This is the first time that office property has not been in the top spot since the survey began in 2012. The report also provides evidence of the impacts resulting from a sharp fall in industry confidence with regards to the government’s management of energy efficiency policies.
Compiled from the results of a confidential, quarterly industry survey, it clearly evidences industry trends and has become one of the sector's leading sources of market intelligence. The report covers both energy suppliers and consumers, providing differentiated results for each market sector.
The latest report shows the energy efficiency market monitor falling for the second consecutive quarter, from just below 100 points in Q1 2015 to 51 points in Q2 2015. This represents a decline in supplier order books, sale prices and government action. Suppliers responding to the survey said that two of their top three concerns were regulation and subsidy/policy support.
When asked about the government's management of energy efficiency policies alone, supplier confidence hit an all-time low in Q2, with more than 60% of respondents citing ineffective management. This represents the biggest quarter on quarter fall following Q1 which saw the confidence indicator break out of the negative zone for the first time - reaching zero.
Supplier confidence in the government's management of the wider economy also fell in Q2, although the change on Q1 was less steep than that of energy efficiency policy. Respondents citing ineffective management increased by 3/4, but still accounted for just 36% compared to the 41% citing effective management.
Despite this gloomy picture, respondents are confident of a turnaround in Q3 and expect the market monitor to bounce up to 115 points, which, if achieved, will be the highest market monitor points score since the research was launched in 2012.
When it comes to technology choices, consumers continue to favour high-efficiency lighting over other individual technologies and this solution is included within 63% of energy efficiency projects.
When combined, controls (in the form of lighting controls, 34%, and general building controls, 31%) offer some collective competition for the top energy efficiency technology selection. Solar PV has also sustained its recent gains, with 22% reporting uptake in Q2, perhaps in response to the proposed FITs changes.
The capital cost of respondents' energy efficiency projects remains wide-ranging and volatile. Overall however the long-term trend is towards sustained growth in project size. Starting at around £60k in 2012, the current median project value is circa £110-120k despite material decreases in the volume of the very largest projects (£500k+) in the last two quarters.