Keeping up with the Joneses!

Today it is all about data and more data for any good job that needs to be done. So smart meters should be the next big thing in the world of smart power. Because it gives you data and data. But is the data what counts or something else, like behavior science?!

In the US there are growing number of so-called electricity consumer engagement companies that set out to help customers reduce their electricity use, primarily by analyzing their current consumption and finding the easy fixes. These companies are mixing in data from the rapid deployment of smart meters with behavioral science to try and answer a key question: How can we get people to care? The central idea is that by showing people how much electricity they use, when they use it, they can be driven to change. In the process, these companies have found that more important than providing details of how to save power and when to use gadgets, is to show what the neighbors and peers are using or saving!

“The buzzwords around the utility industry today, it’s all about consumer engagement,” says Dean Chuang, a senior research analyst. Studies have suggested that a big chunk of energy — as much as 20 percent — that enters a house ends up wasted. The companies involved in these new efforts say customers who pay attention to their data and use their software products save from one to ten percent on their electricity bills.

The U.S. government has gotten on board, with the launch in early 2012 of the Green Button initiative from the Department of Energy. Utilities that sign on to Green Button provide a simple way for customers to download personalized energy usage data from the utility web site. The first two waves of utility partners will cover 27 million customers, with more on the way. When utilities around the country partner with these consumer engagement firms they can send consumers home energy use reports or audits that give a far clearer picture than a standard bill. These home energy reports can compare usage amounts to other households nearby and, if smart meters have been deployed in a given area, can offer detailed opportunities for improvement — when to use appliances, better control of thermostats, and so on.

Smart appliances can also connect to these systems and allow, say, a dishwasher to run at 3 a.m., when power demand and prices are low. But people using such data are miniscule. Most are energy unaware. And the big culprit for that are subsidized rates for power. Unless the price begins to pinch, will any amount of smart information help change consumption patterns?