Manufacturers facing a crisis of confidence in claims of energy saving performance

• Just 5 percent very confident in manufacturer claims of energy saving and one quarter not confident at all.

• Half of respondents not aware of UK government’s independently assessed Energy Technology List for products that deliver top quartile energy saving performance.

29 February 2016

Manufacturers’ claims about the expected energy efficiency performance of equipment are not fully trusted by their customers. This was a key finding from new research released today by the Carbon Trust, which reveals that just 5 percent of professionals with responsibility for procuring energy consuming equipment for their organisations are very confident in the energy saving claims made by manufacturers, with a quarter (24%) not confident at all.

The Carbon Trust undertook the survey of 135 professionals across the public and private sector, looking at behaviour, attitudes and intentions related to the procurement of energy saving equipment. One in three stated that a lack of credible information about equipment was a significant barrier to improving their organisation’s energy efficiency. The research also found that two-thirds of respondents did not fully take into account the whole life costs of equipment when making purchasing decisions.

Lighting is by some distance the most popular purchase, with nine out of ten organisations having invested in it over the past two years and 82 percent expecting further investment in the next 12 months. Other popular categories for expected upcoming purchases include HVAC equipment (56%), boiler equipment (52%), electric motors and drives (47%) and pipework insulation (45%).

Some categories show notable growths in popularity for intention to purchase in the coming 12 months when comparing it with results for equipment bought over the past two years. These include combined heat and power systems (16% to 24%), heat pumps (18% to 27%) and solar thermal technology (13% to 17%).

The survey also found that the most significant barriers to improving an organisation’s energy efficiency are: making a business case for purchasing energy efficient equipment (57%); competing organisational priorities (50%); availability of finance (38%); risk of disruption to operations (35%); lack of credible information about products (33%); and finding good quality suppliers (32%).

Another finding was that almost half of respondents (45%) were not aware of the existence of the Energy Technology List (ETL). The ETL is a UK government scheme managed by the Carbon Trust on behalf of the Department for Energy and Climate Change. It independently tests and lists products that show top quartile energy saving performance.

It is the world’s largest database of its kind, currently covering products across 57 technology categories. Over the lifetime of the ETL the Carbon Trust has assessed almost 60,000 products against scheme criteria. Businesses that purchase products that meet ETL criteria may be eligible for Enhanced Capital Allowances, providing accelerated tax relief.

Paul Huggins, an Associate Director at the Carbon Trust who manages the ETL scheme, said:

“Organisations that want to save money on energy bills and cut carbon emissions should think carefully about the total cost of ownership for equipment. The case for investing in better energy efficiency often seems blindingly obvious, but making good decisions depends on having good quality, reliable information.

“In the last few months the performance gap between manufacturer claims and real world performance has become a prominent issue. This is why the ETL is such a valuable resource. It provides organisations with a vast database of independently tested energy saving equipment, where you can be confident of getting products that will deliver top quartile performance.”

Notes to Editor

For further information please contact the Carbon Trust press office on 020 7170 7050 or email press@carbontrust.com.

About the Research

The Carbon Trust conducted a survey in November 2015 of 135 professionals based in the UK that are involved in making purchasing decisions for energy consuming equipment for their organisations. 60% of respondents came from organisations with over 250 employees, 31% from the public sector, and 48% had an annual energy spend in excess of £500,000.

About the Carbon Trust

The Carbon Trust is an independent company with a mission to accelerate the move to a sustainable, low-carbon economy. The Carbon Trust:

  • advises businesses, governments and the public sector on opportunities in a sustainable, low-carbon world;
  • measures and certifies the environmental footprint of organisations, products and services;
  • helps develop and deploy low-carbon technologies and solutions, from energy efficiency to renewable power.

For further information visit: http://www.carbontrust.com.

About the Energy Technology List

The Energy Technology List is managed by Carbon Trust on behalf of the UK government. It provides information on products that qualify for the government's Enhanced Capital Allowance scheme. The scheme allows businesses to write off the entire cost of any product included on the list against taxable profits.

For further information visit: http://www.gov.uk/guidance/energy-technology-list.