What Drives Consumer Interest in Green Home Upgrades

Energy costs have climbed since Russia’s invasion of Ukraine, which put a damper on global oil and gas supply. Some of those costs were passed on to consumers in the form of higher gasoline prices, but electricity prices also skyrocketed last year amid record inflation. 

Saving money, therefore, is naturally a compelling reason for upgrading to more energy-efficient technology at home. An earlier Morning Consult analysis found that 20% of consumers said they would consider purchasing new or upgrading existing smart-home devices (like home energy systems that include batteries or solar panels) if it would allow them to save money in the long run. 

In the latest survey, younger generations — Gen Zers and millennials — were more likely than their older counterparts to be interested in green home upgrades for ethical reasons. But much like the general population, every generation was more likely to cite financial reasons for their purchasing consideration.

Home energy rebates can help consumers save money — if they know about them

By the end of this year, consumers will potentially be able to tap into the energy efficiency rebates — up to $8,000 as part of the Home Efficiency Rebates Program and up to $14,000 as part of the Home Electrification and Appliance Rebates Program — but the money must first jump over several hurdles. States must apply for the funding and set up programs to distribute the cash, and, more importantly, consumers have to know the discounts are available. 

Consumers are looking for opportunities to save money, and while there are easier and cheaper ways to do so than buying a new water heater or heat pump, these kinds of incremental upgrades are the ones that will help Americans in the long run. 

To make the green transition happen, states must tap into the available funding, but some — particularly GOP-led states — could reject incentives to avoid the optics of taking handouts from the federal government. 

For example, Republican Gov. Ron DeSantis of Florida, a 2024 presidential contender, has already chosen to turn down Florida’s $377 million share of the federal funding. Republican states have taken similar stances in the past in rejecting renewable energy projects that have been deemed “woke.”

The White House will also have to do its part in spreading the word, an issue that President Joe Biden acknowledged during a Cabinet meeting, saying that consumers “need to know how to take advantage of these benefits that we passed. That’s on all of us around the table here to make sure we get that message out clearly.” 

Almost 3 in 5 consumers have not heard much or anything at all about the rebates, according to the Morning Consult survey. 

A successful energy efficiency campaign will rely on making consumers aware of the savings that could come with making home energy upgrades, promoting state efforts to establish accessible and impactful rebate programs, and providing education around less familiar technology like heat pumps so consumers are comfortable with what they’re purchasing.

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