Smart Products Help Build Stronger Customer Relationships

The utility industry is moving aggressively towards building its renewable energy portfolio, and consumers are gaining interest in renewable sources of energy and energy management. Downward pricing pressure on solar panels, batteries, and smart home devices are contributing to the growth of the “smart energy consumer.”

Younger respondents express a stronger preference for clean energy as well as a stronger willingness to pay more for it. They are growing up in a world where renewable energy and climate/environmental concerns are top of mind.

Nearly half of all households in the US desire to be independent of the grid. While this sentiment is likely rooted in feelings of energy insecurity in emergency circumstances, the reliability of distributed energy resources is still a way off from enabling most energy consumers to be truly “off the grid.”

More than 50% of large-scale builders in the US consider high energy-efficiency features to be the most or second-most valuable features to add to their homes.

In general, integration with smart home solutions delivers four key benefits to utilities and energy providers: increased consumer engagement with energy management programs, facilitation of smart product integration in demand response programs, increased adoption of smart products for use in energy management, and increased program awareness through cross-marketing efforts.

To maintain its position as a trusted energy advisor, the utility must move more aggressively to serve the energy management needs of its consumers. The utility can deepen its relationship with its customers by empowering them to save energy or offering energy-saving programs. Stronger customer relationships open the door to diversified revenue opportunities as the utility business model is adjusted to reflect the competition for distributed generation.

The convergence of technological advances, energy awareness, and concerns, and growing demand among consumers and on the grid is driving the adoption of smart home solutions that can deliver new solutions in this energy sector. Industry players and especially energy providers and builders recognize the benefits of incorporating smart products into their offerings. Most of the early efforts were geared at reducing the friction for consumers to acquire these products, but the next successful step is in enabling a new, unified experience for the consumer. Forward-thinking utilities are investigating strategies to integrate multiple devices and aggregate data across industries/use cases to deliver a truly comprehensive and actionable picture to consumers of their energy consumption at home. These offerings will help build positive consumer engagement, open avenues to expand service portfolios, and ultimately generate new revenues, even as energy consumption is reduced.

• ~ 40%+ of US households used a special energy program in the past, such as time of use or tiered pricing. No one program has adoption greater than 20%.
• Incentives are key to securing consumer participation in utility programs, and a $100 annual credit generates the highest interest among consumers, who are willing to allow utilities to control their thermostats during peak times.

Check out our complimentary whitepaper, “Next Frontier of Smart Energy Management,” in collaboration with?SmartThings . This whitepaper addresses how connected technologies are making energy management and advanced home controls a reality, with implications for utilities, device and EV makers, solar and HVAC companies, and home and multifamily builders. Read now:?https://bit.ly/3ZBq0oe

Join us for Smart Energy Summit 2023! Smart Energy Summit: Engaging the Consumer addresses the evolution of the consumer utility market, the impact of COVID-19 on energy management programs, and new opportunities to drive engagement in utility-sponsored programs. Virtual panels and networking sessions, featuring executive-level experts from multiple industries, address strategies for utilities, service providers, retailers, software providers, and manufacturers to expand and monetize energy management and other energy-focused offerings through consumer engagement, new business models, unique partnerships, and innovative technologies. Register now: www.ses2023.com