Public Awareness Campaign Update 3-10-08

1. 1 Public Awareness Campaign Update3-10-08

2. 2 Campaign Goals The goals of the public awareness campaign are three-fold: Educate the general population, including: new home buyers and builders, trade organizations, industry groups, and financial institutions about the value of new homes that incorporate high levels of energy efficiency and high performing solar systems Encourage builders to incorporate high levels of energy efficiency and high performing solar systems as standard features in new homes Encourage home buyers to ask for high levels of energy efficiency and high performing solar systems when purchasing new homes

3. 3 Market Research:

4. 4 Key findings: Respondents believe that rooftop solar electric systems are cost-efficient. More 82% believe the system would �pay for itself.� � Nearly all of those familiar enough to give an opinion consider rooftop solar electric systems to be �user-friendly,� �reliable� and �low maintenance.� The principle factors motivating purchase interest are perceptions of savings on monthly utility bills and doing something meaningful to improve the environment. California Research Highlights

5. 5 � 62 percent would be willing to consider purchasing a solar electric system as an option for a newly constructed home. One-third would definitely consider it. � Support of purchasing a solar electric system increases to 72 percent when respondents hear a brief description of how solar electric systems work and how systems can save electricity and money. � A large majority of respondents would find solar electric systems, if offered as a standard feature in a newly constructed home, to be an important factor that influenced their purchase of that home.

6. 6 � Respondents consider builders who provide solar electric systems to care about the environment and believe these builders are more likely to offer high quality construction. Government subsidies (rebates) are welcome, but relatively few are aware of their existence or details, and they seem not to be essential to motivate buyer interest. Younger buyers (ages 18 � 49), college educated, who tend to see themselves as environmentalists and moderate-to-liberal are a prime target audience. Women are in slightly greater proportion than men.

7. 7 � Willingness to purchase a rooftop solar package among those favorably inclined increased by 10 percentage points (from 62 to 72%) after exposure to basic information and another 2% with positive information about the systems. It then declined only 2 percentage points after exposure to negative attributes.

8. 8 More than ever, Americans are aware of our environment. Green thinking has gone beyond a movement and is now a mainstream concern. Most (75%) have knowledge of Green home building, creating a strong base. The groups most knowledgeable on Green homes include: Homeowners in the East and West People between ages of 25 and 44 Women.

9. 9 However, few homeowners see homes as an environmental problem. In fact, more than 70% believe that their home has no impact or an �acceptable� level of impact on the environment. Those who are aware (approx. 20%) want to reduce the environmental impact in their existing home or a future home purchase. A similar percentage of home buyers said they were looking for more environmental features, but they weren�t available when they last purchased. Only 7.2% say that developers are paying enough attention to the environment.

10. 10 Three primary motivations were identified for buying a Green home. Over 1/3 of buyers identify one or more of these motivations as the most important decision-making criteria in buying their next home. Realize Health Benefits Save Energy Protect The Environment.

11. 11 Three major buyer profiles emerged: Forest Greens � 6.1% of buyersBuyers who consider some sense of environmental responsibility/stewardship to be their primary decision-making criterion in their next home purchase. Healthy Greens � 8.5% of buyersBuyers who consider potential health benefits of green homes to be their primary decision-making criterion in their next home purchase. Greenback Greens � 21.8% of buyers Buyers who consider energy savings � or more importantly, the imputed cost savings due to lower energy bills � to be their primary decision-making criterion in their next home purchase. Tend to be older, less wealthy, looking to downsize

12. 12 Challenges: When asked whether they would make an investment today on energy savings features even if they might not be repaid in cost savings down the road, the favorable response rate drops from 75% to 18% Most people have difficulty understanding how they will save by purchasing an energy-efficient home. Of those who said they would spend money on energy saving features if they could recoup the investment, 72% said they needed to recoup it in less than 5 years. On average, Greenback Greens are willing to spend an average of $71 more per month to get cost savings that offset their initial purchase.Translates to: 67% are willing to pay up to $10,000 25% are willing to pay up to $17,000 8% are willing to pay $20,000 extra.

13. 13 Education is the key to this campaign�s success. Mass media must reach active home buyers as well as those waiting out the market given the small number of current buyers. Media must both demonstrate the benefits of solar and engage the audience in the message. The core message is savings on electric bills from energy efficiency features and solar. And it helps the environment. The audience is diverse: Older buyers are more motivated by cost savings Younger buyers are more open to supporting the environment.

14. 14 Attributes that must be communicated include: Substantial electric bill savings on an Energy-Efficient New Solar Home The cost of adding solar Maintenance and Repair/reliability Return on Investment How solar works Warranty details AppearanceDespite low rating, appearance elicited strong positive reactions in focus groups

15. 15 Builders who roll the cost of a solar system as standard into the home may find the most success selling because of payback issues. Opportunity to distinguish new energy-efficient solar homes from existing homes by their energy savings and environmental benefits. Builders who do are seen as high quality and caring about the environment. As bargain-hunter buyers enter the market when housing prices approach anticipated lows, they may also be persuaded by savings on electricity bills.

17. 17 Consumer Advertising Strategy Objectives: Educate consumers about the benefits of a energy-efficient new solar homes Drive consumers to GoSolarCalifornia.org to watch an educational video and take a short quiz as part of entering Sweepstakes. Encourage those interested in energy efficiency will visit an NSHP community through radio tags, web links, etc. Target Audience: Younger adults 25 � 49, tend to be female, andenvironmentally-conscious �Greenback Greens� ages 49 � 65+

18. 18 Consumer Advertising Strategy Budget: $1.25 million total media budget 2007-09 for consumer and builder focused advertising Targeted Markets: San Diego, Riverside, Fresno, Sacramento, San Francisco/San Jose and Los Angeles Media: :30 Radio with tags directing them to local NSHP developments Plus 500 bonus :15 radio promotional announcements statewide Web banners: Move.com, Realtor.com, Google.com Timing: May 8, 2008 launch -- through October 2009

19. 19 Solar Sweepstakes: Goals: Create interest and excitement about new energy-efficient solar homes Educate consumers by motivating them to visit GoSolarCalifornia.org to watch a brief video and take a short quiz. Prizes: A New Energy-Efficient Solar Home from an NSHP builder worth up to $500,000, contributed by Wells Fargo, to be given away in fall 2009. Two hybrid cars � one given away in fall 2008, one in spring 2009 Six Energy Star refrigerators -- one each month May � October 2008 Solio cell phone chargers � two each month for 18 months. Consumer Outreach Strategies

20. 20 Consumer Outreach Strategies Public Relations: Media Relations Ongoing outreach to consumer media, including print, radio & TV Editorial Board presentations A 30-minute radio program on new energy efficient solar homes will air in at least 10 markets in �08 and �09. Online: Feeding NSHP content to bloggers, creating GoSolarCalifornia page on MySpace Community Events: Participating with partners at community events.

21. 21 Consumer Outreach Strategies Promotions: Solar Sweepstakes designed to get consumers to watch the video to win prizes Live remote radio events at builder grand openings Kiosks at events where consumers can enter the sweepstakes Promoted on each radio stations� Web site with links to GoSolarCalifornia.org.

22. 22 Consumer Outreach Strategies Partnerships: Wells Fargo Contributing the New Solar Home prize worth up to half a million dollars Providing PR support to promote the sweepstakes and campaign launch Providing project management Developing a Green Mortgage product Promoting the campaign statewide: In branches On WellsFargo.com On Wells Fargo ATM Screens On collateral materials

23. 23 Consumer Outreach Strategies Partnerships: Solio � Contributing 36 solar cell phone chargers as prizes SMUD: Financial contribution toward media Promoting GoSolarCalifornia.org in newsletters, direct mail, online PG&E, SDG&E and SCE CPUC California Association of Realtors Stewart Title

25. 25 Builder Outreach Advertising in Builder Trade Publications Objective: Encourage builders to build energy efficient solar homes Target Audience: Production home builders in California Key Messages: Solar makes homes more marketable Marketing support and rebates available Position your company for the future as a green builder California Sun Certified Energy Efficient Home brand

26. 26 Builder Outreach Marketing Entitlements: Participate in Sweepstakes � offer to win a new NSHP home Radio tags promoting Platinum-level partners Live Radio Remotes for Platinum-level new developments Electronic Marketing Tool Kit Access to Research about consumer attitudes toward solar Listed on GoSolarCalifornia.org as an NSHP community Web banners available for higher-level partners Featured on Consumer brochure Assistance with local media outreach

27. 27 Builder Outreach Information meetings Sponsored by Stewart Title and local utilities One-On-One Outreach Sales calls with builders that are not in the NSHP program to help them understand the benefits Trade Shows & Conferences Presence at shows to educate builders about NSHP andbenefits of building energy efficient solar homes Media Relations Place articles and op-eds in key builder trade publications to further spread the word about the NSHP

28. 28 Builder Support � Marketing Tool Kit Builders that participate in the NSHP will receive a tool kit that provides marketing materials for the Solar Sweepstakes. � Promotional Support A four-tiered support system based on level of participation. The highest tier receives the most on-air mentions, radio station promotions.

30. 30 Realtor Referral Program Provides incentives to Realtors to become knowledgeableabout new energy efficient solar homes and to show newsolar homes to their clients. � A contest that encourages Realtors to participate: Realtors will be entered to win a $50 Home Depotgift card or a free four-day houseboat vacation on aForever Resorts houseboat. Partnership with CA Assoc of Realtors with newsletter articles, etc.

31. 31 Local Government Outreach