There can be no disputing the relevance of ‘energy efficiency’ as a theme central to the construction industry at large.
But as we pursue the business of designing, producing and selling products, materials, systems and technologies that will deliver energy efficiency, do we sometimes get lost in the detail – how often do we pause for reflection?
Is the Green Deal creating or meeting market demand?
There’s a lot riding on the success of the Green Deal. But in the melee of voices explaining, questioning, lambasting and championing, are we confusing the market driver with the vehicle for delivery?
Are we trying to sell a clever new treatment for an ailment that the patient hasn’t yet asked their trusted GP about (they just moan every time they get a twinge), by telling them that the clever new treatment may be really expensive but we can help them to finance it?
In an interesting panel discussion on the opening day of Ecobuild, Rt Hon Ed Davey MP, Secretary of State for Energy and Climate Change, was predictably buoyant about the first few months since the Green Deal’s birth. He spoke about the importance of the ‘energy efficiency market’, not just within the UK marketplace but also as an export market. ‘Green growth’ already accounts for 136,000 jobs in energy efficiency, with a forecast/ambition that this could grow by 5% per year. Broadly, Davey saw the scope for Green Deal to create a market.
Paul King, Chief Executive of the UK Green Building Council (UK-GBC), followed Ed Davey on stage with a positive but more measured tone: ‘Green Deal is not a panacea, it is a finance mechanism’. He spoke about the need for competition, welcoming Nationwide’s alternative funding product for energy efficiency retro-fit projects, and called on the government to develop ‘incentives for the many, not just the few.’ In essence, King presented Green Deal as an opportunity to meet a need, solve a problem, satisfy a market.
As I see it, energy efficiency is a market driver and Green Deal is a vehicle for delivery.
It’s natural that much of our time in recent months has been spent addressing the ‘nuts and bolts’ of what the Green Deal mechanism is, how it works, what’s included, what it will cost, how it will be assessed, and what role each part of the industry will play.
So, Green Deal is here, we’re ready. What next?
The persuasive power of communities
Both Paul King and Ed Davey passionately identified the need for industry to work together with each other, and with government, to deliver Green Deal successfully, but Richard McCarthy, Executive Director of Capita Symonds, struck a real chord when he spoke of ‘neighbourhood’ delivery. He made the point that not enough people understand Green Deal at the moment, and questioned how we could move from focusing on individuals towards neighbourhoods who can support, influence and encourage each other to take action. In doing so, McCarthy brought the customer back into the discussion.
‘Neighbourhoods’ speak of people like us, people we know and trust. They embrace our local tradesmen and the small businesses that are part of our communities; the micro-businesses and installers who will be central to delivering Green Deal. Thinking in terms of neighbourhoods could allow us to bring the customer in closer synergy with those able to meet their energy efficiency needs.
Customer communications
To return to my simplistic health analogy, we’ve developed a complex but effective range of treatments, understood that our ‘patient’ is feeling pain that these treatments can relieve, identified the obstacle of cost and invented a solution. But where’s the trusted family doctor in this scenario? Where’s the mum that says, come on love, time to act? The mate down the pub that tells you his experience and persuades you to take action?
Our challenge is to tune into the needs of customers, understand what energy efficiency means for them, their motivators and drivers, their ‘pain threshold’ and to be ready with the solutions.
The industry has been preparing for Green Deal; preparing to meet market demand for energy efficiency in our homes. We’re ready to go, but are our customers? Are we talking their language, or ours?
Communications will be the next big step in making Green Deal successful, but we should be cautious about focusing too hard on ‘selling’ the Green Deal product, and instead concentrate on helping customers to recognise the remedies we offer for their energy efficiency ailments.
Local installers, contractors and heating engineers are well placed to deliver these messages with trust and credibility, which means that the industry must make a mission of engaging more thoroughly with this key group.
Sarah Bryars
Chief Executive
