Queensland Household Energy Survey 2012.

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2 2 Queensland Household Energy Survey Strategic Insights Report Final 8 th February 2013

3 Executive Summary In 2012, there continues to be some positive signs that Queensland residents are shifting towards more energy efficient behaviour in terms of their appliance ownership. o There has been a decline in the proportion of Queensland households with a clothes dryer, stand alone freezer, laptop computer, desktop computer and LCD television. However, there have also been some negative trends in appliance ownership, with an increase in the proportion of Queensland households with a microwave, washing machine, electric oven and LED or LED/LCD television. Of concern, is that current appliance ownership and future acquisition intent is significantly higher amongst residents with a high electricity bill. o o These residents are most likely to own multiple large screen televisions, multiple computers and gaming consoles, and a number of whitegoods and despite this already high ownership, they intend to buy more in the future. They are also more likely to use a number of appliances more often and during peak times, particularly entertainment devices, pool and spa filters, and electric ovens. More broadly amongst all Queensland residents, future purchase intentions are highest for entertainment devices and whitegoods. Air conditioning ownership has remained relatively stable in 2012, however it continues to be significantly higher in the Northern and Central regions. o o Box air conditioner ownership has remained steady, but purchase intentions for this type of unit have increased and more than half intend to buy within one year. Ownership of ducted air conditioning has also increased, driven by high growth in South-East Queensland. Currently 16% of Queenslanders intend to take up or buy more air conditioning in the next five years. While future purchase intentions are lower than previous years, the proportion of households with multiple air conditioning units has continued to rise in most regions. o Saturation is highest amongst those with high electricity bills, and in the Northern and Central regions. In terms of peak demand, the majority of residents are undertaking some peak demand behaviours and this has increased since However, more is required to make them more conscious and consistent. o There have been positive improvements in the proportion of residents avoiding using the washing machines and high wattage appliances during peak times, but more is needed to encourage adoption of generally being conscious of usage in peak times and not using the electric stove. Different strategies will be needed for each behaviour change stage (as outlined in the report), however achieving significant change may be difficult given the time of use tariff is currently just optional and not priced to be attractive to customers. o There also continues to be some disconnect between customer perceptions of their behaviour and their ability to make further changes. 3

4 Executive Summary (cont.) Solar PV ownership has continued to increase over the past two years, to 19% in Solar PV ownership is highest amongst older residents, home owners, those with low bills, pool owners and those with multiples of some appliances. o However, of concern is that while Solar PV owners are more likely to own energy efficient appliances, ownership of many energy consuming appliances is also high. Those who have Solar PV and do not intend to buy more in the future are now some of the highest appliance owners and users, and are less likely to be using energy responsibly. Cost savings rather than environmental considerations continue to drive uptake of Solar PV, particularly amongst retirees, those with a pool and spa, and those with a large sized home. Attractive government rebates have also been a motivator to take up Solar PV, particularly for those with lower incomes. The cost involved is the strongest barrier to uptake of Solar PV (particularly amongst older residents and those with high bills), followed by home ownership restrictions. A reduced electricity bill continues to be the key motivator for residents to lower their usage, and is also a stronger motivator than electricity price rises. Financial rebates and an in-home display device also contribute to customers motivation to modify their usage. Positively, residents concern about their ability to pay their bills has declined over the past two years. o o This is likely to be the result of residents doing more to lower or maintain their usage, no price increases on Tariff 11 over the past 18 months, and in particular an increasing number of households having Solar PV (which gives them substantial savings on their bill). Of concern is the one quarter of residents who have a quarterly bill of $650 or more and a household income of $71,000 or less. Bill concern is very high amongst these residents, who may benefit from payment plan options as well as energy efficiency advice. While monetary savings are continuing to drive changes, residents are also finding it more difficult to be energy efficient than 12 months ago, and are attributing more electricity usage responsibility to others. This information and more is explored in depth throughout this issues based strategic report. Recommendations have also been provided to help address these issues. 4

5 Report Contents Introduction 8 Background, Objectives and Methodology Topic 1 Appliance Penetration & Usage Intended uptake of entertainment devices is high, especially for computers and LCD/LED TVs, and these are generally used most in peak times Ownership of high energy consuming appliances is highest amongst those with a high energy bill, and these residents are also most likely to be purchasing new appliances in the future Intended purchase of whitegoods is also high, but improving peak demand behaviours and encouraging buying energy efficient models will help minimise this impact 5

6 Report Contents (cont.) Topic 2 Air Conditioning Trends Investigation Topic 4 Peak Demand Intention to purchase box air conditioning has increased, ducted air conditioning penetration has grown in SEQ, and different demographics are more likely to use air conditioners for heating Adoption of peak demand behaviours has improved, but more still needs to be done to make them more conscious and consistent Topic 3 Air Conditioning Forecast Modelling Topic 5 Solar PV Forecasted penetration is slightly lower (especially in SEQ and Southern QLD) as a result of more stable growth and lower future purchase intentions. However, the proportion of households with multiple air conditioning units continues to rise in most regions Solar PV ownership continues to increase, particularly amongst those with high appliance ownership, but is driven by cost savings rather than environmental considerations 6

7 Report Contents (cont.) Topic 6 Attitude Change Appendix Monetary savings are continuing to drive changes, however residents are finding it more difficult to be energy efficient than 12 months ago and are attributing more electricity usage responsibility to others 140 Research Methodology and Sample Topic 7 Motivation to Reduce Usage and Impact of Electricity Price Rises A reduced electricity bill continues to be the key motivator for residents to lower their electricity usage 7

8 Introduction: Background, Objectives & Methodology. 8

9 Report Introduction This report summarises the key learnings from the Queensland Household Energy Survey 2012 which was conducted by Colmar Brunton on behalf of Energex, Ergon Energy and Powerlink. This report draws upon extensive analysis across the Energex and Ergon Energy regions, and presents key high level issues for consideration by management. It is important to note that this report contains the opinions and interpretations of Colmar Brunton based on the data generated from the research, and that these interpretations do not necessarily reflect the views of Energex, Ergon Energy and Powerlink. The interpretations included in this report are to be used as a stimulus for consideration and decision making internally by Energex, Ergon Energy and Powerlink. Action plans and final recommendations should be developed based on all information available (i.e. including this data as one source of information). Six key topics have been investigated in this report. The following analytical framework has been adopted when presenting each of these learnings. Summarising the key learning which has been identified from the research; Presentation of supporting information on which each learning is based; The key insights for Energex, Ergon Energy and Powerlink management; and Implications identifying ways to potentially address the issue, with specific recommendations where geographic differences exist. These initial recommendations from Colmar Brunton are to be reviewed and developed further if appropriate within Energex, Ergon Energy and Powerlink. Detailed supporting evidence for all of the conclusions in this report will be provided in early 2013 in the following reports and documents. As the information contained in this report will not be specifically relevant to all audiences and also does not include the results to the entire survey by all different demographic groups, the following reports will provide full analysis of the research findings. These will be available via Gemma Fraser (Ergon Energy) and Rye Johnstone (Energex): 1. QHES interactive reporting tool which includes the Topline set of data tables and forecasting 2. SPSS datafile This report predominantly presents data from the 2012 Queensland Household Energy Survey, however comparisons to results from previous years have been made where relevant. 9

10 Research Objectives Similar to previous years, this survey was conducted to accumulate data on energy use, appliance penetration and saturation, and energy efficient behaviours in Queensland to assist Ergon Energy, Energex and Powerlink with planning as well as in determining how best to manage energy use (particularly peak demand) now and into the future. The specific objectives of the research were to: Obtain a range of demographic and appliance ownership information. Identify customer segments in terms of their attitudes to the environment and how they use electricity. Determine the behaviour change status of customers energy usage and energy efficient behaviours. Understand behaviour and usage of air conditioning and how more responsible use of air conditioning can be encouraged. Develop penetration and saturation forecast models for air conditioners. Provide consistent measures that can be compared to results from previous surveys. Obtain statistically valid and representative samples of the Queensland market across various climatic zones. 10

11 Research Methodology North QLD Central QLD To achieve these research objectives, an online survey was conducted with around 3,500 households across Queensland, with sample achieved in each of the key geographic regions of interest. The data was then weighted to ensure it was representative of Queensland Households as a whole. Percentages presented throughout this report are weighted percentages and all n scores (sample sizes) are unweighted. In the footer of each slide a reference has been given to the survey question number and the bases used in the analysis. The analysis in this report mainly focuses on the key differences between SEQ and Regional QLD. Where relevant, key differences in North QLD, Central QLD and South QLD have also been highlighted, as well as differences by demographics. Comparisons to results from 2011 have also been provided where appropriate. The IRT that will accompany this Insights Report will also contain the results for all questions for each of the above mentioned regions, in addition to results at a Statistical Division level for 2012 and for previous years where data is available. Throughout the report, significant differences are represented by the following: Score is significantly higher than the total sample. Score is significantly lower than the total sample. The directional arrows indicate a statistically significant shift over the compared time period. Score is significantly higher. SEQ Score is significantly lower. South QLD Further details about the methodology and a breakdown of all quotas achieved has been provided in the Appendix. 11

12 Research Context Similar to previous years, at a very overall level the research identified that the average Queenslander lives in a brick house (3 or more bedrooms) that they are either paying off or own outright. They are highly likely to have air conditioning and a number of high energy consuming appliances, such as large screen TVs. Many Queenslanders have insulation which will help their air conditioning run more efficiently and ceiling fans to be used as an alternative to air conditioning. While the prevalence of pools and spas has continued to rise slightly (particularly in SEQ), the average Queenslander does not currently have a pool/spa. Ownership of solar panels has also continued to increase since 2011, particularly in Regional QLD, with almost 1 in 5 Queensland homes now owning solar panels. However, several appliances saw a decline in 2012, with LCD TV ownership lower (in line with an uptake in LED TVs), and a drop in the proportion owning a desktop or laptop computer (potentially due to the growth of tablets). Some of the key figures for Queensland homes are summarised below. 12 Total QLD SEQ Regional QLD Type of home House 79% 79% 76% 76% 85% 85% House construction Brick 59% 57% 65% 64% 46% 44% No. of Bedrooms 3 bedrooms 43% 42% 42% 41% 46% 45% Home ownership A property that is owned or paying off 65% 65% 66% 66% 65% 65% Air conditioning Have air conditioning (A/C) 75% 74% 73% 71% 79% 80% Insulation Have insulation (ceiling and/or wall) 66% 66% 67% 68% 63% 64% Ceiling fans Have ceiling fans 68% 69% 64% 64% 76% 80% Plasma TV Have a plasma TV 29% 27% 30% 28% 28% 26% LCD TV Have a LCD TV 59% 48% 58% 46% 63% 52% LED TV Have a LED TV 14% 24% 14% 25% 14% 23% Desktop computer Have a desktop computer 71% 55% 72% 57% 70% 52% Laptop computer Have a laptop computer 74% 67% 73% 66% 76% 68% Pool/Spa Have a pool or spa 23% 24% 21% 25% 21% 21% Solar Panels (Solar PV) Have solar panels (Solar PV) 15% 19% 17% 19% 11% 18%

13 Research Context The typical Queenslander will continue to be a major challenge for energy companies in terms of energy efficient behaviour change. The majority of residents still have limited knowledge of current tariffs and as a result many do not know what tariff they are currently on, however there has been a slight increase in the proportion who have Tariff 33 compared to There has been little change in their primary motivations to change their behaviour. Primary motivations are cost related rather than an interest in climate change or the environment, and there is still the perception amongst some Queenslanders that they are already doing enough to reduce their electricity usage. There has, however, been a slight decline in financial rebates to install more efficient appliances being a motivating factor, which is in line with the Queensland Solar Bonus Scheme reducing from 44 cents to 8 cents per kwh earlier this year. Total QLD SEQ Regional QLD KNOWLEDGE & BELIEFS: Primary motivations to change behaviour Motivated by: Reduced electricity bill 31% 31% 32% 31% 30% 29% Financial rebates to install more efficient appliances 10% 8% 9% 7% 11% 9% Climate change/environmental impact 2% 2% 2% 2% 2% 2% Self-reported Tariff Using Tariff 31 Using Tariff 33 24% 27% 22% 30% 25% 23% 23% 27% 23% 34% 22% 35% 13

14 Household Appliance Ownership Over Time Appliance Trend Air conditioner (any type) 50% 58% 62% 64% 69% 74% 76% 75% 74% Split system air conditioner 56% 59% 66% 48% 50% 51% 54% 55% 71% Box air conditioning 54% 39% 41% 41% 24% 25% 23% 21% 28% Portable air conditioning 4% 4% 4% 2%* 2% 8% 6% 5% 5% Ducted air conditioning 11% 10% 10% 15% 7% 6% 9% 8% 13% Ceiling fan 64% 65% 66% % 67% 68% 69% Insulation (in roof or walls) 49% 48% 54% 60% 65% 65% 69% 66% 66% Plasma TV % 26% 28% 28% 27% CFL bulbs % 66% 86% 71% 77% 73% 76% Due to limited historic data, we are unable to measure trends in appliance ownership for most appliances pre The above table displays the data that is available pre-2009 when collected by the Office of Economic and Statistical Research. While there was a clear growing trend towards the number of households owning air conditioners and insulation, over the past two years it appears to have somewhat plateaued. However, ownership of split system air conditioners has increased significantly since 2011 (up 16%), and there has also been an increase in box air conditioners (up 7%) after a continual decline from 2004 to Both of these changes will be explored further in the full draft report submitted on the 11 th January From 2009 onwards, a more complete picture of household appliance ownership has been captured across a whole suite of different appliances, and key changes over the past couple of years have been reported in the next section. Ref: Q18A Base: Total QLD sample *Small sample size or very large sample error indicative only 14

15 Section 1: Appliance Penetration and Usage. 15

16 16 Key Issue 1 Ownership of high energy consuming appliances is highest amongst those with a high energy bill, and these residents are also most likely to be purchasing new appliances in the future 16

17 Residents with high bills are more likely to own high energy consuming appliances and intend to buy more in the near future Issue: Ownership of high energy use appliances is highest amongst those with a high energy bill, and these residents are also more likely to be taking up new appliances in the future. High energy users are also more likely to use entertainment devices (particularly TVs), their pool and spa filters, and electric ovens during peak times than other residents. While there is an opportunity for those intending to buy replacement items to purchase more energy efficient models or switch to off-peak tariffs, there is a threat that those buying additional items will further increase their usage, bill size and the pressure they are placing on the grid (particularly during peak times). Intended purchase of entertainment devices and whitegoods in the future is particularly high. Information: There continues to be some positive signs that Queensland residents are shifting towards more energy efficient behaviour in terms of their appliance ownership: o There has been a decline in the proportion of Queensland households with a clothes dryer, stand alone freezer, laptop computer, desktop computer and LCD television. o There has been an increase in the proportion of households with energy efficient light bulbs, LED light bulbs and solar panels. o Ownership of multiple computers has declined compared to However, there have also been some negative trends in appliance ownership: o There has been an increase in the proportion of Queensland households with a microwave, washing machine, electric oven and LED or LED/LCD television. Current appliance ownership and future acquisition intent is significantly higher amongst residents with a high electricity bill. In particular, high energy users are more likely to own multiple large screen televisions, multiple computers and one or more gaming consoles, as well as a number of whitegoods (dishwasher, clothes dryer, stand alone freezer and multiple fridges / freezers). They also have similar or slightly higher levels of future purchase intent of additional appliances (despite already high levels of ownership). They are most likely to purchase an additional laptop computer, fridge, desktop computer or large screen television in the next one or two years, with more than 1 in 10 also intending to purchase a replacement laptop computer, fridge, microwave or washing machine. In addition, residents with a high bill are more likely to use a number of appliances more often and during peak times. o Entertainment devices (particularly TVs), pool and spa filters, and electric ovens are used considerably more during peak times by those with a higher electricity bill compared to other residents. o Those with a high bill are also significantly less likely to avoid using high wattage appliances during peak times or avoid using the stove/oven, contributing to their load on the network between 4-8pm. 17

18 Insights: Ownership of some large screen televisions and whitegoods has increased in 2012, and future purchase intentions are higher for entertainment devices and whitegoods than other appliances. Entertainment devices are frequently used in peak times, and there is also room to improve the number of residents using whitegoods like clothes dryers, washing machines and dishwashers outside of peak times (currently only around half are in the maintenance stage for this behaviour). Ownership of large screen televisions, computers and gaming consoles is higher amongst those with high household incomes, who appear to be less price conscious in regards to usage of these appliances and prioritise the leisure / entertainment benefits. The growth of LED televisions and entrance of 3D televisions into the market appears to have caused a slight decline in ownership of LCD televisions, but plasma television ownership has remained steady. While the increase of tablet computers/ipads and improving smart phone technology may have contributed to the decline in laptop and desktop computer ownership in 2012, future purchase intentions for both appliances are still quite high, particularly amongst those with high bills (29% intend to purchase a replacement or additional computer). Entertainment devices in particular continue to become more affordable, and a number of major retail outlets have been discounting these appliances over the past 12 months and also in the lead up to Christmas. Implication: For large screen televisions, it will be hard to shift ownership and usage behaviour in the short term, and as it is unlikely that people will be willing to change when they use their television. Instead the focus should be on what to do when not using the appliance (i.e. make sure that it is switched off at the power socket). However, the growth of digital and personal video recorders may help encourage some residents to record some television programs during 4-8pm to watch at another time (which could potentially shift some television usage outside of peak times or reduce the proportion who have large screen televisions running all of the time). There is potential to shift more usage of non-essential whitegoods (clothes dryer, washing machine and dishwasher) outside of peak times, as well as encourage residents to consider putting these onto an economy tariff (which would restrict usage between 4-8pm while giving cost savings; this would particularly benefit high energy users). The growth of laptop computer ownership compared to desktop computers is positive in terms of energy efficiency. There is an opportunity to further encourage usage of a laptop or tablet computer rather than a desktop (particularly during peak times), and to use it with the battery pack rather than plugged into the wall so it is not consuming energy during between 4-8pm. There is an increasing number of more energy efficient options available on the market (particularly for whitegoods), which is a potential positive for those intending to make a replacement purchase in the near future. 18

19 Implementation: Continue to encourage Queenslanders to switch entertainment devices off at the powerpoint when not in use, and encourage purchasing a power board to make this an easier and practical solution if the powerpoint is not too accessible (i.e. so they can easily switch all appliances plugged into the power board off at once and without having to move equipment out the way etc). Encourage the purchase of more energy efficient models when purchasing additional or replacement whitegoods (communicate the star ratings and the potential savings on running costs in the long term of buying a more energy efficient model). Continue to encourage and reinforce not using non-essential whitegoods (clothes dryer, washing machine and dishwasher) during peak times, as well as switching these appliances to an off-peak tariff in order to save money. Promote usage of laptops and tablets during peak periods, which are more energy efficient and can be used with the battery pack rather than plugged into the socket. The following slides provide supporting information to this summary 19

20 Current Appliance Ownership Energy Efficient Appliances Energy Consuming Appliances Energy efficient/compact fluorescent light bulbs Ceiling fan Laptop computer Insulation Gas cook top LED light bulbs Solar panels (Solar Photo Voltaic or Solar PV) Solar hot water system (with electric booster) Gas oven Gas hot water (Mains Natural or LPG Gas) Instantaneous gas hot water system Solar pool heating Solar hot water system (with no booster or gas booster) 26% 21% 19% 14% 10% 10% 8% 2% 2% 76% 0% 1% 69% 4% 5% 67% 7% 7% 66% 13% 19% 24% 27% 33% 37% 42% 45% 48% 55% 55% 57% 62% 68% 74% 86% 94% 98% 98% Electric pool heating Instantaneous electric hot water system Heat pump hot water system Electric motor vehicles (not hybrid car) 3D television Spa/spa filter Septic tank Pool/pool filter LED or LED/LCD television Plasma television Electric heater Digital/personal video recorder (DVR/PVR) Freezer (detached from fridge/stand alone) Gaming console LCD television Desktop computer Dishwasher Clothes dryer Electric hot water system Electric cook top Air conditioner Electric oven Microwave Fridge (with or without a freezer component) Washing machine Ref: Q18A Base: Total QLD sample 20

21 Energy Efficient Appliances in Household by Region Energy Efficient Appliances: REGION Total SEQ North Central South Energy efficient/compact fluorescent light bulbs 76% 76% 74% 76% 83% Ceiling fan 69% 64% 92% 85% 65% Laptop computer 67% 66% 72% 69% 64% Insulation 66% 68% 59% 65% 69% Gas cook top 26% 26% 26% 22% 29% LED light bulbs 21% 21% 20% 21% 22% Solar panels (Solar Photo Voltaic or Solar PV) 19% 19% 16% 17% 22% Solar hot water system (with electric booster) 14% 14% 14% 14% 14% Gas oven 10% 8% 11% 10% 14% Gas hot water (Mains Natural or LPG Gas) 10% 11% 6% 6% 11% Instantaneous gas hot water system 8% 8% 5% 8% 8% Solar pool heating 2% 3% 1% 1% 2% Solar hot water system (with no booster or gas booster) 2% 2% 2% 3% 2% In terms of energy efficient appliances, Queensland households are most likely to own energy efficient light bulbs, ceiling fans, laptop computers and insulation. As shown on the following slide, Queensland households in the South region are generally less likely to have a number of the high energy consuming appliances in their household in contrast to the North and Central regions, such as clothes dryers, dishwashers, pools and plasma TVs. In the North and Central regions it is noted that air conditioner penetration is higher and this is also supported by higher ceiling fan ownership. However incidence of insulation is significantly lower in the North region, meaning that some air conditioning units would not be being used as efficiently as possible. Ref: Q18A Base: Total QLD sample, SEQ, North, Central, South 21 Results shaded in blue/orange are positively/negatively significant against the total

22 Energy Consuming Appliances in Household by Region REGION Total SEQ North Central South Energy Consuming Appliances: Washing machine 98% 98% 97% 99% 97% Fridge including bar/wine fridges (with or without a freezer component) 98% 98% 96% 99% 99% Microwave 94% 94% 94% 96% 94% Electric oven 86% 87% 83% 85% 83% Air conditioner 74% 71% 91% 87% 65% Desktop computer 55% 57% 49% 45% 61% Electric cook top 68% 69% 67% 70% 62% Electric hot water system 62% 60% 70% 63% 59% Clothes dryer 57% 57% 60% 60% 53% LCD television 48% 46% 55% 49% 51% Dishwasher 55% 60% 51% 46% 38% Gaming console 45% 44% 44% 49% 45% Freezer (detached from fridge/stand alone) 42% 37% 46% 55% 54% Digital video recorder (DVR) / personal video recorder (PVR) 37% 36% 41% 32% 41% Electric heater 33% 35% 14% 28% 41% Plasma television 27% 28% 24% 32% 23% Pool/Pool filter 19% 20% 26% 16% 10% LED or LED/LCD television 24% 25% 21% 23% 27% Septic tank 13% 9% 12% 17% 30% Spa/spa filter 7% 8% 7% 6% 5% 3D television 7% 7% 6% 7% 4% Electric motor vehicles (not hybrid car) 5% 6% 4% 3% 3% Heat pump hot water system 4% 4% 3% 6% 4% Instantaneous electric hot water system 1% 1% 1% 0% 0% Electric pool heating 0% 0% 1% 0% 0% Ref: Q18A Base: Total QLD sample, SEQ, North, Central, South 22 Results shaded in blue/orange are positively/negatively significant against the total

23 Energy Consuming Appliances in Household by Bill Size APPLIANCE PENETRATION TOTAL BILL SIZE Selected Energy Consuming Appliances: Total QLD Sample $150 or less $651 or more Electric oven 86% 80% 91% Air conditioning 74% 64% 91% Electric hot water system 62% 58% 72% Clothes Dryer 57% 41% 82% Dishwasher 55% 41% 72% Gaming console (i.e. XBOX, Wii, Playstation) 45% 31% 64% Freezers (detached from fridge/stand-alone) 42% 34% 62% Digital video recorder (DVR) or personal video recorder (PVR) 37% 36% 47% Plasma television 27% 16% 44% Pool/Pool filter 19% 13% 51% 3D television 7% 4% 17% Queensland households with very large electricity bills of $651 or more per quarter are significantly more likely to own a number of energy consuming appliances compared to the total sample, and especially compared to those with very low electricity bills of $150 or less. In particular, those with large bills are significantly more likely to own a pool/pool filter, air conditioning, a number of different entertainment devices, a clothes dryer and a dishwasher. Those with high bills attribute the largest proportion of their electricity bills to the running costs of a pool and air conditioning. While there is a relationship between high income and high bills, one quarter of residents with quarterly bills of $651 or more have a household income of <$71,000. This is most common amongst residents living in a couple household with children at home. Bill concern is very high amongst these residents (8.5 compared to 5.9 for the total sample), which is explored further in Topic 7. Ref: Q18A Base: Total QLD sample, low energy users (n=445), high energy users (n=253) 23 Results shaded in blue/orange are positively/negatively significant against the total

24 INCREASED Changes in Appliance Ownership Since 2011 LED or LED/LCD television (11%) Fridges including bar/wine fridges (with or without a freezer) (5%) Energy efficient/compact fluorescent light bulbs (4%) Electric oven (4%) Microwave (4%) LED light bulbs (4%) Solar panels (Solar PV) (4%) Washing machine (3%) Clothes dryer (-3%) Freezers (detached from fridge/ stand alone) (-5%) LCD television (-11%) Laptop computer (-7%) DECREASED Desktop computer (-16%) All appliances displayed have experienced a statistically significant shift in ownership since Ref: Q18A Base: Total QLD sample 24

25 Household Appliance Ownership Changes since 2010 APPLIANCES WHICH HAVE INCREASED OVER THE PAST 12 MONTHS Appliance Diff. to 2011 Diff. to 2010 Washing machine 98% 95% 3% 4% Fridge (with or without a freezer component) 98% 93% 5% 3% Microwave 94% 90% 4% Not asked Electric oven 86% 82% 4% 3% Energy efficient/compact fluorescent light bulbs 76% 73% 4% -1% Ceiling fan 69% 68% 1% 2% Electric cook top 68% 67% 1% -1% Dishwasher 55% 54% 0% 4% Gas cook top 26% 24% 2% 1% LED or LED/LCD TV 24% 14% 11% Not asked LED light bulbs 21% 16% 4% 6% Solar panels (Solar Photo Voltaic or Solar PV) Gas hot water (Mains Natural or LPG Gas) Instantaneous gas hot water system 19% 15% 4% 10% 10% 8% 2% 1% 8% 7% 1% 1% Spa/spa filter 7% 7% 1% 0% Over the past 12 months eight appliances saw a statistically significant increase in ownership, including LED light bulbs and Solar PV (up 5% and 4% respectively). Ownership of LED or LED/LCD TVs also significantly increased, however in line with this shift, ownership of LCD and plasma TVs declined. Conversely, five appliances decreased significantly in penetration over the past 12 months. In particular, ownership of both laptop and desktop computers declined (7% and 16% respectively), potentially due to the increase in tablets and smart phones. Ownership of clothes dryers and stand alone freezers has also continued to decline. APPLIANCES WHICH HAVE STAYED STABLE OVER THE PAST 12 MONTHS Appliance Diff. to 2011 Diff. to 2010 Insulation 66% 66% 0% -3% Electric heater 33% 32% 0% -3% Pool/Pool filter 19% 19% 0% -1% Solar hot water system (with electric booster) 14% 14% 0% 1% Instantaneous gas hot water system 8% 7% 0% 1% Electric motor vehicle (not hybrid car or scooter) 5% 5% 0% -1% Heat pump hot water system 4% 4% 0% 2% Solar hot water system (with no booster or gas booster) 2% 2% 0% 2% APPLIANCES WHICH HAVE DECREASED OVER THE PAST 12 MONTHS Appliance Diff. to 2011 Diff. to 2010 Air conditioner 74% 75% -1% -2% Laptop computer 67% 74% -7% -4% Electric hot water system 62% 62% -1% -2% Clothes dryer 57% 60% -3% -1% Desktop computer 55% 71% -16% -21% LCD television 48% 60% -11% -10% Freezer (detached from fridge/ stand alone) 42% 46% -5% -7% Plasma television 27% 29% -2% -1% Gas oven 10% 11% -1% -2% Solar pool heating 2% 3% -1% -1% Instantaneous electric hot water system 1% 2% -2% -1% Ref: Q18A Base: Total QLD sample 25

26 6am-11am 11am-4pm 4pm-8pm 8pm-10pm 10pm-6am All the time Very rarely Don't know Pattern of Daily Appliance Usage All Queensland Households 90% 80% 70% 60% 50% 40% Showering (49%) and Pool filters (31%) Electric cook tops (84%), Televisions (~60%), Solar hot water systems (58%) Highest for Televisions (~12%). Some variation in usage amongst TV type, but generally higher amongst renters, stay at home parents and high energy users (>$450). Plasma TV usage significantly higher in Central and LED TV usage significantly higher in the North. Gaming consoles (51%) and spa filters (48%) are most likely to be used very rarely. Those with low to moderate energy bills (<$350) are more likely to use gaming consoles very rarely, along with females and those aged 50+ years. Older residents (50+ years), those on a low income (<$31,000) and low energy users (bill <$250) are most likely to use the electric cooktop and oven very rarely. 30% 20% 10% 0% Plasma television LCD television LED television 3D television Gaming console Digitial VCR or Personal Video Recorder (PVR) Showering/bathing Electric cook top Electric oven Pool/pool filter Spa/spa filter Electric heater during winter Ref: Q34 Base: Total QLD sample who have appliance/able to do the behaviour 26

27 6am-11am 11am-4pm 4pm-8pm 8pm-10pm 10pm-6am All the time Very rarely Don't know Pattern of Daily Appliance Usage High Energy Users (Quarterly Bill of $551 or more) 90% 80% 70% 60% 50% 40% 30% 20% 10% Compared to all QLD households, usage between 4-8pm is much higher for Electric Ovens (+11%) Plasma TVs (+7%), 3D TVs (+5%) and DVR/PVRs (+5%) Compared to all QLD households, usage between 11am-4pm is much higher for Pool filters (+8%), Plasma TVs (+7%), LCD TVs (+6%) and 3D TVs (+5%) Compared to all QLD households, usage between 8-10pm is much higher for Plasma TVs (+10%), 3D TVs (+7%) and Showering/bathing (+4%) Compared to all QLD households, usage all the time is much higher for Spa/spa filters (+7%), LED TVs (+5%) and 3D TVs (+4%) 0% Plasma television LCD television LED television 3D television Gaming console Digitial VCR or Personal Video Recorder (PVR) Showering/bathing Electric cook top Electric oven Pool/pool filter Spa/spa filter Electric heater during winter Ref: Q34 Base: High energy users (bill of $551 or more) who have appliance/able to do the behaviour 27

28 Future Appliance Ownership Acquisition Intent Energy Efficient Appliances Energy Consuming Appliances Current Ownership Future Intent Laptop computer Ceiling fan 67% 69% 5% 2% Current Ownership Future Intent 3% 3% 4% 4% 3% 5% Electric pool heating Instantaneous electric hot water system Heat pump hot water system Electric motor vehicle (not hybrid car) Gas cook top Solar panels (Solar Photo Voltaic or Solar PV) 26% 19% 4% 10% Higher intended uptake LED or LED/LCD TVs and 3D TVs 3% 4% 27% 4% 7% 6% 19% 7% Spa/spa filter 3D television Pool/Pool filter Plasma television Solar hot water system (with electric booster) 14% 7% 2% 7% 33% 24% LED or LED/LCD television Electric heater Gas oven Gas hot water (Mains Natural or LPG Gas) 10% 10% 3% 3% Higher intended uptake of solar panels and solar hot water systems 4% 3% 3% 4% 42% 45% 48% 37% Digital/personal video recorder (DVR/PVR) Freezer (detached from fridge/stand alone) Gaming console LCD television Instantaneous gas hot water system 8% 3% 3% 4% 55% 55% Desktop computer Dishwasher Solar pool heating 4% 1% 4% 57% 62% Clothes dryer Electric hot water system Solar hot water system (with no booster or gas booster) 4% 1% 3% 1% 86% 68% 74% Electric cook top Airconditioner Electric oven 94% Microwave 98% Fridge (with or without a freezer component) 98% Washing machine Ref: Q18A & Q21A Base: Total QLD sample (Q21A rebased to total and based on future acquisition of appliances) 28

29 Future Appliance Ownership Acquisition Intent The appliances with the highest acquisition intent are similar to the 2011 results, with the addition of 3D televisions which was not tested in the research last year. Further details about future intent for each of these appliances has been provided below. Positively, two of the appliances with the highest future acquisition intent are solar items, rather than high energy consuming appliances. Appliances with High Future Acquisition Potential Future Intended Acquisition Intent is HIGHEST Amongst Intent is LOWEST Amongst Solar PV Panels 10% Those living in the Central region (13%) Those with an electricity bill of $451 to $650 (21%) Those who are stay at home parents (15%) Those who own their home (12%) Households with 4 residents (16%) and couple households with children at home (15%) Those intending to buy air-conditioning in the future (19% for A/C penetrators and 16% A/C saturators) Those with an electricity bill of less than $150 (3%) Those aged 50+ years (8%), particularly retirees (7%) Those with a low income of $30,999 or less (5%) Those who are renting (6%) Those born outside of Australia (8%) Households with 1 or 2 residents (6%) Solar Hot Water Systems (with electric booster) LED or LED/LCD Televisions 7% Those living in the Central region (9%) Households with 3 residents (10%) and single parent households with children at home (12%) Those intending to buy air-conditioning in the future (13% for A/C penetrators and 11% A/C saturators) 7% Those living in the Central region (10%) Those who are stay at home parents (11%) Those earning $31,000 to $70,999 (9%) Those with electricity bills between $551 and $650 (12%) Those born outside of Australia (10%) Those who own 3 or more gaming consoles (15%) Those who are retirees (5%) Those with a low income of $30,999 or less (4%) Those with an electricity bill of $250 or less (5%) Those who are renting (4%) Relatively similar intended take up across other demographics. 3D Televisions 6% Those living in the Central region (9%) Those aged 29 years or under (9%) Those born outside of Australia (8%) Those who are female (4%) Those aged 50+ years (4%) Those with a low income of $30,999 or less (3%) 29 Results highlighted in green/red are positively/negatively significant against the total

30 Future Appliance Acquisition & Replacement Of those who already own the appliance, Queensland households are more likely to be buying replacement items rather than additional. Acquisition of laptops (6%) and ceiling fans (4%) is still quite high, however these are at least more energy efficient alternatives to desktop computers and air conditioning. The growth seen in large screen television ownership in 2011 has not continued to increase as substantially this year. While LCD TV ownership is likely to still increase slightly (3% additional, 4% replacement), those intending to purchase a plasma or LED televisions is lower, with 3% and 4% respectively intending to buy either an additional or replacement of these items. Replacement purchases in the next two years are likely to be highest for laptop computers, fridges and microwaves (11%), followed by washing machines (10%) and desktop computers (8%). Appliance Acquisition and Replacement Laptop computer 11% Fridge (with or without a freezer) 11% Microwave 11% Washing machine 10% Desktop computer 8% Electric oven 7% Electric cook top 6% Ceiling fan 5% LCD television 4% Dishwasher 4% Electric hot water system 4% Clothes dryer 4% Digital/personal video recorder 4% Freezer (stand alone) 4% Gaming console 3% Plasma television 2% LED television 2% 6% 2% 1% 2% 2% 1% 0% 4% 3% 0% 1% 2% 1% 1% 3% 1% 2% Additional Replacement Note: Only those appliances with reasonable levels of intended replacement or acquisition are shown. Ref: Q23D Base: Rebased to total QLD sample 30

31 Future Appliance Acquisition & Replacement High Energy Users (Quarterly Bill of $551 or more) For intended replacement purchases, results are relatively similar between all Queensland households and high energy users (those with a quarterly bill of $551 or more). However, of concern is that intended purchase of additional appliances is generally on par or even slightly higher amongst those with high energy bills and already high ownership of these appliances. Both the size of their bill and their usage (potentially also during peak times) is likely to increase if some/all of these intended additional acquisitions are made. With more energy efficient models of different appliances coming on to the market, there is an opportunity to encourage these households in particular to buy more energy efficient options (particularly of the items they are buying additional of) to avoid a significant impact on their bill as well as educate them to use them responsibility (to minimise negative effect on the network). Appliance Acquisition and Replacement Diff. to Total Sample Laptop computer -1% Fridge (with or without a freezer) 2% Microwave 1% Washing machine - Electric oven - Desktop computer 1% Ceiling fan 1% LCD television - Clothes dryer - Electric cook top - Freezer (stand alone) - Digital/personal video recorder - Dishwasher 1% Electric hot water system - Gaming console - Plasma television - LED television - 15% 14% 13% 13% 10% 10% 8% 8% 8% 7% 7% 7% Additional Note: Only those appliances with reasonable levels of intended replacement or acquisition are shown. 5% 4% 4% 2% 1% 1% 1% 1% 1% 2% 2% 1% 1% 2% 2% 2% 3% 2% 3% 4% 5% 5% Replacement Diff. to Total Sample 1% 2% 1% -1% - 1% 1% - -1% 1% 1% 1% 1% - -1% 1% - Ref: Q23D Base: Rebased to total sample of high energy users (bill of $551 or more) 31

32 Entertainment Deep Dive 32 Key Issue 2 Intended uptake of entertainment devices is high, especially for computers and LCD/LED TVs, and these are generally used most in peak times 32

33 Entertainment Snapshot Current and Future Ownership OWNERSHIP 2011 Vs FUTURE UPTAKE & SATURATION 2012 Data Laptop Computer 67% 74% Laptop Computer 5% 17% 22% Desktop Computer 55% 71% Desktop Computer 3% 9% 13% LCD Television 48% 60% LCD Television 4% 7% 11% Gaming Console Not asked in % Gaming Console 3% 6% 9% Plasma Television 27% 29% Plasma Television 3% 4% 6% LED Television 14% 24% LED Television 4% 7% 11% 3D Television 7% Not asked in D Television 1% 6% 6% Uptake Saturation Ownership of a laptop, desktop computer and LCD television declined over the past 12 months, while penetration of a LED television increased. In terms of future uptake and saturation, this is highest overall for laptop computers (22%) and desktop computers (13%). Future penetration (new uptake) is highest for LED televisions (7%) and 3D televisions (6%). Ref: Q18 & Q23D Base: Total QLD sample 33

34 Ownership Profile of Multiple Appliances LED, LCD, Plasma and 3D TVs Multiple Large Screen TV Ownership 40% Note: Down from 41% in Core Statistics on Multiple Large Screen TV Ownership Currently LCDs and multiple LCDs are most prominent, followed by Plasmas and LEDs. In 2012, 40% of households said they have more than one large screen TV. As per 2011, LCDs are still the most common large screen TV owned by all Queenslanders (48%), and when multiples are owned LCDs are also most prominent. However, ownership of LCD TVs has declined in 2012 (down from 60%), with greater uptake in LED and LED/LCD TVs by Queenslanders (up 11% to 24% in 2012). Plasma TV ownership has remained relatively steady over the past 12 months (27% in 2012 c.f. 29% in 2011). Ownership of 3D TVs is lowest at 7%, however this was not tested in Income and household size are stronger indicators of multiple large screen TV ownership, compared to regional impacts or renting/owning status. Multiple TV owners are also more likely to have higher electricity bills. No significant differences between different regions in Queensland. Multiple TV ownership is significantly higher amongst those aged 50+ years (43%). Relationship between multiple TV ownership and household income; ownership significantly lower amongst those on less than $31,000 (30%) and significantly higher amongst those on $110,000 or more (45%). Significantly higher amongst those with an electricity bill of $451 or more, in particular $651 or more (62%). Significantly higher amongst owners (44%) compared to renters (33%). Prominent amongst any households with 2 or more residents (38%+ penetration of multiple large screen TVs). Ref: Q18A & Q18B Base: Total QLD sample constructed variable of those with multiple LED, LCD, Plasma and/or 3D TVs in the household These TVs are referred to holistically as large screen TVs. 34 Results highlighted in green/red are positively/negatively significant against the total

35 Future Ownership of Multiple Appliances LED, LCD and Plasma TVs Amongst those who already own multiple TVs, purchase intention is highest for LCD televisions (11%) and LED televisions (9%). Future purchase intentions are similar to all Queensland households, despite these households already owning two or more televisions. Amongst multiple large screen TV owners, the Central region has a higher intended purchase of LCD televisions (14%) and also 3D televisions (13%). Intended take up of both 3D televisions (11%) and LED televisions (14%) is higher amongst multiple TV owners aged 29 years and under. Purchase Intentions of Multiple Large Screen TV Owners Total Purchase Intentions Multiple TV Owners Vs. All Queensland Households LCD Television 53% 8% 37% 3% TOTAL INTENDED PURCHASE LED Television 30% 4% 61% 5% Television Type Multiple TV Owners All QLD Households LCD Television 11% 11% Plasma Television 28% 3% 66% 3% LED Television 9% 11% Plasma Television 6% 6% 3D Television 11% 82% 6% 3D Television 7% 6% 0% 20% 40% 60% 80% 100% HAVE IT and WILL NOT BUY in the next year or two HAVE IT and WILL BUY in the next year or two DON'T HAVE IT and WILL NOT BUY in the next year or two DON'T HAVE IT and WILL BUY in the next year or two *Based on all households who currently own multiple large screen televisions. Ref: Q18A, Q18B and Q23D Base: Total QLD sample constructed variable of those with multiple LED, LCD, Plasma and/or 3D TVs in the household 35

36 Ownership Profile of Multiple Appliances Desktop and Laptop Computers Multiple Computers Ownership 53% Note: Down from 65% in Core Statistics on Multiple Computers Ownership In 2012, just over half (53%) of households indicated that they have more than one computer (desktop or laptop) in their home. This is a decline from 2011 where multiple computer ownership was 65%, and has been driven in particular by a decline in the ownership of desktop computers (down 16% to 55%). Laptops are now much more prominent compared to desktop computers, owned by 67% of households. While this was not tested in the 2012 QHES study, it is hypothesised that this decline in multiple computer ownership can be attributed to the uptake of tablet computers/ipads, as well as increasing smart phone technology. Multiple computer ownership is significantly higher amongst those aged 29 years and under (driven by higher multiple laptop ownership), those with electricity bills of $651 or more (driven by high multiple laptop and desktop ownership) and shared households of adults (driven by higher multiple laptop ownership). Older residents, those with lower electricity bills and those on a low household income are less likely to have multiple computers in their household. 43% of households own 2 or more laptops and 23% own 2 or more desktop computers. Multiple computer ownership is similar between SEQ and Regional Queensland as a whole, but significantly lower in Central (49%). Multiple computer ownership is significantly higher amongst those 29 years and under (62%) and significantly lower amongst those 50+ years (48%). Lowest amongst those with an electricity bill of $250 or less (47%) and highest amongst those with a bill of $651 or more (67%). Ownership is significantly higher amongst a shared household of adults (67%) and significantly lower amongst single person households (28%). Significantly lower amongst low income households earning less than $31,000 (43%). Ref: Q18A & Q18B Base: Total QLD sample constructed variable of those with multiple laptop or desktop computers in the household 36 Results highlighted in green/red are positively/negatively significant against the total

37 Future Ownership of Multiple Appliances Desktop and Laptop Computers While future penetration of laptop and desktop computers is relatively low amongst multiple computer owners, future saturation is high, particularly for laptop computers where 23% of households intend to buy one within the next two years. This is made up of 8% intending to buy an additional laptop and 15% intending to buy a replacement. For desktop computers, future saturation comprises 3% additional purchases and 9% replacement purchases. Total Purchase Intentions Multiple Computer Owners Vs. All Queensland Households Computer Type TOTAL INTENDED PURCHASE Multiple Computer Owners All QLD Households Laptop Computer 24% 22% Desktop Computer 14% 13% Purchase Intentions of Multiple Computer Owners Laptop Computer 69% 23% 8% 1% Desktop Computer 59% 12% 27% 2% Despite the high ownership of those with multiple computers, their future purchase intent for both laptops and desktops is slightly higher than the general Queensland population. Amongst multiple computer owners, future purchase intentions of desktop computers is highest amongst those aged 50+ years, while for laptops it is highest amongst those years (27%). Future purchase intentions of both desktops and laptops is also particularly high amongst those with already high electricity bills of $651 or more (29%). This includes 3% additional desktop computer purchases and 4% additional laptop purchases. 0% 20% 40% 60% 80% 100% HAVE IT and WILL NOT BUY in the next year or two HAVE IT and WILL BUY in the next year or two DON'T HAVE IT and WILL NOT BUY in the next year or two DON'T HAVE IT and WILL BUY in the next year or two *Based on all households who currently own multiple large screen televisions. What impact will tablets and smart phones have on future uptake? Ref: Q18A, Q18B and Q23D Base: Total QLD sample constructed variable of those with multiple laptop or desktop computers in the household 37

38 Ownership Profile Gaming Consoles Gaming Consoles Ownership 45% Note: Not asked in Core Statistics on Gaming Consoles Ownership Nearly half of Queensland households have at least one gaming console (e.g. a Playstation, Xbox, Wii, etc) (43%), and 38% of residents with a gaming console have two or more in their household. Ownership is significantly higher in Mackay (55%) and significantly lower in South West (24%). Couple households with children at home are most likely to own a gaming console (66%), with ownership being lowest amongst retirees (18%) and households with one resident (24%). Ownership appears to increase linearly in line with the size of residents electricity bill, being lowest amongst those with a bill of $150 or less per quarter (31%) and highest amongst those paying $651 or more (64%). Renters are also more likely to own a gaming console compared to owners (52% c.f. 41%). Similar ownership across the regions, but slightly more prominent in Central (49%). Significantly higher amongst those 49 years and under (58%), and significantly lower amongst those 50+ years (23%) especially retirees (18%). Significantly higher ownership amongst couple households with children at home (66%) and lowest amongst single resident households (24%). Higher amongst those on a high household income of $110,000 or more. Increasing levels of ownership in line with the size of their electricity bill; lowest amongst those with a bill of $150 or less (31%) and highest amongst those paying $651 or more (64%). Ownership is significantly higher amongst renters (52%) compared to owners (41%). Significantly lower amongst those with Solar PV (39%). Ref: Q18A & Q18B Base: Total QLD sample 38 Results highlighted in green/red are positively/negatively significant against the total

39 Current Behaviour and Future Ownership Gaming Consoles Half of residents with a bill of $651 or more own 2 or more gaming consoles (59%). Gaming Consoles Intention to Purchase 9% It will be interesting to monitor ownership of gaming consoles in future years of the QHES research given the level of purchase intent, as well as how it may change in line with ownership of laptop and desktop computers (are people switching to tablets, playing games on mobile devices, owning separate consoles and using PCs less, etc). Ownership of multiple gaming consoles is also generally quite high across demographics, with 2 in 5 residents who own a gaming console having 2 or more in their household. Those intending to purchase additional gaming consoles are most likely to be in the Central region (58%), employed in home duties (75%) and be aged 29 years or less (59%). 9% of Queensland households intend to buy a gaming console in the next 2 years, comprising 6% saturation and 3% new uptake. Of those who already own a gaming console and intend to buy another, 45% intend to buy additional and 55% intend to buy a replacement. Core Statistics on Gaming Consoles Intention to Purchase Intent to purchase is similar across regions, but significantly higher on the Gold Coast (13%) and significantly lower on the Sunshine Coast (4%) compared to all other areas. Significantly lower amongst females (7%). Significantly higher amongst those 49 years and under (12%) and significantly lower amongst those aged 50+ years (3%). Significantly higher amongst those who speak another language at home (19%). Significantly higher amongst single parent households with children at home (20%). Ref: Q23D Base: Total QLD sample 39 Results highlighted in green/red are positively/negatively significant against the total

40 Whitegoods Deep Dive 40 Key Issue 3 Intended purchase of whitegoods is also high, but improving peak demand behaviours and encouraging buying energy efficient models will help minimise this impact 40

41 Whitegoods Snapshot Current and Future Ownership OWNERSHIP 2011 Vs FUTURE UPTAKE & SATURATION 2012 Data Fridge 98% 93% Fridge 0% 13% 13% Washing machine 98% 95% Washing machine 0% 11% 12% Microwave 94% 90% Microwave 0% 12% 12% Clothes dryer 57% 60% Clothes dryer 4% 4% 8% Dishwasher 55% 54% Dishwasher 4% 5% 9% Freezer 42% 46% Freezer 3% 5% 8% Uptake Saturation Ownership of a fridge, washing machine, microwave and dishwasher has slightly increased over the past 12 months, while penetration of a clothes dryer and stand alone freezer slightly declined. In terms of future uptake and saturation, this is highest for fridges, washing machines and microwaves (with more than 1 in 10 intending to purchase). Around 4% of Queenslanders who don t currently own a clothes dryer or dishwasher intend to acquire one in the next two years. Ref: Q18 & Q23D Base: Total QLD sample 41

42 Ownership Profile Dishwashers Dishwasher Ownership 55% Note: Up from 54% in Core Statistics on Dishwasher Ownership In 2012, 55% of Queenslanders have a dishwasher in their home, which is in line with results from the previous two years (54% in 2011 and 55% in 2010). Ownership is significantly higher in SEQ compared to Regional Queensland. It is highest amongst Sunshine Coast and Gold Coast residents (65% and 64% respectively), and lowest amongst those in Fitzroy and Wide Bay- Burnett (38% and 36% respectively). Those on a higher income are significantly more likely to have a dishwasher, particularly those on $111,000 or more (76%). Dishwashers are also more prominent in households with owner occupiers rather than those who are renting. Residents with a dishwasher are significantly more likely to also own other high energy consuming appliances that assist their comfort, including airconditioning and a pool and/or spa. Ownership is significantly higher in SEQ (60%), and significantly lower in the Central (48%) and South (38%) regions. Significantly higher amongst those employed full or part time (59%). Significantly higher amongst those with an income of $71,000+ (66%) and significantly lower amongst those earning less than $71,000 (42%). Significantly higher ownership amongst owners (65%) than renters (38%). Significantly higher amongst those with an energy bill of $451 or more (67%) Ownership is higher amongst those with other high energy consuming appliances that assist comfort: Airconditioning owners (62%), pool owners (78%) and spa owners (67%). Slightly higher amongst those years (57%). Ref: Q18 Base: Total QLD sample 42 Results highlighted in green/red are positively/negatively significant against the total

43 Current Behaviour and Future Ownership Dishwashers Four in five Queensland residents are currently in the maintenance stage in terms of ensuring their dishwasher has a full load before use. While this is positive, there is still an opportunity to encourage the 14% who do this sometimes to make it a regular behaviour, and for the remaining 6% to start adopting it at all. However, only around half of residents use their dishwasher outside of peak times all or most of the time. While nearly a quarter do this sometimes, there are 16% in the pre-contemplation stage who either are not aware or aware but probably not going to do it. This suggests that further education is needed to promote this behaviour and ensure residents understand why it would be preferable for them to use this appliance outside of peak times. Residents should also be encouraged to purchase dishwashers that have the option of a delayed start button or timer. Ensure your dishwasher and washing machines have full loads before use (n=3160) Use the dishwasher outside of peak times (4pm to 8pm) (n=1760) Current Dishwasher Behaviour 14% 16% 7% 23% 80% 54% Dishwasher Intention to Purchase 9% Nearly 1 in 10 Queenslanders (9%) intend to purchase a dishwasher within the next two years. This is comprised of 4% who currently do not have a dishwasher and 5% intending to buy a replacement or additional. Dishwasher purchase intent is highest in the Northern region (15%) and lowest on the Sunshine Coast (4%). Core Statistics on Dishwasher Intention to Purchase Purchase intent is highest in the Central and South regions (11%). Significantly higher amongst those years (11%). Significantly more likely to intend to take up airconditioning in the future (29%). Significantly higher amongst those with a household income of $31,000 to $70,999 (11%). 0% 20% 40% 60% 80% 100% Pre-Contemplation Contemplation Action Maintenance Note: NA responses have been excluded. Ref: Q23D Base: Total QLD sample 43 Results highlighted in green/red are positively/negatively significant against the total

44 Ownership Profile Microwaves Microwave Ownership 94% Note: Up from 90% in Core Statistics on Microwave Ownership Microwave ownership has increased slightly, up 4% to 94% compared to the 2011 results. While ownership is steady across SEQ and Regional Queensland, it is slightly higher in South West (97%) and slightly lower on the Sunshine Coast (92%). Of those with a microwave, 96% of residents have just one in their home. Microwave ownership is higher amongst older residents, particularly retirees, along with those on a high income of $111,000 or more (97%). These groups may be more reliant on microwave speed and convenience for cooking (retirees for simple/easy meals and those on a high income potentially being more time poor due to work commitments). Microwave ownership and usage is also significantly lower amongst those who speak another language at home. No significant differences in microwave ownership between SEQ and Regional QLD (94%). Slightly higher amongst those aged 50+ years (96%) and significantly higher amongst retirees (97%). Significantly higher amongst those on an income of $111,000 or more (97%). Significantly lower amongst those who speak another language at home (89%). Significantly lower amongst those who do not have air conditioning (91%). Households with adult children at home are most likely to own a microwave (97%). Slightly lower amongst those living in a unit/apartment compared to a house (92% c.f. 95%). Ref: Q18A Base: Total QLD sample 44 Results highlighted in green/red are positively/negatively significant against the total

45 Current Behaviour and Future Ownership Microwave Residents with kitchen appliances (other than a fridge/freezer) believe that they account for an average of 13% of their electricity bill. Microwave Intention to Purchase 12% Residents who have a microwave are less likely to not use the electric stove during peak times and instead BBQ/pre cook meals, than those who do not have a microwave. However regardless of microwave ownership, there is a significant opportunity to educate and convert the nearly half of Queenslanders who are in the pre-contemplation or contemplation stages in regards to BBQing and/or pre-cooking meals. Have a microwave (n=2153) Do not have a microwave (n=88) Current Cooking Behaviour Not using the electric stove during peak times and instead BBQ/pre cook meals 46% 43% 12% 11% 29% 31% 13% 16% 0% 20% 40% 60% 80% 100% Just over 1 in 10 Queensland residents intend to purchase a microwave within the next 2 years. These are predominantly people who already own one, and of these 93% would be buying a replacement microwave rather than an additional one. Purchase intentions are higher in Regional Queensland, particularly West Moreton (25%), however 95% intend to buy a replacement. Purchase intentions are particularly low amongst younger residents aged 29 years or less, and significantly higher amongst those with a very high electricity bill. Core Statistics on Microwave Intention to Purchase Slightly higher amongst Regional Queenslanders, particularly the Central region (15%). Significantly lower amongst those aged 29 years or under (7%). Significantly higher amongst those with an electricity bill of $651 or more (17%). Pre-Contemplation Contemplation Action Maintenance Note: NA responses have been excluded. Ref: Q23D Base: Total QLD sample 45 Results highlighted in green/red are positively/negatively significant against the total

46 Ownership Profile Washing Machines Washing Machine Ownership 98% Note: Up from 95% in Core Statistics on Washing Machine Ownership Washing machine ownership has increased slightly compared to the 2011 results, up 3% to 98%. Ownership is similar across SEQ and Regional Queensland. Washing machine ownership is significantly higher amongst females and those employed in home duties. It is also higher amongst those in the highest income bracket and with an electricity bill of $651 or more. Residents with a low electricity bill less than $150 and those in precontemplation only about peak demand are less likely to own a washing machine compared to other groups, although this is still very high (96% and 95% respectively). No regional differences in ownership (98% in both SEQ and Regional QLD). Significantly higher amongst females (99%) and those employed in home duties (99%). Significantly higher amongst those on high incomes of $111,000 or more (100%). Significantly lower amongst residents with an electricity bill less than $150 (96%) and higher amongst residents with an electricity bill of $651 or more. Significantly lower amongst those in pre-contemplation only about peak demand (95%). Significantly higher amongst residents intending to buy airconditioning in the next 5 years (99%). No significant difference between home owners and renters (98% and 97% respectively). Ref: Q18 Base: Total QLD sample 46 Results highlighted in green/red are positively/negatively significant against the total

47 Current Behaviour and Future Ownership Washing Machines Similar to dishwasher usage outside of 4-8pm, just over half of residents use their washing machine outside of peak times all or most of the time (57%). A further 19% of residents do this sometimes, so there is an opportunity to continue to encourage this positive behaviour and move residents closer to maintenance. However, also similar to the dishwasher results, there are 17% of Queenslanders in the pre-contemplation stage who either are not aware of this behaviour or aware but probably not going to do it. This suggests that further education is needed to promote this behaviour and ensure residents understand why it would be preferable for them to use this appliance outside of peak times. Current Washing Machine Behaviour Ensure your dishwasher and washing machines have full loads before use (n=3160) 14% 80% Washing Machine Intention to Purchase 12% 12% of Queenslanders intend to purchase a washing machine within the next two years; the vast majority (11%) of these already have one and will be buying a replacement (87% replacement and 13% additional). Purchase intent is highest in West Moreton (17%) and lowest in Far North and Mackay (10%). Core Statistics on Washing Machine Intention to Purchase At an overall SEQ and Regional QLD level, purchase intent is similar (both 12%). Use the washing machine outside of peak times (4pm to 8pm) (n=3272) 17% 7% 19% 57% Purchase intent is significantly lower amongst retirees (9%) and significantly higher amongst those in home duties (15%). Note: NA responses have been excluded. Ref: Q23D Base: Total QLD sample 0% 20% 40% 60% 80% 100% Pre-Contemplation Contemplation Action Maintenance Residents with other laundry appliances (washing machine / vacuum / iron) believe that they account for an average of 12% of their electricity bill. 47 Significantly higher amongst single parent households with children at home (19%). Slightly higher amongst females than males (13% c.f. 10%). Slightly higher amongst those with an electricity bill of $451 or more (14%). Significantly higher amongst those who speak another language at home (19%). Results highlighted in green/red are positively/negatively significant against the total

48 Ownership Profile Clothes Dryers Clothes Dryer Ownership 57% Note: Down from 60% in Core Statistics on Clothes Dryer Ownership Clothes dryer ownership has declined slightly over the past 12 months, with 57% of Queensland households currently owning one compared to 60% in While ownership is stable in SEQ and Regional Queensland, ownership does vary somewhat across different areas of Regional Queensland. Those in Mackay and Far North are significantly more likely to own a clothes dryer (68% and 65% respectively), while ownership is lowest in Wide Bay-Burnett (51%) and South West (44%). Ownership is highest amongst those in home duties, on an income of $71,000 or more, those with a high energy bill and those who have other high energy consuming appliances like air conditioning and a pool or spa. Younger residents (under 30 years) and those with low incomes and electricity bills are the least likely to own a clothes dryer. Stable across both SEQ and Regional Queensland (both 57%), but significantly lower in the South (53%). Significantly lower amongst those aged 29 years or under (52%) and slightly higher amongst those 50 years or older (60%). Significantly higher amongst those in home duties (65%). Significantly lower amongst those on a low income less than $30,999 (47%) and significantly higher amongst those on $71,000 or more (63%). Significantly lower amongst those with an electricity bill of $250 or less (44%) and significantly higher amongst those with a bill of $451 or more (75%). Significantly higher amongst home owners compared to renters (60% c.f. 52%) Slightly higher amongst females (59%). Significantly higher amongst those with air conditioning (62%), a pool (69%) and a spa (65%). Ref: Q18 Base: Total QLD sample 48 Results highlighted in green/red are positively/negatively significant against the total

49 Current Behaviour and Future Ownership Clothes Dryers Residents with a clothes dryer believe that it accounts for an average of 9% of their electricity bill. Clothes Dryer Intention to Purchase 8% Positively, 85% of those with a clothes dryer are currently in the maintenance stage for using a clothesline to dry washing instead of a dryer, and 9% are in the action stage. There is a small opportunity to shift those in action to maintenance, and to encourage the 6% in precontemplation and contemplation to start to adopt this behaviour, but generally this appears to be one that has been widely taken up and maintained. Residents in the South, those with Solar PV, females, those aged 50 years or older and those with low energy bills are most likely to already be in the maintenance stage for this behaviour. Current Clothes Dryer Behaviour Use a clothesline to dry washing instead of a dryer (n=3319) 9% 85% 0% 20% 40% 60% 80% 100% Pre-Contemplation Contemplation Action Maintenance 8% of Queensland households intend to purchase a clothes dryer, comprising 4% who currently own a clothes dryer and intend to buy another in the next two years (the majority a replacement one) and 4% who do not currently own a clothes dryer but intend to acquire one. Future intention to purchase is highest amongst current high energy users and also those intending to buy air conditioning. It is lowest amongst older residents and those who currently have low electricity bills. Core Statistics on Clothes Dryer Intention to Purchase Slightly higher in Central (10%). Significantly lower amongst those aged 50 years or more (6%). Significantly lower amongst those with an electricity bill of $150 or less (5%) and significantly higher amongst those with a bill of $651 or more (13%). Significantly higher amongst those intending to buy air conditioning (17%). Note: NA responses have been excluded. Ref: Q23D Base: Total QLD sample 49 Results highlighted in green/red are positively/negatively significant against the total

50 Ownership Profile Stand Alone Freezer Stand Alone Freezer Ownership 42% Currently 42% of Queensland households have a stand alone freezer, down 4% compared to the 2011 results (46%). Ownership is significantly higher in Regional Queensland compared to SEQ, particularly in the Central region (55%). It is lowest on the Gold Coast (30%) and highest in Fitzroy (61%). Ownership is highest amongst those aged 50 years or more, those with a high electricity bill, owners, large houses, those who have Solar PV and those who have a pool. Stand Alone Freezer Future Intentions to Purchase 8% 8% of Queensland households intend to purchase a stand alone freezer in the next two years, with similar results in SEQ and Regional Queensland. This 8% is made up of 5% saturation and 3% new uptake. Future purchase intentions are highest amongst those aged 29 years and under (12%), those in home duties (13%), those with a bill of $651 or more (15%) and couple households with children at home (11%). Note: Down from 46% in Core Statistics on Stand Alone Freezers Ownership is significantly higher in Regional Queensland (51%) compared to SEQ (37%). Significantly lower ownership amongst those aged 29 years or less (35%) and significantly higher amongst those 50+ years (49%). Significantly higher amongst those in home duties (49%) or retired (48%). Significantly lower amongst those with a low electricity bill under $250 (34%) and significantly higher amongst those with a high bill over $551 (59%). Significantly higher ownership amongst owners than renters (46% c.f. 35%). Significantly higher amongst those who have Solar PV (46%) and a pool (49%). Significantly higher ownership amongst those with a large house comprising 5 or more bedrooms (51%) or three or more bathrooms (50%). Ref: Q18 Base: Total QLD sample 50 Results highlighted in green/red are positively/negatively significant against the total

51 Ownership Profile Multiple Fridges/Freezers Of those with multiple fridges / freezers, 13% intend to buy a fridge in the next 2 years (all saturation 2% additional and 11% replacement) and 10% intend to buy a freezer (8% saturation and 2% new uptake). Multiple Fridges/ Freezers Ownership 60% Note: Down from 61% in Core Statistics on Multiple Fridges/Freezers In 2012, 60% of Queensland households indicated they have multiple fridges or freezers. This is similar to 2011 results where 61% said they owned multiple of these appliances. This 60% includes people who have both a fridge and a freezer or multiples of either appliance type. Amongst Queenslanders, 38% have two or more fridges and 42% have a stand alone freezer (with 15% having two or more freezers). Ownership of multiple fridges and freezers is higher in Regional Queensland, particularly Central. The high ownership in the Central region is driven by a higher penetration of fridges (51% with two or more) rather than increased ownership of freezers. Ownership is highest amongst those 50+ years, owners, those with high electricity bills and households with 4 or more residents. Ownership is also more prominent amongst those households with other multiple appliances (such as multiple TVs and computers), as well as a pool or spa. Those aged 29 years or under, with a low electricity bill, renters and single resident households are less likely to own multiple fridges or freezers. Significantly higher in Regional Queensland (67%) compared to SEQ (56%). Highest in the Central region (73%), but also prominent in the South (67%). Significantly higher amongst those aged 50+ years (70%) compared to those 29 years or under (46%). Linear relationship with size of electricity bill. Ownership is significantly lower amongst those with energy bills of $250 or less (45%) and significantly higher amongst those with a bill above $451, and particularly $651 or more (89%). Significantly higher amongst owners (67%) compared to renters (46%). Ownership varies according to household size: 1 resident (32%), 2-3 residents (60%), 4 residents (70%) and 5 residents (73%). Significantly higher amongst households with other multiple appliances (e.g. TVs and computers) as well a pool or spa. Ref: Q18A & Q18B Base: Total QLD sample constructed variable of those with multiple fridges or freezers in the household 51 Results highlighted in green/red are positively/negatively significant against the total

52 Current Behaviour Multiple Fridges/Freezers Responsible behaviour relating to owning and running multiple fridges and freezers is still relatively poor. Positively, there has been a slight further decrease in the proportion of Queensland households running multiple fridges all of the time (3% decline), with some shift in those more likely to mainly use one fridge and keep the other one(s) left off. However, the proportion of those who have multiple freezers running all of the time has increased (5% higher) compared to 2011, with fewer running them most of the time (12% c.f. 10%). Usage of Multiple Fridges Usage of Multiple Freezers Have multiple fridges running all of the time 64% 61% Have multiple freezers running all of the time 63% 68% Have multiple fridges running most of the time 16% 16% Have multiple freezers running most of the time 12% 10% Have multiple fridges running occassionally/just for certain occasions 9% 8% Have multiple freezers running occassionally/just for certain occasions 8% 8% Mainly use one fridge and the other one(s) are left off 11% 13% Mainly use one freezer and the other one(s) are left off 15% 15% Other 1% 1% Other 0% 0% Don t know 1% 1% Don t know 2% 0% % decline in the proportion having multiple fridges running all of the time. 5% increase in the proportion having multiple freezers running all the time. Ref: Q35 Base: Those who have multiple fridges and freezers in their household 52

53 Section 2: Air Conditioning Trends Investigation. 53

54 Overview of Air Conditioner Ownership AIR CONDITIONER OWNERSHIP Diff. to 2011 Diff. to 2010 TOTAL 74% 75% -1% -2% South East Queensland 71% 73% -2% -3% Northern 91% 91% 0% +2% Central 87% 87% 0% +2% Southern 65% 63% +2% -2% 2012 OWNERSHIP BY AIR CONDITIONER TYPE *Based on those with air conditioning TOTAL SEQ Northern QLD Central QLD Southern QLD Split system air conditioner 71% 71% 74% 70% 72% Box air conditioning 28% 20% 52% 47% 25% Portable air conditioner 5% 6% 3% 4% 8% Ducted air conditioning 13% 18% 5% 5% 6% Evaporative air conditioning 2% 1% 4% 3% 4% Approximately three quarters of Queenslanders own an air conditioner. Results for ownership have remained relatively stable over the past 12 months, and continues to be significantly higher in the Northern and Central regions, and significantly lower in SEQ and Southern QLD. Compared to 2010, penetration is slightly higher in the Northern and Central regions. Residents are most likely to own a split system air conditioner (71%) followed by box air conditioning (28%). While split system air conditioner ownership is similar across the regions, box air conditioning is significantly more prominent in Northern and Central QLD, ducted air conditioning is more commonly owned in SEQ, and all three Regional QLD areas are more likely to own evaporative air conditioning OWNERSHIP BY NUMBER OF AIR CONDITIONING UNITS *Based on those with air conditioning TOTAL SEQ Northern QLD Central QLD Southern QLD Average Number of Units unit 41% 47% 18% 23% 54% 2 units 25% 28% 13% 22% 25% 3 or more units 34% 25% 69% 55% 21% Queensland households own an average of 2.3 air conditioners, with one third having 3 or more units. Ownership is highest in Northern QLD, with an average of 3.5 units and more than two thirds owning 3 or more. Residents in SEQ are more likely to own 1 or 2 units, with an average of 1.9 per household. Ref: Q18AA, Q18A1, Q18B1 Base: Total QLD sample and those who have air conditioning 54

55 Demographic Profile of Air Conditioner Ownership and Future Intentions AIR CONDITIONER OWNERSHIP Currently have & WILL NOT buy in the next 5 years Currently have and WILL buy in the next 5 years Currently don t have and WILL NOT buy in the next 5 years Currently don t have and WILL buy in the next 5 years TOTAL 60% 13% 23% 3% Region SEQ Northern QLD Central QLD Southern QLD 59% 68% 67% 54% 11% 23% 20% 11% 26% 8% 11% 31% 3% 1% 3% 5% Solar PV Have Solar PV 67% 12% 18% 3% Age 29 years or under years 50 years or older 54% 59% 66% 12% 18% 9% 29% 19% 23% 4% 4% 1% Electricity Bill Home Ownership Less than $150 $651 or more Renting Own or paying off home 57% 60% 58% 62% 7% 30% 7% 17% 35% 9% 34% 18% 1% 1% 2% 4% Amongst the Queensland population, 16% of residents intend to buy air conditioning in the next 5 years (13% additional and 33% new uptake). Residents who currently have air conditioning and intend to buy more in the next 5 years are most likely to be in the Northern or Central regions, aged years, have an electricity bill of $651 or more and be home owners. It is concerning that nearly one third of those who have a very large bill already intend to buy more, however there is the opportunity to encourage the uptake of a far more energy efficient model. Residents who don t have air conditioning and don t intend to buy it in the next five years are more likely to be located in SEQ or Southern QLD, be 29 years or under, have a current bill of less than $150 or be renting. Ref: Q18AA, Q18A1, Q21AA, Q21A, Q21B, Q24, Q24B Base: Total QLD sample 55

56 56 Key Issue 4 Intention to purchase box air conditioning has increased, ducted air conditioning penetration has grown in SEQ, and different demographics are more likely to use air conditioners during winter for heating. The following slides investigate these three key trends in regards to air conditioning ownership and usage in

57 Investigation 1: Box Air Conditioners. Ownership Profile and Box Air Conditioner Age Demographic Splits % Who Have a Box Air Conditioner TOTAL 28% Region Future A/C Purchase Age SEQ North Central South Likely to purchase another A/C Not likely to purchase another A/C 29 years or under years 50 years or older Income <$31,000 $31,000 - $70,999 $71,000 - $109,999 $111,000 or more Home Ownership Own home or paying off Renting 20% 52% 47% 25% 41% 22% 33% 27% 26% 35% 27% 27% 25% 27% 32% Box air conditioning penetration has remained steady in 2012, with 28% of Queenslanders owning this appliance. Those significantly more likely to own a box air conditioner include residents from the Northern (52%) and Central (47%) regions. Box air conditioning owners are significantly more likely to have lower incomes (35%), which is line with the lower prices of box air conditioners compared to other types of air conditioning. Those living in smaller homes and younger residents are also more likely to have a box air conditioner. Box air conditioners tend to be older than 5 years (57%), suggesting appliance figures are being sustained from large box air conditioner growth 5-10 years ago. Those with box air conditioners are significantly more likely to purchase another air conditioner in the future (41%). While this is high, there is therefore an opportunity to encourage uptake of energy efficient air conditioning options in the future to replace the older box system (with nearly 3 in 5 systems being 5 or more years old). Size of home 1-2 bedrooms 3-4 bedrooms 5 or more bedrooms 30% 28% 22% BOX AIR CONDITIONER AGE CHANGE It is brand new / installed this year 3% 4% -1% Household Composition A couple with children at home A couple without children at home A single parent with children at home Household with one resident Shared household of adults Adult child living at home with parents / couple 29% 25% 29% 28% 31% 31% 1-2 years old 9% 9% 0% 3-4 years old 16% 22% -6% 5-10 years old 38% 38% 0% 11 years or older 19% 15% 4% Don't know / can't remember 22% 17% 4% Ref: Q18AA & Q18C, Base: Total QLD sample and those with box air conditioners 57

58 Demographic Splits % Who Will Obtain Box Air Conditioner - PENETRATION % Who Will Obtain Box Air Conditioner - SATURATION TOTAL 14% 17% Region Age SEQ North Central South 29 years or under years 50 years or older Income <$31,000 $31,000 - $70,999 $71,000 - $109,999 $111,000 or more Home Ownership Size of home Household Composition Investigation 1: Box Air Conditioners. Penetration and Saturation Profile Own home or paying off Renting 1-2 bedrooms 3-4 bedrooms 5 or more bedrooms A couple with children at home A couple without children at home A single parent with children at home Household with one resident Shared household of adults Adult child living at home with parents / couple *Small sample size, results indicative only 18% 0%* 8%* 6% 23%* 10% 11% 0%* 14% 1%* 42%* 14%* 17% 39%* 3% 0%* 0%* 10%* 0%* 0%* 64%* 0%* 13% 25% 20% 21% 24% 15% 14% 22% 27% 18% 9% 14% 30% 24% 16% 14% 14% 13% 51%* 13% 22% 38%* Ref: Q21A, Q24A & Q24C Base: Those who do not own an air conditioner, those who currently own an air conditioner, and those willing to purchase another air conditioner which will be a box air conditioner 58 TIMEFRAME TO PURCHASE A BOX AIR CONDITIONER While penetration levels remain in line with previous years, intention to take up box air conditioning has generally increased in For those who do not currently own an air conditioner, likelihood to purchase a box air conditioner in the future has risen from 6% in 2011 to 14% in Similarly, for those who already have air conditioners, intention to purchase has risen from 15% in 2011 to 17% in This increasing intention to purchase box air conditioning may result in increased purchases in 2013, with 57% of those intending to purchase a box air conditioner wishing to do so in the next 12 months. This rise in intention to purchase is somewhat contradictory to the penetration trend of box air conditioners, which has gradually dropped from Contributing to this rise in intended uptake are low-medium income earners in small sized homes. While penetration of ducted and split system remain high, box air conditioning remains a cheap alternative to cool individual rooms. Box air conditioners are also still promoted by retailers and can be sold as single take home systems from department, hardware and electrical stores unlike some other air conditioning systems. Many are also promoted as a DIY option, which is a cost saving advantage to the target market (avoiding installation costs) CHANGE Within the next year 57% 41% 16% Within the next 2 years 27% 36% -9% Greater than 2 years time 16% 22% -6%

59 Investigation 2: Ducted Air Conditioning. Change in Ownership Over Past 12 Months DUCTED AIR CONDITIONING OWNERSHIP Diff. to 2011 Diff. to 2010 TOTAL 13% 11% +2% +2% South East Queensland 18% 12% +6% +4% North 5% 4% -1% -1% Central 5% 8% -3% -3% Southern 6% 11% -5% 0% DUCTED AIR CONDITIONING PENETRATION SOUTH EAST QUEENSLAND CHANGE TOTAL 18% 12% +6% Age 29 years or under years 50 years or older Income <$31,000 $31,000 - $70,999 $71,000 - $109,999 $111,000 or more 23% 16% 17% 13% 15% 16% 23% 10% 13% 14% 8% 9% 14% 19% +13% +3% +3% +6% +6% +2% +4% Ducted air conditioning ownership has increased slightly amongst the total Queensland population in 2012, up 2% to 13%. This has been driven by a notable increase amongst South East Queensland residents, up 6% to 18%. Conversely, ducted air conditioning ownership actually declined slightly, particularly in the Southern region. Employment Status Household Composition Employed full time Employed part time Employed casually Retired Home Duties Student Self employed A couple with children at home A couple without children at home Shared household of adults 17% 20% 20% 19% 13% 28% 24% 19% 16% 23% 12% 9% 22% 17% 15% 10% 14% 15% 12% 6% +5% +12% -1% +2% -2% +18% +10% +3% +5% +17% Household Ownership Renting Own or paying off 14% 19% 4% 16% +10% +3% Amongst South East Queensland residents who own ducted air conditioning, it is most common amongst residents aged 29 years or under, those who have high incomes of $111,000 or more, students and shared households of adults. This could be because younger residents (without kids) who are working full time may be more likely to live in share houses and/or be renting and be more likely to be in modern inner city apartments / units that often have ducted air conditioning. Those with large incomes and large family homes may also be more likely to own homes with ducted air conditioning (rather than having individual air conditioning units, particularly to ensure children s bedrooms are kept cool). Students may also be more likely to be living at home (and be living in the large family home). There have been a number of notable increases in ducted air conditioning ownership this year, which may also be in line with new homes and apartments coming onto the market (and is often being packaged up with other energy conservation initiatives like solar in new residential communities), or ducted air conditioning becoming more affordable. It could also be that ducted air conditioning is simply becoming the norm. It is recommended that these trends are monitored over the next 12 months. Ref: Q18AA, Q18A Base: Total QLD sample who have ducted air conditioning 59

60 Investigation 2: Ducted Air Conditioning. Future Penetration and Saturation DUCTED AIR CONDITIONER FUTURE PENETRATION CHANGE South East Queensland 8% 9% -1% Regional QLD 5% 10% -5% DUCTED AIR CONDITIONER SATURATION CHANGE South East Queensland 7% 10% -3% Regional QLD 1% 5% -4% Although there has been a slight increase in uptake of ducted air conditioning over the past 12 months (particularly in South East Queensland), future penetration and saturation is actually slightly lower than the 2011 levels so it appears that some of this previous purchase intent has already been actioned. Future penetration and saturation is higher in South East Queensland than Regional Queensland. 8% of South East Queensland residents intend to take up ducted air conditioning in the future (compared to 5% of those in Regional Queensland), while 7% of those in South East Queensland with ducted air conditioning intend to purchase it within the next 5 years (compared to 1% in Regional Queensland). Due to fairly small sample sizes for the majority of demographic splits we are unable to accurately determine which customers are more likely to purchase ducted air conditioning in the future. However, future uptake intentions are particularly high amongst residents aged 50 years or more (24%). Ref: Q18AA, Q18A, Q21A, Q24A Base: Total QLD sample who have ducted air conditioning 60

61 Investigation 3: Air Conditioning Usage. Temperature Settings When cooling, SEQ residents set their air conditioners to a lower temperature setting than Regional Queenslanders (between 0.4⁰ 0.5⁰ on average). Despite this, SEQ residents are more likely to set their air conditioner to a correct temperature setting, with 24⁰ being promoted as the correct temperate setting in South East Queensland and 25⁰ being the correct setting for those in Regional Queensland. On a normal summers day, 66% of residents in South East Queensland and 50% of residents in Regional Queensland set their air conditioning to the correct temperature. When heating, the temperature setting is almost identical for SEQ residents (23.3⁰) and Regional Queensland residents (23.2⁰). TEMPERATURE SOUTH EAST QLD (SEQ) REGIONAL QLD Ave Temp. % Correct Temp. Ave Temp. % Correct Temp. Normal summers day 23.4⁰ 66% 23.9⁰ 50% Hottest / Most humid summers day 23.1⁰ 60% 23.5⁰ 42% When you are heating 23.3⁰ 8% 23.2⁰ 10% Correct Temperature for SEQ = 24⁰ if cooling and 18⁰ if heating Correct Temperature for Reg. QLD = 25⁰ if cooling and 18⁰ if heating TIME OF USE DURING HOTTEST / MOST HUMID DAY SOUTH EAST QLD (SEQ) % Using A/C REGIONAL QLD Ave Temp. % Using A/C Ave Temp am 12% 22.1⁰ 14% 23.2⁰ 11am 4pm 53% 22.9⁰ 48% 23.4⁰ 4 8pm 60% 22.9⁰ 59% 23.4⁰ 8 10pm 39% 22.8⁰ 48% 23.5⁰ 10pm 6am 23% 22.4⁰ 36% 23.4⁰ Rarely use air conditioner 8% 24.6⁰ 9% 24.7⁰ Air conditioners are more likely to be used during peak demand hours (4-8pm) than any other timeslot on the hottest days of the year (60% in SEQ and 59% in Regional QLD). Regional Queenslanders are significantly more likely to continue running their air conditioners past this peak demand timeframe, with more than one third (36%) keeping their air conditioning on throughout the night on the hottest days of the year. The temperature setting does not vary strongly based on time of use, with air conditioners slightly turned up during peak demand hours which would have a positive effect on network demand. Residents who rarely use their air conditioners (even in the hottest of conditions) have the most encouraging temperature settings between 24⁰ and 25⁰. Ref: Q27A, Q27B, Q27C Base: Total QLD sample who have air conditioning 61

62 Investigation 3: Air Conditioning Usage. Heating and Cooling Behaviours During the summer months, air conditioning is mostly used when it is above 30 degrees (46%). Air conditioning is rarely switched on for all/most of the year (2%) or all/most of summer (6%). Residents from Regional Queensland are significantly more likely to have air conditioning on all of the time during summer (10%) than South East Queensland residents (3%). During the winter months, less than half of Queenslanders (46%) never use their air conditioning for heating. Use of air conditioning is greatly defined by geographical region, with South East Queensland residents the most likely to use their air conditioning for heating during the winter (63%), compared to residents from the Southern (58%), Central (46%) and Northern (15%) regions. Usage in the winter is highest for those who only use their air conditioners on extremely cold nights (e.g. under 5 degrees, 20%). Air Conditioning Usage for Cooling Air Conditioning Usage for Heating When it's above 20 degrees outside 1% When it's below 20 degrees outside 3% When it's above 25 degrees outside 11% When it's below 15 degrees outside 10% When it's above 30 degrees outside 46% When it's below 10 degrees outside 13% Rarely use it, only when it's an extremely hot day It's on all/most of the time most of the year It's on all/most of the time in summer Whenever I feel uncomfortably hot or cold Don't Know 2% 1% 6% 33% 33% 0% 10% 20% 30% 40% 50% Rarely use it, only when it's an extremely cold night It's on all/most of the time most of the year It's on all/most of the time in winter Whenever I feel uncomfortably hot or cold Don't Know I never use my air conditioner for heating 0% 1% 1% 20% 19% 46% 0% 10% 20% 30% 40% 50% Ref: Q18AA, Q21A, Q24A, Q26, Q26B Base: Total QLD sample who have air conditioning 62

63 Investigation 3: Air Conditioning Usage. Demographic Profile of Those Who Use A/C for Heating Demographic Splits % Who Use their Air Conditioner for Heating TOTAL 54% Region Age SEQ North Central South 29 years or under years 50 years or older Income <$31,000 $31,000 - $70,999 $71,000 - $109,999 $111,000 or more Solar Ownership Home Ownership Size of home Household Composition Have Solar PV Do not have Solar PV Own home or paying off Renting 1-2 bedrooms 3-4 bedrooms 5 or more bedrooms A couple with children at home A couple without children at home A single parent with children at home Household with one resident Shared household of adults Adult child living at home with parents / couple 63% 15% 46% 58% 44% 59% 55% 47% 54% 55% 56% 62% 52% 59% 43% 46% 56% 52% 57% 58% 56% 43% 46% 49% Aside from usage across different geographical regions, other demographics are also significantly more or less likely to use their air conditioning for heating. Users of air conditioning in the winter tend to be over 30 years of age, middle to high income earners, home owners and larger sized households. These demographics also have stronger agreement towards the statement If I had to choose between my comfort and being energy efficient, I would choose my comfort. Those with Solar PV are also significantly more likely to use air conditioning for heating than non Solar PV owners. This may be due to their ability to offset heating electricity costs against the electricity they are generating (while non solar PV owners incur all air conditioning usage at full cost). It could also be because Solar PV owners are generally more energy efficient, and they are more likely to use their air conditioner for heating rather than energy intensive electric heaters (which they are significantly less likely to own compared to non Solar PV owners). Ref: Q26B Base: Total QLD sample who have air conditioning 63

64 Investigation 3: Air Conditioning Usage. Climate Effect on Temperature Setting In line with the normal and hottest summers day temperature results, when cooling, South East Queensland residents are more likely to set their air conditioning to a lower temperature than Regional Queenslanders (generally between 0.4⁰ - 1.1⁰ cooler). The exception to this, is that the 6% of SEQ residents who have their air conditioning on all summer also have their air conditioning set to an average temperature of 21.1⁰ considerably lower than Regional Queenslanders who do this behaviour (23.4⁰) and considerably lower than the correct temperature setting for SEQ of 24⁰. When heating, the average air conditioner temperature setting is almost identical between SEQ and Regional Queensland residents, with the air conditioning set between 22.8⁰ and 23.7⁰. This is significantly higher than the recommended temperature setting of 18⁰ when heating and there appears to be some confusion about heating settings in particular. If these higher temperatures are of concern, it is recommended Energex and Ergon Energy place greater focus on making residents aware of the 18⁰ recommended heating temperature in winter. AVERAGE TEMPERATURE OF AIR CONDITIONER FOR COOLING WHEN SEQ REGIONAL QLD When it s above 25 degrees outside 22.2⁰ 23.3⁰ When it s above 30 degrees outside 23.4⁰ 24.2⁰ Rarely use it, only when it s an extremely hot day - e.g. over 34 degrees outside 23.0⁰ 23.4⁰ It s on all/most of the time in summer 21.1⁰ 23.4⁰ Whenever I feel uncomfortably hot 23.4⁰ 23.9⁰ AVERAGE TEMPERATE OF AIR CONDITIONER FOR HEATING WHEN SEQ REGIONAL QLD When it s below 15 degrees outside 23.3⁰ 23.2⁰ When it s below 10 degrees outside 23.1⁰ 22.8⁰ Rarely use it, only when it s an extremely cold night - e.g. 5 degrees or less outside 23.1⁰ 23.0⁰ Whenever I feel uncomfortably cold 23.7⁰ 23.6⁰ Ref: Q27A & Q27C Base: Total QLD sample who have air conditioning 64

65 Section 3: Air Conditioning Growth Forecasts. 65

66 66 Key Issue 5 Forecasted penetration is slightly lower (especially in SEQ and Southern QLD) as a result of more stable growth over the past 12 months and lower future purchase intentions. However, the proportion of households with multiple air conditioning units continues to rise in most regions. 66

67 Future Air Conditioning Growth Introduction The use of air conditioning has a major impact on household energy consumption and is a key appliance that impacts on peak demand. It is therefore critical for Energex, Ergon Energy and Powerlink to continue to have an understanding of the likely growth of this appliance into the future, both in terms of penetration and saturation. Penetration forecasts for the 5 areas of QLD have been generated based on historical penetration data over the last 7 years. These forecasts have been made through to 2018 (the next 6 years), using 9 points of historical data from Each year these models are refreshed using new input data and are also reassessed for other external impacts. As per previous years, the approach used for these forecasts was a fractional polynomial regression. Due to the penetration in Northern and Central Queensland appearing to plateau or being very close to plateauing, and growth in penetration continuing in Southern Queensland in particular, individual models have been developed again this year for each individual region, rather than one overall model with regional adjustments as in The three Regional Queensland models have then been combined to produce an overall Regional Queensland penetration forecast. The increase in penetration over time continues to be mostly linear, but not entirely linear, which results in some reduction in predicted year on year uptake over the next 6 years as penetration reaches its maximum levels. Due to some areas maintaining a similar level of penetration since 2010, the slope of these forecasts was also modified in 2011 and 2012, which results in more conservative penetration forecast estimates in a number of regions. Consistent with the approach used since 2010, customer predicted uptake has not been included in the modeling process (i.e. only historical data has been used). This predicted behaviour has, however, been plotted in the charts for 2012 to show where customer predictions versus modeled forecasts are. Predicted behaviour has also been used again to determine potential upper limits for air conditioner penetration in each of the regions. 67

68 Future Air Conditioning Growth Notes on Interpreting Forecast Slides The following slides show the forecasting results for the 5 regional data splits (SEQ, Regional QLD, Northern, Central and Southern). Each slide contains a table which shows the actual penetration figures for that region, the forecasted penetration through to 2018 and the customer claimed purchase intentions. These results are all plotted in the chart on each slide, with the forecasted penetration data being shown as a line and the other data as individual data points. Consistent with the approach used since 2010, customer predicted behaviour has also been used to determine potential upper limits or ceilings for air conditioner penetration. The first ceiling is based on the likely maximum penetration if all customers who do not intend to purchase air conditioning maintain this behaviour (the pink horizontal line). It is likely that some people s intended behaviour will differ from their actual behaviour as their personal situation and/or beliefs change. A second maximum has therefore been included to show the potential penetration if only half of these customers followed their intention of not purchasing air conditioning (the pink horizontal dashed line). The intercept between the potential upper limits and the forecasted data has then been used to determine when air conditioner penetration may reach maximum levels in each area. Note: In some regions air conditioning penetration appears to decrease from one year to the next. This is particularly the case for 2006 to 2007 and again for the Southern region in 2011, and South-East Queensland from 2010 to As it is unlikely that actual penetration dropped over this time, this decrease should be attributed to sampling error and/or slight differences in data collection and weighting approaches from one year to the next. 68

69 Air Conditioning Penetration Forecast SEQ 100% 90% 80% 70% 60% 50% 40% Potential Maximum (2) 88% Potential Maximum (1) 75% AC Penetration Customer Intentions Forecast Saturation Units per HH = 1 unit = 2 units = 3 units = % 27% 21% % 29% 21% % 28% 25% 30% Current penetration of air conditioners in SEQ is relatively stable at 72%, however this is a marginal decrease in real terms (although not a significant change and could be due to sampling). Customer intentions as well as the forecasted penetration data have also reduced slightly compared to Forecasted trajectory of this model predicts that this penetration may increase to 76% in 2013 and could reach 80% by The potential maximum 1 was forecast to be reached this year, however customer intentions have dropped. Based on customer intentions data, 26% have no intention of purchasing air conditioning in the next 5 years (up from 21% in 2011). However, if half of these customers did end up purchasing air conditioning, then penetration may continue growing past 2018 to reach a final penetration of 88%. While the number of households with air conditioning declined slightly in real terms, the average number of units per household increased slightly to 1.9 units. One quarter of households in SEQ now have 3 or more units A/C Penetration 47% 57% 59% 62% 68% 72% 74% 73% 72% Customer Intentions 73% 74% 74% 74% 74% 75% Forecast 47% 56% 61% 65% 68% 70% 72% 73% 75% 76% 77% 78% 79% 80% 80% Ref: Q18AA, Q21A, Q24A Base: Total SEQ sample who have air conditioning. 69 Point where potential maximum (1) reached

70 Air Conditioning Penetration Forecast Regional QLD 100% 90% 80% 70% 60% 50% 40% Potential Maximum (2) 91% Potential Maximum (1) 83% AC Penetration Customer Intentions Forecast Saturation Units per HH = 1 unit = 2 units = 3 units = % 21% 47% % 19% 50% % 19% 51% 30% Current penetration of air conditioners in Regional QLD is 80%, which is slightly higher than 2011 and greater than SEQ (72%). Overall penetration in Regional QLD has remained steady, with just some shifts in the Southern region. Forecasted penetration predicts that this may reach 83% in 2013 and 84% by It could reach 89% in Regional QLD by Based on customer intentions data, 17% of customers of Regional QLD have no intention of purchasing air conditioning in the next 5 years. This means that air conditioner penetration may reach a maximum of 83% if these customers do not change their intentions, and penetration may reach maximum levels in this region around If half of these customers did end up purchasing air conditioning, then penetration may continue growing past 2018 to reach a final penetration of 91%. Saturation in Regional QLD has remained relatively stable at 2.8 units, however there has been an increase in the number of households with 3 or more units for the third consecutive year A/C Penetration 55% 63% 68% 67% 71% 79% 79% 79% 80% Customer Intentions 81% 82% 82% 82% 82% 82% Forecast 55% 62% 67% 70% 73% 75% 78% 79% 81% 83% 84% 85% 87% 88% 89% Ref: Q18AA, Q21A, Q24A Base: Total Regional QLD sample who have air conditioning. 70 Point where potential maximum (1) reached

71 Air Conditioning Penetration Forecast Northern QLD 100% 90% 80% 70% 60% 50% 40% Potential Maximum (2) 96% Potential Maximum (1) 92% AC Penetration Customer Intentions Forecast Saturation Units per HH = 1 unit = 2 units = 3 units = % 16% 68% % 10% 74% % 13% 69% 30% Current penetration of air conditioners in Northern QLD has remained stable in 2012 at 91%. Forecasts predict that penetration may stay stable at 91% in 2013 and increase to 92% in As penetration is already so high in this region, the forecast model is relatively flat over the next 6 years. Based on forecasted data, air conditioner penetration in this region could reach 95% by Based on customer intentions data, 7% of customers in Northern QLD continue to have no intention of purchasing air conditioning in the next 5 years. This means that air conditioning penetration may reach a maximum of 92% if these customers do not change their intentions, meaning that maximum levels in this region may be reached around If half of these customers did end up purchasing air conditioning, this may continue growing past 2018 to reach 96%. Air conditioner saturation in Northern QLD is stable with 3.5 units per household. Households are also more likely to have 1 or 2 units compared to 2011, suggesting some older units may have been disposed of and not replaced A/C Penetration 70% 76% 81% 79% 82% 89% 89% 91% 91% Customer Intentions 91% 91% 91% 91% 91% 91% Forecast 69% 76% 80% 82% 85% 86% 88% 89% 90% 91% 92% 93% 94% 94% 95% Ref: Q18AA, Q21A, Q24A Base: Total Northern QLD sample who have air conditioning. 71 Point where potential maximum (1) reached

72 Air Conditioning Penetration Forecast Central QLD 100% 90% 80% 70% 60% 50% 40% Potential Maximum (2) 95% Potential Maximum (1) 89% AC Penetration Customer Intentions Forecast Saturation Units per HH = 1 unit = 2 units = 3 units = % 24% 50% % 25% 49% % 22% 55% 30% Current penetration of air conditioners in Central QLD has remained stable in 2012 at 87%. Forecasts predict that this penetration will increase to 88% in 2013 and 89% in Based on forecasted data, air conditioner penetration in this region could reach 92% by Based on customer intentions data, 10% of customers in Central QLD continue to have no intention of purchasing air conditioning in the next 5 years. This means that air conditioner penetration may reach a maximum of 89% in 2014 if these customers do not change their intentions. If half of these customers did end up purchasing air conditioning, then penetration may continue growing past 2018 to 95%. On average, Central QLD households have 2.9 air conditioning units which is an increase on previous figures. There has also been a notable increase in the proportion of households with 3 units or more in 2012, up 6% to 55% A/C Penetration 63% 75% 76% 75% 78% 85% 85% 87% 87% Customer Intentions 88% 88% 89% 89% 89% 89% Forecast 64% 72% 76% 79% 81% 83% 85% 86% 87% 88% 89% 90% 91% 92% 92% Ref: Q18AA, Q21A, Q24A Base: Total Central QLD sample who have air conditioning. 72 Point where potential maximum (1) reached

73 Air Conditioning Penetration Forecast Southern QLD 100% 90% 80% 70% 60% 50% 40% Potential Maximum (2) 85% Potential Maximum (1) 69% AC Penetration Customer Intentions Forecast Saturation Units per HH = 1 unit = 2 units = 3 units = % 24% 19% % 26% 19% % 25% 21% 30% Penetration in Southern QLD is currently reported at 65%, which has increased after the decline seen in Forecasts predict that this penetration will increase to 68% in 2013 and 70% in Based on forecasted data, air conditioner penetration in the Southern region could reach 74% by Based on customer intentions of 31% having no intention of purchasing air conditioning in the next 5 years, air conditioner penetration may reach a maximum of 69% by If half of these customers did end up purchasing air conditioning, then penetration could continue growing past 2018 to reach a final penetration of 85%. On average Southern QLD households have 1.8 air conditioning units, which is a slight increase on the previous two year s results. Residents are also slightly more likely to have 3 or more air conditioning units than in previous years (up 2% to 21%) A/C Penetration 34% 43% 50% 51% 56% 65% 67% 63% 65% Customer Intentions 65% 68% 68% 68% 69% 69% Forecast 33% 44% 50% 54% 58% 60% 63% 65% 67% 68% 70% 71% 72% 73% 74% Ref: Q18AA, Q21A, Q24A Base: Total Southern QLD sample who have air conditioning. 73 Point where potential maximum (1) reached

74 Air Conditioning Penetration Forecast Summary (2012) Actual Forecast Actual Growth Forecast Growth No Future Intentions to Purchase Potential A/C Penetration Maximum Year A/C Penetration Maximum (1) Reached Year A/C Penetration Maximum (2) Reached SEQ 72% 76% 80% 26% 4% 26% 75% Regional QLD 80% 83% 89% 25% 6% 17% 83% Northern QLD 91% 91% 95% 21% 4% 8% 92% Central QLD 87% 88% 92% 23% 4% 11% 89% Southern QLD 65% 68% 74% 30% 6% 31% 69% = Notable decrease compared to 2011 results and penetration forecasts. = Notable increase compared to 2011 results and penetration forecasts. Forecasts based on historical data give an indication of how air conditioner penetration is likely to grow if the current trajectory is maintained. The models were originally developed in 2009, and then further refined and reassessed again in The 2012 models are based on the same approach, with the only change being in the weighting that was applied to the data given more current ABS figures were available. The 2011 and 2012 models have taken the latest penetration figures into account and recalculated the forecast model trend. The data above summarises the air conditioning penetration forecast results for Those figures with a red arrow show where there has been a notable decrease compared to the 2011 results and forecasts. South-East Queensland is one region where the actual result for 2012 has fallen short of the forecasted result (72% c.f. 77%). In addition, the proportion of customers who have no intention of purchasing air conditioning in the next 5 years also notably increased this year in SEQ from 21% to 25%. As a result, the forecasted results are more conservative for the next 6 years compared to what was reported previously. The forecasted results for Central QLD and Southern QLD are also slightly more conservative compared to This is due to the Central QLD penetration results continuing to remain stable and the Southern QLD results still being lower than what was recorded in We believe these figures are a more accurate reflection of the likely growth over the next 6 years. The Northern region was the only one where actual penetration in 2012 was slightly higher than what was forecasted in 2011 (91% rather than 90%). Base: Total QLD sample who have air conditioning. 74

75 Air Conditioning Penetration Forecast Summary (2011) Actual Forecast Actual Growth Forecast Growth No Future Intentions to Purchase Potential A/C Penetration Maximum Year A/C Penetration Maximum (1) Reached Year A/C Penetration Maximum (2) Reached SEQ 73% 77% 85% 27% 8% 21% 79% Regional QLD 79% 81% 88% 24% 7% 17% 83% Northern QLD 91% 90% 95% 21% 5% 7% 93% Central QLD 87% 88% 93% 23% 6% 10% 90% Southern QLD 63% 68% 77% 29% 8% 31% 69% = Notable decrease compared to 2010 results and penetration forecasts. Forecasts based on historical data give an indication of how air conditioner penetration is likely to grow if the current trajectory is maintained. The models were originally developed in 2009, and then further refined and reassessed again in While most regions actual penetration and forecast penetration remained stable or increased slightly, actual penetration did not increase to the forecast estimate in The 2011 forecasts therefore took the new 2011 penetration into account and recalculated the forecast model trend. Of particular note in 2011 was the change in the Southern region. Actual penetration figures captured across 697 survey respondents was lower in 2011 (63%) compared to penetration in 2010 (67%). This decrease was statistically significant, however Colmar Brunton suggested that this change in results is possibly more related to sample effects rather than a real decrease. Possibly a new influx of houses in the region contributed to the decrease rather than indicating households were actively disposing of air conditioning. In 2012 the results increased again slightly to 65%. Decreases have previously been noted prior to 2009 in certain regional penetration figures and these subsequently recovered on the growth curve. The forecast model for Southern QLD was updated in 2011 to reflect the actual level of self-reported penetration, and therefore the overall forecast for the region is somewhat lower than previously noted. Base: Total QLD sample who have air conditioning. 75

76 Air Conditioning Penetration & Saturation Forecast Summary Highest Penetration Actual Forecast Penetration Current Saturation Units Per HH Intended Saturation Growth* SEQ 73% 72% 76% 80% % 11% Regional QLD 79% 80% 83% 89% % 17% Northern QLD 91% 91% 91% 95% % 23% Central QLD 87% 87% 88% 92% % 20% Southern QLD 63% 65% 68% 74% % 11% * Proportion of current air conditioner owners who intend to purchase more. Highest Saturation Saturation Growth Penetration Growth The table above summarises the current and potential penetration and saturation of air conditioners based on penetration forecast modelling and customer saturation data for 2011 and While penetration and saturation has remained stable between both years, intended saturation growth has declined across all regions. Northern QLD continues to have to have the highest current penetration and saturation, and this is likely to continue. As penetration plateaus, saturation is likely to continue to grow given nearly one quarter of customers who have air conditioning intend to purchase an additional or replacement unit within the next 5 years. Given more than half of these households have 3 or more air conditioners, this additional saturation is anticipated to provide cooling and heating throughout the entire house. South-East QLD and Southern QLD continue to have the lowest penetration and saturation levels, and this lower level of saturation looks likely to continue as only just over 1 in 10 customers in each of these regions intend to purchase an additional or replacement unit. However, the greatest penetration growth is predicted to occur in the Southern region (increasing from 65% to 74% by 2018). In each of the regions it is expected that the saturation levels of those entering the category (penetration growers) will increase to be in line with the current saturation levels for that region over time. The speed of reaching the area norm for saturation (i.e. the average number of units per household) may be quite rapid as the proportion of penetration growers expecting to purchase multiple units has continued to increase since 2009 (more than 2 in 5 intend to buy multiple units in 2012, with 20% intending to buy 3 or more). Base: Total QLD sample who have air conditioning. 76

77 Section 4: Peak Demand. 77

78 Peak Demand Deep Dive 78 Key Issue 6 Adoption of peak demand behaviours has improved, but more still needs to be done to make them more conscious and consistent 78

79 Adoption of peak demand behaviours has improved, but more still needs to be done to make them more conscious and consistent Issue: While 90% of residents said they have tried to reduce their energy usage in the past 12 months, this is more for cost savings based on lower overall consumption rather than necessarily modifying their behaviour significantly during peak times. Price (either cost savings or price penalties) also appears to have slightly less impact on Queensland residents being likely to change the time of day they use appliances in the future compared to 12 months ago (4% decline in being motivated by money savings and 2% decline in being motivated by higher charges). There has been a slight increase in the proportion of residents in the action / maintenance category for specific peak demand behaviours, however more could still be done to encourage strong action and reinforce the adoption of these behaviours, as well as educate that more can be done. In addition, residents should be encouraged to be more conscious of their total usage during peak times and more deliberate in the application of the peak demand behaviours. There is also an opportunity for their behaviour to be more consistent (shift more of those from action to maintenance) and to encourage adoption of a range of peak demand behaviours, rather than just one or two of them. Information: Positively, communications to build awareness and understanding of peak demand and the desired behaviours appears to have had some impact over the last year. However, while the majority of Queensland residents (85%) have taken some action / behaviour related to peak demand and this has improved slightly over the past 12 months (up from 79%), there is still significant room for improvement. Many have only adopted one or two of the specific behaviours and only 35% of residents indicated that they are generally conscious of using electricity during peak times. Many Queenslanders could be adopting these behaviours on a more regular basis and/or adopt other peak demand management behaviours, as well as be more conscious of their overall household consumption between 4-8pm. It is also possible that the adoption of some of these behaviours is more accidental than deliberate based on their usage preferences and lifestyle. The most adopted peak demand management behaviours continue to be: o Running the pool filter at off peak times (63% maintenance) o Use the washing machine outside of peak times (57% maintenance) o Use the dishwasher outside of peak times (54% maintenance) o Avoid using high wattage appliances during peak times (45% maintenance) There has been a notable improvement in using the washing machine outside of peak times and regularly avoiding using high wattage appliances during peak times in 2012, while the behaviour with the most room for improvement continues to be not using the electric stove during peak times (13% maintenance). 79

80 Information (cont.): Promoting specific peak demand behaviours has appeared to have had more successful impact than encouraging residents to generally be more conscious of the times of day they are using appliances, particularly during peak times. o Residents who are aged 50 years or older (particularly retirees), those with electricity bills less than $150, couple households without children at home and those with Solar PV are most likely to be in the maintenance stage for this behaviour. o General consideration of usage between 4-8pm is significantly lower amongst residents aged 29 years or under, those employed full or part time, and couple households with children at home. Electric cooktops, televisions and electric ovens are most likely to be used between 4-8pm or on all of the time, with 7 in 10 households using these appliances during peak demand periods. Queenslanders in the Action / Maintenance Stage (85%) Residents in the action / maintenance stage in regards to peak demand behaviours are significantly more likely to agree with the statements: o o I am being as energy efficient as possible, it s other people that have to act now I now use less electricity to reduce my impact on climate change They display more energy efficient behaviours and are more likely to be on an economy tariff. While these residents are also more progressed in the adoption of peak demand behaviours, the perception that they are being as energy efficient as possible could act as a potential barrier to these residents realising that they could (and should) do more. The focus for this group is to educate how they could be doing more, as well as reinforce continuation of the behaviours they are already doing. Queenslanders in the Contemplation Stage (5%) Residents in the contemplation stage are significantly more likely to agree with the attitudinal statements: o o o If I had to choose between my comfort and being energy efficient, I would choose my comfort We would do more to reduce electricity usage in our home, but are not prepared to put money towards it at this stage Business and industry are the biggest users of electricity in Queensland households can t make a real impact These residents have some basic awareness of peak demand, but more education is needed about it and specific behaviours that can be adopted, in line with addressing their focus on comfort and unwillingness to put money towards energy efficiency. 80

81 Information (cont.): Queenslanders in the Pre-Contemplation Stage (10%) Residents in the pre-contemplation stage are significantly more likely to agree with the statements: If I had to choose between my comfort and being energy efficient, I would choose my comfort To me saving money is more important than the environment It s too hard to change the amount of electricity my household uses They are also significantly less likely to agree that: I would like to be more energy efficient, I just don t know how I now use less electricity to reduce my impact on climate change These residents are significantly less likely to have adopted a number of energy efficient behaviours. Comfort is key to this group and if they were to reduce their usage it would be for cost savings, rather than environmental factors. Building awareness of peak demand is the first step for these residents, then comfort and cost will be the two core barriers that will be needed to overcome. The key motivating factor to reduce future energy usage for all Queensland residents would be a reduced electricity bill (31%), followed by financial rebates for energy efficient initiatives, increased electricity prices or an in home display device to show energy use in real time. Insights: While many peak demand behaviours are in the maintenance stage, there is still scope to increase the proportion residents that are in this stage for all behaviours. Focus should firstly be placed on those in the action stage by encouraging more consistent application of peak demand behaviour (they are already aware of and have trialled the behaviour), followed by encouraging initial uptake amongst contemplators. There continues to be some disconnect between customer perceptions of their behaviour and their ability to make further changes compared to their actual behaviour i.e. they think there is nothing more they can do, when they actually have not implemented all of the appropriate behaviours to the fullest degree, particularly those more peak demand related. These residents have already adopted some energy efficient solutions and many are still open to / motivated to make further changes in the future to reduce their bill. Targeted communications to help shift perceptions and educate them about what more they can do (while minimising the difficulty and cost of doing so) is needed for these residents. Those already in the action / maintenance stage still need prompting that they are not yet doing all they can and encourage more incremental behaviour change around reducing consumption during peak periods while this will be challenging, this will have a big overall impact. 81

82 Insights (cont.): Positively, residents do appear to have a better understanding of peak demand and certain behaviours (this has also been evidenced in other research), but it is still not top of mind and something the majority of residents are considering on a regular basis. A secondary focus should be continuing to educate residents generally about peak demand and why residents should be concerned about this. Implications: The priority segment should continue to be those residents who are already adopting some peak demand management and energy efficient behaviours, and encouraging them to more consistently adopt these behaviours. This has proven to be effective in shifting some residents along the behaviour change continuum over the past 12 months, however there is still an opportunity for take up of a more inclusive set of behaviours and to do these all of the time rather than just sometimes. Beyond the specific set of peak demand behaviours, encouraging residents to more generally consider their usage between 4-8pm is also needed and will assist peak demand management. As residents continue to move more into the maintenance stage for the core set of behaviours (particularly for pool filters, washing machines and dishwashers), consideration should also be given to other new behaviours that can be encouraged (and help address the perception that residents are already doing all they can). However, it could be difficult to achieve significant behaviour change given the time of use tariff is currently just optional and not priced to be attractive to customers. Implementation: Communication should be focused on continuing to educate residents about the peak demand issue, and educating them on all the desirable peak demand behaviours (as well as encouraging more general consideration of overall usage between 4-8pm). While focus should be on those in the action stage, different strategies will be needed for each behaviour change stage. o Action / maintenance: The focus should be to encourage more consistent usage of peak demand behaviours and take up of additional behaviours, as well as more consideration generally of their usage between 4-8pm (beyond not using the pool filter, washing machine and dishwasher). o Contemplation: These residents have some basic awareness of peak demand, but more is needed to educate them about what it is, what they can do, the importance of the specific peak demand behaviours and encourage them to shift to the action stage. Given their focus on comfort and unwillingness to put money towards energy efficiency, focusing on the three most adopted peak demand behaviours of running the pool filter, washing machine and dishwasher outside of peak times (or other specific behaviours) may be more effective than targeting a general reduction in usage of all appliances. o Pre contemplation: Building awareness of peak demand is the first step for these residents, then comfort and cost will be the two core barriers that will need to be overcome. Given they currently perceive it to be too hard to change the amount of electricity they use, behaviours that are simplest and easiest to adopt (and don t impact significantly on their comfort) are likely to be best received. 82

83 Behaviour Change Status Peak Demand Behaviours The behaviour change continuum can be collapsed into three core segments: pre-contemplation, contemplation and action / maintenance. Similar to the 2011 research, a series of six peak demand behaviours were assessed on this continuum. Queensland residents were then classified based on their behaviour overall across these six behaviours. Those who had actioned at least one of the behaviours were classified in the action / maintenance category Results Pre-Contemplation 10% have never contemplated or taken action related to peak demand Contemplation 5% have considered the issue of peak demand but have not taken action Action / Maintenance 85% have taken some action/behaviour related to peak demand Comparison to 2011 Results: 16% in Pre- Contemplation (-6% shift in 2012) 4% in Contemplation (+1% shift in 2012) 79% in Action / Maintenance (+6% shift in 2012) Positively, there has been a slight increase in the proportion of residents in the action / maintenance category compared to 12 months ago, with 85% of residents currently performing at least one of the peak demand behaviours. A further 5% are considering taking action, while 10% are still in the pre-contemplation stage in regards to adoption of these behaviours (down from 16% in 2011). These results indicate that communications to build awareness and understanding of peak demand and the desired behaviours has had some impact over the last year. However, more could still be done to encourage strong action and reinforce the adoption of these behaviours. While the majority of residents have undertaken at least one behaviour sometimes or all of the time, and there has been some improvement across all behaviours which is very positive to see, there is still considerable room for improvement in increasing the number of residents in the action and maintenance stages for all behaviours. Many Queenslanders could adopt some of these behaviours on a more regular basis and/or also adopt other peak demand management behaviours. Ref: Q34 Base: Total QLD sample who have appliance/able to do the behaviour 83

84 Behaviour Change Status Queensland Pre-Contemplation Contemplation Action Maintenance 100% 90% 80% In 2011 Regional Queenslanders were significantly more likely to be in the precontemplation stage for all of these peak demand behaviours, Positively, results are similar this year across both SEQ and Regional Queensland. 70% 60% Run pool filter at off peak times (64%) 50% Use dishwasher outside of peak times (54%) 40% 30% 20% Not using electric stove during peak times (31%) Generally being conscious of using electricity during peak times (31%) Avoid using high wattage appliances during peak times (45%) 10% 0% I am not aware of this / I have never thought about doing this I am aware of this and I am probably not going to do it I am aware of this and I am thinking about doing it I do this sometimes I do this all/most of the time This chart shows the status of behaviour change for each of the peak demand behaviours. These are described in more detail on the following slide. Ref: Q32B Base: Total QLD sample who have appliance/able to do the behaviour 84

85 Behaviour Change Status Running the pool filter at off-peak times continues to be the most widely adopted peak demand behaviour (76% in the action / maintenance stages). There has been some improvement in the proportion of residents using the washing machine outside of peak times all/most of the time (57% in 2012 c.f. 50% in 2011), however considering the widespread ownership of this appliance and also dishwashers, more could be done to convert more residents to the action and maintenance stages for these behaviours (as well as encourage them to connect these appliances to Tariff 33). There has also been a positive increase in residents regularly avoiding using high wattage appliances during peak times (up 6% this year), however less than half of residents are still doing this all / most of the time. Adoption of these specific behaviours appears to have been more successful than encouraging residents to generally be more conscious of the times of day they are using appliances, and particularly between 4-8pm. Just over a third of residents say they do this regularly. The peak demand behaviour with the most room for improvement is not using the electric stove during peak times, with nearly half still in the pre-contemplation stage for this behaviour. Run pool filter at off peak times Use washing machine outside of peak times Use dishwasher outside of peak times Avoid using high wattage appliances during peak times Generally being conscious of using electricity during peak times Not using the electric stove during peak times and instead BBQ/pre cook meals % 5% 9% 13% 9% 4% 10% 13% 14% 9% 7% 19% 10% 7% 7% 19% 13% 5% 6% 24% 10% 6% 7% 23% 18% 10% 9% 24% 14% 9% 8% 24% 16% 12% 9% 31% 12% 10% 12% 31% 21% 27% 11% 15% 31% 12% 64% 63% 50% 57% 52% 54% 39% 45% 33% 35% 31% 29% 10% 13% Ref: Q32B Base: Total QLD sample who have appliance/able to do the behaviour 85

86 Demographic Profile of Peak Demand Segments Demographic Profile Pre-Contemplation (n=286) Contemplation (n=104) Action / Maintenance (n=2814) Total 10% 5% 85% Region Age Employment status SEQ North Central South 29 years or under years 50 years or older Employed full or part time Home duties Retired Energy bill Less than $150 9% 1% 89% Ownership status Size of home Renters Owners 1-2 bedrooms 3-4 bedrooms 5 or more bedrooms 8% 13% 14% 10% 14% 9% 7% 12% 5% 8% 13% 8% 13% 9% 8% 6% 4% 3% 5% 11% 5% 2% 6% 5% 1% 8% 4% 8% 5% 6% 86% 83% 83% 86% 75% 85% 91% 83% 89% 90% 78% 89% 80% 87% 85% The table above shows the proportion of residents who are in each of the peak demand behaviour categories (based on their adoption of at least one behaviour or not) by different demographics. At a regional level, residents in the North and Central regions are more likely to be in the pre-contemplation stage for peak demand behaviours, however the proportion in the action / maintenance stage is relatively similar across the different areas. Residents aged 29 years or under are significantly less likely to be in the action / maintenance stage for adopting peak demand behaviours (75%), while those 50 years or more are significantly more likely to be doing these behaviours (91%). Owners are more peak demand conscious than renters (89% in the action / maintenance stage c.f. 78%), as are those with energy bills less than $150 per quarter (89%). Ref: Q32B Base: Total QLD sample who have appliance/able to do the behaviour 86 Results highlighted in green/red are positively/negatively significant against the total

87 Consideration of General Usage During Peak Periods Behaviour Regarding Generally being conscious of using electricity during peak times (4pm to 8pm) Total QLD Sample (2012) SEQ Regional QLD 29 years or under 50 years or older Renters Owners Employed full or part time Retirees Electricity bill less than $150 Electricity bill more than $651 A couple with children at home A couple without children at home Have Solar PV 22% 21% 25% 12% 13% 12% 31% 32% 28% 35% 35% 35% 28% 18% 33% 21% 18% 7% 28% 48% 24% 16% 30% 30% 21% 11% 31% 37% 24% 15% 32% 29% 19% 16% 6% 4% 23% 29% 52% 50% 26% 24% 14% 14% 29% 34% 31% 28% 18% 16% 12% 7% 30% 34% 41% 43% Pre-Contemplation Contemplation Action Maintenance While the proportion of residents in the maintenance stage for the behaviour generally being conscious of using electricity during peak times is similar across the different regions, there are some significant differences amongst other demographics. Residents who are aged 50 years or older (particularly retirees), those with electricity bills less than $150, couple households without children at home and those with Solar PV are most likely to be in the maintenance stage for this behaviour. Conversely, general consideration of usage between 4-8pm is significantly lower amongst residents aged 29 years or under, those employed full or part time, and couple households with children at home. However, these latter two groups may find it harder to shift some of their usage outside of 4-8pm given it is likely to be when they are mainly at home and needing to use a number of appliances (compared to those who are at home during the day, shift workers, etc), plus fit in with children s meal and bathing times. Ref: Q32B Base: Total QLD sample Note: Significance testing only shown for the Maintenance stage. 87

88 Daily Appliance Usage During Peak Periods (4-8pm) Usage of Appliances between 4-8pm Total usage between 4-8pm Electric cook top LCD television LED television 2% 10% 10% 62% 61% 84% 86% 73% 72% Electric cooktops, televisions and electric ovens are most likely to be used between 4-8pm or on all of the time, with 7 in 10 households using these appliances during peak demand periods. 3D television Electric oven Plasma television Digital or Personal Video Recorder Electric heater during winter Gaming console Pool/pool filter Spa/spa filter 13% 2% 12% 29% 9% 29% 4% 25% 3% 18% 4% 7% 4% 59% 59% 69% 72% 71% 70% 38% 33% 28% 23% 11% Other entertainment devices and electric heaters are also used by around one third of households between 4-8pm. While it is used less than other appliances, nearly one quarter of residents said they have their pool filter on during peak times. Although this is the best performing specific peak demand behaviour, there is still some room for improvement in shifting usage of pool filters outside of peak times given it is one of the most energy consuming but non-essential appliances needed to be used between 4-8pm. 0% 20% 40% 60% 80% 100% Used most between 4-8pm Ref: Q34 Base: Total QLD sample who have appliance/able to do the behaviour Used all the time 88

89 Attitudes of Peak Demand Segments Mean Scores on Attitudinal Statements I am being as energy efficient as possible, it s other people that have to act now If I had to choose between my comfort and being energy efficient, I would choose my comfort Total QLD Sample (n=3263) Pre- Contemplation (n=286) Contemplation (n=104) Action / Maintenance (n=2814) I now use less electricity to reduce my impact on climate change Climate change is an issue that requires drastic action to address I would support a system where people who use above an average amount of electricity are charged more We would do more to reduce electricity usage in our home, but are not prepared to put money towards it at this stage Business and industry are the biggest users of electricity in Queensland - households can t make a real impact To me saving money is more important than saving the environment It s too hard to change the amount of electricity my household uses I would support a system whereby energy used between 4pm-8pm is charged at a higher rate Being energy efficient conflicts with everyday life and is difficult to do I would like to be more energy efficient, I just don t know how I should be doing more to save energy but haven t really gotten around to it yet Reducing electricity use is the Government s problem to fix, not households Saving electricity only really comes to mind when the bill comes at the end of the quarter Ref: Q32B & Q31 Base: Total QLD sample who have appliance/able to do the behaviour 89

90 Attitudes of Peak Demand Segments Queenslanders in the Action / Maintenance Stage Residents in the action / maintenance stage in regards to peak demand behaviours are significantly more likely to agree with the statements: o o I am being as energy efficient as possible, it s other people that have to act now I now use less electricity to reduce my impact on climate change These residents do display more energy efficient behaviours, such as being more likely to use their air conditioners in the appropriate temperature range, buy high energy efficient appliances, turn appliances off at the powerpoint, use more energy efficient alternatives like a clothesline or fan, and invest in options like insulation and water efficient shower heads. In addition, they are more likely to be on an economy tariff. It is therefore difficult to distinguish whether their peak demand behaviour is deliberate or just in alignment with their energy efficiency behaviour and a general desire to keep costs under control. While these residents are the most progressed in regards to the adoption of peak demand behaviours, the perception that they are being as energy efficient as possible and that they have already made a significant change to their usage (and therefore may think they do not need to do more) could act as a potential barrier to these residents realising that they could (and should) do more with regards to peak demand behaviour adoption. Encouraging more consistent usage of peak demand behaviours and take up of additional behaviours is still needed with this group, as well more consideration generally of their usage between 4-8pm (beyond not using the pool filter, washing machine and dishwasher). Queenslanders in the Contemplation Stage Residents in the contemplation stage are significantly more likely to agree with a number of the attitudinal statements, in particular: o o o If I had to choose between my comfort and being energy efficient, I would choose my comfort We would do more to reduce electricity usage in our home, but are not prepared to put money towards it at this stage Business and industry are the biggest users of electricity in Queensland households can t make a real impact While these residents have some basic awareness of peak demand, more is needed to educate them about what it is, what they can do, the importance of the specific peak demand behaviours and encourage them to shift to the action stage. They are currently more comfort focused, unwilling / unable to put money towards energy efficiency, and more likely to consider it to be someone else s problem. However, they are also more likely to agree with the statements I would like to be more energy efficient, I just don t know how and I should be doing more to save energy, but haven t really got around to it yet. Positively there is some recognition and willingness amongst these residents to do more, however they require more education and persuasion about what they can do to make a difference and why they should do it. Given the comfort focus and unwillingness to put money towards energy efficiency, focusing on the three most adopted peak demand behaviours of running the pool filter, washing machine and dishwasher outside of peak times may be more effective than targeting a general reduction in usage of all appliances, which they may not be willing to do unless there was something in it for them personally (e.g. cost savings). Ref: Q32B & Q31 Base: Total QLD sample who have appliance/able to do the behaviour 90

91 Attitudes of Peak Demand Segments Queenslanders in the Pre-Contemplation Stage Residents in the pre-contemplation stage are significantly more likely to agree with the statements: If I had to choose between my comfort and being energy efficient, I would choose my comfort To me saving money is more important than the environment It s too hard to change the amount of electricity my household uses They are also significantly less likely to agree that: I would like to be more energy efficient, I just don t know how I now use less electricity to reduce my impact on climate change These residents are significantly less likely to have adopted a number of energy efficient behaviours and nearly half do not know if they are on an economy tariff. Comfort is key to this group and if they were to reduce their usage it would be for cost savings, rather than environmental factors. Building awareness of peak demand is the first step for these residents, then comfort and cost will be the two core barriers that will need to be overcome. Given they currently perceive it to be too hard to change the amount of electricity they use, behaviours that are simplest and easiest to adopt (and don t impact significantly on their comfort) are likely to be best received. However, since these residents in the pre-contemplation stage are less interested in learning how to be more energy efficient, also linking desirable behaviours to cost savings may best grab their attention over any environmental or other messages. Ref: Q32B & Q31 Base: Total QLD sample who have appliance/able to do the behaviour 91

92 Impact of Price on Behaviour Change Change time of day appliances used to save money Change time of day appliances used if charged more 60% 50% 52% 56% 60% 50% 52% 54% 40% 30% 32% 32% 40% 30% 31% 32% 20% 10% 17% 12% 20% 10% 17% 14% 0% Yes no Don't know / need more information 0% Yes no Don't know / need more information Price appears to have slightly less impact on Queensland residents to change the time of day they use appliances compared to 12 months ago possibly due to electricity prices continuing to rise anyway and/or because they have adopted some of these behaviours and feel they are already doing enough or all they can. Just over half of residents (52%) said that they would make changes to either save money or if they were charged more. However, this is a decline of 4% and 2% respectively from the 2011 results. One third of residents were not sure and said they would need more information to be able to make a decision (the size of the saving or increase is likely to be a driving factor, as well as how easy or difficult it would be to make changes). Ref: Q38 & Q39 Base: Total QLD sample 92

93 Main Motivating Factor to Reduce Future Energy Use Comparison Over Past 12 Months Reduced electricity bill I already use electricity as efficiently/as little as possible A device in home to show energy use in real time Financial rebates to install more efficient appliances or to make changes to my house Increased electricity prices A time of use tariff where it costs more to use electricity at peak times and less at other times An energy audit /one-on-one consultation which showed me where I can save electricity in my home More information about specific appliance energy use 7% 8% 10% 8% 8% 8% 6% 5% 3% 3% 3% 3% 21% 23% 31% 31% Similar to the 2011 results, the main motivating factor for Queensland residents to reduce their electricity usage in the future is in order to receive a reduced electricity bill (31%). Aside from money savings, an in home device to help monitor energy usage in real time, financial rebates for installing more efficient appliances and increased electricity prices would be the main motivating factor for just under 1 in 10 residents (all 8%). Around 1 in 5 residents believe they already use electricity as efficiently as possible and couldn t reduce their usage further (23%). Climate change/environmental issues/reducing greenhouse gas emissions 2% 2% Comparison of electricity use with other similar households 1% 1% 0% 10% 20% 30% 40% Ref: Q40 Base: Total QLD sample 93

94 Main Motivating Factor to Reduce Future Energy Use Comparison Based on Adoption of Peak Demand Behaviour Reduced electricity bill I already use electricity as efficiently/as little as possible Financial rebates to install more efficient appliances or to make changes to my house Increased electricity prices A device in home to show energy use in real time A time of use tariff where it costs more to use electricity at peak times and less at other times More information about specific appliance energy use An energy audit /one-on-one consultation which showed me where I can save electricity in my home Climate change/environmental issues/reducing greenhouse gas emissions Comparison of electricity use with other similar households 2% 3% 3% 0% 2% 5% 5% 5% 1% 4% 1% 7% 10% 4% 8% 4% 9% 6% 9% 4% 9% 12% 13% 11% 13% 10% 25% 25% 31% 32% 0% 10% 20% 30% 40% Pre-Contemplation Contemplation Action / Maintenance Regardless of their stage of behaviour change in regards to desirable peak demand behaviours, all residents would be most motivated to reduce their usage if they received a lower electricity bill. Those who are in pre-contemplation find increased electricity prices more of a motivator than the other groups (10%), however those in the contemplation stage are more proactive in looking for things that would help them make changes. They are more likely to find financial rebates a main motivator (13%), as well as more interested in receiving more information about specific appliance energy use (9%) or be shown practical solutions in an energy audit (10%). These residents are a key segment to target with this information or services to capitalise on their interest / willingness, and convert them to action. As to be expected, those in action / maintenance are more likely to believe they are already being as energy efficient as possible (25%), however there are still more than 1 in 10 residents in the pre-contemplation and contemplation stages who believes this applies to them too. Given they have not adopted any of the peak demand behaviours, it is likely there is more these residents could do to reduce their overall usage as well that they may not be aware of. Ref: Q40 & Q32B Base: Total QLD sample 94

95 Section 5: Solar PV. 95

96 Solar PV Deep Dive 96 Key Issue 7 Solar PV ownership continues to increase, particularly amongst those with high appliance ownership, but is driven by cost savings rather than environmental considerations 96

97 Solar PV ownership continues to increase, particularly amongst those with high appliance ownership, but is driven by cost savings rather than environmental considerations Issue: While uptake of Solar PV ownership continues to increase, cost savings continue to be the primary motivator and are encouraging high energy users to consider / take up Solar PV as an option to control the size of their bill. Solar PV owners are more likely to own a pool as well as multiple of some energy consuming appliances. Future purchase intent is highest amongst those with a high electricity bill ($551 or more per quarter). Although Solar PV owners claim to be more energy conscious for specific desirable peak demand behaviours, they are not necessarily more energy conscious between 4-8pm at an appliance and total usage level. Cost of uptake remains the main barrier for not purchasing Solar PV, however attractive Government rebates are making it a more affordable option for some (including current high energy users). Information: Self-reported Solar PV ownership has continued to grow, from 9% in 2010 to 19% in There has been particular growth in Regional Queensland over the past 12 months, with self-reported ownership increasing from 11% in 2011 to 18% in Ownership is highest amongst those with low electricity bills (as they are offsetting a lot of their usage), older residents and home owners. However, while those with Solar PV are more likely to have solar hot water, they are also more likely to own a pool as well as multiple of some energy consuming appliances (including fridges, freezers and desktop computers). In addition, although Solar PV owners claim to be more energy conscious for specific peak demand behaviours, their usage at an appliance level is similar to other residents and they are more likely to use the electric cook top, televisions (particularly plasmas) and a spa/spa filter between 4-8pm than non-owners. While Solar PV owners are significantly more likely to agree that they are being as energy efficient as possible, it s other people that have to act now, there are other attitudinal differences based on their future intention to buy further solar panels. o Agreement with the above statement is highest amongst those who have Solar PV but do not intend to buy more. These residents appear to feel that they have done their bit by installing Solar PV, but are now actually some of the highest appliance owners and users. o However, those who have Solar PV and intend to buy more are much more focused on energy efficiency and environmental factors, with lower appliance ownership and they use their electricity more responsibly. Around 1 in 10 residents intend to take up Solar PV within the next two years. o While current ownership is lowest amongst those with high bills ($551 or more), future intentions to purchase Solar PV are highest amongst these residents. Saving money is the key motivator for them. 97

98 Information (cont.): o Those who intend to take up Solar PV in the next two years are also significantly more likely to already own a number of high energy consuming items, including a freezer, plasma television, gaming console and electric heater. o There also appears to be a lack of knowledge and understanding amongst some of these residents about the options available to them to behave in a more energy efficient manner. Those who do not have Solar PV and do not intend to take it up in the near future are more likely to have lower appliance ownership, but are not willing to put money towards reducing their electricity usage at this stage. The strongest motivator for Queensland residents to purchase Solar PV continues to be because it is a cost effective option or to reduce the size of their bill (79% - this has also increased as a motivating factor over the past 12 months). Attractive Government rebates and it being a good investment are also more motivating factors than environmental considerations. The strongest barrier for taking up Solar PV is the costs involved with purchasing it (38%), although it does appear to be becoming more affordable for some. Insights: Solar PV penetration has continued to grow over the past 12 months (particularly in Regional Queensland) and is set to continue to increase in the future. Motivations for purchase are primarily cost related (in terms of bill reduction) and this is being assisted by the Government rebates available, with environmental considerations a key priority for only a minority of residents. Solar PV owners are more likely to have a number of high energy consuming appliances. In addition, future uptake is highest amongst high energy users, which is likely to exacerbate the pressure placed on the grid since these residents are predominantly only interested in taking up Solar PV in order to lower their bill (rather than change how much / when they are using their electricity). There is the potential that this will have a negative impact on peak demand, with entertainment devices and electric cook tops already currently used more during peak times by Solar PV owners compared to non-owners. While attractive Government rebates have been a key motivator for some residents to take up or at least consider Solar PV, the drop in the feed-in tariff from 44 cents to 8 cents per kilowatt hour may impact future uptake over the next one to two years (particularly for high energy users who are looking for large and immediate savings on their bills). It will be important to ensure residents also understand what size system they require and what savings they can expect given their household size and current usage to avoid disappointment and bill shock if installing Solar PV does not produce the expected savings or within an acceptable timeframe. 98

99 Implications: Residents who currently have Solar PV and intend to buy more are using electricity more responsibly and are more motivated by environmental factors. As a result, they are more likely to use electricity in a way that is not detrimental to peak demand initiatives. However, those who do not have Solar PV but intend to take it up in the near future are more likely to do so because of cost savings. These residents are also more likely to have a number of high energy consuming appliances and high bills. It is therefore likely that they will try to maximise the value they get out of Solar PV and as a result use these appliances over peak demand periods after generating power during the day. In addition, they may consider installing Solar PV enough as it will allow them to continue to live their current lifestyle in terms of electricity usage, but at a lower cost and without detriment to their comfort and convenience. This has already been evidenced by those who have Solar PV but do not intend to purchase more. It will therefore be important to continue to communicate to new Solar PV users regarding how to best use Solar PV to give a good return on investment without negatively impacting on peak demand initiatives, as well as continue to educate current residents with Solar PV but also high appliance ownership / usage. It will also be important to help educate residents about what size system is appropriate for their needs (ensuring that it is not too inefficient or excessive) and manage expectations about the return on investment accordingly. Implementation: Continue to work with solar manufacturers to communicate to customers about the responsible use of electricity when installing Solar PV systems, in particular to current high energy users, as well as what size system is most appropriate for their needs. Continue to communicate to current customers who have Solar PV about the usage times and the impact of peak demand, and what they can do to more generally reduce their usage between 4-8pm. While there are currently difficulties in capturing this data, more information is needed about Solar PV customers and how they are using electricity. Educate those who intend to take up Solar PV in the near future now about more responsible energy usage (given their tendency for high appliance ownership and usage), as well as other energy efficient options they could consider taking up instead of or in addition to Solar PV. The following slides provide supporting information to this summary 99

100 Solar PV Ownership Over Time Solar PV Current and Future Ownership Intentions 2010 Solar PV Current and Future Ownership Intentions 2011 Solar PV Current and Future Ownership Intentions % 12% 15% 19% 11% 10% 79% +6% 74% +4% 71% Report having Solar PV Don't have Solar PV but will buy in the next two years Don t have Solar PV and will not buy in the next two years Report having Solar PV Don't have Solar PV but will buy in the next two years Don t have Solar PV and will not buy in the next two years Report having Solar PV Don't have Solar PV but will buy in the next two years Don t have Solar PV and will not buy in the next two years Self-reported Solar PV ownership has continued to increase, growing from 9% in 2010 to 19% in Purchase intent amongst those who do not have Solar PV has also remained relatively steady over this period, with around 1 in 10 intending to take it up within the next two years. Solar PV uptake has particularly grown in Regional QLD over the past 12 months. Self-reported ownership has grown from 11% in 2011 to 18% in This is due to an increase in uptake across all three regions (North from 11% to 16%, Central from 8% to 17% and South from 13% to 22%) over the last year. There has been a slight increase in uptake across most demographics, with a particular increase amongst those with an electricity bill of $150 or less (40% in 2011 up to 49%) and amongst those aged 50+ years (21% up to 27%). Ref: Q23D Base: Total QLD sample. Note: Data based on self-reported Solar PV ownership. 100

101 Current Ownership Profile of Solar PV Solar PV Ownership 19% Note: Up from 9% in 2010 and 15% in Core Statistics on Solar PV Ownership Ownership is significantly higher amongst residents in West Moreton (26%) and Wide Bay-Burnett (25%), and lowest in South West (13%). Self-reported ownership of Solar PV amongst Queensland households currently stands at 19%, up from 15% in 2011 and 9% in Ownership is significantly higher amongst residents living in West Moreton and Wide Bay-Burnett, but similar overall for SEQ and Regional Queensland as a whole. Ownership is most prominent amongst those with low electricity bills of $150 or less, with nearly half reporting that they have Solar PV. Ownership is also higher amongst older residents and home owners. While Solar PV owners are also more likely to have solar hot water (an energy efficient appliance), they are also more likely to own a pool as well as multiple of some energy consuming appliances. The most common Solar PV system is a 2.5kW to 3.5kW system (35%), with one quarter having a system more than 3.5kW. Significantly higher ownership amongst those aged 50+ years (27%) and significantly lower amongst those 29 years or under (8%). Significantly higher ownership amongst retirees (29%). Significantly higher uptake of Solar PV amongst those with an electricity bill of less than $150 (49%) and lowest amongst those with a bill of $551 or more (8%). Significantly higher amongst home owners (27%) than renters (2%). Significantly higher amongst those with a pool (27%). Highest amongst couple households without children at home (24%). Significantly more likely to also have solar hot water (35% c.f. 16% of all Queensland households). However, Solar PV owners are also significantly more likely to own multiples of some appliances (e.g. fridges, freezers, desktop computers). Ref: Q18 Base: Total QLD sample 101 Results highlighted in green/red are positively/negatively significant against the total

102 Future Ownership Profile of Solar PV Owners Solar PV Current and Future Ownership Intentions 16% Solar PV Intention to Purchase 13% 3% 10% 13% of Queensland households intend to purchase Solar PV within the next two years. This is made up of 3% intending to buy more and 10% intending to take it up for the first time. 71% Core Statistics on Solar PV Intention to Purchase HAVE IT and WILL NOT BUY in the next year or two HAVE IT and WILL BUY in the next year or two DONT HAVE IT and WILL BUY in the next year or two DONT HAVE IT and WILL NOT BUY in the next year or two Future purchase of Solar PV is highest amongst those with a high electricity bill ($551+ per quarter), home owners, and family and/or four resident households. While affordability is likely to be a barrier for those on low incomes of $31,000 or less, uptake is similar across all other income brackets, with those on high incomes not any more likely to invest in Solar PV. Lowest intended future purchase amongst Far North residents (6%), and highest in South West (21%). Significantly higher amongst stay at home parents (18%). Significantly lower amongst those with a household income of $31,000 or less (6%); similar intentions across other income brackets. Highest amongst those with a high electricity bill of $551 to $650 (22%) and lowest amongst those with a low bill of $150 or less (6%). Significantly higher amongst owners (17%) compared to renters (6%). Significantly higher amongst 4 resident households (20%) and couple households with children at home (19%). Significantly higher future intent amongst those also intending to buy air conditioning in the future (24% for A/C penetrators and 19% for A/C saturators). Ref: Q23D Base: Total QLD sample 102 Results highlighted in green/red are positively/negatively significant against the total

103 Attitudes of Solar PV Owners and Non-Owners Attitudes of Solar PV Owners and Non-Owners I am being as energy efficient as possible, it's other people that have to act now I now use less electricity to reduce my impact on climate change If I had to choose between my comfort and being energy efficient, I would choose my comfort I would support a system where people who use above an average amount of electricity are charged more Climate change is an issue that requires drastic action to address To me saving money is more important than saving the environment Business and industry are the biggest users of electricity in Queensland - households can't make a real impact It's too hard to change the amount of electricity my household uses We would do more to reduce electricity usage in our home, but are not prepared to put money towards it at this stage I would support a system whereby energy used between 4pm-8pm is charged at a higher rate Being energy efficient conflicts with everyday life and is difficult to do I would like to be more energy efficient, I just don't know how Solar PV Owners Ref: Q31 Base: Total QLD sample (Solar PV Owners and Non Owners) Solar PV Non-Owners Solar PV owners are significantly more likely than non-owners to agree that they are being as energy efficient as possible, it s other people that have to act now (6.6 c.f. 5.9) and that they now use less electricity to reduce my impact on climate change (6.3 c.f. 5.7). However, this could also be a potential barrier to encouraging them to continue to be energy efficient in the future given a large portion of their usage is offset by the solar credits they receive. Those who do not have Solar PV are significantly more likely to agree that they would do more to reduce electricity usage, but are not prepared to put money towards it at this stage (5.7 c.f. 4.3), as well as believe that being energy efficient is difficult to do and/or they just don t know how. While this group may not have the funds required to invest in Solar PV, there does also appear to be a lack of knowledge and understanding amongst this group of residents about the options available to them to behave in a more energy efficient manner.

104 Appliance Ownership Amongst Current and Future Solar PV Owners and Non-Owners Appliance / Item Total Have Solar PV and WILL NOT BUY in next 2 years Have Solar PV and WILL BUY in the next 2 years Don t have Solar PV but WILL BUY in the next 2 years Don t have Solar PV and WILL NOT BUY in the next 2 years Energy efficient / CFL bulbs 76% 86% 84% 79% 74% Ownership of Energy Efficient Appliances Ownership of Energy Consuming Appliances Ceiling fan 69% 80% 80% 74% 66% LED light bulbs 21% 31% 36% 22% 18% Solar hot water system (with electric booster) 14% 32% 29% 16% 9% Air conditioning 74% 80% 71% 74% 72% Clothes dryer 57% 63% 44% 58% 56% Desktop computer 55% 64% 63% 53% 54% Dishwasher 55% 70% 44% 56% 52% LCD television 48% 54% 52% 42% 48% Gaming console 45% 41% 30% 55% 45% Freezer (stand alone) 42% 46% 50% 49% 40% Digital / personal video recorder 37% 48% 41% 39% 34% Electric heater 33% 28% 27% 38% 33% Plasma television 27% 27% 34% 34% 26% Pool / pool filter 19% 30% 14% 18% 17% Ref: Q18A Base: Total QLD sample 104 Results highlighted in green/orange are positively/negatively significant against the total

105 Appliance Ownership Amongst Current and Future Solar PV Owners and Non-Owners While those who already have Solar PV are more likely to own four of the energy efficient appliances (energy efficient bulbs, ceiling fans, LED light bulbs and solar hot water), they are also significantly more likely to own a number of energy consuming appliances. Details about each of the four groups are outlined further below. Have Solar PV and DO NOT plan to buy more Ownership of energy consuming appliances is highest amongst those who have Solar PV and do not intend to buy more in the future. Ownership of air conditioning, a clothes dryer, dishwasher, LCD television and a pool in particular is significantly higher amongst this group. These residents are also significantly more likely to agree with the attitude statement that if I to choose between my comfort and being energy efficient, I would choose my comfort, as well as be significantly more likely to agree that I am being as energy efficient as possible, it s other people that have to act now. They appear to feel that they have done their bit by installing Solar PV and have reaped the benefits of cost savings, but they are now some of the highest appliance owners and users, and less likely to become more energy responsible in the future. Have Solar PV and DO plan to buy more In contrast, those who have Solar PV and intend to buy more in the next two years have lower levels of ownership of energy consuming appliances, particularly for clothes dryers, dishwashers and gaming consoles. Interestingly, unlike Solar PV owners who do not intend to buy more, these residents are significantly less likely to agree with the attitude statement that if I had to choose between my comfort and being energy efficient, I would choose my comfort and significantly more likely to agree that climate change is an issue that requires drastic action to address. They appear to be far more focused on energy efficiency and environmental factors than comfort driven, and are using their electricity much more responsibly than those who do not intend to acquire more solar panels in the future. Do not have Solar PV but DO plan to buy Those who don t have Solar PV but intend to take it up in the next two years are also significantly more likely to already own a number of high energy consuming items, including a freezer, plasma television, gaming console and electric heater. They are also less likely to agree with the statement that climate change is an issue that requires drastic action to address, and more likely to agree that I should be doing more to save energy but haven t really got around to it yet. For these residents, it appears to be less about environmental factors and more about how to save money when they find the time / motivation to explore the option further (with motivation being heightened when they receive their bill). Do not have Solar PV and DO NOT plan to buy Those who do not have Solar PV and do not intend to take it up in the near future generally have lower levels of ownership of all these appliances, both those that are energy efficient and those that are energy consuming. Of the energy consuming appliances, ownership is significantly lower for dishwashers and digital / personal video recorders. They are significantly more likely to agree with the statement that we would do more to reduce electricity usage in our home, but are not prepared to put money towards it at this stage. Ref: Q18A Base: Total QLD sample 105

106 Peak Demand Behaviours Amongst Solar PV Owners and Non-Owners Behaviour of Solar PV Owners Behaviour of Solar PV Non Owners Run pool filter during off peak times, i.e. not between 4pm and 8pm 8% 7% 13% 72% Run pool filter during off peak times, i.e. not between 4pm and 8pm 16% 11% 14% 60% Use the washing machine outside peak times (4pm to 8pm) 10% 17% 69% Use the washing machine outside peak times (4pm to 8pm) 18% 7% 20% 54% Use the dishwasher outside of peak times (4pm to 8pm) 10% 24% 63% Use the dishwasher outside of peak times (4pm to 8pm) 18% 8% 23% 51% Avoid using high wattage appliances (e.g. vacuum, iron) during peak times 16% 6% 24% 54% Avoid using high wattage appliances (e.g. vacuum, iron) during peak times 25% 9% 24% 43% Generally being conscious of using electricity during peak times (4pm to 8pm) 16% 7% 34% 43% Generally being conscious of using electricity during peak times (4pm to 8pm) 23% 14% 30% 33% Not using the electric stove during peak times and instead BBQ/pre cook meals 43% 10% 35% 12% Not using the electric stove during peak times and instead BBQ/pre cook meals 47% 12% 28% 13% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Pre-Contemplation Contemplation Action Maintenance Pre-Contemplation Contemplation Action Maintenance Residents are most likely to be in the maintenance stage for running their pool filter, washing machine and dishwasher outside of peak times, however there is still some improvement needed in encouraging residents to generally be conscious of using electricity during peak times on a regular basis and to BBQ/pre cook meals rather than use the electric stove during peak times. Overall, those who have Solar PV are generally slightly more likely to be in the maintenance stage for different peak demand behaviours, particularly running the pool filter and using the washing machine outside of peak times (72% c.f. 60% and 69% c.f. 54% respectively). Those who have Solar PV and intend to buy more in the next two years are slightly more likely to be in the maintenance stage for most of these behaviours compared to those who do not intend to buy more. Residents who do not have Solar PV are more likely to be in the pre-contemplation stage for all of these peak demand behaviours. With the exception of running the pool filter, approximately half or less of these residents are in the maintenance stage for the other behaviours. Further education and reminders are particularly needed for these residents. Ref: Q32D Base: Total QLD sample (Solar PV Owners and Non Owners) 106

107 Usage of Appliances in Peak Periods Usage of Appliances between 4-8pm Electric cook top Electric oven LCD television LED television 3D television Plasma television Showering/bathing Digital or Personal Video Recorder Electric heater during winter 38% 40% 27% 30% 21% 31% 66% 70% 62% 62% 63% 61% 63% 58% 65% 57% 88% 83% While those with Solar PV claim to be more energy conscious for specific desirable peak demand behaviours, they are actually not necessarily more energy conscious between 4-8pm at an appliance and total electricity usage level. While they are significantly less likely to use an electric heater or gaming console during peak times than non-owners, they are significantly more likely to use the electric cook top between 4-8pm. Solar PV owners are also more likely to use televisions (particularly plasmas) and a spa/spa filter during peak periods than non-owners. Gaming console 19% 27% Pool/pool filter 16% 19% Spa/spa filter 9% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Solar PV Owners Solar PV Non-Owners Ref: Q34 Base: Total QLD sample who have appliance/able to do the behaviour 107

108 Motivations for Purchasing Solar PV It is a cost effective option / to reduce the size of my bill Attractive Government rebates on offer It is a good investment I want to look after the environment It's the energy and technology of the future To be self sufficient/not rely on electricity To increase the resale value of my home The QLD Solar Bonus Scheme feed-in tariff was dropping from 44 cents to 8 cents per kwh I have heard good things about solar PV through friends/family/colleagues I have heard good things about solar PV through the media To enhance my personal/our family's reputation in our community Other Don't know Not asked in 2011 Not asked in % 4% 2% 6% 18% 19% 11% 15% 5% 12% % 33% 28% 46% 45% 41% 43% 46% 42% 47% 42% 54% 79% 67% Far North residents (61%), those 50+ years (56%) and those earning less than $31,000 (56%) are most motivated by attractive Government rebates. Far North residents (31%), those with electricity bills of $551 to $650 (28%) and those with a pool (35%) are least likely to be motivated by being less reliant on electricity. Retirees (87%), those with both a pool and spa (98%) and those with 5 bedroom homes (87%) are most motivated by cost savings. Similar to 2011 results, the strongest motivator for Queensland residents for already buying or intending to buy Solar PV is because it is a cost effective option or to reduce the size of their bill. This has also significantly increased as a motivating factor over the past 12 months (79% in 2012 c.f. 67%). Environmental factors are less important to residents in They are significantly less likely to be motivated to purchase Solar PV because they want to be self sufficient and not rely on electricity (42% c.f. 54% in 2011) and slightly less likely to take up Solar PV because they want to look after the environment. Instead, attractive Government rebates and it being a good investment were the second and third most motivating reasons for residents in 2012, after cost savings on their bill. Nearly half (46%) agreed that attractive Government rebates was a motivating factor, and just over a quarter (28%) said they purchased Solar PV because the Queensland Solar Bonus Scheme feed-in tariff was dropping from 44 cents to 8 cents per kilowatt hour. Word of mouth and the media are less influential factors for residents to take up Solar PV. Ref: Q23E Base: All QLD households who have and/or intend to purchase Solar PV 108

109 Motivations for Purchasing Solar PV By Age It is a cost effective option / to reduce the size of my bill To be self sufficient/not rely on electricity It is a good investment To increase the resale value of my home I want to look after the environment It's the energy and technology of the future Attractive Government rebates on offer I have heard good things about solar PV through friends/family/colleagues The QLD Solar Bonus Scheme feed-in tariff was dropping from 44 cents to 8 cents per kwh I have heard good things about solar PV through the media To enhance my personal/our family's reputation in our community Other Don't know 43% 38% 43% 37% 38% 52% 34% 30% 35% 34% 41% 46% 30% 39% 47% 28% 41% 56% 26% 15% 17% 25% 25% 30% 4% 9% 15% 0% 1% 1% 1% 3% 2% 16% 6% 2% 74% 76% 83% While Solar PV being considered a cost effective option and/or to reduce the size of their bill was the main motivating factor for purchasing for all age groups, secondary motivations differ. Those aged 50 years or more are significantly more likely to also be motivated by attractive Government rebates on offer compared to those 29 years or less (56% c.f. 28%). They are also significantly more likely than younger residents to be future focused, considering Solar PV to be a good investment (52%) and believe that it s the energy and technology of the future (47%). Residents aged 29 years or less are significantly less likely to have heard good things about Solar PV through the media (4% c.f. 15% of residents aged 50 years or more), but are slightly more likely to have heard positive thing through friends / family / colleagues than the other age groups (26%). The Queensland Solar Bonus Scheme feed-in tariff dropping from 45 cents to 8 cents per kilowatt hour was also a slightly more motivating factor to purchase Solar PV for older residents (30%). 29 years or under years 50 years or older Ref: Q23E Base: All QLD households who have and/or intend to purchase Solar PV 109

110 Barriers to Purchasing Solar PV The costs involved with purchasing it It's not my home/decision to put up solar panels We plan to move homes/we are renting so it is not appropriate Because the QLD Solar Bonus Scheme feed-in tariff has dropped from 44 cents to 8 cents per kwh The return on investment - the solar PV is not large enough/takes too long Waiting for the technology to improve before I purchase solar PV It's too difficult to know which system/supplier to select Don't have a suitable roof for it The hassle and effort of selecting and purchasing the solar PV I don't know enough about it/don't know it exists I have heard bad things about solar PV through friends/family/colleagues I have heard bad things about solar PV through the media I don't like how it looks on my roof I think I will need to change my behaviour too much to make it worthwhile I already have solar panels Other Don't know Not asked in % Not asked in % 21% 11% 14% 9% 10% 8% 7% 7% 7% 6% 7% 4% 4% 4% 4% 4% 3% 2% 2% 2% Not asked in % 17% 7% 5% % 24% 30% 38% 45% The drop from 44 cents to 8 cents is a stronger barrier for those with air conditioning (25%), those with a pool (30%), those 50+ years (30%), those earning $71,000 or more (28%) and those with bills of $351 to $550 (28%). The cost of uptake is a stronger barrier for Central residents (43%), those 50+ years (46%), those with an electricity bill of $651 or more (46%) and those with a pool (48%). Similar to 2011 results, the strongest barrier for purchasing or considering taking up Solar PV is the costs involved with purchasing it (38%), although a lower proportion of residents cited this as a barrier compared to 12 months ago. More than one fifth of residents also would not consider taking up Solar PV because the Queensland Solar Bonus Scheme feed-in tariff has dropped from 44 cents to 8 cents per kilowatt hour, making it less financially attractive. Aside from financial reasons, there is a portion of residents who are not interested or able to purchase Solar PV at this stage because it s not their home (28%) or they plan to move homes (24%). Compared to 2011, residents are less likely to consider the return on investment a barrier to purchasing (16% in 2012 c.f. 21%) or be waiting for the technology to improve before purchasing (11% in 2012 c.f. 14%). While costs are still the key barrier, overall it does appear to be becoming more affordable for some, and more residents are seeing the long term benefit of investing in Solar PV. Ref: Q23F Base: All QLD households who do not have and/or do not intend to purchase Solar PV 110

111 Barriers to Purchasing Solar PV By Age We plan to move homes/we are renting so it is not appropriate It's not my home/decision to put up solar panels The costs involved with purchasing it Because the QLD Solar Bonus Scheme feed-in tariff has dropped from 44 cents to 8 cents per kwh I don't know enough about it/don't know it exists The return on investment - the solar PV is not large enough/takes too long Waiting for the technology to improve before I purchase solar PV The hassle and effort of selecting and purchasing the solar PV Don't have a suitable roof for it I have heard bad things about solar PV through friends/family/colleagues I have heard bad things about solar PV through the media It's too difficult to know which system/supplier to select Other Don't know 34% 21% 19% 32% 30% 23% 29% 37% 10% 24% 30% 8% 5% 4% 8% 14% 27% 8% 12% 12% 7% 6% 6% 5% 7% 11% 4% 4% 4% 4% 3% 5% 4% 10% 11% 8% 8% 14% 10% 8% 4% 46% Similar to the motivations for taking up Solar PV, the barriers to purchase also vary quite significantly amongst the different age groups. Younger residents aged 29 years or less are most likely to not be considering Solar PV because they plan to move homes or it s not their home this is a more significant barrier for this age group than cost. Given their home ownership situation, they are also significantly less likely to consider the Queensland Solar Bonus Scheme feed-in tariff reducing to be a barrier for them to purchase Solar PV. In contrast, older residents aged 50 years or more are significantly more likely to not take up Solar PV in the near future because of the costs involved with purchasing it, because the Queensland Solar Bonus Scheme feed-in tariff has dropped, or because the return on investment is not significant enough or takes too long. The decision to purchase Solar PV for those aged 50 years or more appears to be more influenced by the short and long term cost versus benefits, unlike younger residents who are more governed by situational factors. 29 years or under years 50 years or older Note: Options with 3% or less combined in Other Ref: Q23F Base: All QLD households who do not have and/or do not intend to purchase Solar PV 111

112 Impact of Cost and Rebates on Solar PV Uptake Motivators to Purchasing Solar PV Barriers to Purchasing Solar PV Demographics Cost effective option / reduce size of bill Attractive Government Rebates Solar Bonus Scheme dropping from 44 cents to 8 cents Costs involved with purchasing it Solar Bonus Scheme dropped from 44 cents to 8 cents TOTAL 79% 46% 28% 38% 22% Region SEQ North Central South 79% 81% 72% 80% 47% 48% 37% 44% 27% 39% 36% 24% 37% 37% 43% 41% 21% 22% 26% 26% Gender Male Female 77% 81% 51% 41% 28% 29% 35% 40% 27% 18% Age 29 years or under years 50 years or older 74% 76% 83% 28% 41% 56% 25% 25% 30% 29% 37% 46% 10% 24% 30% Income <$31,000 $31,000 - $70,999 $71,000 - $109,999 $111,000 or more 78% 79% 78% 78% 56% 46% 46% 50% 18% 27% 36% 28% 39% 35% 39% 37% 18% 18% 27% 29% Energy bill Less than $150 80% 64% 21% 21% 17% Size of home 1-2 bedrooms 3-4 bedrooms 5 or more bedrooms 68% 79% 87% 35% 46% 57% 21% 28% 39% 23% 42% 43% 13% 25% 24% The table above shows the impact of price related factors on motivations and barriers to taking up Solar PV for different demographics. As shown on the previous slides, age is a key determinant of how influential price factors are on Solar PV take up, with older residents being significantly more likely to consider costs and the rebates available to be a motivator or barrier depending on their personal situation than younger residents. Income also plays a part. For those on low incomes, attractive Government rebates is a significant motivator to assist with the upfront cost. Those on high incomes are more likely to consider the long term return, and find the Solar Bonus Scheme feed-in tariff dropping from 44 cents to 8 cents a significant barrier. Those with larger homes are generally more likely to be motivated to take up Solar PV because of the cost savings or because of attractive Government rebates than those with smaller homes / fewer residents where the outlay is possibly not worth the long term return. Results are similar across the regions, with the exception of Central residents being less motivated by attractive Government rebates. Ref: Q22E & Q22F Base: Total QLD sample 112 Results highlighted in green/red are positively/negatively significant against the total

113 Section 6: Attitude Change. 113

114 114 Key Issue 8 Monetary savings are continuing to drive changes, however residents are finding it more difficult to be energy efficient than 12 months ago and are attributing more electricity usage responsibility to others. 114

115 Monetary savings are continuing to drive changes, however residents are finding it more difficult to be energy efficient than 12 months ago and are attributing more electricity usage responsibility to others. Issue: Residents claim to have made continual changes to their usage over the past two years (primarily to reduce their bill). Positively, energy efficiency has become more top of mind and more integrated into daily routines for some residents. However, residents also continue to believe they are being as energy efficient as possible, and that it s other people who have to make changes rather than themselves. Residents are also attributing slightly more responsibility to business, industry and Government, rather than households. Residents agreement with it being too hard to change the amount of electricity used in their household and believing being energy efficient conflicts with everyday life also increased slightly in While some residents may have adopted new behaviours over the past 12 months, some seem to be struggling to find additional behaviours or ways of reducing their usage further and/or are still learning to incorporate these behaviours as part of their daily routines. Information: Out of all the statements measured, agreement is highest for I am being as energy efficient as possible, it s other people that have to act now (6.1 in 2012, up from 6.0). While it s positive residents are doing more to reduce their usage and make savings on their bill, there are still some resident groups which could be doing a lot more. o Residents in the North and Central regions, those under 29 years, those on high incomes, those with high bills, renters and large households are least likely to agree that they are being as energy efficient as possible. Residents are also more likely to believe that businesses and industry are the biggest users of electricity in Queensland and that households can t make a real impact (5.4 in 2012, up from 5.1). Residents are more likely to agree with the statement being energy efficient conflicts with everyday life and is difficult to do compared to 2011 (4.3, up from 3.8) and also slightly more likely to believe that it s too hard to change the amount of electricity their household uses (4.8, up from 4.6). o High energy users, younger residents, those on low incomes, and those who have a pool or spa have the strongest agreement towards energy efficiency conflicting with everyday life. While there has been a slight increase in the proportion who believe that climate change is an issue requiring addressing, this hasn t necessarily translated to their usage, with a slight decline in the proportion who are using less electricity in order to reduce their impact on climate change. o A continuing focus on saving money is evident (and is considered more important than the environment), however positively fewer residents are only considering energy efficiency when they receive their bill. Generally older residents, those with low energy bills and those with Solar PV are more positive towards the statements, and find it far easier to integrate energy efficient behaviours into their routines. They are also more likely to agree that it is other people who need to act now and that they are being as energy efficient as possible. Residents who have not taken action on a peak demand behaviour recognise that they are not being as energy efficient as possible, and are also more likely to find being energy efficient difficult, attribute responsibility to businesses or Government, and be significantly more motivated by saving money (prompted when the bill arrives). 115

116 Insights: Residents may be feeling it is not so much their responsibility to further reduce their usage (rather it is businesses and industry s responsibility) because some residents already feel they are being as energy efficient as possible, or because more feel that being energy efficient conflicts with everyday life and is difficult to do (so they are looking for someone / something else to shift future change and responsibility to) compared to 12 months ago. o While some residents appear to have made positive changes in regards to energy efficiency, there is a lot more some other groups could do. o Those who are finding it difficult to be energy efficient but recognise there is more they can do are likely to benefit from information and advice about how they can integrate energy efficient behaviours into their routines more easily. Saving money is a key motivator for these groups. Residents who have not taken action on a peak demand behaviour are also a segment to focus on more generally in terms of their attitudes towards energy efficiency. Saving money is also a key motivator for these residents, however energy efficiency needs to be made a more regular and top of mind behaviour (not just when the bill arrives). Implications: Consider ways that residents could be being energy efficient in an easier manner that requires less effort, and focus on promoting these (particularly to those groups finding energy efficiency difficult to implement). It will also be important to continue to introduce new behaviours and ideas. A number of residents continue to believe they are being as energy efficient as possible, and that it s other people who have to make changes. This could become an issue if they could actually be doing a lot more, but believe there is no more they could or should be doing (or they have simply done enough), or attribute all responsibility to other residents or Government / businesses. o Willingness to change usage should also be monitored given a significant proportion of residents could still be doing more to reduce their usage and/or shift the time of day they are using certain appliances. Residents are also attributing slightly more responsibility to businesses, industry and Government rather than households than they did 12 months ago. o Continuing to highlight what residents can do to make a difference (as well as that commercial electricity usage is also being targeted) may help reinforce that it is important for them to be efficient and it does have an impact on the network. There is also a possibility that even those who are actually being as energy efficient as possible may not maintain these good behaviours over time, so reinforcing these behaviours will also be important. Those who have not yet taken up a peak demand behaviour also need more education about energy efficiency. 116

117 Implementation: Promote devices or behaviours that minimise the time, effort and complexity of doing them, e.g. a device which switches off multiple appliances simultaneously, switching tariffs, using a timer, etc. Work with builders and new housing developments about the opportunity of incorporating an in-home display device as standard (and an integrated home energy management system as they become available and affordable), to help residents have more control over their usage (and easily turn on/off appliances and use it more sparingly). Continue to introduce new behaviours and ideas (both in regards to energy efficiency as well as peak demand). Cost savings continue to be the strongest motivator for making changes. Highlight what residents can do to make a difference and reinforce that it is important for them to be efficient since it does have an impact on the network and everyone must take responsibility. Target residents who have not taken action on a peak demand behaviour by promoting the ongoing savings they can make. One-off behaviours and those requiring minimal time/effort are likely to be more easily and readily adopted. Sending communications with the bill is likely to be when these residents will be most receptive, with messages needing to centre around minimising their bill and how to most easily and efficiently make changes in order to see an impact. The following slides provide supporting information to this summary 117

118 Attitude Changes Over Time 2010 to 2012 I am being as energy efficient as possible, it s other people that have to act now I now use less electricity to reduce my impact on climate change If I had to choose between my comfort and being energy efficient, I would choose my comfort Climate change is an issue that requires drastic action to address Business and industry are the biggest users of electricity in Queensland households can t make a real impact I would support a system where people who use an above average amount of electricity are charged more We would do more to reduce electricity usage in our home, but are not prepared to put money towards it at this stage To me saving money is more important than saving the environment It s too hard to change the amount of electricity my household uses I would support a system whereby energy used between 4-8pm is charged at a higher rate Being energy efficient conflicts with everyday life and is difficult to do I would like to be more energy efficient, I just don t know how Reducing electricity use is the Government s problem to fix, not households I should be doing more to save energy but haven t really got around to it yet Saving electricity only really comes to mind when the bill comes at the end of the quarter Ref: Q31 Base: Total QLD sample Not asked in Not asked in 2010 or 2011 Not asked in In both 2011 and 2012, residents showed the strongest level of agreement with the statement I am being as energy efficient as possible, it s other people that have to act now. Residents attitudes towards climate change importance have declined slightly since 2010, as has reducing their usage in order to lower their impact on climate change. There has also been a decline in the proportion of residents saying that they would do more but are not put money towards it at this stage, however this could also reflect some residents making significant changes already over the past couple of years, e.g. taking up Solar PV. Although results dropped slightly in 2011 in regards to it being too hard to change the amount of electricity used and being energy efficient conflicting with everyday life and being difficult, results for both statements increased slightly in Possibly some residents have adopted some new behaviours over the past 12 months, but now are struggling to find additional behaviours they can adopt as well to reduce their usage further, or are still incorporating these behaviours as part of their daily routines. There may also be ways that some residents could be being energy efficient in an easier manner that requires less effort, e.g. a device which switches off multiple appliances simultaneously, switching tariffs, using a timer, etc. Agreement is lowest for I should be doing more to save energy but haven t really got around to it yet and Saving electricity only really comes to mind at the end of the quarter. This is in line with the continual changes residents say they have made to their usage in the past couple of years (primarily to reduce their bill), as well as energy efficiency becoming more top of mind and more integrated into daily routines for some residents. Positively, agreement with these scores has continued to decline slightly since 2010.

119 Attitude Changes Over Time Last 12 Months The table below shows the shift in attitudes over the past 12 months and is discussed further on the following slide. ATTITUDE STATEMENTS CHANGE + OR - SHIFT CLIMATE CHANGE Climate change is an issue that requires drastic action to address Slightly positive I now use less electricity to reduce my impact on climate change Slightly negative ENERGY EFFICIENCY If I had to choose between my comfort and being energy efficient, I would choose my comfort Slightly negative Being energy efficient conflicts with everyday life and is difficult to do Very negative I would like to be more energy efficient, I just don t know how Slightly positive It s too hard to change the amount of electricity my household uses Slightly negative I am being as energy efficient as possible, it s other people that have to act now Both, depending on actual behaviour SAVING MONEY To me saving money is more important than saving the environment Slightly negative Saving electricity only really comes to mind when the bill comes at the end of the quarter Both, depending on actual behaviour ELECTRICITY RESPONSIBILITY Reducing electricity use is the Government s problem to fix, not households Slightly negative Business and industry are the biggest users of electricity in Queensland households can t make a real impact Slightly negative I would support a system where people who use an above average amount of electricity are charged more Slightly positive I would support a system whereby energy used between 4-8pm is charged at a higher rate 4.4 Not asked - - WILLINGNESS TO CHANGE I should be doing more to save energy but haven t really got around to it yet Slightly negative We would do more to reduce electricity usage in our home, but are not prepared to put money towards it at this stage Slightly negative Ref: Q31 Base: Total QLD sample 119

120 Attitude Changes Over Time Last 12 Months Climate Change Residents opinions towards climate change are generally fairly stable compared to 12 months ago. Positively, there has been a slight increase in the proportion who believe that climate change is an issue requiring addressing (up 0.2), however this hasn t necessarily translated to their usage, with a slight decline in the proportion who are using less electricity in order to reduce their impact on climate change. Energy Efficiency Residents generally have more negative attitudes towards energy efficiency, however positively a reasonable proportion of residents do believe that they are being as energy efficient as possible (6.1) so it s possible some of these results are due to residents finding it harder to continue to adopt additional energy efficient behaviours and make further changes beyond what they are already doing. However, residents are more likely to agree with the statement being energy efficient conflicts with everyday life and is difficult to do compared to 2011 (4.3, up from 3.8) and also slightly more likely to believe that it s too hard to change the amount of electricity their household uses (4.8, up from 4.6). While residents do appear to be making changes to reduce their electricity bill and are trying to be more energy efficient, there could be an issue if residents start feeling they have done enough (when they could be doing more to reduce their usage) and/or are simply shifting the responsibility to others rather than taking it on themselves. There is also the possibility that even those who are actually being as energy efficient as possible may not maintain these good behaviours over time, so reinforcing these behaviours will also be important as well as continuing to introduce new behaviours. Saving Money Results for the statements related to saving money have remained relatively stable over the past 12 months. Residents are slightly more likely to agree that saving money is more important than saving the environment (up 0.1) and slightly less likely to believe that saving electricity only really comes to mind when the bill comes at the end of the quarter (3.6, down from 3.8). The continuing focus on saving money is evident here, and positively fewer residents are just considering energy efficiency when they receive their bill (rather than on a more regular basis). Electricity Responsibility Residents attitudes towards electricity responsibility are generally slightly more negative in In particular, residents are more likely to believe that business and industry are the biggest users of electricity in Queensland and that households can t make a real impact (5.4 in 2012 c.f. 5.1). This feeling that it is not so much their responsibility could also be because some residents already feel they are being as energy efficient as possible, or because more feel that being energy efficient conflicts with everyday life and is difficult to do (so they are looking for someone / something else to shift future change and responsibility to) compared to Willingness to Change Residents are slightly less willing to change their usage in the future, both in regards to being willing to do more but they haven t got around to it yet and also recognising they should do more but not being willing to put money towards it at this stage. While this could also be attributed to the fact that residents are claiming to have done more over the past 12 months and more have taken up options like Solar PV, willingness to change should be monitored given a significant proportion of residents could still be doing more to reduce their usage and/or shift the time of day that they are using certain appliances. Ref: Q31 Base: Total QLD sample 120

121 Attitudes Towards Climate Change 2012 Demographic Profile CLIMATE CHANGE ATTITUDE STATEMENTS CHANGE + OR - SHIFT Climate change is an issue that requires drastic action to address Slightly positive I now use less electricity to reduce my impact on climate change Slightly negative Mixed Shifts in 2012 Residents opinions towards climate change are generally fairly stable compared to 12 months ago, but positively they are slightly more likely to agree that climate change is an issue that requires addressing. Residents in Brisbane are most likely to be using less electricity to reduce their impact (6.1), while those in South West are significantly less likely to be doing this (5.4), as well as be significantly less concerned about climate change being an issue requiring addressing (4.6) Younger residents aged 29 years or under are significantly more concerned that climate change is an issue that requires drastic action to address (6.1), however they are not more likely to be using less electricity to reduce their impact (5.8). There is therefore an opportunity to further target this group given their level of concern has not yet translated to their behaviour in order to promote positive behaviour changes. Those with low electricity bills as well as Solar PV owners are significantly more conscious about climate change being an issue and are using less electricity to reduce their impact, as are females and adult only households. Those with high electricity bills are significantly less concerned about climate change, and instead more likely to be comfort focused and more motivated by saving money than the environment. Residents who are in the pre-contemplation stage for peak demand behaviours are also significantly less concerned about climate change. This group appears to require more education generally about the broader reasons for reducing their electricity usage (beyond just saving money, e.g. impact on the network, environmental and climate change concerns etc). Ref: Q31 Base: Total QLD sample 121 Core Statistics on Climate Change Attitudes More positive attitudes amongst residents in SEQ compared to Regional Queensland. Females are significantly more conscious about climate change than males. Those aged 50 years or older are less concerned that climate change requires drastic action, but significantly more likely to be using less electricity to reduce their impact. Those on middle incomes ($31,000 to $70,999) have significantly more positive attitudes. Residents with high electricity bills ($551 or more) are significantly less concerned about climate change or reducing their electricity usage to less their impact than those with low electricity bills ($250 or less). Adult only households are significantly more conscious about climate change. Solar PV owners are significantly more likely to be using less electricity to reduce their impact (6.3 c.f. 5.7). Those in pre-contemplation for peak demand have significantly less positive attitudes towards climate change. Results highlighted in green/red are positively/negatively significant against the total

122 Attitudes Towards Energy Efficiency 2012 Demographic Profile ENERGY EFFICIENCY ATTITUDE STATEMENTS CHANGE + OR - SHIFT If I had to choose between my comfort and being energy efficient, I would choose my comfort Slightly negative Being energy efficient conflicts with everyday life and is difficult to do Very negative I would like to be more energy efficient, I just don t know how Slightly positive Mostly Positive Shifts in 2012 It s too hard to change the amount of electricity my household uses Slightly negative XXXX I am being as energy efficient as possible, it s other people that have to act now Both, depending on actual behaviour Being energy efficient conflicts with everyday life and is difficult to do Residents are more negative towards this statement in 2012, however it is possible some of the difficulty residents are facing in being energy efficient is because they are finding it harder to continue to adopt additional energy efficient behaviours and make further changes beyond what they are already doing. For these residents, and those who have adopted fewer behaviours so far, more education about how these behaviours can be incorporated as easily as possible may be required, as well as any tips or devices that can reduce the effort involved (e.g. multiple appliances / lights being able to be turned off with one switch, set and forget timers on certain appliances, putting some appliances on off-peak tariffs etc). High energy users are likely to still benefit from information and advice about how they can integrate energy efficient behaviours into their daily routines more easily, along with younger residents, those on low incomes, and those who have a pool or spa. Providing new information will also be important. Older residents and those with a low bill of $250 or less are significantly less likely to believe that being energy efficient is difficult, and be more likely to have incorporated these behaviours as part of their daily routines (as evidenced in their lower bills). Ref: Q31 Base: Total QLD sample 122 Core Statistics on Energy Efficiency Attitudes - Being energy efficient conflicts with everyday life and is difficult to do Significantly lower amongst residents in the Northern region (3.8) and the Sunshine Coast (3.5), and highest amongst Brisbane and Fitzroy residents (both 4.5). Significantly lower amongst those aged 50 years of older and highest amongst those aged 29 years or under. Significantly higher amongst those with a household income of less than $30,999. Significantly lower amongst those with an electricity bill of $250 or less and highest amongst those with a bill of $651 or more. Significantly higher amongst those with a pool or spa. Significantly higher amongst those with larger sized homes (5 or more bedrooms, 3 or more bathrooms) Significantly higher amongst those who have not taken action on a peak demand behaviour. Results highlighted in green/red are positively/negatively significant against the total

123 Attitudes Towards Energy Efficiency 2012 Demographic Profile (cont.) ENERGY EFFICIENCY ATTITUDE STATEMENTS CHANGE + OR - SHIFT I am being as energy efficient as possible, it s other people that have to act now Both, depending on actual behaviour I am being as energy efficient as possible, it s other people that have to act now Agreement with being as energy efficient as possible is highest amongst residents in Brisbane and Wide-Bay Burnett, and lowest in Fitzroy and Mackay. There is a relationship between income and level of agreement with this statement. Those on low incomes are significantly more likely to agree that they are being as energy efficient as possible, while agreement decreases as income increases. There is a similar relationship between bill size and agreement, with agreement decreasing as bill size increases. However, there is at least some recognition amongst those with high electricity bills that they are not being as energy efficient as they could be. Those who have not taken action on a peak demand behaviour are significantly less likely to agree that they are being as energy efficient as possible. They are one segment who is likely to benefit from more information and advice about what they could do to use electricity more sparingly, as well as outside of peak times. Renters and larger sized households are also more likely to agree that they are not using electricity as efficiently as possible, however they may have less options for lowering their usage (due to restrictions by not owning the home and also due to the sheer size of the home). It is important that residents do continue to maintain the energy efficient behaviours they have already adopted, as well as not just disregard being energy efficient themselves because they believe it is other people of Government / businesses that need to make changes. Core Statistics on Energy Efficiency Attitudes - I am being as energy efficient as possible, it s other people that have to act now Significantly higher in SEQ and significantly lower amongst residents in the North and Central regions. Significantly higher amongst those who do not have air conditioning. Significantly higher amongst Solar PV owners. Highest amongst older residents aged 50+ years and lowest amongst those aged 29 years or under. Highest amongst those on low to middle household incomes (less than $71,000) and lowest for those on $111,000 or more. Significantly higher agreement amongst those with an energy bill of $250 or less; agreement decreases as the bill size increases, and is lowest for those with a bill of $651 or more. Significantly lower amongst renters. Significantly lower amongst larger sized households. Significantly lower amongst those who have not taken action on a peak demand behaviour. Ref: Q31 Base: Total QLD sample 123 Results highlighted in green/red are positively/negatively significant against the total

124 Attitudes Towards Energy Efficiency 2012 Demographic Profile (cont.) ENERGY EFFICIENCY ATTITUDE STATEMENTS CHANGE + OR - SHIFT If I had to choose between my comfort and being energy efficient, I would choose my comfort Slightly negative I would like to be more energy efficient, I just don t know how Slightly positive It s too hard to change the amount of electricity my household uses Slightly negative If I had to choose between my comfort and being energy efficient, I would choose my comfort Residents in Regional Queensland are significantly more likely to choose comfort over energy efficiency than the total sample, particularly those in the North. Those who currently have air conditioning or a pool are also significantly more likely to favour their comfort, as are those aged 50+ years, those on high incomes ($111,000 or more), those with high electricity bills, and those who have not taken action on a peak demand behaviour. Female residents, those who are aged 29 years and under, those with electricity bills below $350 and renters are significantly less likely to choose their comfort over being energy efficient. I would like to be more energy efficient, I just don t know how Residents in the North are significantly less likely to agree that they would like to be more energy efficient but don t know how. Agreement is significantly higher amongst residents living on the Sunshine Coast and in West Moreton. Those without Solar PV, those aged 29 years and under, those with a bill of $350 or more, renters, those with a pool or spa, and those who have considered peak demand behaviours but not taken action are significantly more likely to agree with this statement. These are key groups to target with energy efficiency information and advice, given they show more willingness to make changes but lack knowledge about the best way of doing so and the impact it would have. Those with solar PV, older residents aged 50+ years and those with bills of less than $150 are significantly less likely to agree that they would like to be more energy efficient, likely to be because they already have very low bills and are using electricity sparingly. It s too hard to change the amount of electricity my household uses Agreement is lowest amongst residents on the Sunshine Coast and highest amongst those in South West. Residents who do not have air conditioning, have Solar PV, are aged 50+ years, and those who have a bill of less than $350 are significantly less likely to believe that it is too hard to change their household electricity usage. Residents who do not have Solar PV, residents aged years, those who have a bill of $351 or more, renters, those with a pool or spa, and those who have not taken action on a peak demand behaviour are significantly more likely to agree that it is too hard to change the amount of electricity they use. Given these are generally higher energy users (and some may also be finding it harder to change their usage due to the restrictions of renting, having a family and fitting in with children s schedules, and having higher running costs with a pool and/or spa), information and advice with specific strategies of what changes could be possible (given their situation) may be helpful and make behaviour change easier. Ref: Q31 Base: Total QLD sample 124

125 Attitudes Towards Saving Money 2012 Demographic Profile SAVING MONEY ATTITUDE STATEMENTS CHANGE + OR - SHIFT To me saving money is more important than saving the environment Slightly negative Saving electricity only really comes to mind when the bill comes at the end of the quarter Both, depending on actual behaviour Neutral / Negative Shifts in 2012 South-East Queensland residents are generally more likely to reduce their electricity usage upon receiving their bill or to save money (rather than for green reasons) compared to those in Regional Queensland. Brisbane residents in particular are significantly more likely to believe saving money is more important (5.5), while residents in the Southern region are significantly less likely to agree with both of these statements. Younger residents aged 29 years and under are significantly more likely to only consider saving electricity upon receipt of their bill. There is therefore an opportunity to include targeted communications materials with the bill promoting ways of making changes to their usage in order to save money. High income households and high energy users are also more likely to agree with both of these statements, and be more focused on saving money (which is heightened when the bill arrives) than the environment. Meanwhile, low energy users are significantly less likely to only be thinking about minimising their electricity usage after receiving their bill, with this appearing to be more of a regular and engrained behaviour amongst these residents. Residents who currently own a pool or spa, multiple whitegoods and entertainment items, and those who intend to take up or buy additional air conditioning in the next five years are significantly more likely to be motivated by saving money than the environment. Any communications materials or programs aimed at uptake of new appliances or modifying usage are likely to be best received by these residents if the messages are targeted at the monetary savings they could gain. Ref: Q31 Base: Total QLD sample 125 Core Statistics on Saving Money Attitudes SEQ residents are significantly more likely to feel that saving money is more important than saving the environment. Residents aged 50 years or older are significantly less in agreement with both statements. Residents aged 29 years and under are significantly more likely to only consider saving electricity after receiving their bill. High income households ($110,000 or more) are significantly more likely to agree with both of these statements. Residents with electricity bills of $351 or more are more motivated to save money than the environment, compared to those with low bills of $151 or less. Residents with a pool and/or spa are significantly more likely to be motivated by saving money than the environment. Those with Solar PV are significantly less likely to only consider saving electricity upon receipt of their bill (2.9). Residents who currently own multiple whitegoods and entertainment items are generally significantly more likely to consider saving money more important than the environment. Those in pre-contemplation about peak demand are significantly more likely to agree with both statements. Results highlighted in green/red are positively/negatively significant against the total

126 Attitudes Towards Electricity Responsibility 2012 Demographic Profile ELECTRICITY RESPONSIBILITY ATTITUDE STATEMENTS CHANGE + OR - SHIFT Reducing electricity use is the Government s problem to fix, not households Business and industry are the biggest users of electricity in Queensland households can t make a real impact I would support a system where people who use an above average amount of electricity are charged more Slightly negative Slightly negative Slightly positive Neutral / Negative Shifts in 2012 I would support a system whereby energy used between 4-8pm is charged at a higher rate 4.4 Not asked - - Attitudes towards electricity responsibility do vary at a regional level. SEQ residents are significantly more supportive of a user pays system, while Southern residents attribute more responsibility to businesses and Government. Residents with high household incomes and Solar PV owners are significantly less likely to believe that responsibility lies with the Government or businesses rather than households. Those who have considered peak demand but not taken action are significantly more likely to agree with this; possibly this is also a reason why they have not adopted a peak demand behaviour. Communications to highlight how they can make a valued difference may help encourage more behaviour change. As to be expected, residents with low electricity bills are significantly more likely to support a user-pays system compared to those with high bills who would be charged more under this system. Ref: Q31 Base: Total QLD sample 126 Core Statistics on Electricity Responsibility Attitudes SEQ residents are significantly more in support of above average users being charged more than those in Regional Queensland. Residents in the Southern region are more in agreement that businesses and the Government are responsible, not households. Residents aged years are more likely to believe reducing electricity use is the Government s problem, while residents 50+ years are more likely to believe households can t make a real impact. Low income households are significantly more likely to agree with all statements, while those with high household incomes are significantly less likely to believe managing usage lies with businesses or the Government. Solar PV owners are significantly less likely to believe responsibility lies with the Government and businesses than households. Those with low electricity bills of $250 or less are significantly more likely to support high energy users being charged more, compared to those with high electricity bills of $551 or more. Those who have considered peak demand but not taken action are significantly more likely to attribute responsibility to business or Government compared to other residents. Results highlighted in green/red are positively/negatively significant against the total

127 Attitudes Towards Willingness to Change 2012 Demographic Profile WILLINGNESS TO CHANGE ATTITUDE STATEMENTS CHANGE + OR - SHIFT I should be doing more to save energy but haven t really got around to it yet We would do more to reduce electricity usage in our home, but are not prepared to put money towards it at this stage Slightly negative Slightly negative Negative Shifts in 2012 In South-East Queensland, Brisbane residents show the greatest willingness to change with significantly higher levels of agreement with both of these statements. Amongst Regional Queenslanders, those in West Moreton and Far North are the most positive. Older residents aged 50 years or more are significantly less likely to believe they should be doing more or would do more but are not prepared to invest in it at this stage. Those under 29 years are the most likely to agree with both statements, particularly being willing to do more but not yet invest (5.9). Positively, those with high bills are more likely to agree that they should be doing more but haven t got around to it yet, indicating that some of these residents at least realise there is more they could and should do. Agreement is significantly lower amongst Solar PV owners. This is likely to be because they have already made substantial changes and invested heavily in solar technology. Those without Solar PV may recognise there is more they could / should do, but also not be in a position to invest the money required for something like Solar PV. Agreement is also higher amongst those who have not yet taken action on a peak demand behaviour. These residents may require more education about exactly what they could be doing to reduce their usage as well as encouragement to adopt these behaviours. Core Statistics on Willingness to Change Attitudes Residents in Regional Queensland are significantly less likely to agree with both of these statements, particularly those in the Central and Southern regions. Those aged 29 years or under are significantly more likely to agree with these statements, compared to those aged 50 years or more. Residents with bills of $551 or more are significantly more likely to agree with both of these statements, while those with low bills of $250 or less are significantly less likely to. Agreement with both statements is significantly higher amongst residents in a couple household with children at home or a shared household of adults. Those with Solar PV are significantly less likely to agree with both of these statements. Agreement with these statements is significantly higher amongst those with a pool or spa. Agreement with these statements is higher amongst those who have not yet taken action on a peak demand behaviour. Ref: Q31 Base: Total QLD sample 127 Results highlighted in green/red are positively/negatively significant against the total

128 Section 7: Motivation to Reduce Usage and Impact of Electricity Price Rises. 128

129 129 Key Issue 9 A reduced electricity bill continues to be the key motivator for residents to lower their usage 129