertising Conservation or Crisis? A Northwest Choice

13. 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

14. 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