ClimateSmart Home Service, Queensland, Australia

This case study is in the process of being posted

Once a resident signs up for Queensland’s ClimateSmart Home Service, a licensed electrician visits the home, installs a variety of energy-efficiency products, conducts an energy audit, provides recommendations, and leaves behind materials and prompts. The information collected is then used to create a customized plan that is sent to the homeowner six weeks after the visit, with different audience segments receiving different messaging. A voluntary personal energy challenge, wireless power monitors and on-line portal help motivate and empower participants. By the end of 2012, it is expected that 430,000 households will have taken up the service (24% of all Queensland homes) and will have reduced electricity usage by more than 795 million kWh/year and greenhouse gas emissions by 4.7 million tonnes over the life of the installed products. Households that have had the service so far are estimated to have reduced electricity use by 3.72kWh/day with total savings of 1,395kWh/year over the life of the installed products. Designated a Landmark case study in 2011.

Background

This case study is based on information from the Landmark nomination for this program. A webinar with one of the program's managers was recorded in March, 2012. A webinar video, presentation transcript, handouts and updated case study will be available about six months after the webinar.

The ClimateSmart Home Service was launched on January 5, 2009 by the Queensland government to provide energy- and water-efficiency products and services to 260,000 households across Queensland within two years. The program was designed to secure long-term behaviour change by focusing on strong customer relations and access to relevant and customized information. Owing to the overwhelming success of the program, it was extended twice and is now anticipated to finish on 31 December 2012.

 

Delivering the Program

Once a resident signs up for the program (online or by phone), a licensed electrician visits the home and installs a variety of energy-efficiency products (wireless energy monitor, up to 15 compact fluorescent light bulbs (CFLs) and a low-flow showerhead). Prompts such as stickers, fridge magnets and product guides, are left with the homeowner as physical reminders to reduce energy.

During the visit, which takes about an hour, the electrician also conducts an energy audit and provides additional energy- and water-saving recommendations. The information collected is then used to create a customized plan that is sent to the homeowner six weeks after the visit. The report:

• Lists the top three recommendations given by the electrician during the home visit and five more recommended changes based on the household’s actual energy usage data.
• Graphically depicts the dollar savings possible if all recommended behaviours are implemented.
• Provides details about other local, state and federal government initiatives (e.g., rebate programs).
• Provides log-in details to My ClimateSmart Home, a customized online resource. The portal provides more energy- and water-saving tips, lets customers see what they’ve achieved so far and compare their household to others with similar demographics.

The service is worth approximately $400 (based on market rates for an electrician’s services for one hour, plus retail costs of products) but thanks to a $120 million subsidy from the Queensland government custmoers pay only $50.

LGIS uses socio-demographic profiling to divide its potential customer base by income banding, preferred communication channels, messages, motivators and barriers, household size, age range, and estimated energy usage. That information is then used to segment the audience (early adopter, early majority, late majority and laggards) and tailor the most appropriate messages. For example, early adopters typically do not need much encouragement to adopt energy-saving behaviours but “laggards” often require more customized intervention. Jane Bullock, Manager, Project Delivery explains:  

“Specific marketing strategies, tactics and messages were established early but as we moved through the early adopters to the laggards, the cost per acquisition (per household) increased. Direct telemarketing, a channel not traditionally used by the Queensland Government, emerged as the channel that delivered the most bookings in the last 12 months as it overcame the barriers of apathy and lethargy on the part of the ‘laggard’ consumers. By directly targeting certain households, we reached those that were the most likely to take up the service.”

As mentioned above, the customized plan is sent to householders within six weeks of the date of their service. Bullock says that the timeframe is deliberate because it gives them another opportunity to keep the desired behaviours ‘top-of-mind’ without overwhelming customers with too much information. The information is tailored to specific households to maintain its relevance and is founded on the principle that people are generally time-poor, so the information is brief, but personal and relevant.

"Customers can opt-in to receive regular emails with information specific to their household (the assessment data allows LGIS to tailor these messages). Bullock provides an example: “If we become aware that a local council area is offering rebates on solar hot water systems for example, we advise the customers residing in that area who have electric hot water systems. We can also insert customised fields in the email that lets the customer see much they are likely to save for a household of their size, if they were to take-up the rebate. We don’t bombard customers with generic information – the communication is restricted to meaningful information and is only sent when there is a newsworthy story to tell.

In addition, as part of the program, households can take part in a personal energy challenge whereby customers are provided with a voluntary daily energy target to motivate them to reduce energy as much as possible. The target is set at 6 kWh per day per person and the electrician sets the target on the wireless power monitor according to the number of people in the household. Those who opt into the challenge receive motivational communication materials to encourage them to further reduce energy. Bullock says that these materials “have been an important factor to empower customers to feel that they can always do more and make a real difference. In post-service communications, households are reminded of their personal target and are encouraged to use the monitors to see how they are tracking against the target.”

Following a review of the potential power saving opportunities in a household, the program was amended in July 2011. ClimateSmart now provides homeowners with up to four stand-by eliminators, reduces the number of CFLs provided, and, where suitable, has the electrician adjust the thermostat on their electric hot water heater. Bullock explains the additions:

“Importation of incandescent bulbs was phased out by the Australian Government in 2009, so most households already had a high installation of CFLs. Electric hot water systems are the among the highest energy using device in a typical home and our data showed that a number of households use electricity to heat their water and had their hot water system thermostat set too high (over 60°C). Stand-by power accounts for about 10% of a household’s annual power bill but our research indicated that consumers didn’t like turning off appliances at the wall due to apathy, laziness or difficulty of access. The remote controlled stand-by power eliminators, which let homeowners turn off all appliances that use stand-by power with the press of a button, overcame those barriers and, combined with having the electrician install them, take-up has been very high.”

LGIS also formed partnerships with like-minded organizations to help deliver the program. Its partnership with the Brisbane City Council, for example, has helped deliver 70,000+ home energy visits. A partnership with an energy retailer also helped identify households that are located in areas with peak electricity load issues.

Financing the Program

A $120 million subsidy from the Queensland government enables participants to pay only $50 for the home visit, which is valued at $400.

Feedback

• The customized plan is sent to householders within six weeks of the date of their home visits.
• In post-service communications, households are reminded of their personal targets and are encouraged to use the wireless poswer monitors to see how they are tracking against the targets.

Results

By August 2011, 300,000 homes had been retrofitted and, by the end of the program, LGIS estimates that 430,000 households will have taken up the service (24% of all Queensland homes). Those households that have had the service so far are estinated to have reduced electricity use by 3.72 kWh/day or 1,395 kWh/year. LGIS has estimated that, based on the expected 430,000 households to be retrofitted by 2012, the overall program will have reduced electricity usage by more than 785 million kWh/year.