Energy Data Fuels Innovation (Pun Intended)

Jennifer Belissent, Ph.D.

Smart meters provide consumers with granular data on how they are consuming energy — when is the meter spinning fastest, which appliances are the energy guzzlers, how much energy are those idling appliances consuming? Programs to increase consumer awareness and shift demand to off-peak times abound.  I delay the start of my dishwasher to after 11pm here in France to take advantage of off-peak tariffs. Most consumers, however, are not highly motivated by just knowing their own consumption. Good news: Opower, a provider of really smart energy solutions, has cracked the code.

The Opower solution draws on a study of how messages influence consumption. Turns out, if you tell people that they will save money by turning off their air conditioning and turning on a fan during peak hours they likely won’t. Those are typically the times when it is really hot.  Messages of “civic responsibility” and “saving the environment” also don’t really register. However, when consumers are told that 75% of their neighbors will turn off their air conditioning and turn on a fan, behavior changes. That message had a 6% drop in consumption. Opower now uses these types of comparisons in all of their offerings. 

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