Page 2 >> By Patty Durand
SGCC Executive Director
So, what can utilities do to help drive successful enrollments in smart grid programs?
Communicate relevant benefits
After three years of belt tightening, many consumers think differently about their purchases, paying only for the benefits that they really want. These days saving money is not only smart, but chic. AMI messages about “saving money” show the greatest appeal in driving program enrollment. For example, AEP Ohio found that messages about saving money received a “much better response” across all AMI pilots than those about environmental or social benefits. Similarly, Arizona Public Service also concludes that cost savings “always” resonates.
Keep messages and programs simple
Customers are more likely to respond if smart grid programs are presented in a basic and simple way. For example, Sacramento Municipal Utility District used a simple tagline “Save today, save tomorrow” to market their smart grid program, while Wright-Hennepin Electric used “save money and energy with MyMeter” which generated a 15% participation rate.
It is easier to communicate these messages if the programs themselves are also uncomplicated. When Salt River Project expanded their pricing program to include a simpler rate option without seasonal variations, 86% of new enrollees opted to this more basic program. In contrast, customers reported that they found San Diego Gas & Electric’s four-option DLC program confusing, preferring a less complex program design. Likewise, Arizona Public Service found slower uptake on their three-tier TOU rate relative to their historical two-tiered rate. . Small program incentives go a long way
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Our analysis found diminishing returns relative to incentive size. Specifically, an Arizona Public Service Demand Response and Load Management Program survey indicated that raising a one-time acquisition incentive for a DLC program from $25 to $50, a 100% increase, would only increase enrollment potential by around 25%.
Customers’ perceived value of the incentive relative to the core message may be more motivating. For example, Austin Energy achieved 22% DLC participation by offering a free programmable thermostat at sign-up and no recurring incentive. Connexus achieved 28% DLC participation while offering enrollees only $10 per month.
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