DRAFT – NOT FOR DISTRIBUTION 12/4/2018 Incentive policies for appliance manufacturers and consumers to drive greater energy efficiency: ENERGY STAR Maria T. Vargas US Department of Energy July 2018 Draft May 26, 2010 1

Projected GHG Emissions from Key Sectors through 2030 ENERGY STAR Started in 1992, voluntary GOAL: Reduce greenhouse gas (GHG) emissions through large win-win-win opportunities with today’s energy efficient technologies and practices. Achieve 30% savings possible in many buildings, homes, and facilities Provide credible information to buyers Work with the marketplace to capitalize on motivations of individual actors Projected GHG Emissions from Key Sectors through 2030 AEO (2008) Source: AEO 2008

Builds Upon Intersection of Interests Consumer Preferences Environmental Protection Manufacturer/Retailer Interests Utility Program Sponsor Cost-effective No sacrifice in performance Govt backed Protects environment Consumer is Key

International partnerships – Canada, EU, Japan, etc ENERGY STAR Residential Commercial / Industrial Labeled Products Whole building labeling for excellence -- 75 products / 2000+ manufacturers --Benchmarking, goals, upgrades -- 10-60% more efficient Industrial New Homes & Home Improvement International partnerships – Canada, EU, Japan, etc SUCCESS TO DATE: -Since 1992, Americans have purchased more than $5.8B ES qualified products accounting for $280B in savings; Overall savings of $430B in energy costs and 2.8B metric tons GHG -Almost 90% of US households recognize and UNDERSTAND the ENERGY STAR label -Almost half of households knowingly bought an ES product in last year and 75% of those said label influenced their decision

ENERGY STAR Qualified Heating and Cooling equipment The average US home spends about $2000/yr on energy bills; ~half goes to heating and cooling ENERGY STAR Qualified Heating and Cooling products: Air-Source Heat Pumps Boilers Central Air Conditioner: Commercial Boilers Ductless Heating & Cooling Furnaces Geothermal Heat Pumps Light Commercial Heating & Cooling Room Air Conditioner Smart Thermostats Ventilation Fans

Key lesson: loyalty is the goal Performance Communications Differential Value Awareness Relevance Satisfaction Loyalty

Thank you! maria.vargas@ee.doe.gov