The consumer perspective of 'going green'

 Image from Associated Press

The green reform has different meanings, in various depths, to people and businesses. Many agree that an eco-lifestyle is important at some level, however, research has shown that only two percent of consumers make their purchasing decisions based on whether a product is green or not.

On February 4, SDForum held the event “Consumer Clean Tech Trends” as part of their on-going Green and Clean Evening Series. A panel Discussion was moderated by Greg Heibel, a partner and a member of the Emerging Companies Group at Orrick. The speakers were Sara Batterby of Akel Ventures, Tod Francis of Shasta Ventures, Jan Pepper, of Alameda Municipal Power, Scott Potter, of San Francisco Equity Partners, and Pete Davies of TerraPass. For speakers’ background click here and photos DJCline.com.

The panel recognized that many consumers would like to have an Eco-status, however, they are more concerned with personal financials. Cost/benefit assessment is a major factor, especially in current economic conditions, where cost savings are not only acceptable, but are praised.
 

What would drive consumers to choose green products and services Vs. current ordinary (legacy?) solutions?

There is a wide perception that green is more expensive. At the consumer level, reducing carbon footprint and becoming more sustainable not only require fundamental lifestyle changes (yes, even sacrifice), but are also costly.

The panel agreed that cost savings tied with the message that the product or the service has an environmental benefit are the best strategy for consumer industries. Most consumers will not be moved to compromise or sacrifice for the greater environmental good, unless businesses and manufacturers show cost/benefit advantages. Providing consumers with information of before-going-green/after-greening is essential. Furthermore, companies and industries need to be more environmentally accountable.
The panel emphasized the need of authentic measurable and quantifiable data to show that ‘green living’ does save money.

The panel also talked about ‘green washing.’ Since we are currently in transition, it’s easier for companies to say they are environmentally-committed, but are they actually do what they say? Consumers need to factor manufacturers’ and service providers’ environmental pledge into their decision making, while understanding that changes are incremental (no one can go green overnight – not individuals nor businesses).

In the public view, saving energy is favorable and there is a strong interest in conservation and efficiency. Consumers are now asking ‘how can I make my house perform better?’

In some geographical areas utility companies already share levels of household consumption among neighborhood residents (anonymously). Consumer dynamic is also characterized by neighborly competition: people are motivated to do same or better than their fellows.

Once technology and processes continue to drive price/performance down and products or services become financially compatible – people will likely to transition to green. Policies, at any level of government, can propel the transition. A strong example is packaging for the food service market: today, there are biodegradable disposable tableware and utensils. These products are compostable, require less energy to produce, provide a viable alternative to the plastic or Styrofoam traditional products, have a minimal carbon footprint, and they offset solid-waste processing. Once cost becomes comparable, biodegradable packaging will be adopted.

Crossroad image from green.sympatico.msn.ca    

 JOB LEADS

1. Energy jobs Portal - a dedicated online resource for the energy industry employment,
encompassing all sectors of the energy community.

2. Public utility job listings - a premier Public Utilities destination with local job boards.
The Public Utilities Channel consists of 33 career communities that attract and connect job seekers and employers based upon their needs and interests.

3. Upcoming Classes on Solar Financial Analysis, Economics, Sales & Marketing

Check Solar Energy International calendar and On Grid classes

Sales & Marketing class covers:
• Sales structures, benefits and costs of sales staff, compensation, contracts, property ownership, and termination issues
• The sales cycle: lead screening, site visits, proposal preparation and presentation, closing, documentation and writing up the sale
• Marketing overview
• Effective and ineffective marketing strategies, with a deep look at lead generation
• Skills required to be a successful salesperson

Economics of Solar: Making the Financial Case Solar class covers:
• Understanding electric rates including Tiered & Time-of-Use Net Metering analysis for variety of U.S. States
• Understanding all incentive types for variety of U.S. States and the uncapped residential federal Investment Tax Credit
• Predicting Financial Savings & Payback factoring in TOU, Shading, Tilt, Orientation and other system performance factors
• How to do Simple Payback, Total Lifecycle Payback, Internal Rate of Return (IRR), Cash Flow analysis, and Appraisal Resale Value analyses for your projects

4. Additional job-search resources are at On Grid Solar.

Send me feedback, Green career tips, training suggestions or job openings and I will share them.

Tags: consumers, shopping, consumer behavior, consumer purchasing, behavior models, going green, living green, enrgy alternatives, energy efficiency,  cost of green, green technology, smart grid, power grid, electrical grid, metering, renewable, packaging, solar