Page 2: Read the news release >>

By Jesse Berst

 

Results from large-scale research summarized by the American Council for an Energy-Efficient Economy (ACEEE) reveals what many of us have been worrying about for years. Simply giving people feedback about their energy use isn't enough to create great efficiency. According to ACEEE, residential electricity savings averaged only 3.8%.

 

ACEEE tries to make the best of it (click to Page 2 for the press release), calling the savings "modest but encouraging." No, it's not encouraging, not if you are trying to make a business case for home energy monitors, home area networks and other expensive gear.

Here's the core issue, in my probably-not-as-humble-as-I-should-be opinion. We're wasting our time trying to make people smart about energy. We should be making our devices smart about energy. Consumers should set the parameters they want, and then the system should do the monitoring for them. Once a month or so the consumers can check in to see if the system is giving them the results they want. If not, they can tweak the parameters.

 

We've come to realize that today's consumers want control. But they want it delivered as cruise control. Consumers should NEVER have to respond to energy information. They should tell the system (once) how they want it to respond and then let the system do the watching.

 

Do you agree? Please use the Talk Back form below to comment.

 

You might also be interested in …

Smart meters and green buttons: Something even a mother-in-law could love?

Providing energy usage data that is truly useful is how to restore consumer trust

Scrooge's guide to energy efficiency gear

 

And from our Research Store …

Consumer in Smart Grid - From a Dormant Participant to a Key Stakeholder in Energy Activities

 

Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.

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Focus on devices essay

Jesse, you are exactly right and your analogy to "cruise control" is a good one. No one has the time to spend monitoring their energy use, but thinking about it occasionally, converting one's thinking into device settings, and letting smarter devices make it happen is more likely to gain acceptance. The expected savings would be greater since automatic implementation of energy savings rules is likely to be more consistent and accurate than manual implementation.

Kendall Smith - 02/29/2012 - 07:51

Behavioral changes

While the apparent lack of voluntary response might push program developers toward devices, it seems rather short-sighted to dismiss the thorough integration of people into the process. There is an extremely wide range of cultural and personal behaviours in our world. These should be acknowledged and leveraged to improve the outcome. Failure to do so may generate sudden and stubborn social barriers. Just recall how often and quickly the media picks up on nuggets of discontent and stirs up the issues.

Marty Stipe, P.E. - 02/29/2012 - 07:57

Right again!

You are absolutely right, Jesse. In fact, this has been known for decades -- ever since the first set of field tests conducted by CEGB (UK) in the 1980's. There is a market segment that does want to "play" with the gadgets, but it's relatively small compared to the rest of the consumers who prefer a "set-it-and-forget-it" approach. Time to (re)do the market research and get the segmentation right?!

Veronika Rabl - 02/29/2012 - 09:04

Feedback and engaging the customer

All of the studies targeted by this ACEEE report and the ones that preceded it focus on access to near real-time meter data and assume this is the magic link to customer education. All of these studies are limited because they focus on in-home displays (technology) rather than information. They also almost universally ignore the impacts of rates (prices), billing, cumulative long-term usage and cost information,and how specific information on efficiency and other measures impact the customer decision process. Customer education requires more than "smart devices", it requires a more comprehensive package of integrated and persistent long-term information and services that actually address customer needs.

Roger Levy - 02/29/2012 - 09:16

Focus on Cruise Control Devices

Jesse, you are absolutely right on the use of automated devices by customers. What is missing almost everywhere is electric energy that can be bought and sold automatically by these devices at 5-minute prices, for example. These prices will reflect grid conditions including peak conditions, excess renewables, and fast ramps from wind and solar. Customers won't buy and use these devices unless they save them real money and that requires changes in markets and tariffs. These changes can and must happen.

Edward Cazalet - 02/29/2012 - 09:21

Show me the money

Of course the vast majority of consumers care nothing about instant energy consumption and technical readouts. These folks can barely read! Now, how about a display showing estimated monthly cost that changes when the device is adjusted or when appliances kick on...?? There's no greater motivator than money - "show me the money!"

Jerry Zoellner - 02/29/2012 - 09:40

You need speedometers before you get to cruise control

You’re right in one way, but wrong in another. One thing that consumer information does is help people to understand what they’re paying for. The current experience of a three monthly bill doesn’t, which is why almost everyone is disengaged. We shouldn’t expect that education necessarily changes behaviour, although there is good evidence that it may do for a worthwhile percentage. But it means they can make choices. And it is part of the evolution to cruise control. To take that analogy further, most energy consumers are in the position of car owners before 1900, when cars were not fitted with speedometers. That’s what an IHD is. Cruise control is the next step in that evolution and it’s coming. But one of the prerequisites is obtaining sufficiently detailed energy data from the meter. Which is sadly lacking in too many deployments, where neither utilities and meter manufacturers think beyond billing. Early drivers thought speedometers were stupid, they judged speed by the wind on their face. Let’s not fall into the same mistake in Smart Energy.

Nick Hunn - 02/29/2012 - 12:16

Keep it simple!

“The ACEEE report makes it clear that we still have a way to go in terms of changing behaviour – the UK government recently published a paper on Behaviour Change and Energy Use outlining what needs to be done. As you say, it makes much more sense to make devices smart. If energy demand reduction targets are to be met, we need to make things as easy as possible for the consumer. For example, we have partnered with Milbank Manufacturing to launch the ‘Synaps6’, an intelligent automatic transfer switch, which manages the flow of energy in a building between the grid, private generation and EVs. It can reallocate energy resources, temporarily shut down non-critical devices during peak periods and choose when to charge or not charge an EV. To your point, it’s crucial that we enable homeowners to simply choose a strategy for their energy consumption and storage, and then manage it easily through a range of interfaces such as the internet, smart phone or dedicated display.”

Mark England - 03/01/2012 - 10:00

How does this work elsewhere?

I agree with Jesse. So let’s look at programmable thermostats. They’ve been around for decades, allow the consumer to set them, and sit back and let them run on cruise-control. Does anyone know what percent of the market that uses programmable thermostats? It’s probably a good guess as to the upper limit of market penetration of “home area networks and other expensive gear”—remember automatic control of electrical consumption will be a lot more expensive and complicated than a programmable thermostat. The demographics of those that use programmable thermostats will also give insight into those who will embrace automatic control of electrical consumption.

Ray O'Leary - 03/02/2012 - 07:40

Forgetting Families

Please remember the children. They are not set it and forget it people. They leave things on, they play, they get distracted, and they don't want the lights to go out just cos Dad doesn't expect anyone to be home "right now". The wattson electricity product has produced average bill savings of 19.6% (yes you read that right) because everyone in the house takes notice and makes a change. Sure, this is not enough. Certainly there is a great place for more automation in the home. But don't forget it's people who turn things on and can decide not to turn things on too. Is this blog just read by techies, and bill payers? I hope not, as there are more people than that live in my house.

Mark Elliott - 03/30/2012 - 08:08

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