Energy mad
Pilot
With the technical problems addressed, the matter of pricing remained. One of the biggest challenges facing energy-efficient lighting campaigns is cost. "Energy-efficient bulbs are more expensive to manufacture than standard incandescent bulbs. Other failed campaigns had tried to pass this increased cost on to the consumer but our market research indicated that consumers aren't willing to pay $7 – $8 for a Cfl – which is what other good Cfl brands retail at. Although they may recognise the benefits, consumers will stick with $1 energy-hungry incandescent bulbs," says Mr Mackenzie.
The 20 Watt 'Ecobulb'
Energy Mad's solution was an innovative partnership plan enlisting the funding and promotional support of local energy trusts (major shareholders in lines companies), distribution or electricity retail companies, and the Electricity Commission. The project – dubbed the New Zealand Household Efficient Lighting Project (HELP) – was piloted in South Canterbury in November 2004.
With funding partners in place, Energy Mad was able to put together a very attractive promotional deal offering consumers five Ecobulbs for $10. "Even so, our Ecobulbs were still marginally more expensive than incandescent bulbs, but we made sure our marketing material emphasised the 80 percent power savings and translated it into consumer-friendly terms," says Mr Mackenzie. For example, an average household could save up to $136* in power savings per bulb. If a household installs five Ecobulbs they can save up to $680 over the life of the bulbs, or around $75 a year. Consumers were quick to work out that their potential savings would more than offset the slightly higher cost. Consequently Energy Mad sold out of Ecobulbs during the first promotion, shifting a total of 62,000 bulbs. Participation was high, with 65 per cent of homes purchasing the Ecobulbs.
The success of the pilot project meant that Energy Mad's subsequent Ecobulb projects – Network Tasman, Christchurch, West Coast, North Otago, North Canterbury and Wellington – commenced with full endorsement by the Energy Trusts of New Zealand.
* Assuming a 100W incandescent bulb is replaced with a 20W Ecobulb used on average 3 hours/day at a cost of 17c/kWh. The life expectancy of an Ecobulb is 10,000 hours (or 9.1 years of average use).
