According to the Behavioural Insights Team’s past work and research, customers can face various types of barriers when retrofitting their homes. Several examples are provided here, along with where they can come up during a customer’s domestic retrofitting journey.
Provided by: The Behavioural Insights Team
According to the Behavioural Insights Team’s past work and research, customers can face the following types of barriers when retrofitting their homes:
Below are a number of examples for each type of barrier and where they can come up during each stage of a customer’s domestic retrofitting journey
| Barrier | Relevant stage(s) of the customer journey | |||||
| Trigger | Research | Decide | Set up | Install | Use | |
| Lack of awareness: Both having awareness of what retrofits are, as well as having an awareness of the benefits of retrofitting, are key pre-conditional barriers to considering retrofits. |  | | | |||
| The number of options and decisions: The retrofitting customer journey involves key decisions at every stage. Each of these decision points has the potential of overwhelming homeowners and derailing them from installing retrofits. | | |||||
| Lack of financial literacy: Approximately 45% of Irish adults were found to be financially illiterate (based on a 2014 global survey). | | | ||||
| Barrier | Relevant stage(s) of the customer journey | |||||
| Trigger | Research | Decide | Set up | Install | Use | |
| High cost: Retrofit costs are universally high. An estimate from one OSS-registered installer suggests that costs can range from €25,000 for a home built since 2000, to €75,000+ for larger, older homes. According to one survey, over 70% of respondents indicated ‘not having sufficient funds’ as the primary barrier to improving the energy efficiency of the home. | | | | |||
| Split incentives between landlords and tenants: Split incentives occur in situations where the benefits of a transaction do not accrue to the actor who pays for the transaction. In the context of retrofits, this can occur between landlords and tenants. | | |||||
| Lack of skilled installers: There is currently a shortage of skilled workers in the Irish construction sector capable of carrying out retrofits to the required standards. SEAI estimates that 17,000 additional workers will be needed to achieve the target of retrofitting 500,000 homes to a B2 BER rating by 2030. | | | ||||
| Lack of social opportunity: Retrofits are not visible and cannot be recognised by others. | | | ||||
| Barrier | Relevant stage(s) of the customer journey | |||||
| Trigger | Research | Decide | Set up | Install | Use | |
| Friction costs and hassle: Undertaking retrofits is an often complex and disruptive process, which itself can be off-putting to homeowners. E.g., considerations include: arranging energy audits, navigating financing options, searching for contractors, arranging to vacate the home (especially with deep retrofits), etc. | | | | | | |
| Moderate perceived benefits: The most motivating factor for homeowners to retrofit is achieving higher energy savings (and the financial savings that result). However, this benefit is gradual and takes a substantial amount of time to provide homeowners with a return on their investment which can lead to procrastination. | | | | |||
| Risk aversion: There are a number of risks associated with undertaking a retrofit project that include: financial risks, risks relating to finding capable contractors, and risks associated with the quality of the retrofit itself. | | |||||
| Low consumer trust: Research has found that among rural and older homeowners in particular, there is a strong preference for locally-based contractors, whom they trust more to carry out retrofitting work. | | | | | | |
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