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Energy-Efficient Home Renovations Market, Part 2: Appliances &
Lighting

August 1, 2009


Green building is no longer just a fad; in fact, energy-efficient remodeling and
renovating is one of the few aspects of the U.S. construction business that still holds a
positive outlook in the midst of the economic turmoil in 2009.

The U.S. residential construction market was $363 billion in 2008, down 41% from its
high of $620 billion in 2006. The home renovations market was $188 billion in 2008,
down 18% percent from 2007. But SBI estimates that the home energy efficiency
renovations market in the U.S. was $21 billion in 2008; down only 13% percent from
2007’s $24 billion.

Remodeling to improve a home’s energy efficiency instead of buying a new home has
become a preferred option in today’s market. In fact, the National Association of Home
Builders found that 32% of home builders also provided remodeling services in 2008.
Homeowners are still seeing the benefits of improving their home’s energy efficiency
even in the economic instability of 2009. With energy consciousness shooting to the
forefront of the media during the 2008 oil price peak, the Propane Education &
Research Council has found 80% of homeowners are now concerned about the energy
efficiency of their homes.

Home builders and remodelers have been quick to provide remodeling services that are
focused on energy conservation and green building practices; as an example, 85% of
remodelers surveyed by the National Association of Home Builders in 2008 used
energy-efficient windows on the majority of their projects. Retailers and manufacturers
of building projects, residential builders and remodelers, and even state and federal
organizations now have to be able to provide knowledgeable energy conservation
expertise to succeed in their business.

Home energy efficiency analysis now uses a ‘whole building’ approach, affecting
all categories of building materials, from windows and doors to insulation to
completely eliminating air leaks. To fully embrace this view, this report looks at
the impact energy-efficient building products are having on the renovations
market in a number of categories:

      Part I explores the market for energy-efficient doors and windows, caulking
      and weather stripping, and insulation used in home renovation projects.
      Part II examines the energy-efficient appliance and lighting markets for
      home remodeling.
      Part III looks at energy-efficient heating and cooling systems and the
      growing trend of energy-efficient roof renovations.

Report Methodology

Report data were obtained from government sources, including the U.S. Department of
Commerce, U.S. Census Bureau, U.S. Department of Housing and Urban Development
and ENERGY STAR; trade associations such as the National Association of Home
Builders (NAHB), and the National Association of the Remodeling Industry (NARI);
research organizations such as the American Council for an Energy-Efficient Economy
(ACEEE) and Harvard University’s Joint Center for Housing Studies (JCHS); websites
of home improvement contractors, manufacturers and dealers, industry analysts and
print and online business and trade journals.

Consumer demographics and spending trends derive from data compiled by Simmons
Market Research Bureau, New York, NY. Trends and recent developments in the
industry come directly from personal interviews with key players in manufacturing and
sales of energy-efficient building products and discussions with knowledgeable insiders
of associations such as the National Association of Home Builders.

What You’ll Get in This Report

Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting provides a
concise, focused look on the world of whole home energy-efficient renovations as it
exists today, and shows where the market is moving towards in the next five years. The
report highlights key players in the industry and pinpoints ways current and prospective
competitors can capitalize on recent trends and spearhead new ones. No other market
research report provides both the comprehensive analysis and extensive data that
Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting offers. Plus,
you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables
and graphs.

How You’ll Benefit from this Report

If your company is already doing business in green home renovations or remodeling
specializing in energy efficiency, or is considering making the leap, you will find this
report invaluable as it provides a comprehensive package of information and insight not
offered in any other single source. You will gain a thorough understanding of the current
market for all aspects of energy-efficient renovations, as well as projected markets and
trends through 2013.

This report will help:

       Marketing managers identify market opportunities and develop targeted
       promotion plans for homeowners looking to renovate to reduce their utility costs.
       Research and development professionals stay on top of competitor initiatives
       and explore demand for current energy efficiency remodeling trends and new
       emerging energy-efficient construction products.
       Advertising agencies working with clients in the banking, retail and construction
       industries develop messages and images that compel homeowners to migrate
       towards energy-efficient products when considering home renovations.
       Business development executives understand the dynamics of the market and
       identify possible partnerships.
       Information and research center librarians provide market researchers, brand
       and product managers and other colleagues with the vital information they need
       to do their jobs more effectively.




Additional Information

Market Insights: A Selection From The Report



Imports & Exports of Residential Lighting Products

Unlike with appliances, residential lighting fixture imports have been dominated by
imports from China for years, with 75% of imports to the U.S in this category in 2008.
Even Mexico was a distant second with 11% of the residential lighting fixture imports to
the U.S.

China is also the largest producer of CFLs in the world; the China Association of
Lighting Industry states that in 2006 China was responsible for 70% of world CFL
production. China was responsible for 87% of all fluorescent light imports to the U.S. in
2008 according to U.S. trade data, with 86% of those imports being of the screw in
(Edison) type of light bulb and the rest using the pin type sockets. SBI estimates that
85% of the CFLs sold in the U.S. in 2008 were imported from China.

Imports of CFLs have grown prodigiously since 2002 with a CAGR of 24% from 2002 to
2008, but are now on the wane. CFL imports in 2008 saw a 14% drop in number
compared to 2007 and a further 34% drop in the first quarter of 2009 compared to first
quarter 2008. As an interesting side note, Canada dominates imports of the 1.2 meter
straight fluorescent tubes commonly found in commercial buildings the way China
dominates CFL imports to the U.S.

In the News



  Government Funding of Energy Efficiency Programs Generates Growth in $21
              Billion Energy-Efficient Home Remodeling Market

New York, August 26, 2009 - Supporting energy efficiency as a way to decrease U.S.
dependency on foreign fuels and reduce greenhouse gases moved to center stage in
2009. In the one year alone, the Obama administration has provided more money to
advance energy efficiency programs across the board than in the last 10 years
combined. Going into 2010, portions of this vast sum of energy efficiency money will
also be matched by each state, further growing the pool of available funds for the
initiative.

This huge surge of funding supports the U.S. energy-efficient home renovations market
in a big way, according to Energy-Efficient Home Renovations Market, Part 2:
Appliances & Lighting by leading industrial market research publisher SBI. The report
cites the Congressional Budget Office’s (CBO) expectations that the newly available
funding will generate an estimated $6 billion in remodeling work by the end of 2010, all
of which is energy efficiency related according to the provisions of the funding.

SBI projects the energy-efficient home renovations market, which reached an estimated
$21 billion in 2008, to experience a compound annual growth rate (CAGR) of 15% from
2009 to 2013, growing 50% faster than the U.S. renovations market as a whole.
Ultimately, SBI forecasts energy-efficient renovations will total $35 billon and progress
from claiming 12% of the overall home renovations market to 15% in the five years to
2013.

Growth in two prominent product segments, energy-efficient appliances and lightening,
is expected to mirror the overall energy-efficient home renovations market. SBI projects
that both segments will achieve a CAGR of about 13% for the five-year forecast period.

“With remodeling to improve a home's energy efficiency over buying a new home
emerging as the preferred option in today's market, more and more homeowners will
undoubtedly take advantage of the benefits of the tax credits offered by the stimulus
plan for installations of energy-efficient appliances and lighting,” says Shelley Carr,
publisher of SBI.

Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting is the
latest installment in a three part series. The report highlights two specific home
improvement product segments: energy-efficient appliances and lighting fixtures
(including bulbs). Along with analyzing the economic factors affecting the energy-
efficient home remodeling market, the report explores the trends that are driving
renovations and examines the market potential of energy-efficient home renovations in
the U.S. through to 2013.

The remaining reports in the Energy-Efficient Home Renovations series are available
throughout 2009. Published in July, Part 1 explores the market for energy-efficient doors
and windows, caulking and weather stripping, and insulation used in home renovation
projects. Part 3, scheduled to publish later this year, explores energy-efficient heating
and cooling systems and the growing trend of energy-efficient roof renovations.

About SBI

SBI (Specialists in Business Information) publishes research reports in the industrial,
energy, building/construction, automotive/transportation and packaging markets. SBI
also offers a full range of custom research services.



TABLE OF CONTENTS

Chapter 1: Executive Summary
     Scope of This Report
     Methodology
     The Market
     The U.S. Energy-Efficient Home Renovations Market
     Figure 1-1: Energy-Efficient Residential Renovations Market, 2003-2008 (in
     billion $)
     Energy-Efficient Product Segments for the Renovations Market
     Forecast
     Figure 1-2: Residential Energy-Efficient Renovations Market Forecast, 2009-
     2013 (in billion $)
     Figure 1-3: Residential Energy-Efficient Appliance and Lighting Renovations
     Market Forecast, 2009-2013 (in billion $)
     Measuring Energy Efficiency
     Prescriptive Energy Efficiency Programs
     Table 1-1: Summary of Energy-Efficient Appliance and Lighting Programs, 2009
     Home Energy Efficiency Auditing for Renovations
     Home Performance Programs
     Financial Programs
     State Energy Efficiency Renovation Incentives
     Figure 1-4: Utility Funding for Energy Efficiency Programs, 2008
     Government Assistance Programs
     Financial Benefits of Energy-Efficient Home Renovations
     Trends
     Figure 1-5 :NAHB Remodeling Market Index & JCHS Leading Indicator for
     Remodeling Activity, 2002-2009
     Consumers Want More Green!
Appliance Remodeling Trends
     Residential Lighting Trends
     DIY and Pro
     Remodeling Industry Suffers from Unprofessional Image
     The Future for Energy Efficiency Remodelers
     DIY Versus Pro by Product Segment
     Demographics
     Appliance Renovation Demographics
     Energy-Efficient Lighting Demographics
     Manufacturers & Retailers
     Appliance Manufacturers
     Residential Lighting and Lighting Fixture Manufacturers
     Retailers
Chapter 2: The Market
     Scope of This Report
     Methodology
     A Note on the American Housing Survey
     Defining Energy-Efficient
     Energy-Efficient Appliances
     Energy-Efficient Lighting
     The Residential Construction Industry
     The U.S. Housing Construction Market
     Figure 2-1: Residential Construction Value Put in Place, 2002-2008 (in billion $)
     The U.S. Home Renovations Market
     Figure 2-2: Residential Renovations Market, 2001-2008 (in billion $)
     The U.S. Energy-Efficient Home Renovations Market
     Figure 2-3: Energy-Efficient Residential Renovations Market, 2003-2008 (in
     billion $)
     The U.S. Appliance Market
     Table 2-1: U.S. Residential Appliance Market, 2002-2008 (in thousand units)
     The Energy-Efficient Appliance Market for Existing Homes
     Figure 2-4: Energy-Efficient Residential Appliance Renovations Market, 2003-
     2008 (in billion $)
     Figure 2-5: Breakdown of Energy-Efficient Appliance Market for Existing Homes,
     2008
     The U.S. Residential Lighting Market
     Table 2-2: U.S. Residential Light Fixture and Compact Fluorescent Bulb Market,
     2002-2008 (in million $)
     The Energy-Efficient Residential Lighting Renovations Market
     Figure 2-6: Energy-Efficient Residential Lighting Renovations Market, 2003-2008
     (in million $)
     Imports & Exports of Appliances
     Table 2-3: U.S. Imports & Exports of Appliances, 2002-2008 (in million $)
     Imports & Exports of Residential Lighting Products
     Table 2-4: U.S. Imports & Exports of Residential Light Fixtures and Compact
     Fluorescent Bulbs, 2002-2008 (in million $)
Forecast
     Figure 2-7: Residential Energy-Efficient Renovations Market Forecast, 2009-
     2013 (in billion $)
     Energy-Efficient Home Renovations Product Segment Forecasts
     Figure 2-8: Residential Energy-Efficient Appliance and Lighting Renovations
     Market Forecast, 2009-2013 (in billion $)
Chapter 3: Measuring Energy Efficiency
     Independent Product Testing Organizations
     Association of Home Appliance Manufacturers
     Table 3-1: AHAM Appliance Standards, 2009
     National Institute of Standards and Technology
     Table 3-2: ENERGY STAR Lighting Efficacy Testing Standards, 2009
     Prescriptive Energy Efficiency Programs
     ENERGY STAR
     Figure 3-1: ENERGY STAR Program Aided vs. Unaided Consumer Awareness,
     2001-2008
     Consortium for Energy Efficiency
     Energy Efficiency Standards of Residential Appliances
     Energy Efficiency Standards of Residential Refrigerators & Freezers
     Table 3-3: Energy-Efficient Refrigerator & Freezer Criteria, 2009
     Energy Efficiency Standards of Residential Dishwashers
     Table 3-4: Energy-Efficient Dishwasher Criteria, 2009
     Energy Efficiency Standards of Residential Clothes Washers
     Table 3-5: Energy-Efficient Clothes Washer Criteria, 2009
     Energy Efficiency Standards of Water Heaters
     Table 3-6: Energy-Efficient Water Heater Criteria, 2009
     Energy Efficiency Standards of Residential Lighting Fixtures
     Table 3-7: Energy-Efficient Residential Light Fixture Criteria, 2009
     Energy Efficiency Standards of Compact Fluorescent Bulbs
     Table 3-8: Energy-Efficient Compact Fluorescent Bulb Criteria, 2009
     New Energy Efficiency Lighting Standards
     Table 3-9: Energy-Efficient Residential Solid-State Lighting Criteria, 2009
     Home Energy Efficiency Auditing for Renovations
     Energy Efficiency Auditor Certifications
     Table 3-10: State Level Home Energy Auditor Certification Programs, 2009
     Self-Auditing Programs
     Home Performance with ENERGY STAR
     Home Performance Energy Auditing is a Fragmented Market
     Home Performance Energy Efficiency Rating Programs
     The RESNET HERS Index
     Home Environmental Rating Programs That Include Energy Performance
     The Future of Home Energy Rating
Chapter 4: Financial Programs
     ARRA Providing $20 Billion for Energy Efficiency
     Federal Energy Efficiency Renovation Incentives
     The ARRA Residential Tax Credits
Future Federal Energy Efficiency Legislation
     State Energy Efficiency Renovation Incentives
     Figure 4-1: Utility Funding for Energy Efficiency Programs, 2008
     Energy Efficiency Home Renovation Programs by State
     Table 4-1: State & Utility Incentives for Whole Home Residential Energy
     Efficiency Renovations, 2009
     Table 4-2: State & Utility Incentives for Appliance Energy Efficiency Renovations,
     2009
     Table 4-3: State & Utility Incentives for Lighting Energy Efficiency Renovations,
     2009
     Government Assistance Programs
     Housing and Urban Development Programs
     Financial Benefits of Energy-Efficient Home Renovations
     Figure 4-2: Breakdown of Residential Energy Usage, 2006
     Appliance Energy Savings
     Table 4-4: ENERGY STAR Qualified Residential Appliance Energy & Water
     Savings per Year, 2009
     Lighting Energy Savings
Chapter 5: Trends
     Remodeling Indexes Look Grim
     Figure 5-1: NAHB Remodeling Market Index & JCHS Leading Indicator for
     Remodeling Activity, 2002-2009
     Government Now Much More Interested in Energy Efficiency
     State Level Residential Energy Efficiency Awareness
     Table 5-1: ACEEE State Energy Efficiency Ranking, 2008
     Green Remodeling Trends
     Consumers Want More Green!
     The Holy Grail of Energy Efficiency: Zero-Energy Homes
     The Downside of Increased Energy Efficiency Awareness: Greenwashing
     Energy Efficiency Remodeling for the Future
     Energy Efficient Appliance Trends
     Smart grid to monitor/control appliance use
     Self-Testing of Appliances Leads to ENERGY STAR Label Abuse
     Expanding Energy Efficiency Appliance Categories
     Changing Water Heater Purchasing Decision Making
     Energy-Efficient Light Fixture Trends
     The Fixtures of the Future
     Table 5-2: Lighting for Tomorrow Finalists, 2008
     The Future is Bright for Solid-State Lighting
     Decorative Light Strings Market Trends
     Table 5-3: U.S. Imports & Exports of Decorative Light Strings, 2002-2008 (in
     million $)
     Compact Fluorescent Bulb Trends
     The Growth of CFL Marketing Campaigns
     Death by Legislation: The End of Light Bulb Manufacturing in the U.S.?
Table 5-4: Countries with Non-Directional Light Bulb Energy Efficiency
     Legislation, 2009
     A Tarnished CFL Image: Recycling is Essential
Chapter 6: DIY and Pro
     The Remodelers View of the Market
     Remodeling is a Heavily Fragmented Market
     Remodeling Industry Suffers from Unprofessional Image
     Figure 6-1: Customer Willingness to Hire the Same Remodeler, 2008
     Energy-Efficient Remodeling High on Remodelers’ Lists
     Figure 6-2: Frequency of Energy Efficiency Products Commonly Installed by
     Remodelers, 2001-2008
     The Future for Energy Efficiency Remodelers
     Dishwasher & Water Heater Installations
     Figure 6-3: Percentage of Pro Dishwasher & Water Heater Installations, 2001-
     2008
     Light Fixture Installations Favor the DIY Homeowner
     Figure 6-4: Percentage of Pro Light Fixture Installations, 2004-2008
Chapter 7: Demographics
     Note on Experian Simmons Market Research Bureau Consumer Data
     Energy-Efficient Appliance Demographics
     Figure 7-1: Age of Major Appliances as Percentage of U.S. Households, 2005
     ENERGY STAR Appliance Sales Constant Throughout the U.S.
     Figure 7-2: ENERGY STAR Qualified Appliances Sales Share by Region, 2007
     ENERGY STAR Appliance Ownership Demographics
     Table 7-1: ENERGY STAR Appliance Ownership Demographics, 2005
     Water Heater Demographics
     Energy-Efficient Lighting Demographics
     Table 7-2: Demographic Indicators and Resistors of Purchasing CFLs Most in the
     Previous 12 Months, 2008 (Index)
     Bedrooms, Bathrooms and Kitchens, Oh My!
     Table 7-3: Estimated CFL Household Saturation by Room, 2008
     Energy-Efficient Lighting Fixture Demographics
     Table 7-4: Top Demographic Indicators and Resistors of Purchasing Lighting
     Fixtures in the Previous 12 Months, 2008 (Index)
Chapter 8: Manufacturers & Retailers
     Appliance Manufacturers
     Whirlpool
     Overview
     Performance & Products
     Table 8-1: Whirlpool Appliance Products, 2009
     General Electric
     Overview
     Performance & Products
     Table 8-2: General Electric Appliance & CFL Products, 2009
     A. O. Smith
     Overview
Performance & Products
       Table 8-3: A. O. Smith Water Heater Products, 2009
       CFL and Lighting Fixture Companies
       TCP
       Overview
       Performance & Products
       Table 8-4: TCP Lighting Products, 2009
       Acuity Brands
       Overview
       Performance & Products
       Table 8-5: Acuity Brands Residential Light Fixture Products, 2009
       Retailers
       Sears
       Overview
       Performance
       The Home Depot
       Overview
       Performance
       Figure 8-1: Home Depot World Revenue, FY2005-2009(in billions of dollars)
       Lowe’s
       Overview
       Performance
       Figure 8-2: Lowe’s World Revenue, FY2004-2008 (in billions of dollars)


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Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting

  • 1. Get more info on this report! Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting August 1, 2009 Green building is no longer just a fad; in fact, energy-efficient remodeling and renovating is one of the few aspects of the U.S. construction business that still holds a positive outlook in the midst of the economic turmoil in 2009. The U.S. residential construction market was $363 billion in 2008, down 41% from its high of $620 billion in 2006. The home renovations market was $188 billion in 2008, down 18% percent from 2007. But SBI estimates that the home energy efficiency renovations market in the U.S. was $21 billion in 2008; down only 13% percent from 2007’s $24 billion. Remodeling to improve a home’s energy efficiency instead of buying a new home has become a preferred option in today’s market. In fact, the National Association of Home Builders found that 32% of home builders also provided remodeling services in 2008. Homeowners are still seeing the benefits of improving their home’s energy efficiency even in the economic instability of 2009. With energy consciousness shooting to the forefront of the media during the 2008 oil price peak, the Propane Education & Research Council has found 80% of homeowners are now concerned about the energy efficiency of their homes. Home builders and remodelers have been quick to provide remodeling services that are focused on energy conservation and green building practices; as an example, 85% of remodelers surveyed by the National Association of Home Builders in 2008 used energy-efficient windows on the majority of their projects. Retailers and manufacturers of building projects, residential builders and remodelers, and even state and federal organizations now have to be able to provide knowledgeable energy conservation expertise to succeed in their business. Home energy efficiency analysis now uses a ‘whole building’ approach, affecting all categories of building materials, from windows and doors to insulation to completely eliminating air leaks. To fully embrace this view, this report looks at the impact energy-efficient building products are having on the renovations
  • 2. market in a number of categories: Part I explores the market for energy-efficient doors and windows, caulking and weather stripping, and insulation used in home renovation projects. Part II examines the energy-efficient appliance and lighting markets for home remodeling. Part III looks at energy-efficient heating and cooling systems and the growing trend of energy-efficient roof renovations. Report Methodology Report data were obtained from government sources, including the U.S. Department of Commerce, U.S. Census Bureau, U.S. Department of Housing and Urban Development and ENERGY STAR; trade associations such as the National Association of Home Builders (NAHB), and the National Association of the Remodeling Industry (NARI); research organizations such as the American Council for an Energy-Efficient Economy (ACEEE) and Harvard University’s Joint Center for Housing Studies (JCHS); websites of home improvement contractors, manufacturers and dealers, industry analysts and print and online business and trade journals. Consumer demographics and spending trends derive from data compiled by Simmons Market Research Bureau, New York, NY. Trends and recent developments in the industry come directly from personal interviews with key players in manufacturing and sales of energy-efficient building products and discussions with knowledgeable insiders of associations such as the National Association of Home Builders. What You’ll Get in This Report Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting provides a concise, focused look on the world of whole home energy-efficient renovations as it exists today, and shows where the market is moving towards in the next five years. The report highlights key players in the industry and pinpoints ways current and prospective competitors can capitalize on recent trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs. How You’ll Benefit from this Report If your company is already doing business in green home renovations or remodeling specializing in energy efficiency, or is considering making the leap, you will find this report invaluable as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for all aspects of energy-efficient renovations, as well as projected markets and
  • 3. trends through 2013. This report will help: Marketing managers identify market opportunities and develop targeted promotion plans for homeowners looking to renovate to reduce their utility costs. Research and development professionals stay on top of competitor initiatives and explore demand for current energy efficiency remodeling trends and new emerging energy-efficient construction products. Advertising agencies working with clients in the banking, retail and construction industries develop messages and images that compel homeowners to migrate towards energy-efficient products when considering home renovations. Business development executives understand the dynamics of the market and identify possible partnerships. Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively. Additional Information Market Insights: A Selection From The Report Imports & Exports of Residential Lighting Products Unlike with appliances, residential lighting fixture imports have been dominated by imports from China for years, with 75% of imports to the U.S in this category in 2008. Even Mexico was a distant second with 11% of the residential lighting fixture imports to the U.S. China is also the largest producer of CFLs in the world; the China Association of Lighting Industry states that in 2006 China was responsible for 70% of world CFL production. China was responsible for 87% of all fluorescent light imports to the U.S. in 2008 according to U.S. trade data, with 86% of those imports being of the screw in (Edison) type of light bulb and the rest using the pin type sockets. SBI estimates that 85% of the CFLs sold in the U.S. in 2008 were imported from China. Imports of CFLs have grown prodigiously since 2002 with a CAGR of 24% from 2002 to 2008, but are now on the wane. CFL imports in 2008 saw a 14% drop in number compared to 2007 and a further 34% drop in the first quarter of 2009 compared to first quarter 2008. As an interesting side note, Canada dominates imports of the 1.2 meter
  • 4. straight fluorescent tubes commonly found in commercial buildings the way China dominates CFL imports to the U.S. In the News Government Funding of Energy Efficiency Programs Generates Growth in $21 Billion Energy-Efficient Home Remodeling Market New York, August 26, 2009 - Supporting energy efficiency as a way to decrease U.S. dependency on foreign fuels and reduce greenhouse gases moved to center stage in 2009. In the one year alone, the Obama administration has provided more money to advance energy efficiency programs across the board than in the last 10 years combined. Going into 2010, portions of this vast sum of energy efficiency money will also be matched by each state, further growing the pool of available funds for the initiative. This huge surge of funding supports the U.S. energy-efficient home renovations market in a big way, according to Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting by leading industrial market research publisher SBI. The report cites the Congressional Budget Office’s (CBO) expectations that the newly available funding will generate an estimated $6 billion in remodeling work by the end of 2010, all of which is energy efficiency related according to the provisions of the funding. SBI projects the energy-efficient home renovations market, which reached an estimated $21 billion in 2008, to experience a compound annual growth rate (CAGR) of 15% from 2009 to 2013, growing 50% faster than the U.S. renovations market as a whole. Ultimately, SBI forecasts energy-efficient renovations will total $35 billon and progress from claiming 12% of the overall home renovations market to 15% in the five years to 2013. Growth in two prominent product segments, energy-efficient appliances and lightening, is expected to mirror the overall energy-efficient home renovations market. SBI projects that both segments will achieve a CAGR of about 13% for the five-year forecast period. “With remodeling to improve a home's energy efficiency over buying a new home emerging as the preferred option in today's market, more and more homeowners will undoubtedly take advantage of the benefits of the tax credits offered by the stimulus plan for installations of energy-efficient appliances and lighting,” says Shelley Carr, publisher of SBI. Energy-Efficient Home Renovations Market, Part 2: Appliances & Lighting is the latest installment in a three part series. The report highlights two specific home improvement product segments: energy-efficient appliances and lighting fixtures (including bulbs). Along with analyzing the economic factors affecting the energy- efficient home remodeling market, the report explores the trends that are driving
  • 5. renovations and examines the market potential of energy-efficient home renovations in the U.S. through to 2013. The remaining reports in the Energy-Efficient Home Renovations series are available throughout 2009. Published in July, Part 1 explores the market for energy-efficient doors and windows, caulking and weather stripping, and insulation used in home renovation projects. Part 3, scheduled to publish later this year, explores energy-efficient heating and cooling systems and the growing trend of energy-efficient roof renovations. About SBI SBI (Specialists in Business Information) publishes research reports in the industrial, energy, building/construction, automotive/transportation and packaging markets. SBI also offers a full range of custom research services. TABLE OF CONTENTS Chapter 1: Executive Summary Scope of This Report Methodology The Market The U.S. Energy-Efficient Home Renovations Market Figure 1-1: Energy-Efficient Residential Renovations Market, 2003-2008 (in billion $) Energy-Efficient Product Segments for the Renovations Market Forecast Figure 1-2: Residential Energy-Efficient Renovations Market Forecast, 2009- 2013 (in billion $) Figure 1-3: Residential Energy-Efficient Appliance and Lighting Renovations Market Forecast, 2009-2013 (in billion $) Measuring Energy Efficiency Prescriptive Energy Efficiency Programs Table 1-1: Summary of Energy-Efficient Appliance and Lighting Programs, 2009 Home Energy Efficiency Auditing for Renovations Home Performance Programs Financial Programs State Energy Efficiency Renovation Incentives Figure 1-4: Utility Funding for Energy Efficiency Programs, 2008 Government Assistance Programs Financial Benefits of Energy-Efficient Home Renovations Trends Figure 1-5 :NAHB Remodeling Market Index & JCHS Leading Indicator for Remodeling Activity, 2002-2009 Consumers Want More Green!
  • 6. Appliance Remodeling Trends Residential Lighting Trends DIY and Pro Remodeling Industry Suffers from Unprofessional Image The Future for Energy Efficiency Remodelers DIY Versus Pro by Product Segment Demographics Appliance Renovation Demographics Energy-Efficient Lighting Demographics Manufacturers & Retailers Appliance Manufacturers Residential Lighting and Lighting Fixture Manufacturers Retailers Chapter 2: The Market Scope of This Report Methodology A Note on the American Housing Survey Defining Energy-Efficient Energy-Efficient Appliances Energy-Efficient Lighting The Residential Construction Industry The U.S. Housing Construction Market Figure 2-1: Residential Construction Value Put in Place, 2002-2008 (in billion $) The U.S. Home Renovations Market Figure 2-2: Residential Renovations Market, 2001-2008 (in billion $) The U.S. Energy-Efficient Home Renovations Market Figure 2-3: Energy-Efficient Residential Renovations Market, 2003-2008 (in billion $) The U.S. Appliance Market Table 2-1: U.S. Residential Appliance Market, 2002-2008 (in thousand units) The Energy-Efficient Appliance Market for Existing Homes Figure 2-4: Energy-Efficient Residential Appliance Renovations Market, 2003- 2008 (in billion $) Figure 2-5: Breakdown of Energy-Efficient Appliance Market for Existing Homes, 2008 The U.S. Residential Lighting Market Table 2-2: U.S. Residential Light Fixture and Compact Fluorescent Bulb Market, 2002-2008 (in million $) The Energy-Efficient Residential Lighting Renovations Market Figure 2-6: Energy-Efficient Residential Lighting Renovations Market, 2003-2008 (in million $) Imports & Exports of Appliances Table 2-3: U.S. Imports & Exports of Appliances, 2002-2008 (in million $) Imports & Exports of Residential Lighting Products Table 2-4: U.S. Imports & Exports of Residential Light Fixtures and Compact Fluorescent Bulbs, 2002-2008 (in million $)
  • 7. Forecast Figure 2-7: Residential Energy-Efficient Renovations Market Forecast, 2009- 2013 (in billion $) Energy-Efficient Home Renovations Product Segment Forecasts Figure 2-8: Residential Energy-Efficient Appliance and Lighting Renovations Market Forecast, 2009-2013 (in billion $) Chapter 3: Measuring Energy Efficiency Independent Product Testing Organizations Association of Home Appliance Manufacturers Table 3-1: AHAM Appliance Standards, 2009 National Institute of Standards and Technology Table 3-2: ENERGY STAR Lighting Efficacy Testing Standards, 2009 Prescriptive Energy Efficiency Programs ENERGY STAR Figure 3-1: ENERGY STAR Program Aided vs. Unaided Consumer Awareness, 2001-2008 Consortium for Energy Efficiency Energy Efficiency Standards of Residential Appliances Energy Efficiency Standards of Residential Refrigerators & Freezers Table 3-3: Energy-Efficient Refrigerator & Freezer Criteria, 2009 Energy Efficiency Standards of Residential Dishwashers Table 3-4: Energy-Efficient Dishwasher Criteria, 2009 Energy Efficiency Standards of Residential Clothes Washers Table 3-5: Energy-Efficient Clothes Washer Criteria, 2009 Energy Efficiency Standards of Water Heaters Table 3-6: Energy-Efficient Water Heater Criteria, 2009 Energy Efficiency Standards of Residential Lighting Fixtures Table 3-7: Energy-Efficient Residential Light Fixture Criteria, 2009 Energy Efficiency Standards of Compact Fluorescent Bulbs Table 3-8: Energy-Efficient Compact Fluorescent Bulb Criteria, 2009 New Energy Efficiency Lighting Standards Table 3-9: Energy-Efficient Residential Solid-State Lighting Criteria, 2009 Home Energy Efficiency Auditing for Renovations Energy Efficiency Auditor Certifications Table 3-10: State Level Home Energy Auditor Certification Programs, 2009 Self-Auditing Programs Home Performance with ENERGY STAR Home Performance Energy Auditing is a Fragmented Market Home Performance Energy Efficiency Rating Programs The RESNET HERS Index Home Environmental Rating Programs That Include Energy Performance The Future of Home Energy Rating Chapter 4: Financial Programs ARRA Providing $20 Billion for Energy Efficiency Federal Energy Efficiency Renovation Incentives The ARRA Residential Tax Credits
  • 8. Future Federal Energy Efficiency Legislation State Energy Efficiency Renovation Incentives Figure 4-1: Utility Funding for Energy Efficiency Programs, 2008 Energy Efficiency Home Renovation Programs by State Table 4-1: State & Utility Incentives for Whole Home Residential Energy Efficiency Renovations, 2009 Table 4-2: State & Utility Incentives for Appliance Energy Efficiency Renovations, 2009 Table 4-3: State & Utility Incentives for Lighting Energy Efficiency Renovations, 2009 Government Assistance Programs Housing and Urban Development Programs Financial Benefits of Energy-Efficient Home Renovations Figure 4-2: Breakdown of Residential Energy Usage, 2006 Appliance Energy Savings Table 4-4: ENERGY STAR Qualified Residential Appliance Energy & Water Savings per Year, 2009 Lighting Energy Savings Chapter 5: Trends Remodeling Indexes Look Grim Figure 5-1: NAHB Remodeling Market Index & JCHS Leading Indicator for Remodeling Activity, 2002-2009 Government Now Much More Interested in Energy Efficiency State Level Residential Energy Efficiency Awareness Table 5-1: ACEEE State Energy Efficiency Ranking, 2008 Green Remodeling Trends Consumers Want More Green! The Holy Grail of Energy Efficiency: Zero-Energy Homes The Downside of Increased Energy Efficiency Awareness: Greenwashing Energy Efficiency Remodeling for the Future Energy Efficient Appliance Trends Smart grid to monitor/control appliance use Self-Testing of Appliances Leads to ENERGY STAR Label Abuse Expanding Energy Efficiency Appliance Categories Changing Water Heater Purchasing Decision Making Energy-Efficient Light Fixture Trends The Fixtures of the Future Table 5-2: Lighting for Tomorrow Finalists, 2008 The Future is Bright for Solid-State Lighting Decorative Light Strings Market Trends Table 5-3: U.S. Imports & Exports of Decorative Light Strings, 2002-2008 (in million $) Compact Fluorescent Bulb Trends The Growth of CFL Marketing Campaigns Death by Legislation: The End of Light Bulb Manufacturing in the U.S.?
  • 9. Table 5-4: Countries with Non-Directional Light Bulb Energy Efficiency Legislation, 2009 A Tarnished CFL Image: Recycling is Essential Chapter 6: DIY and Pro The Remodelers View of the Market Remodeling is a Heavily Fragmented Market Remodeling Industry Suffers from Unprofessional Image Figure 6-1: Customer Willingness to Hire the Same Remodeler, 2008 Energy-Efficient Remodeling High on Remodelers’ Lists Figure 6-2: Frequency of Energy Efficiency Products Commonly Installed by Remodelers, 2001-2008 The Future for Energy Efficiency Remodelers Dishwasher & Water Heater Installations Figure 6-3: Percentage of Pro Dishwasher & Water Heater Installations, 2001- 2008 Light Fixture Installations Favor the DIY Homeowner Figure 6-4: Percentage of Pro Light Fixture Installations, 2004-2008 Chapter 7: Demographics Note on Experian Simmons Market Research Bureau Consumer Data Energy-Efficient Appliance Demographics Figure 7-1: Age of Major Appliances as Percentage of U.S. Households, 2005 ENERGY STAR Appliance Sales Constant Throughout the U.S. Figure 7-2: ENERGY STAR Qualified Appliances Sales Share by Region, 2007 ENERGY STAR Appliance Ownership Demographics Table 7-1: ENERGY STAR Appliance Ownership Demographics, 2005 Water Heater Demographics Energy-Efficient Lighting Demographics Table 7-2: Demographic Indicators and Resistors of Purchasing CFLs Most in the Previous 12 Months, 2008 (Index) Bedrooms, Bathrooms and Kitchens, Oh My! Table 7-3: Estimated CFL Household Saturation by Room, 2008 Energy-Efficient Lighting Fixture Demographics Table 7-4: Top Demographic Indicators and Resistors of Purchasing Lighting Fixtures in the Previous 12 Months, 2008 (Index) Chapter 8: Manufacturers & Retailers Appliance Manufacturers Whirlpool Overview Performance & Products Table 8-1: Whirlpool Appliance Products, 2009 General Electric Overview Performance & Products Table 8-2: General Electric Appliance & CFL Products, 2009 A. O. Smith Overview
  • 10. Performance & Products Table 8-3: A. O. Smith Water Heater Products, 2009 CFL and Lighting Fixture Companies TCP Overview Performance & Products Table 8-4: TCP Lighting Products, 2009 Acuity Brands Overview Performance & Products Table 8-5: Acuity Brands Residential Light Fixture Products, 2009 Retailers Sears Overview Performance The Home Depot Overview Performance Figure 8-1: Home Depot World Revenue, FY2005-2009(in billions of dollars) Lowe’s Overview Performance Figure 8-2: Lowe’s World Revenue, FY2004-2008 (in billions of dollars) Available immediately for Online Download at http://www.marketresearch.com/product/display.asp?productid=2287648 US: 800.298.5699 UK +44.207.256.3920 Int'l: +1.240.747.3093 Fax: 240.747.3004