There’s an open outlet for upselling energy efficiency.
According to a new report from Schneider Electric Home & Distribution, 82% of 13,000 respondents consider energy efficiency important and 70% say reducing their carbon footprint is too, which means the desire to be energy efficient is there. Builders can use this to their advantage with smart home packages and energy efficient upgrades to help close sales.
Marta Asack, senior vice president of Schneider Electric Home & Distribution Hub North America, shares how home builders can plug into this strategy below.
How can home builders boost home sales through energy efficient electrical upgrades?
Home builders have a unique opportunity to differentiate themselves by incorporating energy-efficient technologies into new construction and remodels. Not only does this showcase a commitment to sustainability, but it also provides a compelling value proposition for homeowners—offering long-term savings while reducing environmental impact.
Offering home upgrades like pre-installed smart energy management systems can be a major selling point. Highlighting the long-term cost savings, improved comfort, and environmental benefits of these technologies can appeal to eco-conscious buyers and those looking to manage their utility bills more effectively. For instance, let’s take the example of upselling a client on a smart electrical panel, which enhances home efficiency, sustainability, and modern convenience. Smart panels help by automatically balancing power demand, preventing overloads, and integrating seamlessly with solar panels, battery storage, and EV chargers. For tech-savvy buyers, these panels offer smart home integration, allowing remote energy monitoring and automated adjustments through an app, making managing electricity effortless.
Beyond efficiency, smart panels improve home resilience by enabling homeowners to prioritize critical appliances during grid outages, ensuring essential devices stay powered. This level of energy intelligence aligns with the growing demand for connected home technology while differentiating new builds in a competitive market. By positioning newer tech as a key selling point, home builders can appeal to energy-conscious buyers and pad their bottom lines by offering upgraded options that help clients future-proof their properties and add long-term value to their home.
Where do you think the disconnect between energy efficiency intention and action lies for consumers?
The disconnect often comes down to two key factors: cost and complexity. According to the new research report, we found that while 84% of homeowners want to prioritize energy efficiency, 52% believe smart home technology is too expensive, and 33% find it too complicated to use. Homeowners want to reduce energy consumption, but the initial investment and perceived learning curve can be deterrents. Additionally, many are unaware of the long-term savings these technologies can offer, which creates hesitation in taking the first step.
What types of packages could home builders consider?
Home builders could offer tiered packages that cater to different buyer needs and budgets. For instance:
- Basic Package: Smart lighting, energy-efficient appliances, and programmable thermostats.
- Advanced Package: Smart thermostats, energy monitors, and solar panel integration.
- Premium Package: Comprehensive home energy management systems, EV chargers, and smart panels that manage energy loads efficiently. These packages allow buyers to choose the level of energy efficiency that fits their lifestyle and budget while ensuring homes are future-ready.
Why do you think homeowners gravitate toward smart lighting for energy efficiency instead of smart thermostats?
Smart lighting is often perceived as more accessible and affordable. Our survey showed that 52% of respondents favored smart lighting as an energy-saving solution, likely because installation is straightforward and also simply because this is obvious and visible. In contrast, smart thermostats may require professional installation and have a steeper learning curve. Additionally, lighting is used throughout the day, making the impact of efficiency measures more tangible, while thermostat adjustments may feel less immediate despite their significant energy-saving potential.
However, the main takeaway here is that adjusting the thermostat has a much greater impact on energy savings than turning off lights. While the survey found that turning off lights is the most common energy-saving habit, it only accounts for 5% of the average energy bill. In contrast, adjusting the ambient temperature—something only 44% of respondents do—affects over half of household energy use.
What are three lessons home builders could gather from the new report?
- Energy Efficiency is a Top Priority: With 48% of homeowners citing energy efficiency as their foremost concern, integrating energy-saving solutions is no longer optional but essential.
- Smart Technology is in Demand: 37% of respondents highlighted the importance of smart technology in managing energy use. Builders should consider pre-wiring homes for smart devices and offering energy management systems.
- Education is Key: Many homeowners are still unfamiliar with how smart technology works. Builders can provide added value by educating buyers on the benefits and ease of use of these systems, through demo units or interactive sessions.
