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Pearl Certification recently hosted a webinar titled "How to Achieve Market Transformation Painlessly and Effectively,” which featured panelists:
Robin LeBaron, President of Pearl Certification
Chad Kruse, former Manager of the Office of Energy of the Illinois Environmental Protection Agency
Patrick Woodcock, former Commissioner of the Massachusetts Department of Energy Resources and former Director of the Maine State Energy Office
Maddie Koewler, Program Director at NASEO
The panelists reviewed the paths to market transformation as stipulated by the Inflation Reduction Act, and how strategies states could use to overcome traditional blockers to wide adoption of energy-efficient home features.
Here are the key takeaways from the experts.
Amplify homeowner education efforts.
Multiple panelists identified a lack of homeowner awareness about the benefits of energy-efficient homes — improved comfort, safer indoor air, utility bill savings, and particularly increased home resale value. The lack of awareness means that demand is not yet where it needs to be for mass adoption of energy-efficient home features.
"The real issue is homeowners are not demanding energy-efficient products and services to be installed,” said Pearl’s LeBaron. “Nor are they talking contractors about them or seeking them out and paying for them on a regular basis. Once homeowners understand energy-efficient products and services, and start talking about [them] just as a normal part of home improvement, that's when we've achieved market transformation."
The key is to keep education going even after the rebate programs end. NASEO’s Maddie Koewler said, “Providing clear information and keeping people engaged with energy efficiency even after rebate funds are exhausted is also crucial."
Ensure access to the latest in energy-efficient technologies.
Patrick Woodcock emphasized the importance of incorporating new technologies into state energy plans, such as heat pumps and offshore wind, which were not part of Massachusetts' plan as recently as 2015.
For adoption to scale, however, NASEO’s Koewler pointed out the latest and greatest technology must be available to all communities. "Effective market transformation can be driven not just by focusing on specific technologies…but also by enhancing consumer messaging and making new technologies accessible to previously underserved populations,” she said.
Partner with local businesses to identify program design gaps.
Woodcock also highlighted the need for innovative program designs and delivery models. For example, Maine’s heat pump program utilized a specialist group of installers, recognizing that this new technology required a different approach from traditional oil and natural gas systems.
To find these potential roadblocks, Woodcock recommended working with local contracting professionals who can identify possible gaps in the program design.
"It’s incumbent on programs to find out,” he said. “Where's the inefficiency? How can delivery be improved? Which businesses can you engage with? And what makes sense for your state right now?"
Gaps are especially likely when programs serve diverse constituencies, which makes engaging local professionals all the more important. “It’s not just about implementing one-size-fits-all solutions but about addressing specific needs and conditions within different contexts to drive effective change,” said Chad Kruse.
Leverage tools that capture home value.
All panelists agreed that the home value benefit was one of the strongest incentives for mass adoption of energy-efficient home features — but only if that added value is recognized at valuation. Third-party certification is one of the leading tools to capturing and documenting the value of what are often overlooked home features.
It’s one reason why third-party certification of qualifying installs is a requirement for rebate issuance under the IRA’s Home Efficiency Rebates program (formerly HOMES).
"The central point of the certification requirement in the IRA is to make the benefits of energy efficiency visible at the time of sale,” said LeBaron. “By documenting and showcasing these improvements, certifications help homeowners capture the added value when selling their homes, addressing the critical gap in the perceived resale value of energy-efficient upgrades."
Access to data extends the benefits of IRA past program end dates.
Looking to the future, the panelists identified significant opportunities for further market transformation, particularly under initiatives like the IRA. Kruse highlighted the critical role of data access in this transformation, referring to the ability of states and stakeholders to easily obtain and utilize utility data. As Kruse put it, "Once data access is unlocked, states will realize that the benefits extend beyond IRA rebates. This data can transform how we approach energy efficiency, allowing us to normalize utility data access across programs and achieve true market transformation by integrating it into various initiatives like solar investments and pollution reduction efforts."
By focusing on innovative certification programs, targeted consumer education, and contractor-informed program design, states can leverage the billions of dollars of funding under IRA to catalyze long-term shifts toward energy efficiency.
Watch the entirety of our webinar below, and find more insights into market transformation on Pearl’s Market Transformation Resource Center.
Looking for advice on how to achieve market transformation in your state? Reach out to a member of Pearl’s Public Programs team.
Pearl is transforming the housing market by scoring, verifying, and certifying the performance of homes across the country.