Program & Portfolio Evaluation

CenterPoint Energy: Increasing Energy Efficiency Program Participation Among Renters and Landlords

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Key takeaways

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Participation gaps among renters and landlords are driven more by program design and communication barriers than by lack of interest. 

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Addressing the split incentive requires aligning efficiency programs with landlord business motivations, not just tenant savings. 

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Segmented marketing, targeted incentives, and reduced application friction can unlock participation from historically underserved segments.

The challenge

Historically, renters and landlords have been less likely to participate in energy efficiency programs. Many renters face high energy bills, but have limited or no control over the efficiency of their homes. Landlords, on the other hand, are responsible for making energy upgrades, often lack awareness of available programs, or are hesitant to invest when tenants will reap the benefits. Acknowledging this challenge, CenterPoint Energy sought to better serve renters and landlords through its energy efficiency programs.

The solution

To understand how to better serve renters and landlords through efficiency programs, the research focused on three primary questions: 

  1. What barriers prevent renters and landlords from participating in energy efficiency programs?
  2. How would landlords and renters like to receive information about efficiency opportunities?
  3. What strategies can improve engagement and increase participation in these programs? 

To answer these questions, the team used a three-pronged approach:

  • Literature review: Examined existing research on renter-focused energy efficiency programs, identifying best practices and common barriers to participation
  • Landlord focus groups: Conducted discussions with landlords across different property sizes to explore their awareness, motivations, and challenges in implementing energy efficiency measures
  • Renter survey: Gathered insights from renters on their communication preferences, engagement with landlords, and awareness and willingness to participate in energy efficiency programs

The results

Through its engagement with E Source, CenterPoint Energy gained a deeper understanding of the unique barriers that prevent renters and landlords from participating in energy efficiency programs. The research uncovered critical insights and led to actionable recommendations that are now shaping CenterPoint Energy’s approach to increasing participation among these underserved groups. 

As a result of these findings, CenterPoint Energy is implementing the following:

  • Streamlining program marketing and creating dedicated resources to enhance clarity and accessibility for both landlords and renters.
  • Developing targeted incentives that resonate with landlord priorities and reduce financial concerns.
  • Enhancing outreach strategies through partnerships with local organizations and employing multi-channel communication methods. • Reducing application barriers by expanding income verification pathways and clearly defining the roles of landlord and tenant.