by Shane Henson — October 14, 2013—New research from Frost & Sullivan, a global growth consulting firm, demonstrates the benefits of smart thermostats as utilities across the United States turn to alternate solutions to prevent power outages.
Frost & Sullivan stresses that the first line of defense against blackouts is intelligent grid systems that monitor and direct power, but utilities realize that they can manage their assets a lot better if consumers would use power more prudently. Utilities already have commercial and industrial (C&I) customers on programs restricting power usage during peak times to balance the load over the course of a day in exchange for lower power rates, and are seeking to add residential customers.
“C&I customers’ cooperation is only part of the solution, as residential users account for 20 percent of U.S. energy usage,” said Frost & Sullivan Energy and Environment Vice President Roberta Gamble. “In recent years, utilities have been trying to make home owners more aware of their energy usage and lower their overall usage by incentivizing lower usage during peak times.”
According to Frost & Sullivan, utilities have only traditionally sold solutions to energy-intensive commercial and industrial (C&I) participants, and are now realizing that selling to residential consumers is a whole new ball game. As cost saving is a huge motivation in the C&I sectors, the participants do not back down while offering utilities control over lighting or a compressor switch in exchange for significant cost savings. However, residential users are not likely to be swayed by cost savings if it means relinquishing blind control over various home systems to utilities. They are more likely to be persuaded by the “coolness” of controlling the heating, ventilation, and air conditioning (HVAC) through a smart phone.
The company adds that utilities have faced several challenges in the rollout of smart meters in their bid to comply with energy mandates. While smart meters greatly help manage energy by adjusting the time of use, pricing, and alerting utilities to power outages or unusual usage patterns, their installations have also invited lawsuits from private citizens over the perceived intrusiveness of utilities collecting up-to-the-minute data on their power usage.
Frost & Sullivan notes that a smart thermostat offers never-before convenience—it either sets itself or has easy scheduling. The homeowner can access its controls remotely, enabling both energy and money savings. Constructing positive and powerful messages around the solution’s smartness and ease of use will go a long way in increasing its appeal among residential consumers, the firm advises.
For more information on this research, Frost & Sullivan says to send an e-mail to Liz Clark, Corporate Communications, at liz.clark@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company Web site, city, state and country.
