Incentivising the smart home: Energy efficiency

Published: Thu 09 Feb 2017
A blog entry by Chris ODell

Contributed by:

Chris ODell
Marketing Associate
Parks Associates

The smart home brings many new approaches to energy efficiency, but understanding the impact of control algorithms and anomaly detection on energy efficiency adds a new layer of complexity.

EnergyStar is working to provide clear standards that will help overcome these challenges. At Parks Associates’ upcoming Smart Energy Summit, participants and speakers will examine measurement and verification initiatives, combined EE/DR programs, and strategies to accelerate increased participation.  

While energy programs geared at consumers have been around for decades, utilities have struggled to attain consumer participation in these programmes.

Low consumer awareness of these programmes has been a primary challenge for the industry with less than 20% of consumers reporting familiarity with various energy efficiency incentive schemes.

Twenty-five percent of broadband households indicate a willingness to participate in energy programs, if offered by their energy provider, according to Parks Associates recent data.

As government stimulus programmes place increasing demands on utilities to conserve energy, these companies must find ways to increase familiarity and drive adoption.

Financial incentives are helpful. More than one-third of consumers would participate in an energy programme if it offered a free product and roughly one-half of consumers would participate if the programme offered a product discount or rebate.

Non-financial incentives, such as value-added services that help consumers make better energy usage decisions also drive energy programme participation, but financial incentives attract 5-8% more households than non-financial incentives.

Marketing, financial incentives, complimentary value-added services, and bundling participation with other service are all strategies that energy providers can focus on to have a significant impact on consumer participation in energy programs.

Join industry leaders at Parks Associates’ eighth-annual Smart Energy Summit, Feb 20-22, at the Four Seasons Hotel in Austin, Texas to learn more about the impact of smart home services on energy providers. More information can be found at www.ses2017.com.