This document provides an overview of the connected home market and opportunities for utilities: - The connected home market is growing rapidly, with North American revenue projected to increase from $14 billion to $40.2 billion with an 11.1% CAGR. However, most smart devices currently lack intelligence. - Utilities and regulators are still determining their connected home strategies while customers are increasingly purchasing smart home devices. A single connected home program could meet customers where they are on their unique energy journeys. - Case studies from SCG and ComEd found that connecting smart thermostats through behavioral demand response programs resulted in 8% peak demand reduction, $0.05/kWh incentive costs, and 80%

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ICF Product Workshop
Connected Home Overview
August 2017

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“IoT” appears to have hit a tipping point
North America revenue
From $14.0 billion to $40.2 billion
CAGR of 11.1%
1. Navigant Connected Home report, Spring 2017

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Lots of customers are buying...

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But most smart devices aren’t smart enough (yet)

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We’re in the “chasm”
1. Businiessinsider.com. October 16, 2016.http://www.businessinsider.com/the-us-smart-home-market-report-adoption-forecasts-top-products-and-the-cost-and-
fragmentation-problems-that-could-hinder-growth-2015-9

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And utilities/regulators are still figuring
out their strategy

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So how can we recognize the
benefit of the Connected Home now –
and set a foundation for future programs?
With devices already at scale.

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Customers buy smart thermostats for comfort,
convenience, and to help them save energy.

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Customers want to energy – and
they like the connected technology.
Why did you choose to purchase a smart thermostat?

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Meanwhile, traditional utility
programs are disconnected from
connected products.

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And energy programs can appear complex to
customers.
Demand
Response
Energy
Efficiency
Rates
Peak Time Rebate
Behavioral DR
Load Control Switch
HVAC Tuneup
Weatherization
Appliances
Multiple TOU Rates
Critical Peak Pricing
What’s a kW? What’s a kWh? I’m already on a TOU rate, right?

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What if a single Connected Home
program met each customer where they
are on their unique energy journey?

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Some customers would do a little, and some would do a lot.
EE rebate
Thermostat
schedule tuneup
Demand
response
Automated TOU
kWh & therms
kWh, therms &
coincident kW
Firm kW
Grid + customer
alignment
Utilities can keep energy
program complexity hidden
from customers.

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Utilities: The Trusted Energy Advisor
Helping me get a new
product that I love
Helping me save
with the push of a
button
Rewarding me for
saving more
Saving me energy
and money;
making the
complex simple
EE rebate
Thermostat
schedule tuneup
Demand
response
Automated TOU

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SCG and ComEd Case Study

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A unique path:
Each home gets algorithms tailored to its
unique characteristics.

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50,000
+

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8%

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Measurable Coincident Peak Demand Reduction
Data from Summer 2015 deployment in East Coast, over 13,000 devices

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$0.05

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80%

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But wait, thermostats aren’t everything…
what about the rest of the Connected Home?

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Increased adoption and falling costs

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“Smart” Home Thoughtful Home
Control Programmed
Automation
Learning Awareness
Local / remote control Rule-based actions
(motion, location, time)
Automated intelligence
(habit-based, predictive,
improves w/ use over time)
Contextual intelligence
(devices, location, who, time,
energy, safety)
The future is AI/machine learned-automation

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