A_Compelling_Global_Resource

The Northwest Energy Efficiency Alliance (NEEA), for instance, a not-for-profit organization funded by electric utilities and supported by state governments and interest groups, has worked with makers of energy-efficient products to help reduce energy usage in one region of the United States. One NEEA program, involving more than 600 appliance retailers and 12 manufacturers of washing machines, helps consumers obtain discounts and rebates on purchases of the most energyefficient machines. According to NEEA, this resulted in a 4 percent increase in overall market share from 2006 to 2007 for energy-efficient washing machines. Other established partnerships with which companies can work include the California Energy Commission’s Energy Efficiency Division, Alliance to Save Energy, and Resources for the Future.

One early model for this approach was Energy Star, established in 1992 as a joint program of the US Environmental Protection Agency and Department of Energy. Its mission was to educate consumers on the benefits of energy efficiency and drive adoption of more energy-efficient

products and practices. The agencies’ efforts have demonstrably paid off: products in more than 60 categories carry the Energy Star label, qualifying the product as energy efficient, and more than 70 percent of US consumers are aware of what the label means.

Lowe’s taps Energy Star’s well-recognized brand and messaging in its marketing and communications material. The giant retail chain uses in-store messaging to direct customers to Energy Star products, including signage and audio messaging, and promotes specialized collateral, such as booklets on Energy Star tips. In addition, Lowe’s has dedicated Energy Star advertising, mails an Energy Star–oriented newsletter to hundreds of thousands of customers, sends promotional literature in mailings to credit card users, and highlights Energy Star advice on its Web site. Lowe’s says that these efforts boosted sales of Energy Star–qualified products by 45 percent in one year.

These efforts suggest that there is substantial growth potential for energy-efficient products, if and when consumers become more aware of their real benefits. Many buyers know that products using less energy will save them money. But how much they can save and how soon they can win back the premium purchase price paid at the register for an energy-efficient product—all that remains a mystery to them. This mystery is a barrier to sales of these products.

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