Customer Research

Eliminating Energy Program Participation Barriers for Renters

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Key takeaways

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E Source research highlighted the need to understand and address the specific barriers that prevent renters, landlords, and property managers from participating in energy efficiency programs. Key themes included the importance of education about non-energy benefits and the need for transparency regarding program details.

Customer engagement icon

Effective outreach and communication are crucial. Providing clear, accessible information through various channels, as well as engaging with community events and rental property decision-makers, can foster stronger relationships and encourage participation in energy efficiency programs.

Policy alignment icon

Developing incentives for renters and addressing the split-incentive issue, where renters lack financial motivation to improve what landlords are responsible for, can enhance participation. Additionally, empowering renters with education on actionable measures they can implement can lead to greater involvement in energy efficiency efforts.

The challenge

Between 2009 and 2020, a Northeast utility served 26% of its electric and 14% of its gas customers through its residential energy efficiency program portfolio. E Source was commissioned by the utility to conduct research on customers, focusing on renters who were not participating in their programs, to understand the barriers to participation and how the utility might expand its reach and engage those customers more effectively.

The solution

E Source used a multi-pronged research approach to reach customers, learn the barriers to program participation, identify possible solutions to address those barriers, and identify the common characteristics of customer groups that are not participating or participating less in energy efficiency programs. The study used a balanced quantitative and qualitative approach to gather data and feedback from customers, landlords and property managers, program implementers, and community-based organizations to understand nonparticipants’ attitudes, needs, and perceptions about the utility and its programs.

The results

E Source research revealed the key themes for addressing nonparticipation, specifically with renters, landlords, and property managers:

  • Understanding: Work with contractors to promote the utility’s energy efficiency programs and rebate-eligible equipment.
  • Transparency: Educate landlords and renters on the non-energy benefits of energy efficiency improvements to help motivate participation.
  • Access: Provide straightforward, detailed program information for renters, landlords, and property managers through different communication channels, community events, and rental market and property management groups that will help foster relationships with rental property decision-makers.
  • Value: Find ways to incentivize or recognize non-bill-payers for efficiency investments to help address the split incentive issue that renters and property owners face.
  • Autonomy: Find ways to engage renters through education on tenant rights, provide measures that renters can do themselves, take with them to future homes, and support policies allowing renters to make efficiency improvements independently. Create a streamlined process for landlords to quickly access rebates for emergency and scheduled improvements within their preferred timelines.