Money Still Number One Factor for Energy Conservation Among Americans

When appealing to American consumers regarding energy savings, you may find greater success in appealing to the purse strings rather than conscience. A recent study indicates that, for Americans, energy conservation remains primarily an economic issue. Sixty-two percent indicate they have experienced home utility cost increases of 10 to 30 percent or more, yet 61 percent of consumers deny using more energy.

"For the first time in four years we increasingly see economic concerns driving consumer interest in conserving energy," says Suzanne Shelton, chief executive officer of Shelton Group, an advertising agency that independently sponsors an annual Energy Pulse study. "However, one thing hasn't changed since 2005: most Americans don't view their own consumption behaviors or energy-use demand as having much to do with energy costs," she adds.

Shelton says that Energy Pulse 2008 finds that less than one-fourth of consumers mention U.S. consumer demand as most to blame for rising energy prices. And those that do fess up to increased usage blame it on kids. Those who believe they use less attribute the decrease to no longer having kids in the home.

When asked the primary reason to participate in energy conservation activities or purchases, saving money was the number one answer. And the good news is they're beginning to back that answer with investments.

"Energy costs are forcing Americans to prioritize energy efficiency in their daily lives," Shelton says. "For the first time since 2005, energy-efficient home improvements edged out aesthetic improvements as a priority."

When participants were asked which would be the most persuasive to encourage home buyers to spend $4,000 extra on energy-efficient or green features, the top three answers all related to saving money. Twenty-five percent said energy-efficient homes have lower utility bills; nineteen percent said an initial investment of $4,000 would, on average, be paid back within six years through reduced heating and cooling costs; and 14 percent said monthly utility savings would more than cover the difference in mortgage payment.

But you may have to assure a high level of savings in order to make the sale, as the study also indicates that most consumers have a high tolerance for bill increases. When asked how much their monthly bill would have to go up in order to force them to undertake energy-efficient renovations, the average answer was $129, or a 62 percent increase over average reported winter heating bills and a 78 percent increase over average reported summer cooling bills.

Will interests in energy-related savings be able to outweigh the effects of a recession on the average household? It's hard to say, but the study notes that when asked "Why don't you do more to conserve energy?" the number one response was "In the current economy, I'm curtailing spending."

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