Final v1 Prepared for: Energex, Ergon Energy and Powerlink. Date: 11 th February 2016.

Transcription

1 1 Final v1 Prepared for: Energex, Ergon Energy and Powerlink. Date: 11 th February 2016.

2 Executive Summary 3 Findings 6 Topic 1: Appliance Penetration & Usage 7 Topic 2: Air Conditioners 19 Topic 3: Solar PV, Battery Storage & Off Grid Intentions 35 Topic 4: Tariffs 50 Topic 5: Behavioural Analysis 57 Topic 6: Bill Concern 69 Appendix 77 Research Methodology 78 2

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4 Key Findings. A number of key changes in appliance ownership are noted: Queenslanders are becoming more energy efficient as they replace appliances with newer technology and are less likely to own multiples of the same appliance. Looking forward, consumer entertainment preferences are likely to shape purchase and ownership in households. In addition, increased ownership of multiple personal entertainment appliances may lead to decentralization away from lounge room areas, putting additional pressure onto lighting and air conditioning needs. Queenslanders, however, are performing fewer energy efficient behaviours than previous years, this includes using air conditioners less responsibly. This decline in energy efficient behaviour is noted across the board regardless of bill size or level of bill concern. In addition, bill concern declined significantly in SEQ, while remaining stable in regional Queensland. Awareness of, and intended uptake of, battery storage increased in Although, consumers continue to underestimate the cost of battery storage. 4

5 Overall Implications. Overall, there is a sense that Queenslanders are less engaged with their electricity consumption. Any previous efforts to influence bill size are not considered worthwhile and as such energy efficient behaviour has declined. Increased interest in the uptake of battery storage will not present a trend in the short term; until the purchase cost decreases significantly and consumers feel it is a financially viable option. A large proportion of Queenslanders have indicated either that they are willing to change their time of use, or already have. This suggests that there is an appetite for a time of use tariff in the market. 5

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8 Key Findings: Appliance Penetration & Usage. 1 Queenslanders own fewer appliances compared to previous years, both in terms of the range of different types of appliances and ownership of more than one of the same type of appliance. 2 Younger ager groups are beginning to move away from TV ownership towards laptop or tablet computers. 3 Ownership of electric vehicles is unlikely to gain any traction in the near future, primarily due to the cost and their limited driving range at present. However, more and more Queenslanders would openly consider an electric vehicle once the price decreases. 8

9 Overall appliance penetration has declined slightly in Must have appliances 2015 (n=4,135) 2014 (n=4,091) Likely to own appliances 2015 (n=4,135) 2014 (n=4,091) Less likely to own appliances 2015 (n=4,135) 2014 (n=4,091) Washing machine 97% 98% Fridge(s) including bar / wine fridges (with or without a freezer component) 95% 96% Microwave 93% 93% Any TV 91% 97% Electric oven 85% 86% Laptop computer 75% 76% Ceiling fan 71% 70% Dishwasher 59% 58% Clothes dryer 55% 57% Desktop computer 55% 59% Tablet computer 53% 47% Energy efficient / Compact fluorescent light bulbs 53% 59% Electric hot water system 51% 53% Stereo 45% 49% Freezers (detached from fridge/stand-alone) Digital video recorder (DVR) or personal video recorder (PVR) Gaming console (i.e. XBOX, Wii, Playstation) 43% 44% 41% 47% 41% 44% LCD television 38% 40% LED light bulbs 38% 37% Electric cook top (incl. induction cook tops) 66% 67% LED or LED / LCD television 48% 49% Gas cook top 27% 26% Significantly higher than 2014 Significantly lower than Q18A. Which of the following do you have in your household? Base: Total Sample

10 The largest changes in appliance penetration are due to newer technologies replacing the old. Top 5 Appliances to Increase in Penetration Over the Past Five Years Top 5 Appliances to Decrease in Penetration Over the Past Five Years 73% 71% 76% 65% 24% 47% 49% 46% 47% 32% 37% 53% 48% 38% 59% 32% 55% 48% 33% 62% 54% 42% 59% 55% 53% 49% 45% 40% 38% 16% 14% 21% 7% 2% 1% 13% 13% 4% 8% 12% 9% 25% 10% 9% 2011 (n=3533) 2012 (n=3498) 2013 (n=3749) 2014 (n=4091) 2015 (n=4135) 2011 (n=3533) 2012 (n=3498) 2013 (n=3749) 2014 (n=4091) 2015 (n=4135) LED or LED/LCD television LED light bulbs Tablet computer 3D television Instantaneous electric hot water system Desktop computer Stereo Compact fluorescent light bulbs LCD television Electric heater Significantly higher than 2014 Significantly lower than Q18A. Which of the following do you have in your household? Base: Total Sample

11 Queenslanders are moving away from owning multiple of the same appliance, particularly across the entertainment category. With tablets increasing in penetration and saturation they may be replacing the need for multiple of these products. Change in ownership of more than one appliance (2014 to 2015) Tablet computers and gaming consoles are the only appliances where there are increasingly more than one per household. Refrigerator 38% 35% 67% 63% 1 LCD television 34% 29% Tablet computer 23% 23% 9% 13% 2 3 or more LED / LCD television 40% 35% 2014 (n=1,819) 2015 (n=2,216) 63% 63% Digital video recorder or personal video recorder 21% 17% Laptop computer 40% 37% Gaming console 23% 14% 20% 17% or more 2014 (n=1,520) 2015 (n=1,511) Stereo 16% 13% Significantly higher than 2014 Significantly lower than Q18B. How many of these are in your home? Base: Those who own the appliance

12 Those who own multiple gaming consoles or tablet computers tend to be families with higher incomes and bill sizes. Who is most likely to own multiple gaming consoles? Who is most likely to own multiple tablet computers? Live in Logan- Beaudesert (21%) or Brisbane South (20%). Are under the age of 50 (21%). Live in the Northern region (23%). Are between the age of (25%). Are a couple with children at home (26%). Have a mid to high income of $71,000 or more (21%). Are a couple with children at home (31%). Have a high income of $111,000 or more (32%). Have a high bill size of $500 or more (25%). Have a high bill size of $500 or more (30%). Have solar PV installed (23%). 12

13 Ownership of TV s has declined significantly across Queensland, with younger age groups replacing these with laptop or tablet computers. Households Owning Any Type Of TV 98% 97% 97% 96% Households With A Laptop Or Tablet Computer, But No TV 11% 91% 8% 90% % 3% 3% 2% 2% 2% 1% South East Queensland Regional Queensland Under 30 years years 50 years or older the number of people using TV in the coveted demographic was down 8% against the same time last year Business Insider Australia, Sep 2015 Fewer people than ever are watching TV People are watching more online video on their computers, smart TVs and multimedia devices Time, Dec Q18A. Which of the following do you have in your household? Base: Total Sample Q18B. How many of these are in your home? Base: Those with a TV Significantly higher than 2014 Significantly lower than 2014

14 Queenslanders are most likely to own either a single LED or a single LCD TV. Combination of TV Types Owned 30% 30% 22% 25% Avg. No. Of TVs 1.6 South East Queensland 9% 9% 5% 5% 4% 4% 3% 4% 3% 3% 3% 2% South East Queensland (n=2,199) Regional Queensland (n=1,936) 1.7 Regional Queensland 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 0% 1% LED only LCD only Plasma only LCD & LED LED & 3D Plasma & LCD Plasma & LED 3D only LCD, LED & 3D Plasma, LCD & LED CRT only LCD & 3D CRT, Plasma, LCD, LED & 3D CRT & LED CRT & LCD Plasma & 3D Plasma, LED & 3D Plasma, LCD, LED & 3D 14 Q18A. Which of the following do you have in your household? Base: Total Sample Q18B. How many of these are in your home? Base: Those with a TV Significantly higher than 2014 Significantly lower than 2014

15 Ownership of multiple refrigerators continues on a downward trend, with a significant decline among regional Queenslanders in Ownership of Multiple Refrigerators Who is most likely to own multiple refrigerators? 45% 44% 38% 42% 36% 43% 39% Live in the Northern (40%) or Central (45%) regions. Are above the age of 50 (42%). Are a couple without children at home (40%). 32% 33% 31% Are currently retired (43%). Own or are paying off their home (40%). Live in older homes that are more than 30 years old (40%) South East Queensland Regional Queensland Have a high income of $111,000 or more (44%). Have a high bill size of more than $500 (51%). Have solar PV installed (46%). Significantly higher than 2014 Significantly lower than Q18B. How many of these are in your home? Base: Those who own a refrigerator

16 Very few Queenslanders are considering an electric vehicle; primarily due to the high purchase cost. 0.1% of Queensland households currently own an electric vehicle (excl. hybrids). Commonly owned electric vehicles in Queensland Tesla Model S Nissan Leaf BMW i3 The main reasons consideration of electric vehicles is low is because 0.6% of Queensland households intend on purchasing an electric vehicle (excl. hybrids) in the next year or two. They are too expensive to purchase (29%). Their range is not long enough (17%). They are too expensive to run and maintain (12%). They do not suit the preferred type of vehicle e.g. truck / ute (11%). 16 Q18A. Which of the following do you have in your household? Base: Total sample Q29A You indicated that you have an electric vehicle. What is the brand and model of your electric vehicle? Base: Those with an EV Q21A. For each of the following you indicated that you DO NOT have in your home, are you planning to obtain this item in the next year or two? Base: Those who do not own an EV Q22G. Why are you not considering purchasing an electric motor vehicle? Base: Those who are not considering an EV

17 Consideration of electric vehicles has increased significantly at lower price points (i.e. $30,000 or less). Consideration of an electric vehicles at different price points 39% 44% 3% 3% 6% 6% 20% 22% 27% of South East Queenslanders would not consider an EV regardless of price. 35% of regional Queenslanders would not consider an EV regardless of price. $50,000 $40,000 $30,000 $20, (n=3,991) 2015 (n=3,479) Who is most likely to be an early adopter of EV s (i.e. those who are willing to pay $50,000)? Those who would not consider an electric vehicle regardless of price are more likely to state that it does not suit their preferred type of vehicle such as a truck or ute (15%). Live in Brisbane West (10%) or Inner City (8%). Are under the age of 30 (6%). Have a high income of $111,000 or more (7%). Significantly higher than 2014 Significantly lower than Q49. If you were in the market to purchase a car, would you consider purchasing an electric vehicle (not hybrid) if the price was? Base: Those who do not currently own an electric vehicle

18 Implications: Appliance Penetration & Usage. 1 Consumer entertainment preferences will increasingly shape appliance purchase and ownership in households. Increased ownership of multiple personal entertainment appliances may start to lead to decentralization away from lounge room areas and further into other rooms, putting additional pressure onto lighting and air conditioning needs. 2 Electric vehicles remain incongruent with the Queensland marketplace. Small pockets of usage in metropolitan Queensland areas may start to appear in the next couple of years; mass uptake will not occur unless there is a major push by dealers along with a price decrease. 18

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20 Key Findings: Air Conditioners. 1 Across Queensland, air conditioner penetration appears to have plateaued; however portable air conditioners are growing in popularity especially in South East Queensland. 2 When cooling, fewer Queenslanders are using their air conditioner responsibly by turning it on even when the outside temperature is below 30 degrees and by setting the temperature to below the recommended setting. Though for heating, Queenslanders are now more likely to only turn on their air conditioner once the outside temperature reaches below 10 degrees. 3 Regional Queenslanders are choosing to turn on their air conditioners in fewer rooms of their household than previously, however more are using their air conditioner overnight. 4 In newer homes (i.e. less than 5 years old), split system air conditioners are slowly declining in popularity, though still remain the preferred choice. 20

21 Ownership of different types of air conditioners has remained largely stable over the past year across Queensland. Air Conditioner Ownership South East Queensland Air Conditioner Ownership Regional Queensland 71% 73% 71% 72% 73% 73% 67% 71% 73% 73% 74% 75% 48% 43% 42% 37% 36% 35% 20% 19% 20% 19% 17% 14% 12% 18% 17% 15% 10% 8% 7% 8% 6% 3% 1% 2% 17% 16% 10% 3% 7% 8% 5% 7% 7% 8% 7% 4% 6% 6% 5% 2010 (n=1,023) 2011 (n=1,081) 2012 (n=1,056) 2013 (n=1,565) 2014 (n=1,566) 2015 (n=1,651) 2010 (n=1,731) 2011 (n=1,648) 2012 (n=1,637) 2013 (n=1,356) 2014 (n=1,658) 2015 (n=1,604) Significantly higher than 2014 Significantly lower than Q18A. What type(s) of air conditioners do you own? Base: Those who own some type of air conditioner

22 Across Queensland, there has been a significant increase in intentions to take up air conditioners; in particular, portable air conditioning is growing in popularity. Intention to Take Up Air Conditioning for the First Time All Of Queensland 20% 21% 12% 14% 13% 17% 2010 (n=806) 2011 (n=804) 2012 (n=806) 2013 (n=828) 2014 (n=868) 2015 (n=880) However there have been changes in the type of air conditioner to be taken up Renters who do not currently own an air conditioner are most likely to purchase a portable air conditioner Change Portable A/C 20% 28% +8% Split System A/C 72% 67% -5% 52% of renters without A/C intend on purchasing a portable A/C Evaporative A/C 6% 1% -5% Significantly higher than 2014 Significantly lower than Q21A. Are you planning to obtain any of the following types of air conditioning in the future? Base: Those who own some type of air conditioner

23 Among South East Queensland households, there has been an increase in intentions to purchase a portable air conditioner. Air Conditioner Segments South East Queensland 65% Currently have & WILL NOT buy in the next 5 years 7% Currently have & WILL buy an additional unit in next 5 years 4% Currently don t have and WILL buy in the next 5 years Type Of Air Conditioner To Purchase South East Queensland Split System Air Conditioner Portable Air Conditioner Ducted Air Conditioner 3% 2% 2% 2% 10% 12% 21% Currently don t have and WILL NOT buy in the next 5 years 3% Currently have and WILL buy a replacement in next 5 years Box Air Conditioner 2% 2% Evaporative Air Conditioner 1% 1% 2015 (n=2,199) 2014 (n=2,121) Significantly higher than 2014 Significantly lower than Q21A. Are you planning to obtain any of the following types of air conditioning in the future? Base: South East Queensland and do not own air conditioner Q24A. Please indicate how many MORE of each of the appliances below you are planning to obtain as an additional or replacement. Base: South East Queensland and currently own an air conditioner

24 There has been no change in intentions to purchase any particular type of air conditioner among regional Queensland households. Air Conditioner Segments Regional Queensland 69% Currently have & WILL NOT buy in the next 5 years 7% Currently have & WILL buy an additional unit in next 5 years 3% Currently don t have and WILL buy in the next 5 years Type Of Air Conditioner To Purchase Regional Queensland Split System Air Conditioner Box Air Conditioner Portable Air Conditioner 3% 3% 1% 2% 13% 15% 15% Currently don t have and WILL NOT buy in the next 5 years 6% Currently have and WILL buy a replacement in next 5 years 1% Ducted Air Conditioner 1% 0% Evaporative Air Conditioner 1% 2015 (n=1,936) 2014 (n=1,970) Significantly higher than 2014 Significantly lower than Q21A. Are you planning to obtain any of the following types of air conditioning in the future? Base: Regional Queensland and do not own air conditioner Q24A. Please indicate how many MORE of each of the appliances below you are planning to obtain as an additional or replacement. Base: Regional Queensland and currently own an air conditioner

25 Air Conditioner Forecasts: South East Queensland. AC Penetration Customer Intentions Forecast 100% 90% Potential Maximum (2) 88% 80% Potential Maximum (1) 79% 70% 60% Saturation Units per HH % 1 unit 50% 47% 47% 48% 49% 40% 2 units 29% 28% 30% 30% 28% 3 units 21% 25% 24% 22% 23% 30% Penetration of air conditioners has increased by 1% point in 2015 to 75%. This is forecasted to increase to 76% in 2018 and will remain at this level through to The average number of air conditioners has remained stable with the previous year at 1.9 per household. More specifically, just under half (49%) have one unit in their home, while 28% have two units and 23% have three units A/C Penetration 47% 57% 59% 62% 68% 72% 74% 73% 72% 74% 74% 75% Customer Intentions 75% 76% 76% 76% 76% 76% Forecast 48% 55% 60% 65% 68% 70% 72% 73% 74% 75% 75% 75% 75% 75% 76% 76% 76% 76% 25 Q18AA. Do you have any type of air conditioning in your home? Q21A. Are you planning to obtain any of the following types of air conditioning in the future? Q24A. Please indicate how many MORE of each of the appliances below you are planning to obtain as an additional or replacement. Base: South East Queensland

26 Air Conditioner Forecasts: Regional Queensland. AC Penetration Customer Intentions Forecast 100% Potential Maximum (2) 92% 90% Potential Maximum (1) 85% 80% 70% 60% Saturation Units per HH % 1 unit 31% 30% 27% 26% 28% 40% 2 units 19% 19% 21% 22% 21% 3 units 50% 51% 52% 53% 51% 30% In regional Queensland, penetration of air conditioners declined by 1% point, however this was not statistically significant. Based on the forecast model, penetration of air conditioners is expected to reach 84% in 2017 with this remaining stable through to There was a slight decline in saturation with the average number of units per household declining from 3.0 to 2.9. As with previous years, roughly half (51%) of regional Queensland households have at least three units A/C Penetration 55% 63% 68% 67% 71% 79% 79% 79% 80% 83% 83% 82% Customer Intentions 83% 83% 84% 84% 84% 84% Forecast 56% 61% 66% 70% 73% 76% 78% 80% 81% 82% 82% 83% 83% 84% 84% 84% 84% 84% 26 Q18AA. Do you have any type of air conditioning in your home? Q21A. Are you planning to obtain any of the following types of air conditioning in the future? Q24A. Please indicate how many MORE of each of the appliances below you are planning to obtain as an additional or replacement. Base: Regional Queensland

27 Air Conditioner Forecasts: Northern Region. Northern Region AC Penetration Customer Intentions Forecast 100% Potential Maximum (2) 95% 90% Potential Maximum (1) 92% 80% 70% 60% Saturation Units per HH % 1 unit 16% 18% 10% 10% 10% 40% 2 units 10% 13% 15% 16% 14% 3 units 74% 69% 75% 73% 76% 30% Within the Northern region, air conditioner penetration has remained stable at 90%. This is forecasted to reach the maximum of 92% next year. The Northern region continues to have the highest saturation of air conditioners with an average of 3.8 units per household. Meanwhile the proportion with three units has increased slightly from 73% to 76% A/C Penetration 70% 76% 81% 79% 82% 89% 89% 91% 91% 90% 90% 90% Customer Intentions 90% 90% 90% 90% 90% 90% Forecast 70% 75% 79% 82% 85% 87% 88% 89% 90% 91% 91% 91% 92% 92% 92% 92% 92% 92% 27 Q18AA. Do you have any type of air conditioning in your home? Q21A. Are you planning to obtain any of the following types of air conditioning in the future? Q24A. Please indicate how many MORE of each of the appliances below you are planning to obtain as an additional or replacement. Base: Northern Region

28 Air Conditioner Forecasts: Central Region. Central Region AC Penetration Customer Intentions Forecast 100% Potential Maximum (2) 95% 90% Potential Maximum (1) 91% 80% 70% 60% Saturation Units per HH % 1 unit 25% 23% 18% 21% 20% 40% 2 units 25% 22% 22% 18% 23% 3 units 49% 55% 60% 62% 57% 30% There was a decline in air conditioner penetration in the Central region this year, from 91% to 87%. This has been forecasted to increase back up to 90% in 2016 and will reach the maximum of 91% in Saturation of air conditioners has also declined in the Central region from an average of 3.2 to 3.1 units per household. Meanwhile, the proportion with three or more units has declined slightly from 62% to 57% A/C Penetration 63% 75% 76% 75% 78% 85% 85% 87% 87% 88% 91% 87% Customer Intentions 88% 89% 89% 89% 89% 89% Forecast 66% 71% 75% 78% 81% 83% 85% 86% 87% 88% 89% 89% 90% 90% 90% 90% 90% 91% 28 Q18AA. Do you have any type of air conditioning in your home? Q21A. Are you planning to obtain any of the following types of air conditioning in the future? Q24A. Please indicate how many MORE of each of the appliances below you are planning to obtain as an additional or replacement. Base: Central Region

29 100% Air Conditioner Forecasts: Southern Region. AC Penetration Customer Intentions Forecast Southern Region (excludes SEQ) 90% Potential Maximum (2) 87% 80% 70% Potential Maximum (1) 74% 60% Saturation Units per HH % 1 unit 55% 54% 55% 49% 54% 40% 2 units 26% 25% 26% 31% 25% 3 units 19% 21% 19% 20% 21% 30% Air conditioner penetration within the Southern region has returned to 71% following a slight decline in Penetration is forecasted to remain at 71% through to 2018 before increasing to 72% from Despite the increase in penetration, saturation has declined slightly from 1.9 to 1.8 units per household. The proportion of households with one unit increased from 49% to 54% A/C Penetration 34% 43% 50% 51% 56% 65% 67% 63% 65% 71% 70% 71% Customer Intentions 72% 74% 74% 74% 74% 74% Forecast 36% 42% 48% 53% 58% 62% 64% 66% 68% 69% 70% 70% 71% 71% 71% 72% 72% 72% 29 Q18AA. Do you have any type of air conditioning in your home? Q21A. Are you planning to obtain any of the following types of air conditioning in the future? Q24A. Please indicate how many MORE of each of the appliances below you are planning to obtain as an additional or replacement. Base: Southern Region

30 Regional Queenslanders are setting their heaters to a higher setting in Winter. Use Of Air Conditioner South East Queensland Avg. Temp Correct Temp Use Of Air Conditioner Regional Queensland Avg. Temp Correct Temp Normal Summer Day 23.6º 23.8º 71% 68% Normal Summer Day 24.1º 24.1º 53% 50% Hottest Summer Day 23.1º 23.3º 60% 58% Hottest Summer Day 23.5º 23.6º 46% 43% When heating 23.1º 23.1º 8% 9% When heating 22.5º 23.1º 16% 11% Recommended Temp. Setting Summer = 24º (SEQ) / 25º (RQ) Winter = 18º (All QLD) Significantly higher than 2014 Significantly lower than Q27A. At what temperature level do you tend to have the air conditioning set at on a normal summer s day? Base: Those with A/C Q27B. At what temperature level do you tend to have the air conditioning set at on the hottest/most humid days in summer? Base: Those with A/C Q27C. And at what temperature level do you tend to have the air conditioning set at on when you are using your air conditioner for heating? Base: Those with A/C

31 Queenslanders are becoming less tolerant of hotter temperatures in Summer (i.e. fewer are turning on A/C only when it reaches 30º outside). Air-Conditioner Use South East Queensland Air-Conditioner Use Regional Queensland 87% 91% 84% 84% 77% 82% 79% 80% Only turn on A/C when >30º outside Only turn on heating when <10º outside Only turn on A/C when >30º outside Only turn on heating when <10º outside Significantly higher than 2014 Significantly lower than Q27A. At what temperature level do you tend to have the air conditioning set at on a normal summer s day? Base: Those with A/C Q27B. At what temperature level do you tend to have the air conditioning set at on the hottest/most humid days in summer? Base: Those with A/C Q27C. And at what temperature level do you tend to have the air conditioning set at on when you are using your air conditioner for heating? Base: Those with A/C

32 Regional Queensland households are less likely to use their air conditioner in a number of rooms; however are increasingly using it overnight. Air Conditioner Usage By Room Regional Queensland Air Conditioner Usage By Room South East Queensland Lounge 75% Master Bedroom 70% (2014: 73%) Lounge 77% Master Bedroom 57% Other Bedroom 61% Dining 32% Kitchen 21% (2014: 26%) Other Bedroom 39% Dining 29% Kitchen 22% Rumpus 17%) Office 18% (2014: 21%) Significantly higher than 2014 Significantly lower than 2014 Rumpus 18% Office 18% Overnight Use of Air Conditioner (10pm-6am) Regional Queensland 51% 56% 33% 37% 3% 7% Master Bedroom Other Bedroom Rumpus / Media Room Q25A. Which rooms in your house do you have air conditioning in? Q25B. And for each room, can you please indicate MAINLY when air conditioning is used in that room? Base: Those with A/C

33 Popularity of split system air conditioning in newer homes (i.e. less than 5 years old) is slowly declining, with ducted remaining fairly stable over time. Air Conditioner Types & Age of Home South East Queensland Air Conditioner Types & Age of Home Regional Queensland 74% 65% 35% 75% 74% 28% 76% 76% 74% 74% 66% 62% 58% 42% 38% 58% 33% 28% 86% 87% 87% 80% 83% 77% 75% 76% 75% 72% 74% 76% 14% 15% 17% 18% 14% 16% Home less than 5 years old - Split System Home more than 5 years old - Split System Home less than 5 years old - Ducted Home more than 5 years old - Ducted 11% 13% 15% 7% 11% 11% 7% 8% 4% 7% 7% 8% Home less than 5 years old - Split System Home more than 5 years old - Split System Home less than 5 years old - Ducted Home more than 5 years old - Ducted 7% of SEQ homes were built in the last 5 years 86% of SEQ homes were built more than 5 years 9% of RQ homes were built in the last 5 years 84% of SEQ homes were built more than 5 years 33 Q18A. What type(s) of air conditioners do you own? Base: Those with air conditioning

34 Implications: Air Conditioners. 1 With the penetration of air conditioners across Queensland forecasted to remain fairly stable in coming years, demand on the network should then be focused on how Queenslanders are using their units. 2 Queenslander s are becoming less resilient in their tolerance of warm temperatures (i.e. they are turning on A/C at lower outside temperatures and are setting their A/C at colder temperatures). Increased usage at lower temperatures and increased night time usage, will continue to increase demand on the network even at off-peak times. 34

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36 Key Findings: Solar PV, Battery Storage & Off Grid Intentions. 1 Penetration and intended uptake of solar PV has stabilised as fewer Queenslanders believe this is a cost-effective way to reduce their bill. There is also a strong belief that they will need to change their behaviour too much to make it worthwhile. 2 Awareness of, and intended uptake of battery storage has increased significantly across Queensland. This is being increasingly driven by positive word of mouth. There is, however, a growing perception that battery storage is too expensive and is not a safe product to be located within the home. 3 Intentions to go off grid within the next three years remains very low, however has increased significantly in regional Queensland. Those who currently own a battery storage system or intend on purchasing one are the most likely to go off grid. 36

37 Both current ownership of solar PV and intentions to take it up in the next 2 years have stabilised. Solar PV ownership Intention to take up solar PV in the next 2 years 31% 26% 27% 29% 28% 21% 20% 25% 19% 15% 16% 15% 17% 18% 14% 11% Energex Internal Data: 23% 9% 16% 20% 22% Ergon Energy Internal Data: 6% 11% South East Queensland 14% 16% 17% Regional Queensland Intention to take up solar PV is significantly higher in Cairns (21%) and Brisbane South (25%); and significantly lower on the Sunshine Coast (11%) South East Queensland Regional Queensland 37 Q8. Which of the following types of energy do you use in your home? Base: Total sample Q51. Do you intend to purchase solar panels (solar PV) / additional or replacement solar panels for your home within the next 2 years? Base: Total sample

38 Solar PV is more common in older homes, however amongst those with solar PV, average bill size is lower in newer homes. This is likely a dual effect of solar and energy efficiency (design and appliances). Total Queensland South East Queensland Incidence of Solar PV by Age of Home Less than 5 years 5 years old or older 21% 30% 19% 30% Bill Size by Age of Home & FiT 6% 2% 7% 2% 7% 18% 12% 11% 14% 22% 40% 46% Regional Queensland 24% 31% 68% 64% 48% 34% 24% Intention to Purchase Solar PV by Age of Home 18% 18% 15% 14% 15% Less than 5 years old (n=33) 5 years old or older (n=226) FiT: Less than 10c / kwh Less than 5 years old (n=18*) 5 years old or older (n=660) FiT: More than 40c / kwh $300 or less $301-$500 More than $500 Don't know Brand new (n=59) 1-4 years old (n=251) 5-10 years old (n=629) years years old (n=984) old (n=820) More than 30 years old (n=1,136) Significantly higher than < 5 years / > 5 years Significantly lower than < 5 years / > 5 years 38 Q8. Which of the following types of energy do you use in your home? Base: Total sample Q51. Do you intend to purchase solar panels (solar PV) / additional or replacement solar panels for your home within the next 2 years? Base: Total sample Q6. On average, how much is your electricity bill per quarter? Base: Those with Solar PV

39 Although remaining a key motivator to purchase solar PV, the belief that it is a cost effective option to reduce bills has declined. Motivations To Purchase Solar PV It is a cost effective option to reduce the size of my bill 66% 60% Barriers To Solar PV The costs involved with purchasing it 30% 27% 55% I am concerned about future price rises 53% I will need to change my behaviour too much 1% 13% To put more solar panels on my roof to make the most of my current feed-in tariff 45% 53% % The return on investment - the solar PV is not large enough/takes too long 13% 13% 34% I want to look after the environment 34% 21% We plan to move homes 8% It is a good investment 34% 31% Waiting for the technology to improve before I purchase solar PV 6% 6% 39 Q22E. Why are you considering purchasing solar panels/solar PV for your home? Base: Those considering solar PV Q22F. Why are you not currently considering solar panels/solar PV for your home? Base: Those not considering solar PV Significantly higher than 2014 Significantly lower than 2014

40 Fewer Queenslanders see solar PV as a cost effective option to reduce their bill and more Queenslanders believe they need to change their behaviour too much to make it worthwhile. Changing Motivations To Purchase Solar PV It is a cost effective option to reduce the size of my bill There was an offer that was too good to refuse 66% % % % 2015 There is very little difference in bill size between those receive a FiT of less than 10 cents and those without solar PV. This suggests that the solar PV is no longer as cost-effective as it once was. Changing Barriers To Solar PV I will need to change my behaviour too much I don t like how it looks on my roof 1% % % % 2015 Those who believe solar PV requires too much change in behaviour to be worthwhile are already performing significantly more energy efficient behaviours (28% do 10 or more behaviours) compared to those who do not believe this (16% do 10 or more). Significantly higher than 2014 Significantly lower than Q22E. Why are you considering purchasing solar panels/solar PV for your home? Base: Those considering solar PV Q22F. Why are you not currently considering solar panels/solar PV for your home? Base: Those not considering solar PV

41 FiT appears to impact of the likelihood to move. Regional Queenslanders on the 44c FiT are less likely to move house within the next three years than those on the retailer funded FiT. Intention To Move House South East Queensland 16% 21% 16% 11% 5% Total South East Queensland No Solar PV Non-Export Solar PV Less than 10c FiT More than 40c FiT 16% 19% Intention To Move House Regional Queensland 29%* 14% 10% Of those on the 44c FiT, intention to move house in the next 3 years is significantly higher in Wide Bay (19%). Total Regional Queensland No Solar PV Non-Export Solar PV* 6c FiT 44c FiT 41 Q46D. Do you intend to sell the home you currently live in within the next three years? Base: Total Sample Significantly higher than those on the 6c / 44c FiT Significantly lower than those on the 6c / 44c FiT

42 Ownership of a generator is stronger in Regional Queensland. Key reasons for ownership are as a secondary source of power in the event of an outage or natural disaster. Generator Ownership South East Queensland Reasons for owning a generator 5% 6% To run essential appliances in the event of an electricity outage (59%) 2014 (n=2,121) 2015 (n=2,199) To run essential appliances in the event of a natural disaster (54%) 22% Generator Ownership Regional Queensland 19% For when I go travelling (28%) To enable me to go off grid (6%) 2014 (n=1,970) 2015 (n=1,936) To enable me to not use electricity from the grid during peak times (2%) Significantly higher than 2014 Significantly lower than Q17B. Do you own a generator which provides your household with electricity supply in the event of a power outage? Base: Total Sample

43 Both awareness of and intention to purchase battery storage has increased significantly across Queensland, however the expected cost is grossly underestimated. 34% 46% Battery Storage South East Queensland 45% 57% Battery Storage Regional Queensland 2% 2% 5% 9% 2% 1% 6% 8% Awareness Ownership Intention to purchase (next 3 years) Awareness Ownership Intention to purchase (next 3 years) $4,621 average expected price for battery storage 10% of those intending have approached a salesperson $7,048 average expected price for battery storage 13% of those intending have approached a salesperson An independent report for the Energy Networks Association suggests a 4kw off grid system would cost $56,000. The battery component being $24,520. Other market data suggests the actual cost of a battery system depending on the type of system could be between approximately $10,000 and $25,000. Significantly higher than 2014 Significantly lower than Q52. Have you ever heard or seen any information about Battery Storage technology? Base: Total sample Q53. Does your home have a battery storage unit to store energy generated in the home (e.g. via a solar PV system or diesel generation)? Base: Total sample Q54. Do you intend to purchase a battery storage unit for your home in the next 3 years? Base: Those who do not own battery storage Q54A. What price would you expect to pay for a battery storage system? Base: Those who intend on purchasing battery storage Q54B. Have you spoken directly to an installer or salesman and received a quote for a battery storage unit? Base: Those who intend on purchasing battery storage

44 Queenslanders understand the benefits of battery storage, however fewer believe it will impact on their bill. Although not a key motivation, positive word of mouth increases significantly. Key Motivations To Purchase Battery Storage Increased self-sufficiency / don't have to rely on the electricity grid 60% 56% To store electricity in off-peak times and use this later when electricity can be more expensive in peak times 55% To stop my electricity bill increasing 62% 53% 53% Those who are above the age of 50 are more likely to be motivated to purchase battery storage due to increased selfsufficiency and not having to rely on the grid. 66% of those above 50 and who intend on purchasing battery storage are motivated by a desire to be self sufficient Battery storage solutions are becoming cheaper / better return on investment 42% 43% I Will have electricity in case of storms or natural disasters 43% 42% Significantly higher than 2014 Significantly lower than Q55. Why are you considering purchasing battery storage for your home? Base: Those intending on purchasing battery storage

45 Despite understanding the benefits, an increasing number of Queenslanders consider battery storage to be too expensive and have concerns about their safety. Key Barriers To Battery Storage % It is too expensive / long ROI 35% I haven't heard about it / don't know enough about it 40% 24% There are no Government incentives or rebates 14% 18% Those who currently have solar PV installed are most likely to state that safety concerns are a barrier to purchasing battery storage. 28% of those with solar PV installed have safety concerns about battery storage No energy generation source / no solar - 17% I have concerns about the safety of battery storage 6% 14% Significantly higher than 2014 Significantly lower than Q56. For what reasons do you not intend to purchase battery storage for your home in the next 3 years? Base: Those not intending on purchasing battery storage

46 Intentions to go off grid within the next three years remain low, though have increased significantly in regional Queensland. Intention to go off grid in next 3 years South East Queensland Intention to go off grid in next 3 years Regional Queensland 3.0% % % % 2015 Who is most likely to go off grid? Are under the age of 30 (9%). Are employed full or part time (5%). Have a smaller 1-2 bedroom home (6%). Have a non-export solar PV system (14%). Intend on purchasing battery storage (20%). Intend on switching tariffs (19%). Have high bill concern (5%). Significantly higher than 2014 Significantly lower than Q26B. Do you intend to completely disconnect from the electricity grid within the next 3 years? Base: Total sample

47 Among those who currently own solar PV, intention to purchase battery storage is slowly increasing, though most remain undecided on battery storage. Solar PV Battery Storage South East Queensland 2013 (n=2,107) 2014 (n=2,121) 2015 (n=2,199) 2013 (n=1,642) Regional Queensland 2014 (n=1,970) 2015 (n=1,936) Currently own Currently own 1% 0% 1% 1% 1% 1% Currently own Intend on purchasing 1% 2% 4% 2% 3% 4% Currently own Do not intend on purchasing 9% 9% 8% 9% 11% 8% Currently own Undecided 15% 16% 14% 13% 17% 16% Intend on purchasing Currently own 1% 1% 1% 1% 1% 0% Intend on purchasing Intend on purchasing 2% 2% 3% 3% 2% 3% Intend on purchasing Do not intend on purchasing 2% 2% 1% 3% 1% 1% Most Queenslanders either 1. Do not intend on purchasing solar PV or battery storage. 2. Do not intend on purchasing solar PV and are undecided about battery storage. 3. Currently own solar PV and are undecided on battery storage. Intend on purchasing Undecided 9% 6% 6% 11% 5% 6% Do not intend on purchasing Do not intend on purchasing Do not intend on purchasing Intend on purchasing 1% 1% 1% 1% 1% 1% Do not intend on purchasing 40% 41% 43% 35% 41% 41% Undecided 19% 19% 17% 22% 17% 19% Significantly higher than 2014 Significantly lower than Q8. Which of the following types of energy do you use in your home? Q53. Does your home have a battery storage unit to store energy generated in the home? Q54. Do you intend to purchase a battery storage unit for your home in the next 3 years? Base: Total sample

48 Intention to go off grid is highest among those who either currently own solar PV and intend on purchasing battery storage or intend on purchasing both solar PV and battery storage. Currently Own Solar PV Intend On Purchasing Battery Storage 4% of QLD Intend On Purchasing Solar PV Intend On Purchasing Battery Storage 3% of QLD 17% of those who currently own solar PV and intend on purchasing battery storage also intend on going off grid. Who is most likely to currently own solar PV and intend on purchasing battery storage? 18% of those who intend on purchasing both solar PV and battery storage also intend on going off grid. Who is most likely to intend on purchasing both solar PV and battery storage? Have a high income of $111,000 or more (7%). Have a large home with five or more bedrooms (10%). Are under the age of 30 (5%). Have a pool installed in their home (7%). Receive a FiT of less than 10 cents per kwh (23%). Currently perform 10 or more energy efficient behaviours (7%). Are a couple with children at home (5%). Have a mid to high income of $71,000 or more (5%). 48

49 Implications: Solar PV, Battery Storage & Off Grid Intentions. 1 Penetration and intention to purchase solar PV is likely to remain stable until the price of battery storage decreases. Queenslanders (particularly in SEQ) currently underestimate the price of battery storage, suggesting that uptake of batteries will remain low until the price falls within their expectations. 2 The early adopters of battery storage will most likely be high income and current solar PV owners on the retailer funded FiT. This group are already highly engaged with their electricity usage. Once the price has decreased sufficiently, the battery market will be driven by those looking to purchase combined solar PV and battery systems. This second wave of battery storage purchasers are also considering a number of solutions to bill concern such as switching tariffs and purchasing gas appliances. 3 Off grid households remain unlikely in the near future. These will likely become more common once battery storage becomes financially feasible, however it will remain the minority of Queensland households in the short to medium term. 49

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51 Key Findings: Tariffs. 1 While intention to switch tariffs is significantly lower in regional Queensland compared to South East Queensland, those in regional Queensland are more likely to consider switching to a time of use tariff. 2 A small proportion of Queenslanders believe that they are currently on a time of use tariff, however this does not align with data from networks. There is clear confusion around tariffs, however, those who believe they are currently on a time of use tariff may be more inclined to switch to such a tariff once informed that they are not currently using one. 3 Those who intend on switching tariffs are also more likely to intend on purchasing solar PV, battery storage and to go off grid in the next three years. Offering a suitable tariff to these households may help to minimise the risk of them going off grid. 51

52 Most customers are not aware which tariff they are on. Fewer customers claim to be using Tariff 33 compared to last year, however more are on an off-peak tariff but not sure which one. Tariff Audit South East Queensland 6% 4% Actual Tariff (Source Energex) Tariff Audit Regional Queensland 4% 3% 26% 29% Actual Tariff (Source Ergon) 40% 41% 5% 8% 8% 11% 27% 26% 100% 55% 48% 100% 22% 19% 16% 16% 2014 (n=2,121) 2015 (n=2,199) None of these Don't know Off-peak/Controlled load but I don't know which tariff Tariff 11 Tariff 13/PeakSmart Time of Use tariff Tariff 12/Time of Use tariff Tariff 33/Controlled Supply tariff/economy tariff Tariff 31/Night Rate tariff Note: Tariff 13 no longer exists 39% 15% 34% 30% 17% 19% 2014 (n=1,970) 2015 (n=1,936) None of these Don't know Off-peak/Controlled load but I don't know which tariff Tariff 11 Tariff 13/PeakSmart Time of Use tariff Tariff 12/Time of Use tariff Tariff 33/Controlled Supply tariff/economy tariff Tariff 31/Night Rate tariff 54% 15% Significantly higher than 2014 Significantly lower than Q29. Do you use any of the following tariffs? Base: Total Sample

53 Only a small percentage of Queenslanders plan on switching tariff. An off peak tariff is the most attractive option. Intention To Switch Tariff South East Queensland 8% Intention To Switch Tariff Regional Queensland 5% 51% 42% 52% 42% Yes No Don't know Yes No Don't know 4% of those on the 6c FiT intend on switching tariff very few of these intend to switch back to T11. Tariff Intending To Switch To South East Queensland Tariff Intending To Switch To Regional Queensland 43% Move to an off-peak tariff (i.e. Tariff 31 or 33) 43% Move to an off-peak tariff (i.e. Tariff 31 or 33) 13% Move to a flat rate tariff (i.e. Tariff 11 or 12) from an off-peak tariff (i.e. Tariff 31 or 33) 10% Move to a flat rate tariff (i.e. Tariff 11 or 12) from an off-peak tariff (i.e. Tariff 31 or 33) 10% Move to a time of use tariff (i.e. Tariff 12 or 13) 21% Move to a time of use tariff (i.e. Tariff 12 or 13) 34% Don t know 27% Don t know 53 Q29B. Do you intend to switch electricity tariffs in the next two years? Base: Total Sample Q29C. Which electricity tariffs are you likely to switch to? Base: Those who intend on switching tariffs Significantly higher than SEQ / RQ Significantly lower than SEQ / RQ

54 Those in newer homes, with a pool or with high bill concerns are most likely to switch tariffs. Who is most likely to switch tariffs? 7% of Queenslanders intend on switching tariffs Are under the age of 50 (9%). Are in a newer home that are less than five years old (11%). Have a pool installed (10%). Have a high level of bill concern (10%). 54

55 Fewer regional Queenslanders believe that they are on the best tariff, however are increasingly considering switching. Ensuring Appliances Are On The Best Tariff South East Queensland Ensuring Appliances Are On The Best Tariff Regional Queensland 18% 18% 19% 18% 18% 21% 22% 19% 18% 17% 32% 33% 28% 29% 27% 33% 35% 35% 36% 30% 10% 12% 13% 13% 11% 21% 20% 19% 17% 20% 6% 7% 7% 6% 4% 13% 14% 15% 15% 17% 11% 9% 8% 11% 11% 20% 21% 18% 17% 15% 4% 4% 6% 6% 7% 12% 12% 14% 13% 13% 2011 (n=1,447) 2012 (n=1,457) 2013 (n=2,107) 2014 (n=2,121) 2015 (n=2,199) 2011 (n=2,086) 2012 (n=2,041) 2013 (n=1,642) 2014 (n=1,970) 2015 (n=1,936) 55 Q32. Could you please choose one description below which would best describe you in relation to each of the following. Base: Total Sample Significantly higher than 2014 Significantly lower than 2014

56 Implications: Tariffs. 1 Consumers continue to be interested in one-off solutions to reducing their bill, including switching tariffs. Those who intend on switching tariffs are also more likely to go off grid. Offering a suitable tariff that addresses the bill concern of this group is likely to minimise the risk of them going off grid. 2 A time of use tariff is likely to be a relatively popular option, particularly in regional Queensland. A small proportion of customers already appear to believe they are on a time of use tariff, however this belief is likely to be incorrect as it is inconsistent with data from electricity networks. Identifying and targeting this group is likely to be most successful in getting them to switch, thereby assisting with demand management of the network. 56

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58 Key Findings: Behavioural Analysis. 1 Across Queensland, people are performing significantly fewer energy efficient behaviours compared to previous years regardless of their level of bill concern. This could indicate that some people are giving up on attempting to influence their electricity bill. 2 A small proportion of Queenslanders believe they are on a time of use tariff. In addition, a larger proportion would consider changing the time of day they use their appliances, or already have, to decrease their bill. Amongst those who have already changed their time of use, this has only impacted on oven usage. 58

59 Explanation Of The Behaviour Change Model. 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 Pre-Contemplation I am aware of this and I m thinking about doing it Contemplation I do this sometimes Action I am currently doing this / I have done this Maintenance 59

60 Across Queensland, households are performing fewer energy efficient behaviours; however those in regional Queensland continue to do more than those in the South East. Average Number of Energy Efficient Behaviours Performed Who is most likely to perform many energy efficient behaviours (i.e. 10 or more)? Live in Townsville (32%), Brisbane East (33%) or Ipswich (30%). Are above the age of 50 (32%) South East Queensland Regional Queensland Number of Energy Efficient Behaviours % 52% Are a couple without children at home (30%). Are currently retired (34%). 28% 22% 23% 25% Have solar PV installed (36%). 1 to 4 energy efficient behaviours 5 to 9 energy efficient behaviours South East Queensland (n=2,199) 10 or more energy efficient behaviours Regional Queensland (n=1,936) 60 Q32. Could you please choose one description below which would best describe you in relation to each of the following. Base: Total Sample Significantly higher than 2014 Significantly lower than 2014

61 Across the state, particularly within SEQ, fewer Queenslanders are attempting to reduce their consumption from the grid. Attempts To Reduce Electricity Consumption From The Grid Key Words Used To Describe How Consumption Is Reduced 81% SEQ % SEQ % RQ % RQ 2015 Significantly higher than 2014 Significantly lower than Q50A. Have you consciously tried to reduce your electricity consumption (from the electricity grid) in the past 12 months? Base: Total Sample Q55AA. What have you done to reduce your electricity consumption? Base: Those who have tried to reduce consumption

62 Those receiving a lower FiT are most likely to have attempted to reduce their electricity consumption. Attempts To Reduce Electricity Consumption South East Queensland Attempts To Reduce Electricity Consumption Regional Queensland 90% 89% 92% 75% 73% 73% 83% 81% 79% 83% 64% Total SEQ No Solar PV Non-Export Solar PV Less than to 39 cents cents per kwh per kwh Greater than 40 cents per kwh Total RQ No Solar PV Non-Export Solar PV 6 cents per kwh FiT 44 cents per kwh FiT Significantly higher than Total Significantly lower than Total 62 Q50A. Have you consciously tried to reduce your electricity consumption (from the electricity grid) in the past 12 months? Base: Total Sample

63 Fewer SEQ households are closing windows and doors when running the air conditioner or choosing appliances with the highest energy star rating. 54% 49% 88% 85% 30% 32% 6% 2014 (n=1,565) 6% 2015 (n=1,651) Close Windows and Doors When Running the Air Conditioner 8% 8% 5% 6% 2014 (n=2,121) 2015 (n=2,199) Choose Appliances with the Highest Energy Star Rating Significantly higher than 2014 Significantly lower than Q32. Could you please choose one description below which would best describe you in relation to each of the following. Base: South East Queensland

64 Regional Queensland households are performing significantly fewer energy efficient behaviours. 8% 8% 51% 47% 73% 70% 21% 22% 7% 9% 13% 13% 2014 (n=1,658) Set air conditioning to 25 degrees cooling in summer 2015 (n=1,604) 19% 2014 (n=1,379) Using a fan instead of the air conditioning whenever you can 21% 2015 (n=1,352) Significantly higher than 2014 Significantly lower than Q32. Could you please choose one description below which would best describe you in relation to each of the following. Base: Regional Queensland

65 Regional Queensland households are performing significantly fewer energy efficient behaviours. 2% 3% 18% 17% 57% 53% 36% 30% 29% 31% 11% 17% 11% 21% 7% 8% 6% 5% 2014 (n=1,970) Choose appliances with the highest energy star rating 2015 (n=1,936) 18% 21% 2014 (n=1,970) Have the best tariff for your electric hot water system, pool etc (n=1,936) Significantly higher than 2014 Significantly lower than Q32. Could you please choose one description below which would best describe you in relation to each of the following. Base: Regional Queensland

66 Even those experiencing high levels of bill concern are performing significantly fewer energy efficient behaviours in Avg. No. of Energy Efficient Behaviours by Bill Concern South East Queensland Avg. No. of Energy Efficient Behaviours by Bill Concern Regional Queensland Limited (0-5) Mild (6-7) High (8-10) Limited (0-5) Mild (6-7) High (8-10) Significantly higher than 2014 Significantly lower than Q32. Could you please choose one description below which would best describe you in relation to each of the following. Base: Total Sample

67 Those who claim to have already changed their TOU are less likely to use their electric oven or pool filter during peak times. 41% are willing to change their TOU 13% are NOT willing to change their TOU 31% DON T KNOW if willing to change their TOU 15% have already changed their TOU 5% 4% 3% 15% 10% 8% Time Of Use Electric Oven 74% 71% 59% 6% 7% 1% 6-11am 11am-4pm 4pm-8pm 8pm-10pm 10pm-6am 35% 34% 26% 30% 29% 18% Time of Use Pool Filter 17% 14% 10% 14% 13% 9% 22% 22% 13% 6-11am 11am-4pm 4pm-8pm 8pm-10pm 10pm-6am 67 Q34. Can you indicate approximately when you would most often use that appliance on a daily basis? Base: Those with the specific appliance Significantly higher than Total QLD Significantly lower than Total QLD

68 Implications: Behavioural Analysis. 1 Queenslanders are increasingly fatigued in taking responsibility for their own behaviour to reduce electricity costs and are unlikely to reach the peak of energy efficient behaviours achieved in This may lead to greater reliance on simpler, one off solutions such as switching tariffs, purchasing solar PV and battery storage (once the price of battery storage declines). 2 To encourage further energy efficient behaviours future messages will need to provide evidence that such behaviour will result in a tangible decrease in bill size. At present, even those experiencing high levels of bill concern are performing fewer energy efficient behaviours, suggesting that they are less likely to see the benefits. 68

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70 Key Findings: Bill Concern. 1 Bill concern has decreased in South East Queensland, however has remained stable in regional Queensland. 2 Solar PV only has a positive impact on bill concern if the household is receiving a feed-in tariff of more than 40 cents per kwh. 3 In regional Queensland, bill concern increases with the age of the home; however in South East Queensland, bill concern in older homes and newer homes is at a similar level. This is due to those in older homes in regional Queensland having lower incomes and higher electricity bills. 70

71 Not asked in 2011 Not asked in 2011 Bill concern has declined significantly in South East Queensland; however remained stable in regional Queensland. Bill Concern South East Queensland Bill Concern Regional Queensland Mean Rating Mean Rating % 37% 39% 41% 38% 43% 36% 47% 41% 42% 21% 25% 21% 23% 22% 18% 21% 17% 19% 19% 37% 38% 39% 35% 39% 37% 43% 35% 38% 38% 2010 (n=1,408) (n=1,444) 2013 (n=2,107) 2014 (n=2,121) 2015 (n=2,199) 2010 (n=2,136) (n=2,030) 2013 (n=1,629) 2014 (n=1,949) 2015 (n=1,914) Limited (0-5) Mild (6-7) High (8-10) Unclassified Limited (0-5) Mild (6-7) High (8-10) Unclassified Bill Concern 2015 South East Queensland Bill Concern 2015 Regional Queensland 23% 11% 4% 4% 5% 4% 12% 9% 13% 15% 7% 16% 12% 4% 4% 4% 3% 11% 8% 11% 12% 6% M4. How concerned are you about your ongoing ability to pay your electricity bill? Please mark on the 0-10 scale below where 0 means not at all concerned and 10 means very concerned? Base: Total Sample Significantly higher than 2014 Significantly lower than 2014

72 Solar PV has no impact on bill concern for households using non-export systems or those who are receiving one of the lower feed-in tariffs. Mean Rating Bill Concern & Solar PV South East Queensland Bill Concern & Solar PV Regional Queensland Mean Rating % 38% 31% 45% 25% 42% 44% 39% 41% 32% 22% 23% 20% 20% 19% 21% 24% 17% 13% 39% 44% 35% 54% 38% 34% 28% 41% 55% Total SEQ (n=2,199) FiT: Less than 10c / kwh (n=119) FiT: 10c to 39c / kwh (n=58) FiT: 40c or more / kwh (n=344) Total Regional Queensland (n=1,936) No Solar PV (n=1,395) Non-export solar PV (n=21)* FiT: 6c / kwh (n=141) FiT: 44c / kwh (n=337) Limited (0-5) Mild (6-7) High (8-10) Unclassified Limited (0-5) Mild (6-7) High (8-10) Unclassified Significantly higher than Total Significantly lower than Total 72 M4. How concerned are you about your ongoing ability to pay your electricity bill? Please mark on the 0-10 scale below where 0 means not at all concerned and 10 means very concerned? Base: Total Sample

73 Regardless of income, bill concern increases with the size of the bill, however bill concern declines as income increases. Average Bill Concern By Bill Size & Household Income $150 or less $151 to $250 $251 to $350 $351 to $450 $451 to $550 $551 to $650 $651 or more Less than $30,999 $31,000 to $70,999 $71,000 and $110,999 $111,000 or more 73 M4. How concerned are you about your ongoing ability to pay your electricity bill? Please mark on the 0-10 scale below where 0 means not at all concerned and 10 means very concerned? Base: Total Sample

74 There has been a decline in the proportion of households with high bills and high bill concern, particularly in South East Queensland. Total QLD South East QLD Regional QLD n= 4,091 4,135 2,121 2,199 1,970 1,936 Low bill - no concern (Unaffected) 48% 49% 49% 52% 46% 43% High bill - no concern (Ambivalent) 8% 8% 7% 6% 10% 12% Low bill - high concern (Sensitive / Media impacted) 18% 18% 19% 18% 15% 16% Med bill - high concern (Impacted) 13% 13% 14% 12% 13% 13% High bill - high concern (Hardship) 10% 8% 8% 6% 13% 11% Unclassified 3% 5% 3% 5% 4% 4% Significantly higher than 2014 Significantly lower than M4. How concerned are you about your ongoing ability to pay your electricity bill? Please mark on the 0-10 scale below where 0 means not at all concerned and 10 means very concerned? Base: Total Sample

75 In regional Queensland, bill concern increases with the age of the home; however this relationship does not exist in South East Queensland. Average Bill Concern By Age Of Home Regional Queenslanders in older homes have higher bill concern than older homes in South East Queensland because they Have a lower income (21% vs. 13% earning less than $40k per year). Have larger quarterly bills (29% vs. 16% paying more than $500 per quarter) Less than 5 years old 5-10 years old years old years old More than 30 years old South East Queensland Regional Queensland Significantly higher than SEQ / RQ Significantly lower than SEQ / RQ 75 M4. How concerned are you about your ongoing ability to pay your electricity bill? Please mark on the 0-10 scale below where 0 means not at all concerned and 10 means very concerned? Base: Total Sample

76 Implications: Bill Concern. 1 Bill concern has decreased in South East Queensland and remained stable in regional Queensland. As a result, it is expected that attempts to reduce electricity consumption will continue to decline thereby placing more demand on the network. 2 With most feed-in tariffs offered at present being under 10 cents per kwh, it is unlikely that uptake of solar PV will increase significantly, as this avenue is no longer able to address the bill concern of Queenslanders. This will likely change once battery storage becomes affordable and more widely available. 76

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79 Overall Research Design. Data Sources Sample Achieved Questionnaire Components Outputs Online Panels Module 1: Household Energy Use Audit Insights Report Combination of Opinions Paid, Research Now, MyOpinions. South East QLD n=2,199 Air Conditioner Audit: 8 minutes Appliance Audit: 5 minutes Penetration & Saturation Models A generic link was also placed on the Energex and Ergon Energy websites. A paid advertisement was also included on Facebook. Regional QLD n=1,936 Module 2: Energy Efficient Attitudes and Behaviour Assessment 7 minutes Total Length: 20 minutes Topline Report Raw Data Presentation 79

80 Overall Research Design. QHES 2015: Three Stage Survey Design Research Locations Household Air Conditioner Audit Region Statistical Division Sample in Each SD Sample in Each Region (8 mins) Brisbane 810 Gold Coast 414 Household Energy Appliance Audit (5 mins) SEQ Ipswich 210 Logan Beaudesert 217 Sunshine Coast 269 2,199 Energy Efficient Attitudes & Behaviours (7 mins) Data Weighting To ensure the data was representative, all data was weighted to match the following ABS Census 2011 population statistics: Moreton Bay 279 Cairns 316 Northern QLD 673 Townsville 357 Mackay 216 Central QLD 622 Fitzroy 406 Outback QLD Outback Darling Downs 131 Southern QLD Toowoomba 165 Wide Bay Age Location (SA4) Gender TOTAL 4,135 80

81 Survey Source: South East Queensland. TOTAL Brisbane East Brisbane North Brisbane South Brisbane West Brisbane Inner City Gold Coast Ipswich Logan - Beaudesert Moreton Bay - North Moreton Bay - South Sunshine Coast Total Panel Member Was asked by my employer to complete Received an invite from Energex s Connecting with you Saw a link to this survey on the Energex website Received an from a market research company Saw the survey on Ergon Energy s social media page (e.g. Facebook, Twitter or LinkedIn) Was told through a friend or family member Saw the survey on Energex s social media page (e.g. Facebook, Twitter or LinkedIn) Saw the survey on my / my friends social media page (e.g. Facebook, Twitter or LinkedIn) Saw a link to this survey on the Ergon Energy website Through a Government announcement or press release Saw the survey on Powerlink s social media page (e.g. Facebook, Twitter or LinkedIn) Other

82 Survey Source: Regional Queensland. TOTAL Cairns Townsville Mackay Fitzroy Darling Downs - Maranoa Toowoomba Wide Bay Outback Total Panel Member Saw the survey on Ergon Energy s social media page (e.g. Facebook, Twitter or LinkedIn) Saw the survey on my / my friends social media page (e.g. Facebook, Twitter or LinkedIn) Saw a link to this survey on the Ergon Energy website Saw the survey on Energex s social media page (e.g. Facebook, Twitter or LinkedIn) Was asked by my employer to complete Was told through a friend or family member Saw the survey on Powerlink s social media page (e.g. Facebook, Twitter or LinkedIn) Received an from a market research company Through a Government announcement or press release Received an invite from Energex s Connecting with you Received a call from a market research company Other

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