Many local and provincial governments offer programs to help small and medium-sized businesses become more energy efficient. However, participation in these programs can be low–meaning that small businesses are not taking advantage of incentives that would reduce their costs and their impact on the environment. 

Read on to discover how Prince Edward Island (PEI) used Behavioural Insights– findings from the study of real-world human behaviour and decision making– to improve its program and help businesses make energy-efficient upgrades.

Understanding barriers to program completion

Prince Edward Island (PEI) was struggling to engage businesses in its Community Energy Solutions program. It engaged the Behavioural Insights Team (BIT) to help strengthen the program through the application of Behavioural Insights. Behavioural science is the study of human behaviour and the ways that our actions are shaped by environmental and contextual factors. A behavioural insights approach is behavioural science in action.

The team began by defining the key behaviours for businesses to successfully complete the program. These behaviours included submitting an application, receiving an audit, planning the project scope, installing upgrades, and submitting invoices for rebates.

The team then conducted data analysis and phone interviews with past participants to understand the barriers that clients experienced at each step of the program. We found:

• Key moments where businesses struggled: 89% of businesses who received an energy audit through the program did not proceed with upgrades.

• The most significant motivators for businesses to complete the program were the financial incentives, the prospect of being more energy efficient, and helpful experiences with program staff.
• The most significant barriers to businesses completing the program were:
  • Confusion about how the program worked, and misunderstandings of what clients would receive through the program
  • Insufficient funding to cover the cost of upgrades
  • Difficulty finding contractors to do the upgrades
  • Lack of proactive support from program staff

Solutions to help small businesses succeed

To address the barriers that we discovered through the data analysis and client interviews, the project team implemented two solutions:

• A visual program map that clearly outlines the steps of participating in the program was developed and published on the program website, and included on the program application to enhance visibility and help alleviate the barrier of client confusion about how the program worked.
• Regular check-ins with program staff. These proactive client support check-ins were added at two key moments in the program journey– after submitting an application and after receiving their audit report. Clients receive a phone call check-in with staff members which serve the dual purpose of having their questions answered and keeping them motivated to complete the next step in the process.