Consumers have lost a marked level of enthusiasm for energy-efficient home products, as well as for green housing itself, according to recent research that identifies economic concerns as the cause.

“Energy Pulse 2007,” a study released in October by The Shelton Group, Knoxville, Tenn., reveals a significant, measurable downturn in purchase intent for a range of green home products, as well as rising skepticism about advertisers’ use of terms like “green,” “sustainable,” “earth,” and “eco-friendly.”

This year’s version of the annual study documents that purchase intention for every energy-efficient home products evaluated is down from the study’s 2006 results. Examples of decreases in levels of “likely/very likely” purchase intention include:

• Purchase a programmable thermostat – down 22 percent.
• Purchase an energy-efficient compact fluorescent or halogen light bulbs – down 11 percent.
• Purchase an Energy Star appliance – down 19 percent.
• Purchase higher efficiency heating/cooling system – down 17 percent.
• Install solar panels or other renewable energy generation at home – down 21 percent.

Energy Pulse 2007 also indicates that the total number of current conservation activities and energy-efficient product ownership averaged 3.00 in 2007, down from 3.63 in 2006; and the number of “very likely” energy conservation activities and product purchases cited by consumers averaged only 2.49 in 2007, down from 3.74 in 2006.

When respondents were asked whether they would choose one home over another based on energy efficiency, those who answered “yes” declined significantly in 2007 compared with responses in 2006, by 16.27 percentage points.

Average response among consumers who think energy conservation is important in how it impacts their daily purchase choices and activities is down this year by 5 percentage points. In the 2006 study, 72.3 percent thought it is important/extremely important. This year, 67.26 percent think it is important/extremely important.

“In the past few years, consumers have been bombarded by the marketing messages of companies jumping on the green-friendly bandwagon,” said Suzanne Shelton, CEO of Shelton Group, which independently sponsored the study. People are becoming much more inquiring about the bill of green goods being sold to them, Shelton says, not only in terms of whether something is as ‘green’ as touted, but also whether its “greenness” matters enough to pay a higher cost. According to Shelton, “energy-efficient” is consistently equated to “more expensive” in the minds of consumers.

“What consumers are often fatigued about in 2007 is the price differential – or at least the perceived price differential,” Shelton said. “But saying ‘save money’ when advertising an energy-efficient product isn’t necessarily good enough. Our research shows that consumers want proof. Messages also need to offer other subtle suggestions such as happiness, safety, peace of mind, and security in order to resonate with what consumers desire.”

When asked which messages from a number of options would be the most persuasive to encourage home buyers to spend $4,000 more on energy efficient or green features, the top three answers were:

1. 1. Monthly utility savings would more than cover the difference in the mortgage payment.
2. 2. An energy-efficient home has lower utility bills.
3. 3. (Tie) A green home is healthier for your family.
4. 3. (Tie) Many green / energy-efficient features have multiple benefits, such as better air-sealing, which helps reduce/prevent mold.

Energy Pulse 2007 showed that respondents continue to have unrealistic expectations regarding the impact energy efficient renovations can have on their utility bills, with respondents citing cost-savings expectations on average of 49 percent to 53 percent per month.

The Shelton Group is a marketing and research firm that specializes in taking energy-efficient and green products and services to market. For more information, visit www.energypulse.org

FASTER PHASEOUT.

Hydrochloro-fluorocarbons (HCFCs) were meant to serve as a transitional bridge from CFCs to other more optimal alternatives. That bridge just got shorter. The 19th Meeting of the Parties to the Montreal Protocol (MOP-19) on substances that deplete the ozone layer, held in Montreal, Canada, on Sept. 17-21, concluded with an agreement to accelerate the phaseout date of new manufacturing equipment using HCFCs by 10 years in developing countries.

The agreement requires developed countries (Article 2) to reduce their consumption and production of HCFCs by 75 percent in 2010, by 90 percent in 2015, and by 99.5 percent in 2020, while allowing 0.5 percent for servicing the period 2020 to 2030. In 1987, the Montreal Protocol established requirements that began the worldwide phaseout of ozone-depleting chemicals. Under the new agreement, developing countries (Article 5) will now phase out all new equipment using HCFCs by 2030, (instead of 2040, the previous deadline) with reduction steps of 10 percent by 2015, 35 percent by 2020, and 67.5 percent by 2025.  It allows for servicing an annual average of 2.5 percent from 2030-2040.

In addition, Article 5 countries agreed to choose as the baseline the average of the 2009 and 2010 levels of consumption and production. Those countries also agreed to freeze consumption and production in 2013 at the baseline level. Parties also agreed to replenish the Multilateral Fund to enable Article 5 countries to comply with the accelerated phaseout schedule.

BOOSTING SOLAR. In October, California Governor Arnold Schwarzenegger signed bill AB 1470, the Solar Water and Heating Efficiency Act of 2007, which was designed to create a broad market for solar water heating technologies by offering $250 million in rebates for the state’s consumers over the next 10 years. The rebate fund would come from a $0.13 per month surcharge on gas bills and be implemented by the California Public Utilities Commission and individual municipal utilities. Backers of the program say that widespread use of solar water heating would not only fight global warming, but also lower gas prices for consumers by significantly lowering demand.

JAPAN SETS LIMITS. Japan’s Nuclear and Industrial Safety Agency plans to set standards limiting exposure to extremely low-frequency magnetic fields that occur near power lines and appliances when there is electric current, according to the Japan Times. The regulations are meant to comply with World Health Organization recommendations. According to the UN agency, high levels of exposure to electric and magnetic fields in frequencies up to 100 kH can affect nervous systems. Under the standards, the level of magnetic fields arising from a current would be capped at 100 microtesla in Eastern Japan, where electric power operates at 50 Hz, and 83 microtesla in Western Japan with a frequency of 60 Hz, according to the report.

GOODMAN GOES PRIVATE.Houston-based Goodman Global Inc. has agreed to be acquired by affiliates of the private equity firm Hellman & Friedman LLC in a cash deal valued at about $1.8 billion. Goodman Global manufactures and sells products under the Goodman, Amana and Quietflex brand names. According to the Houston Chronicle, this is the second time that a private equity firm has bought Goodman. Apollo Management bought Goodman Manufacturing for $1.4 billion in 2004 and the company went public as Goodman Global in 2006.

DRY HANDS SAFELY.

NSF International, an Ann Arbor, Mich.-based certification agency, has developed a protocol to evaluate and test commercial hand dryers to certify that they dry hands hygienically. The NSF Protocol P335: Hygienic Commercial Hand Dryers standard establishes health and sanitation requirements for hygienic hand dryers. This includes requiring hand dryers to dry hands completely within 15 seconds using air filtered with HEPA filtration. Additional requirements include hands-free operation, water disinfection, resistance to burns, ability to clean the product, and noise levels. UK-based Dyson Ltd. is the first company to achieve certification to NSF Protocol P335 for its Dyson Airblade hand dryer. 

AWARD WINNING MOON.

Indesit Moon washer.

The Indesit Co.’s Moon clothes washing machine won the Kitchen Product of the Year award presented by Designer, a U.K.-based magazine for architects, developers and designers. The machine was awarded the prize for its “eco-friendly” technology including its ability to optimize water consumption and energy. In September, the Italy-based company won the Janus de l’Industrie, the Institut Français du Design award for the Moon.

$30M CASH RECHARGE.

A123Systems, a developer of the Nanophosphate lithium-ion battery, has received a $30 million influx of capital from GE Energy Financial Services and CMEA Ventures. This brings the total capital invested in the company to $132 million. A123Systems of Watertown, Mass., says it will use the funds to increase production capacity. The company is working with Black & Decker Corp. to help drive its transition from nickel technology to doped nanophosphate lithium-ion technology.



GLEN DIMPLEX EXPANDS.The Ireland-based Glen Dimplex Group has acquired Applied Energy, a U.K.-based company that makes heating, air and water management products under the brand names of Creda, Redring and Xpelair. With increasingly stringent building regulations across Europe, the company says that the acquisition will help it grow and develop business in this sector. The company intends to operate Applied Energy as a stand-alone business, under its current management team.

HEATING WITH HEARTHS.As temperatures start to fall and heating costs rise, a recent poll commissioned by the Hearth, Patio & Barbecue Association found that 36 percent of adults indicated they will have and will use hearth products in their home to combat heating costs in the next six months. Three-fourths of those who own or will own wood burning, gas, pellet or corn stoves (76 percent), and a similar percentage of those who own high-efficiency wood burning fireplaces (79 percent), indicated the use of these products will be an important part of their plans to heat their homes. The study found that the types of home hearth products preferred by consumers differ by region. The poll found that 92 percent of consumers in the South and 94 percent in the Midwest said that high-efficiency wood burning stoves would be important parts of their plans for home heating, while 90 percent of consumers in the Northeast and 93 percent in the West said that a combination of wood burning, gas, pellet or corn burning stoves would be their choice.

A TACTILE SENSE.

Immersion Corp., a San Jose, Calif.-based developer of touch feedback technology, has licensed its product to CTT-Net of Korea. CTT-Net is launching what it calls the world’s first personal navigation devices (PNDs) and uses Immersion’s TouchSense technology to provide tactile feedback for touch screen interactions. CTT-Net's TouchSense-enabled products for the Korean market include the CSN-7040, a handheld PND, and the CIN-7000, a built-in car navigation device. Both models feature a 7-inch touch screen as the primary input/output mechanism and include a direct multimedia broadcast (DMB) receiver for accepting satellite downloads. When users touch the onscreen controls, the TouchSense system provides tactile confirmation of the selection. Other licensees of Immersion’s tactile touch screen technology include LG Electronics, Nokia, and Samsung for mobile phones, and 3M Touch Systems for gaming systems.

VESTEL VENTURE. Turkish electronic goods producer Vestel and Whirlpool Europe are engaged in talks to start an appliance joint venture. Each firm would hold an equal stake and Vestel would transfer all its shares in its Vestel White Goods to the new company. Vestel, which reportedly had considered selling its appliance company, said the purpose of the joint venture was to strengthen commercial activities in foreign and home appliance’s markets. According to published reports, Vestel and other Turkish manufacturers are facing growing foreign competition in Turkey’s fast-growing consumer market.

MABE BUYS ATLAS.Mexico-based Mabe has made a bid for Atlas Electrica, a Costa Rican manufacturer of kitchen appliances that are sold in Central America and the Dominican Republic under the Atlas and Centron brands. Mabe, an appliance manufacturer, operates 15 plants and exports to the U.S. through a partnership with GE Appliances.

EUROPEAN EXPANSION.Fisher & Paykel has formed a strategic partnership with Arcelik, a Turkey-based appliance manufacturer and distributor, to sell F&P’s branded appliances. The products will be sold through Arcelik’s network in Eastern Europe, the Commonwealth of Independent states, which are made up of former Soviet Union member countries, and the Middle East. The deal also gives F&P access to some of Arcelik’s products such as front-loading washing machines, which F&P does not make. These products would carry the Fisher & Paykel brand name. Europe is the fastest growing market for F&P.

F&P MAKES ASSIST.F&P’s FridgeAssist Program has supplied more than 100 new refrigerators to households in the Central Coast region of Australia. The pilot program was created to assist low-income families by providing them with energy-efficient units at half the normal price. The older, less efficient units were removed and scrapped. The company says that the program will cut greenhouse gas emissions from the inefficient refrigerators by more than 95,000 kilograms a year.

HAND-SCULPTED RADIATORS.

The new radiant heat ‘RGON’ (pronounced air-gone) decorative radiators are hand-sculpted by Catherine Lamps, an artist-sculptor. Eight available models cover cultural and civilization themes and color options are available in shades such as Provencal yellow, blue, green, terra cotta, Carrara white, or metals such as copper and aluminum. Custom designs based on an original design or by reproducing a photo are possible. The radiators come in an electronic version comprising electrical resistances (1,000 W) and a central heating version that uses copper tubing (1,500 W). All RGON radiators comply with CE standards. The radiators are made of recyclable minerals that evenly diffuse heat both internally and on the surface.

SEARS JOINS RAD. Sears Home Services has joined the U.S. Environmental Protection Agency’s voluntary Responsible Appliance Disposal Program. Each year, Americans dispose of roughly 10 million refrigerators and freezers that contain chlorofluorocarbons (CFCs) or hydrofluorocarbons (HFCs). The new partnership will result in the proper disposal of more than 1 million residential refrigerators and freezers per year. The annual greenhouse gas emissions savings resulting from Sears’ efforts will be equivalent to preventing the emissions from 650,000 cars. Through the program, the refrigerants and appliance insulating foam that contain CFCs and HFCs are captured and destroyed or recycled. The program will also include the recovery and proper disposal of other appliance waste streams, such as PCBs, mercury switches, and used oil.

MOTOR PLANTS CLOSE. Milwaukee, Wis.-based A.O. Smith will close its residential electric motor plants in Kentucky, North Carolina, and Hungary. By the end of next year, the company will transfer residential hermetic motor manufacturing now being done in Kentucky and commercial compressor motors built in North Carolina to plants in Mexico. Production at a motor plant in Budapest will transfer to China. The company points to a weak housing market and says that the market share of one of its larger customers has declined resulting in declining plant utilization rates.

CELL PHONE STORM ALERTS.

The National Weather Service has begun issuing weather warnings based on latitude and longitude as opposed to county-by-county. And, someday soon, these warnings could be sent to a cell phone, PDA or other wireless device. The storm-based warnings allow forecasters to pinpoint the specific area where the threats are highest, reducing the area warned by as much as 70 percent when compared to today’s county-by-county system. The Emergency Alert System is geared toward counties and alarms will still be generated if there is a warning anywhere in the county. However, text and audio messages will provide more specific information about where in the county the storm is, and the direction the storm is moving. The warnings will reference landmarks such as highways, shopping centers, and parks, and will use directional delimiters to indicate county location.

A QUICK CHARGE. Seiko Epson Corp. and Murata Manufacturing Co. Ltd. have agreed to jointly develop a wireless quick battery charger capable of substantially shortening charging time. The thin, compact wireless quick battery charger system is expected to shorten the charging time from the one to two hours required by current charging systems down to approximately 10 to 15 minutes. Furthermore, a wireless charger makes it possible for devices that would ordinarily require their own dedicated charging units to share a single charging unit.

OLED GOES BLACK.  Seiko Epson Corp. has developed an OLED display system that it says offers “the ultimate black,” which the company says is the key to better image quality. The company also says that it has made inroads into lengthening the device’s life span. One problem, early stage brightness deterioration, which had been a major obstacle to extending the life of the device, was solved by improving the light-emitting materials and through the development of Epson’s own original element structure. As a result, Epson was successful in lengthening the life of the device to more than 50,000 hours. Future plans call for Epson to develop displays with OLED systems for different uses, and study their potential for commercialization. Epson has already installed a manufacturing line that is capable of small-scale production.

LENNOX CLOSES PLANT. Lennox International of Dallas plans to close its refrigeration operations in Danville, Ill., and consolidate the manufacturing, support, and warehouse functions at its Tifton and Stone Mountain, Ga., factories. The consolidation will be a phased process and is expected to be completed in the next 18 months.

REGAL BUYS MORRILL.Regal Beloit Corp., of Beloit, Wis., has acquired Morrill Motors, makers of fractional-horsepower motors, including variable-speed motors, and components for the commercial refrigeration and freezer markets. The company will become part of the Regal Beloit’s electrical segment. Morrill has been based in Erwin, Tenn., where it has manufacturing facilities, and it also has a factory in Jiaxing, China.

TV’S NEW LIGHT.

Royal Philips Electronics of the Netherlands has launched the Aurea, which the company says is a television that will redefine the home entertainment experience. According to the company, the Aurea experience is like stepping through a window into a different world, as scenes radiate an aura of light and color beyond the frame. Aurea builds on Philips’ 11 years of experience in flat television technology and represents the next generation of Philips Ambilight FlatTV. It features Philips’ new, LED-based Ambilight system, discreet speakers and the Perfect Pixel HD Engine picture quality platform. Aurea was supported by a marketing campaign, under the theme Seduction By Light. The campaign will feature a short film, “There is only one Sun,” which was made exclusively for Philips and will be shown exclusively on Aurea televisions.

DISABLED STAY OFFLINE.Americans with disabilities and other chronic conditions are less likely to use the Internet, but those who are online are among the most avid consumers of health-related information, according to a study of nearly 3,000 Americans. Half of those with chronic conditions use the Internet, compared with three-quarters of those without, according to the Pew Internet and American Life Project. Two factors that may discourage Internet use is that those with chronic conditions tend to be older and less educated, which are factors linked with lower Internet usage overall. Other barriers include difficulties navigating the Web for those with poor vision or motion control. But, when they are online, those with chronic conditions are more apt to seek health information online. Pew said 86 percent of Internet users with chronic conditions have looked online for information on at least one of 17 health topics, compared with 79 percent of those without such conditions. The study found the chronic population far more likely to look for information about medication, specific treatments and procedures and alternative treatments and medicines.