Building Consumer Buy-In for Smart Homes in the Smart Grid


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Presentation by Christine Hertzog, Managing Director, Smart Grid Library. This presentation kicked off a panel that was moderated by Christine at our 4th annual Fujitsu Labs of America Technology Symposium held in Sunnyvale on June 9th, 2010. The theme of the event was:

Smart Grid: When Energy Meets the "Internet of Things"

And the panel was:

"Building Consumer Buy-In for Smart Homes in the Smart Grid"

Photos of the event can by found here, along with links to other details about our event:

Published in: Technology, Business
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Building Consumer Buy-In for Smart Homes in the Smart Grid

  1. 1. Building Consumer Buy-In for Smart Homes in the Smart Grid Christine Hertzog Managing Director Smart Grid Library June 2010 © Smart Grid Library 0
  2. 2. Smart Grid Value Chain Generation Transmission Distribution Consumption Home Energy Management Systems and In-Home Displays will be the most visible and disruptive technologies of the Smart Grid for many residential ratepayers. They are key components in enabling smart homes and smart consumers. 1
  3. 3. Relationship (R)Evolution • HEMS deliver transition from limited ratepayer engagement model to rich Consumer Enlightenment Model – Consumers expect utilities to offer advice about energy consumption – Will utilities create trusted advisor relationships? • “we’re in this together to keep your bills down” – Will other service providers own the energy consumer relationship? 2
  4. 4. HEMS Enable and Enrich Consumer Participation in Energy Decisions • Consumers can define flexible • Flexible – usage can be and essential devices and their scheduled or operations preferred settings adjusted – Define adjustment and override – Dishwasher situations – Ice maker – Define “at home”, “at work”, “on – Pool pump vacation” settings – Water heater • HEMS portals can deliver money- – AC saving information • Essential – usage cannot be – Suggest DR/EE programs that most postponed closely fits these preferences – Medical equipment – Show additional savings if settings are – Air purifiers modified – Stove tops – Dehumidifiers 3
  5. 5. Consumer Enlightenment: Messaging is Key Link messages to payments and rebates – 62% of regulatory commissioners support direct financial incentives for conservation (Capgemini: The Latest Views on Smart Grid and Renewable Energy 2/3/09) – 47% of utility executives believe that energy efficiency and conservation will have greater focus within utilities (Platts/Capgemini: Utilities Executive Study 2009) – 37% of utility executives surveyed believe the utilities themselves will be advocates for energy efficiency (Platts/Capgemini) Aim messaging/solutions to women – 75% of women make the buying decisions for families (MediaMark Research & Intelligence survey) – 71% of women are the family accountant in USA (GfK Roper - 2009 NBC survey) – Energy behavior changes are more likely to be done by women and impact women 4
  6. 6. User Interface: Make It Fun • – Thought-provoking video illustrations about rewarding desired behaviors • Use competitive motivators in electricity usage feedback and suggestions – Comparisons to anonymous neighbors is most effective in apartments and condos – Personal challenges show promise • Use financial motivators - “how much can YOU GET in dollars back” – CO2 reduction info is meaningful only to a minority of customers 5