State of the Market • Climate change and energy security raise significant challenges for everyone: • Government • Energy utilities & Networks • Consumers • Challenges include: • UK committed to 50% CO2 savings by 2025 • DECC estimates that Smart Meters will drive only 2% savings in the home • Utilities caught in pinch of maintaining profits while selling less energySTATE OF THE MARKET • Network operators facing increasing variability of supply • Consumers seeing more pain as energy prices rise, particularly in these tough economic times
Consumer can be a big part of the solution • 30% of all consumption happens in the home • Cost increasingly MOTIVATES consumers to save energy • Now if we can just EMPOWER them, they can be a big part of the solution. Motivation – Empowerment = FrustrationSTATE OF THE MARKET Motivation + Empowerment = Action!
3 Steps to Empowering the consumer • Show where the energy is going Inform • Towards itemised energy bills • Turn off consumption when house is empty Control • Easy-to-use controls (e.g. online)STATE OF THE MARKET • Reduce management burden Automate • It just works: saves money, increases comfort
Evidence from market • Specific interventions studied by academia & commerce • In-home displays, intelligent heating controls, bill messaging etc. • But mainly only at small scale (qualitative) • If testing 15% saving in home energy… • then studying e.g. 30 homes gives error bars larger than the effect • (even though the effect is ~£4.6bn/year nationally!) • So need more studies at the scale of 1000+ homes • With control homes alongside • DECC, LCN fund etc. now planning scale trialsSTATE OF THE MARKET • Biggest-scale so far is CERT funding for in-home displays • Has so far pushed ~1.5m real-time displays into homes • 6% of households • Evidence that they do drive some behaviour change • But how many are still in use?
Consumer market generally • What do consumers want? • Online is huge enabler • Be where consumers already are (e.g. social) • Appearance of Smart devices in the home • Back to simplicity … so the Consumer is going in a particular direction: go with it • Analogy: • We used to sit back and passively consume whatever was broadcast for our delectation.STATE OF THE MARKET • Now we: • Actively participate in choosing what to watch • Can do so wherever we want • Even generate content ourselves, e.g. YouTube, Facebook etc. • Likewise Energy and the Smart Home
Evidence from market • Evidence from AlertMe B2C customers • Every AlertMe customer is online • Rich, engaging dialogue with them: • Analysing how they use the service • Day-to-day customer service • Engaging in surveys and focus groups for deeper understanding • To achieve quantitative rigour, we commissioned a large piece of market research by Critical Research.STATE OF THE MARKET
Consumer Market Research - May 2011 • Sample size: 1224 UK Homeowners • Sampling errors on a single sample • For 95% Confidence Intervals: 10% / 90% +/- 1.5 percentage points 25% / 75% +/- 2.2 percentage points 50% / 50% +/- 2.5 percentage pointsMARKET RESEARCH
Awareness of Terminology “Do you know what is meant by the phrases „Home Energy Management‟ & „Home Monitoring‟?” Yes 51 No 22 Not sure 27 (%)Base: 1,224 panel members
Awareness of Terminology Definition: • Home Energy Management provides visibility, control, and automation of home energy (electricity, gas, and heating) online anytime, anywhere. It uses real time two-way communication allowing consumers to manage and control a wide range of activities in the home over the internet and via their Smartphone. Users would save up to 20% on their energy bills, reduce their carbon footprint, and provide greater efficiency and convenience. • Home Monitoring provides security tools such as cameras, motion sensors, door sensors, and window sensors with automation and „presence‟ for immediate notification by textMARKET RESEARCH message of activity in your home to give you peace of mind. • The two products together form the Connected Home.
Awareness of Terminology “Do you now understand what is meant by the phrases „Home Energy Management‟ & and „Home Monitoring‟ and „The Connected Home? “ Yes 94 No 2 Not sure 4 (%)Base: 1,224 panel members
Rank Order of the Key Attributes “Please rank the following attributes of the „Connected Home‟ system in terms of appeal” % Ranking % Ranking First Last Helping save money 75 42 1 In control of your home 59 15 3 Peace of mind 46 17 7 Convenience & simplicity 34 6 8 See and understand 32 6 11 Reduce carbon footprint 25 5 29 Latest technological innovation 13 3 36 0 20 40 60 80 100 %’age giving Top Three RankingBase: 1,224 panel members
Which Connected Home benefits do consumers value? Safety/Fire Convenience Notification Other Heating Easier to use Save Money Security notification Save energy Peace of Control mind Anywhere Accurate & More Live Info ControlBase: 1,224 panel members
Home Energy Management• See a live view of your home electricity and gas consumption• See it on an in-home display, on the web, your PC, or on your Smartphone or tablet• See how much your electricity and gas is costing you, and predict your bill• By identifying where appliances waste money, this could save you £120 per year on your utility bill
Home Energy Management - initial interest “Having read / looked at the information, how interested are you in the idea of Home Energy Management?” Extremely Interested 16 Very interested 27 Fairly interested 36 Not that interested 12 Not at all interested 7 DK / No opinion 3 (%)Base: 1,224 panel members
Energy Monitoring – Offline or Online?OPTION 1: A Free Energy Display. Your energy supplier gives you a colour display which you can putsomewhere convenient in your home, such as on your kitchenworktop. It shows at a glance how much electricity you‟reconsuming right now, and gives you a running total of spend so farthis week or month.OPTION 2: Free Online Energy access.Your electricity supplier gives you a service which lets you checkyour household energy use any time you want on the internet,using your own computer, or your computer at work, or yourmobile phone or tablet – all for free. It helps you budget bypredicting your bill, and gives you specific advice on how you cansave energy, for example by showing you which appliances areusing the most energy, and how to use them more efficiently. Youget more detailed information than Option 1, but you do need tolog on to your computer or use an application on your Smartphoneto access the information.
Energy Monitoring – Offline or Online? Given the choice, which one would you choose? Option 1 - Display 40 Option 2 - Online 40 Depends 12 Neither 8 (%)Base: 1,224 panel members
Web or SmartPhone? “Given the choice, would you prefer online access to your „Connected Home‟ system via a Smartphone or through the Web?” Smartphone 16 Web 33 Both of these 38 Dont know 12 0 10 20 30 40 50 60 (%)Base: 1,224 panel members
What is AlertMe? AlertMe is a single HAN solution for the SmartHome, providing an affordable, expandable and open platform that gives consumers: Microgeneration • Visibility and personalised information Management • Remote control anytime, anywhere • Intelligent automation to suit their lifestyle Safety & Security Applications Wireless Control Heating OSGi HAN * messaging Control Data Home Energy Audit processing Appliance Hub Gateway Real-time Control Broadband data capture Smart Meter Data Open API EV Charging & Management Partners * OSGi Gateway enabling multiple Home Area Network (HAN) wireless protocols
How it works • AlertMe provides an OSGi gateway using multiple communications protocols to connect and control a broad range of devices in the home, both from AlertMe and 3rd parties. Using broadband connectivity via the AlertMe platform, users can access a wide range of cloud based services • The platform also allows further device and service innovation such as Telecare and Smart Metering • Multiple device drivers from the „Device Store‟ and services through the „Applications Store‟ Sensors Cameras Detectors Intelligence / awareness Thermostats through Device Abstraction Appliances Driver Smart Plugs ‘DEVICE STORE’ download Driver Repository Device Personalisation Management & Rules Setting to partner OSGi SDK Smart Meters Smart Grid AlertMe OSGi GatewaySTATE OF THE ART ‘APP STORE’ AlertMe and Partner apps E – Health Application Device Customisation Devices download Other 3rd Party Devices
Services: SmartEnergy Easy to use applications that enable consumers to take control of their home • Tracks home energy use in real time • Bill prediction and budgeting • Home internal & external temperature • Analytics for personal advice to reduce bills • Appliance level tracking Washing Machine Dog heaterSTATE OF THE ART
Services: SmartHeating & SmartControl • SmartHeating - Easy remote control of home heating • Simple understandable control of home heating system • Control from anywhere – mobile, online, in the home • Save energy – only have the heating on when you need it • SmartAppliances - Remote control of home appliances • Schedule switch on/off times for appliances • Presence-detecting key fobs control appliances automatically • Monitor energy cost & consumption of major home appliances Home Energy services & potential consumer SavingsSTATE OF THE ART Awareness (near real-time use & cost) between 5-10% saving Automation (climate control, lighting etc.) up to 40% saving OnWorld Smart Energy Homes Q4 2010
Services: SmartMonitoring • Self–install home monitoring system for peace of mind • Simple to install and use • Secure: battery & GPRS backup • Motion & contact sensors • Video monitoring: fixed, pan & tilt, outdoor • Safety applications: Smoke, Gas, CO, flood detectors • SMS, call & email alerts • Option to link with professional monitoring centreSTATE OF THE ART
Routes to Mass Market In addition to selling direct to consumers, AlertMe partners with companies with large customer bases to deliver maximum awareness and engagement. Telecommunications companies, utilities, OEMs and retailers all have motivations for competing in the smart home arena.STATE OF THE ART UTILITY CHANNEL TELCO CHANNEL RETAILERS DIRECT External pressure to meet Looking to next value added Big box and home Early adopters - challenging targets services for ARPU growth improvement stores moving consumers who want into energy saving and to take independent From a necessity into an An explosion of data opens Smart Home technology control of their opportunity for customer e-commerce opportunities loyalty energy use
Smart Home evolution in 2011 & 2012 • Openness = Standards • Bringing it all together • Giving consumers choice • Allowing innovation • Ecosystem emerging • IP, OSGi, ZigBee, …STATE OF THE ART
The Smart Home: Sandpit for the Internet of Things? Open HAN Open WAN Open Platform Open Open Cloud User Things in home Gateway Services Experience From a standalone proof of concept … to standards-based open platforms • Many „smart‟ devices in the home • Platform-based • Becoming internet-enabled, but 1:1 & M2H • Open standards, 1:many and M2MSTATE OF THE ART IoT
How Consumers are driving the Smart HomePilgrim BeartFounder, AlertMeSmart Grids & Cleanpower 201123-24 June Cambridge UKwww.cir-strategy.com/events/cleanpower