As the home energy market continues to grow and evolve due to new product advancements, significant government assistance, and homeowners seeking sustainable methods to save money, the types of individuals researching solar, batteries, and heat pumps are also evolving. QuestGreens believes that the best way to learn what's driving demand for clean energy goods is to ask!
In light of this, we just completed our third nationwide study, the 2022 QuestGreens Consumer Survey, to obtain insight into how the typical person views renewable energy; the following is what we discovered:
The IRA raised policy knowledge and generated interest in energy products.
Congress passed the Inflation Reduction Act (IRA) in August 2022. A significant expenditure law provides incentives and rewards to numerous companies. The bill authorizes $369 billion in spending on renewable energy and climate action, becoming the country's largest climate change investment.
The IRA includes incentives for solar and storage by extending the investment tax credit, subsidies for energy efficiency home upgrades, and a clean vehicle tax credit for new and used electric cars (EVs), among other provisions. According to our study, between 50 and 60 percent of respondents are more interested in solar, storage, EVs, and smart panels due to the IRA. These incentives are substantial, and those familiar with them are far more likely to indicate an increased interest in cleantech.
However, there is a significant knowledge gap: only 56% of respondents were aware of the sustainable energy incentives in the IRA. This is a significant chance to continue educating homeowners on how this new bill can help them save money.
Saving money drives interest in clean energy first and foremost
In our study, we inquired as to why consumers are most interested in rooftop and community solar, storage, electric vehicles, and heat pumps. People are aware that these technologies can help lower their utility bills and are interested in purchasing them to save money.
Intriguingly, when we questioned those who had already adopted various renewable energy items why they did so, they also cited a desire to save money. In other words, the cost-saving potential of clean energy items is not merely a driver of interest and awareness; it is also the fundamental reason individuals acquire these products.
The greatest barrier: perceived expenses
In contrast, when people not interested in purchasing renewable energy items are asked why they have chosen not to adopt these products, their response is cost. There are three basic ways cost plays a role: some people say they cannot afford a product, others say it is more expensive than anticipated, and others believe the investment is not worthwhile.
Importantly, while cost is a real barrier, perception of the cost of clean energy goods is often the true obstacle. The initial cost of these products may indeed be higher than anticipated; however, numerous tax incentives and rebates can reduce the investment required to adopt clean energy products, and the lifetime savings from this technology frequently outweigh the initial investment cost.
This is another indication of the importance of rebates and incentives for clean energy products, such as those included in the Inflation Reduction Act; given that perceived affordability is a major barrier to purchasing clean energy technology, rebates and incentives (as well as simplifying them for consumers) are essential to achieving decarbonization goals and targets.
Energy journeys: In what order do consumers acquire energy products?
With so many types of clean energy goods available, we are frequently asked where individuals should begin their clean energy journeys and how they should map out the remaining products they intend to acquire. In light of this, we asked respondents to list the order in which they intend to purchase (or have already purchased) a variety of home electrification products, including solar, storage, EVs, EV chargers, heat pumps, smart thermostats, energy audits and upgrades, main electric panel upgrades, and induction stoves.
According to poll respondents, there are four key entrance points into the clean energy revolution: slightly under a quarter of individuals begin with smart thermostats, while around one in eight begin with energy efficiency retrofits, an electric vehicle (EV), or rooftop solar.
QuestGreens is your starting point on the path to clean energy.
QuestGreens is here to assist you no matter where you intend to begin your clean energy journey. Check out our explanations, evaluations, and decision-making guidelines for solar panels, batteries, electric vehicles, smart thermostats, heat pumps, and energy management systems. Visit QuestGreens for rooftop solar, community solar, and heat pumps if you're ready to begin evaluating choices and joining the clean energy revolution now.