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Energy Efficiency Trends Vol. 19 Essential insight for consumers and suppliers of non-domestic energy efficiency in the U.K. June 20, 2017

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Page 1: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19 Essential insight for consumers and suppliers of non-domestic energy efficiency in the U.K. June 20, 2017

Page 2: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout.

SUPPORTED BY

Bird & Bird supports its clients to achieve energy savings, security of supply and reputational benefits from implementing energy management

solutions. The firm has an international, market-leading legal team with over ten years' experience in all aspects of energy management. For

more information, please call Michael Rudd, Partner, on +44 (0) 20 7415 6000, email [email protected] or visit www.twobirds.com

Bellrock delivers a full range of property and facilities management services to over 40,000 retail commercial and public sector properties

throughout the UK. Utilising in-house expertise and selective partners, it also provides a consolidated and integrated approach to delivering the

complete range of energy services, tailored to strategic property asset and lifecycle objectives. For more information, please call Richard

Singleton, Managing Director (Corporate), on +44 (0) 116 201 6800, email [email protected] or visit www.bellrock.fm

The Environmental Industries Commission (EIC), founded in 1995, represents the businesses which provide the technology and services that

deliver environmental performance across the economy. In short, we are the voice of the green economy. Our members are innovative and

the leading players in their field, including technology manufacturers, developers, universities and consultancies. For more information, please

call Matthew Farrow, Executive Director, on +44 (0) 20 7654 9944, email [email protected] or visit www.eic-uk.co.uk

Minimise Energy provides LED lighting products and services that maximise efficiencies and ROI for clients. The company delivers a

seamless, in-house service from initial site survey through to completed installation for leading private and public sector organisations, helping

to improve building environments and meet energy efficiency objectives. For more information, please call Sam Stageman, Sales Director, on

+44 (0) 330 313 3231, [email protected] email or visit www.apcplc.com/lighting

ENDORSED BY

Page 3: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout.

Contents

Section 1. Introduction 1

Section 2. Executive Summary 2

2.1. Supplier trends 2

2.2. Consumer trends 3

2.3. Special feature – customer satisfaction 3

Section 3. Supplier trends 5

3.1. The order book 5

3.2. Staff numbers 6

3.3. Sale prices 6

3.4. Industry risk 7

3.5. Government Effectiveness 8

Section 4. Special feature: customer satisfaction 9

Section 5. Consumer Trends 10

5.1. Technologies and measures 10

5.2. Property types 11

5.3. Project costs 12

5.4. Project finance 12

5.5. Financial payback 13

5.6. Measurement and verification 13

5.7. Consumers not undertaking energy efficiency 14

Appendices 15

Appendix A: Methodology 15

Appendix B: Supplier respondents 16

Appendix C: Consumer respondents 17

About US __________________________________________________ 18

Contact US __________________________________________________ 19

Page 4: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout.

Table of figures

Figure 1: Market Monitor – tracking industry confidence................................... 2

Figure 2: Consumers commissioning efficiency projects .................................. 3

Figure 3: Trends in orders from national customers ......................................... 5

Figure 4: Trends in orders from overseas customers ....................................... 5

Figure 5: Trends in the number of staff employed ............................................ 6

Figure 6: Trends in sale prices achieved, 3Q 2012 – 1Q 2017(e) ..................... 6

Figure 7: Key issues of concern to energy-efficiency suppliers, 1Q 2017 ......... 7

Figure 8: Trends in key issues of concern ........................................................ 7

Figure 9: Trends in industry views on energy efficiency policy ......................... 8

Figure 10: Industry views of the wider economy’s management ...................... 8

Figure 11: Respondent assessment of supplier performance across different process steps .................................................................................................... 9

Figure 12: Respondent assessment of supplier performance by technology ..... 9

Figure 13: Responses on overall supplier performance ..................................... 9

Figure 14: Uptake of energy efficiency technologies, 1Q 2017 versus four-quarter average ............................................................................................... 10

Figure 15: Trends in top technologies for consumer uptake ........................... 10

Figure 16: Breakdown of commissioned projects by property type, 1Q 2017 .. 11

Figure 17: Trends of commissioned projects by property type ........................ 11

Figure 18: Trends in capital costs ................................................................... 12

Figure 19: Trends in finance models .............................................................. 12

Figure 20: Trends in expected payback periods ............................................. 13

Figure 21: Trends in the use of good practice M&V ........................................ 13

Figure 22: Consumer reasons for lack of efficiency uptake, 3Q 2016 versus four-quarter average ....................................................................................... 14

Figure 23: Who completed the survey? 1Q 2017 ............................................ 15

Figure 24: Breakdown of respondents by supplier type, 1Q 2017 ................... 16

Figure 25: Supplier respondents’ organisation size (no. of employees), 1Q 2017 ................................................................................................................ 16

Figure 26: Consumer respondents by sector, 1Q 2017 .................................. 17

Figure 27: Consumer respondents’ organisation size (no. of employees), 1Q 2017 ................................................................................................................ 17

Page 5: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 1

Section 1. Introduction

Welcome to the latest edition of U.K. Energy Efficiency Trends, the leading source of market

insight for the energy efficiency sector. As well as reporting consumer and supplier trends from for

the first quarter of 2017 this edition also includes a special feature on ‘customer

satisfaction’ (see page 9).

Looking at the results of the satisfaction survey, we are very pleased to report that customer

feedback on supplier performance was almost universally positive. Customers appear to be

particularly satisfied with the energy saving technologies and services that U.K. suppliers are

offering (and successfully installing). But in challenging economic times customers are also

looking for good value-for-money and this is something suppliers will want to be mindful of when

looking at these results. Overall, however, it was a very strong outcome for energy efficiency

suppliers, so well done to them.

In an upbeat report generally, other positive points to highlight include increasing levels of

supplier confidence on the back of sustained and increasing orders; and on the eve of the U.K.

General Election we even saw an uptick in ‘support’ (in truth, less negativity) towards Government

action, perhaps in response to the BEIS Industrial Strategy consultation and the commitment to

energy efficiency therein.

A final reason to be cheerful midway through 2017 is that consumers reported increased

spending – suggesting that energy efficiency is now a bona fide growth sector within the U.K.

economy. It will, however, be very interesting to see what changes following the June election

results and as the Brexit negotiations begin in earnest. As ever, watch this space!

Tom Rowlands-Rees

Bloomberg New Energy

Finance

Ian Jeffries

EEVS Insight

53% Suppliers reporting an

increase in domestic orders

52% Consumers ‘very satisfied’ or

better with energy efficiency

services

£260,000 Median reported energy

efficiency project size

Page 6: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 2

Section 2. Executive Summary

The EEVS/Bloomberg Energy Efficiency Trends Survey (Vol.19) was completed

by 70 U.K.-based respondents (26 consumer organisations and 44 suppliers),

between April 10 and May 19, 2017. Their answers relate to the situation in the

first quarter of 2017.

2.1. Supplier trends

Figure 1: Market Monitor – tracking industry confidence

Source: EEVS, BNEF. Note: based on weighted confidence indicators from Figures 3, 4, 5, 6, and

9. Zero represents neutrality.

• Increasing levels of confidence continued this quarter, pushing the EEVS/Bloomberg Market

Monitor (see Fig.1 below) into clear positive territory and, looking ahead, on an upward

trajectory.

• The sector’s positive outlook appears to reflect further increases in order-book growth, allied

with increased consumer spending (see consumer section below). In 1Q, eight out of ten

suppliers reported that order levels are either remaining stable or are increasing, and this

optimism is carried forward to suppliers’ future growth projections. By contrast, orders from

overseas have seen little material change, with no clear growth (or decline) in business

activity outside U.K. borders.

• Staffing remained largely flat overall. However, there is a mixed picture looking at the sector

in more detail; 34% of suppliers reported staff increases, 14% are still reporting headcount

reductions.

• The sector’s view on Government action remains negative, with over half of suppliers

considering energy efficiency policy to be ineffective. However, this negative sentiment has

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Page 7: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 3

softened over the last six months and, if this mini trend continues, the Government could

enjoy cautious support for energy efficiency policy in six months’ time.

2.2. Consumer trends

Figure 2: Consumers commissioning efficiency projects

Source: EEVS, BNEF. Note: shows the proportion of respondents who have commissioned (or

plan to commission) projects in a given quarter.

• High Efficiency Lighting remains the lead technology and was incorporated within seven out

of ten consumer investments. However, this quarter also saw a sharp and atypical rise in

smart metering and cooling/air conditioning technologies. By contrast, BEMS, behaviour

change and solar PV projects all saw material declines on typical uptake levels.

• Consumer spending ticked up again this quarter -- median project values edged to a new

high of 260 thousand pounds per project (against 50-100 thousand pounds when the survey

began in 2012). Alongside positive supplier feedback (see above), this suggests that energy

efficiency is currently a growth sector within the U.K. economy.

• Customer payback expectations softened a touch, moving out towards four years. This

quarter also saw almost 40% of consumers reporting payback expectations of five or more

years for their energy efficiency investments.

2.3. Special feature – customer satisfaction

• Customer satisfaction results were strong. All respondents were, to a greater or lesser extent,

satisfied with their supplier’s end-to-end service. Zero respondents said that they had

received an unsatisfactory or poor level of service from a U.K. supplier.

• Key insights include:

– Customers were highly positive about U.K. suppliers’ technology offering -- seven out of

ten said this was ‘very satisfactory’ or ‘superior’.

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Page 8: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 4

– Value-for-money received the lowest level of relative satisfaction, with 58% of customers

reporting that they were ‘mostly satisfied’, suggesting that more could be done by

suppliers to demonstrate value to U.K. customers. This said, Figure 14 also shows that

customers tend to think that overall costs were ‘about right’.

– Almost all respondents (81%) said that they would recommend their energy efficiency

supplier to other colleagues and organisations; four out of ten respondents reported that

they were likely to place further orders with their existing supplier on the back of previous

performance.

– Negative or unsatisfactory experiences were rare. Only 4% of customers said that they

were now less likely to work with their supplier again following their last project

experience.

Page 9: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 5

Section 3. Supplier trends

3.1. The order book

Figure 3: Trends in orders from national customers

Source: EEVS, BNEF. Note: the confidence indicator is an input to the market monitor in Figure 1.

Zero represents neutrality.

Figure 4: Trends in orders from overseas customers

Source: EEVS, BNEF. Note: the confidence indicator is an input to the market monitor in Figure 1.

Zero represents neutrality.

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Page 10: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 6

3.2. Staff numbers

Figure 5: Trends in the number of staff employed

Source: EEVS, BNEF. Note: the confidence indicator is an input to the market monitor in Figure 1.

Zero represents neutrality.

3.3. Sale prices

Figure 6: Trends in sale prices achieved, 3Q 2012 – 1Q 2017(e)

Source: EEVS, BNEF. Note: the confidence indicator is an input to the market monitor in Figure 1.

Zero represents neutrality.

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Page 11: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 7

3.4. Industry risk

Figure 7: Key issues of concern to energy-efficiency suppliers, 1Q 2017

Source: EEVS, BNEF. Note: each supplier respondent was asked to select their primary issue of

concern. Therefore results sum to 100%.

Figure 8: Trends in key issues of concern

Source: EEVS, BNEF. Note: each supplier respondent was asked to select their primary issue of

concern, therefore results sum to 100% in each period.

Customer demand43%

Subsidy/policy uncertainty

11%

National competition 11%

Raising finance9%

Pressure to reduce costs5%

Regulation5%

International competition

5%

Staff costs2%

Other 9%

Customer demand

Subsidy/policy uncertainty

National competition

Raising finance

Pressure to reduce costs

Regulation

International competition

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2012 2013 2014 2015 2016 17

Other

International competition

Regulation

Pressure to reduce costs

Raising finance

National competition

Subsidy/policy uncertainty

Customer demand

Page 12: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 8

3.5. Government Effectiveness

Figure 9: Trends in industry views on energy efficiency policy

Source: EEVS, BNEF. Note: the confidence indicator is an input to the market monitor in Figure 1.

Zero represents neutrality.

Figure 10: Industry views of the wider economy’s management

Source: EEVS, BNEF. Note: CI = confidence indicator. The dotted line represents the CI from

Figure 9, which is overlaid here for comparison with views on the wider economy. Zero represents

neutrality.

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Energy Efficiency CI(RH axis)

Page 13: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 9

Section 4. Special feature: customer satisfaction

Figure 11: Respondent assessment of supplier performance

across different process steps

Figure 12: Respondent assessment of supplier performance

by technology

Source: EEVS, BNEF Source: EEVS, BNEF

Figure 13: Responses on overall supplier performance

Source: EEVS, BNEF

0% 50% 100%

Technology (or service)quality

Purchase experience &customer service

Installation/commissioning

Value for money

After purchase service

Superior Very satisfactory Mostly satisfactory

0% 50% 100%

Overall

Lighting - high efficiency

Building energymanagement system

Power management

Superior Very satisfactory Mostly satisfactory

0% 50% 100%

What is the likelihood of your organization working

with the same supplier again?

Do you think the project represented good value

for money?

Would you recommend the supplier to colleagues

and contacts in the sector?

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Exce

ptio

na

l va

lue

Good value (about right)

Yes No

Did

no

t an

sw

er

Page 14: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 10

Section 5. Consumer Trends

5.1. Technologies and measures

Figure 14: Uptake of energy efficiency technologies, 1Q 2017 versus four-quarter average

Source: EEVS, BNEF. Note: ranks technologies according to the proportion of consumers who

commissioned a project in each technology out of the overall number of consumers

commissioning projects. PFC = power factor correction.

Figure 15: Trends in top technologies for consumer uptake

Source: EEVS, BNEF. Note: shows the proportion of respondents who commissioned a project in

the respective category out of the total number of respondents who commissioned a project.

Smart metering was only tracked from 4Q 2014 onward.

0% 20% 40% 60% 80% 100%

Other

Combined Heat and Power (CHP)

Heat Pumps - Ground Source

Heat Pumps - Water Source

Solar - Thermal

Optimisation - of set-points and controls

Compressed Air Equipment

Heat Exchangers

Heat Pump - Air Source

Radiant and Warm Air Heaters

Refrigeration - Optimisation

Power Management - Voltage Optimisation, Power Factor Correction

Refrigeration - High Efficiency Unit

Refrigeration - Controls

Solar - Photovoltaic

Monitoring and Targeting (M&T) / Performance Management  Software

Boiler - Controls

Behaviour Change

Building Fabric - Glazing, Insulation, Materials

Energy Recovery

HVAC

High Speed Hand Dryers

Motors and Drives

Boiler - High Efficiency Unit

Boiler - Optimisation

Building Energy Management System (BEMS)

Lighting - Controls

Cooling and Air Conditioning

Smart Metering

Lighting - High Efficiency

1Q 2017

T12 average

Smart Metering

Cooling and Air Conditioning

Lighting - High Efficiency

Lighting - Controls

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Page 15: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 11

5.2. Property types

Figure 16: Breakdown of commissioned projects by property type, 1Q 2017

Source: EEVS, BNEF

Figure 17: Trends of commissioned projects by property type

Source: EEVS, BNEF

Office24%

Public building

3%University

5%

Manufacturing8%

Industrial5%

Leisure Centre / Sports

5%

Hospital8%

Retail - High Street

8%

Retail - Out of Town3%

Data Centre8%

Laboratory5%

Residential3%

Warehousing and

Distribution8%

Other5%

OfficePublic buildingSchoolManufacturingLeisure Centre / SportsHospitalRetail - Out of TownData Centre

Office

Public building

School & University

Manufacturing & Industrial

Retail

Leisure Centre / Sports

Hospital

Other

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Other

Retail

Hospital

Leisure Centre / Sports

Manufacturing & Industrial

School & University

Public building

Office

Page 16: Energy Efficiency Trends Vol. 19 - eevs.co.uk · Essential insight for efficiency in the U.K. Energy Efficiency Trends Vol. 19 consumers and suppliers of non-domestic energy June

Energy Efficiency Trends Vol. 19

June 20, 2017

© Bloomberg Finance L.P.2017

No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without the prior written consent of Bloomberg Finance L.P. For more information on terms of use, please contact [email protected]. Copyright and Disclaimer notice on page 24 applies throughout. 12

5.3. Project costs

Figure 18: Trends in capital costs

% projects in each band £ Thousands

Source: EEVS, BNEF. Note: the line shows the cost trend for energy efficiency projects over time

based on the estimated median.

5.4. Project finance

Figure 19: Trends in finance models

Source: EEVS, BNEF

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40%

60%

80%

100%

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2012 2013 2014 2015 2016 2017

Unknown

£500K+

£100-500K

£50-100K

£10-50K

<£10K

Zero

Median

(RH-axis)

0%

20%

40%

60%

80%

100%

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2012 2013 2014 2015 2016 2017

Other

Unknown

Supplier-arranged

Third party finance

Combination

In-house

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5.5. Financial payback

Figure 20: Trends in expected payback periods

% projects in each band Number of years

Source: EEVS, BNEF. Note: the line shows the expected payback trend for energy efficiency

projects based on the estimated median.

5.6. Measurement and verification

Figure 21: Trends in the use of good practice M&V

Source: EEVS, BNEF. Note: M&V = measurement and verification.

0

2

4

6

8

10

0%

20%

40%

60%

80%

100%

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2012 2013 2014 2015 2016 2017

Unknown

10 + years

5-10 years

3-5 Years

1-3 years

<1 year

Median

(RH-axis)

0%

20%

40%

60%

80%

100%

3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

2012 2013 2014 2015 2016 2017

No

Unknown

Yes

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5.7. Consumers not undertaking energy efficiency

Figure 22: Consumer reasons for lack of efficiency uptake, 3Q 2016 versus four-quarter

average

Source: EEVS, BNEF. Note: respondents not commissioning projects may have cited multiple

reasons. The chart shows the proportion of respondents in each category out of overall

respondents, not commissioning projects. Results therefore do not sum to 100.

0% 20% 40% 60% 80% 100%

Other

Lack of trust in the industry

Preference for renewable energy (e.g. solar)

Subsidy uncertainty

Wider macro-economic uncertainty

Negative impact on core operations

Uncertainty over the financial benefits / business case

Lack of affordable finance

Senior management not bought in

Buildings are landlord-owned, so little upside

Lack of resource

Energy efficiency has already been undertaken

Higher priorities elsewhere

Future projects are planned

1Q 2017 (negative impact)

T12 average

1Q 2017 (industry neutral)

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Appendices

Appendix A: Methodology

The EEVS/Bloomberg Energy Efficiency Trends Survey (Vol.19) was conducted between 10 April

and May 19, 2017, and completed by 70 U.K.-based respondents (26 consumer organisations and

44 suppliers).

This is the 19th in a series of reports showing industry trends in non-residential energy efficiency.

As the report series evolves, we continue to make minor tweaks.

Initially, the report covered a broad range of European countries, but since Volume 8, it has

presented U.K.-based results only, as these consistently accounted for the bulk of data received.

In focusing the report on a single country with better data coverage, we were able to present

cleaner, more robust results. This coincided with a revamp of the analysis including – among other

modifications – the introduction of a set of time series charts.

Please reach out should you wish to discuss any of the trends observed in the charts.

Figure 23: Who completed the survey? 1Q 2017

Source: EEVS, BNEF

Consumer37%

Supplier63%

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Appendix B: Supplier respondents

Figure 24: Breakdown of respondents by supplier type, 1Q 2017

Source: EEVS, BNEF

Consultancy services36%

ESCO27%

Lighting9%

CHP5%

Finance5%

Monitoring and Targeting

5%

Building Management Systems

5%

Heat pumps2%

Boilers2%

Building fabric2%

ICT2%

Figure 25: Supplier respondents’ organisation size (no. of employees), 1Q 2017

Source: EEVS, BNEF

27%

39%

18%

5%

11%

Less than 10

10-50

51-250

251-500

501-1000

More than 1000

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Appendix C: Consumer

respondents

Figure 26: Consumer respondents by sector, 1Q 2017

Source: EEVS, BNEF

Figure 27: Consumer respondents’ organisation size (no. of employees), 1Q 2017

Source: EEVS, BNEF

Health15%

Local or Regional Authority

15%

University12%

Other4%

Retail & Wholesale, 8%

Services & Storage, 4%

Property and Real Estate, 4%

Leisure and Recreation,

4%

Manufacturing19%

Other8%

Transportation4%

Other4%

Health

Retail & Wholesale

Manufacturing

Agriculture

Other

Public / Institutional

Commercial

Industrial

Other

Agriculture

4%

11%

4%

12%

69%

Less than 50

50 - 250

251-500

501-1000

More than 1000

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About US __________________________________________________

About EEVS

EEVS is the U.K.’s leading provider of performance assurance, analysis and information services in relation

to energy efficiency. Our performance assurance services include working with clients to devise and develop

performance management systems and strategies; procurement policies and tender evaluations; due

diligence on performance contracts and guarantees; performance and financial risk analysis.

Alongside this, our established team of energy analysts provide high quality, independent Measurement and Verification (M&V) services

for all sizes and types of energy saving projects. Since 2011 we have evaluated the savings performance of hundreds of energy efficiency

projects to the global good practice standard, IPMVP. Our trusted analysis helps suppliers to credibly prove their project’s or technology’s

saving performance, whilst providing customers with much-needed certainty around their investment’s return and value for money.

EEVS wider market information and research services – in particular the Energy Efficiency Trends publications – aim to improve the

attractiveness, transparency and investability of the energy efficiency market through the provision of reliable market-level performance

and trend information. For further details about EEVS and our services, please visit www.eevs.co.uk

About Bloomberg New Energy Finance

Bloomberg New Energy Finance (BNEF) is the definitive source of insight, data and news on the

transformation of the energy sector. BNEF has staff of more than 200, based in London, New York,

Beijing, Cape Town, Hong Kong, Singapore, Munich, New Delhi, San Francisco, São Paulo, Sydney,

Tokyo, Washington D.C., and Zurich.

BNEF Insight Services provide financial, economic and policy analysis in the following industries and markets: wind, solar,

bioenergy, geothermal, hydro & marine, gas, nuclear, carbon capture and storage, energy efficiency, digital energy, energy

storage, advanced transportation, carbon markets, REC markets, power markets and water. BNEF’s Industry Intelligence Service

provides access to the world’s most comprehensive database of assets, investments, companies and equipment in the same

sectors. The BNEF News Service is the leading global news service focusing on finance, policy and economics for the same

sectors. The group also undertakes custom research on behalf of clients and runs senior-level networking events, including the

annual BNEF Summit, the premier event on the future of the energy industry.

For more information please visit about.bnef.com

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Contact US

Ian Jeffries

[email protected]

+44 (0) 33 0313 8488

EEVS Insight Ltd

6 Stirling Park,

Laker Road,

Rochester,

Kent

ME1 3QR

Tom Rowlands-Rees

[email protected]

+44 (0) 20 3525 4144

Bloomberg New Energy Finance

City Gate House,

39-45 Finsbury Square

London

EC2A 1PQ

© EEVS insight Ltd. 2017. Developed in partnership with Bloomberg New Energy Finance

(Bloomberg Finance L.P. 2017). No portion of this document may be reproduced, scanned into an

electronic system, distributed, publicly displayed or used as the basis of derivative works without

the prior written consent of the joint partners.

For more information on terms of use, please contact [email protected].

Join the Energy Efficiency Trends Community

Register at www.eevs.co.uk/join-community.html to join the Energy Efficiency Trends Community and receive free quarterly

Energy Efficiency Trends reports direct to your email inbox.

By registering you will also be invited to complete the quarterly surveys upon which the research is based. If you are a consumer,

financer or supplier of energy efficiency consultancy, products or services, your input would be greatly appreciated. Your

responses will be treated anonymously and aggregated to form the published Energy Efficiency Trends report.

To find out more about Energy Efficiency Trends, or to download previous editions please visit our website:

www.energyefficiencytrends.com

EEVS:

BNEF:

Copyright:

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