Market Barriers to Widespread Diffusion of Climate-Appropriate HVAC Retrofit Technologies

This is a study of the market barriers that prevent emerging technologies from being adopted by the HVAC market. Its benefit is definition of possible solutions to increase adoption of EE measure.

This study seeks to identify market barriers and other factors impeding adoption and promotion of downstream climate-appropriate HVAC retrofit technologies, as well as develop opportunities to increase adoption and promotion by addressing market barriers. This study focuses on two climate-appropriate technologies in particular: -An evaporative pre-cooling condenser air retrofit unit; and -A retrofit supply fan speed control. These two technologies, and their diffusion in the small and medium-sized commercial buildings market within Southern California Edison’s service area, serve as case studies for other climate-appropriate retrofit HVAC technologies. To understand the market for climate-appropriate HVAC retrofit technologies, the project team conducted preliminary research to map the basic market structure and identify key market actors (also referred to herein as stakeholder groups). Next, the team developed a logic model to identify the relevant behavioral drivers applicable to each stakeholder group and outlined a broad study design and data collection strategy based on the model. They then collected data using interviews and surveys of stakeholders with and without experience with climate-appropriate HVAC. The data collected was first sorted into broad categories defined by problems and solutions related to the three elements of the behavioral model outlined: motivation, ability, and trigger. Subsequently, the data were pile sorted and analyzed to identify the salient themes that emerged within each of those broad topics, and further pile sorted according to subthemes and stakeholder groups. The team then made specific recommendations based on the analysis of the key issues and evidence of alternative solutions provided by study respondents, as appropriate. As this was exploratory work based on data from a small sample, no formal quantitative analysis was conducted. However, when deemed useful, an indication of the prevalence of certain responses was provided. The project team identified key factors that influence stakeholders’ motivation, ability, and triggers to adopt and promote climate-appropriate retrofit technologies. Eight factors that particularly influence stakeholders’ motivations to adopt and promote climate-appropriate HVAC retrofit technologies were identified: -Technology requirements and performance: the human, material, and logistical resources required by the technology or policy for proper installation, commissioning, maintenance and performance -Technology costs: the initial and ongoing financial costs, uncertainty surrounding such costs, and diffused responsibility for such costs -Additional benefits: value besides energy savings provided by the retrofits -Access to information: whether and how stakeholders can obtain pertinent information on retrofits -Endorsements: the influence of recommendations by utilities, distributors and contractors, as well as the influence of social norms -Status quo bias: the human tendency to prefer the current state of affairs -Stakeholder coordination: the need for synchronized activities within and across stakeholder groups -Accountability and support: the ability to hold responsible and gain assistance from appropriate parties in the event of a problem