Knoxville, Tenn., February 7, 2011 — A national poll released today finds new incentives will be needed to persuade Americans to make energy-efficient improvements to their homes.
Beginning this year, tax incentives that once rewarded Americans for energy-efficient improvements have been slashed. For many Americans, the survey found, those incentives were a prime reason for making such improvements as replacing windows, adding insulation and buying energy-efficient appliances.
The national poll, one of four conducted each year by Shelton Group, examined the state of power in the United States: how consumers are saving electricity and why.
The survey found almost one quarter (23 percent) of Americans who made energy-efficient improvements said they’d received a rebate or financial incentive. Of those, most said they’d received either a utility rebate (41 percent) or a federal tax incentive (39 percent).
A full 25 percent of respondents said they wouldn’t have acted without the incentive, and another 7 percent said the incentive encouraged them to pay slightly more for a higher-efficiency model.
The new tax law chops incentives from 30 percent to 10 percent of costs for many improvements — reducing the maximum cumulative credit from $1,500 to $500. In addition, there are now lower caps such as $200 for energy efficient windows, compared to $1,500 in credits before.
* Thirty percent of Americans who have undertaken improvements said they haven’t seen the bill reduction they’d expected. Most said this was because their utility rates had gone up, but 44 percent said that they likely needed to make more improvements.
In fact, the survey found that the number of improvements completed is strongly correlated with achieving the expected savings. The tipping point: about five improvements.
* There is interest in time-of-use billing plans, smart meters and online energy information management systems. More than half of respondents, if given access to more information about their energy use, said they would use it regularly to try to shift or reduce their consumption.
That includes 61 percent who are interested in receiving a smart meter that would notify the utility if they lose power and offer more information about when they were using electricity.
* Asked what specifically they’ve done to save energy, the largest percentages of Americans had replaced most incandescent bulbs with CFL’s (63 percent of homeowners and 61 percent of renters), added sealing/caulking/weather-stripping (55 percent of homeowners and 29 percent of renters), purchased ENERGY STAR appliances (49 percent homeowners; 38 percent renters) or added insulation (36 percent owners; 27 percent renters).