More than two-thirds of consumers report being unwilling to spend more time or money on sustainable energy actions, despite high levels of awareness about energy sustainability, as affordability and perceptions of access impede clean energy behaviors, according to with new global consumer research released by professional services firm EY.
For the “Energy Transition Consumer Insights” study, EY surveyed nearly 100,000 residential energy consumers over three years in 21 markets in regions including North and South America, Europe and Asia-Pacific.
According to Greg Guthridge, customer experience transformation lead at EY Global Energy & Resources, the survey results highlight the urgency of addressing consumer apathy towards energy sustainability, with consumer action described as “the driver of success of the energy transition”.
Guthridge added:
“Seventy percent of the results of the energy transition depend on people changing their energy consumption, behaviors and lifestyles. But consumer fatigue is setting in, crippling confidence and stalling progress.”
Overall, the survey found that while 65% of consumers said they knew how to start making sustainable energy choices, the proportion of those with a good understanding of terms such as renewable energy and sustainability remained stagnant over the past three years, at just 26 %. and only 31% stated that they are currently willing to invest more time and money in sustainable energy actions. Similarly, although consumers report that they are interested in new energy products such as solar or electric rooftop vehicles, two-thirds have no plans to invest in these products in the next three years.
The study also found disconnects between the focus areas of government clean energy policy and consumer behavior. By way of example, the report highlighted the growing political focus in several jurisdictions on replacing gas boilers with heat pumps, while the survey found that only 11% of consumers reported that heat pumps are their first choice for investment in energy products over the next three years. .
One of the main sources of reluctance to invest in clean energy, according to the report, is the increasing pressures on energy affordability that consumers face, with the survey finding that two-thirds of consumers report being unable to absorb an increase in 10% on the energy bill, and only 30% say they are confident that their energy will remain affordable. The EY Energy Consumer Confidence Index (ECCI) found that confidence scores have declined in almost all markets over the past year, with the most significant declines in markets facing significant price volatility, including Australia, the Netherlands and the United Kingdom.
Another key factor impeding the adoption of clean energy, according to the report, was access, with only 33% of respondents reporting confidence that they can access clean energy options, and with renters and people with low income to be two to three times less likely to be planning investments in new energy solutions.
Guthridge said:
“Consumer apprehension arises as we enter a new – more difficult – phase of the energy transition, while also dealing with higher energy prices, geopolitical volatility and growing concerns around energy equity. While supply-side efforts are gaining momentum, we need an even more fundamental shift in how we engage with and encourage sustainable consumer behavior. Energy consumers want a clean energy future, but they need a wide range of support to make personal energy choices. Bridging the gap between interest and action will depend on energy providers, government and the broader energy ecosystem working together to pull all available levers.”
Click here to access the report.
