future energy report

Good change for Australian homes

Future Energy Report2021

2Future Energy Report 2021

It’s an exciting time for the energy industry, as we embrace significant changes that are delivering great benefits for our customers, our community and the planet.

The energy future we’ve been preparing for is no longer something we try to foresee – it’s right here and right now.

We have an energy system that’s smarter, cleaner and increasingly connected; with the electrification of everything making the role of data and digital technology critical.

And the energy revolution is happening across all facets of the industry – from generation to the household. A key role for energy providers like Origin is to help make it simple and easy for customers to benefit from this transformation.

Now in its fourth year, Origin’s Future Energy Report is an annual marker of how customers, who are at the very heart of all this change, are feeling. It tracks consumers’ relationships with energy: their understanding of new technology, their energy consumption behaviours; and their views on a rapidly changing energy landscape.

Foreword by Jon Briskin

Jon Briskin Executive General Manager, Retail Origin Energy

This year’s report found strong levels of optimism about where energy will come from in the future and enthusiasm for emerging technologies – like demand management and virtual power plants – to help save on energy costs.

Cost remains the number one priority for households. Much like the tremendous growth in solar has shown, take-up of technologies like home batteries and electric vehicles will accelerate when prices come down and it makes practical sense for consumers.

Australians are becoming more engaged in the world of energy, with solar power acting as an entry point for increased involvement, and the COVID-19 pandemic accelerating this change. We expect that this engagement will grow dramatically in coming years with the rise of connected devices and transformative changes to our energy generation, distribution and storage systems.

For example, while the majority of Australians say they would be unlikely to choose an EV if buying a car tomorrow, this could change as soon as 2025 when EVs are expected to reach cost parity with petrol vehicles. With supportive national policy settings like we have seen in other countries, the result could be a significant swing toward EVs – perhaps as high as 50 per cent of new car sales within the next decade.

In our electric future, households will continue to benefit from technologies which allow more self-sufficiency in power generation and storage, more efficient and flexible use of energy in their everyday lives, and more control over their energy costs. It’s an exciting future that this report shows Australians are eager to understand and embrace.


Chapter 1: What’s age got to do with it? 04

Millennials optimistic, but more wasteful 05

Boomers value customer service 06

Meeting different customer needs 08

Chapter 2: Hip Pocket Test 11

Cost of solar 13

Cost of home batteries & EVs 14

Providing affordability for all customers 15

Cost of working from home 16

Chapter 3: Solar success key to the future 18

Education is key 19

Batteries on wheels 20

The ‘Internet of things’ 21

The future is already here 21

Daniel’s story: Knowledge is power 22

Chapter 4: Energy for the future 23

What’s in our energy future? 26

Demand management: It’s a game 27

Digital connected future 28

Conclusion 29

Contents

Consumer research methodologyThe consumer research results featured throughout this report are from an online survey of 1,000 Australian energy decision makers recruited to be representative of the population with respect to age, gender, and state or territory or residence. Research was conducted by Empirica Research between 18 – 26 March, 2021.

4Chapter 1

What’s age got to do with it? Attitudes towards energy and behaviours vary across the generations. The Future Energy Report highlights some surprising differences that present challenges and opportunities.


Rather than try to use less electricity by switching lights and appliances off after they use them, the Future Energy Report has revealed younger Australians place great faith in technology to help manage energy bills into the future.

They’re interested in apps and gamified platforms, in smart appliances and electric vehicles, in smart meters and devices connected to the Internet of Things. If they were buying a car tomorrow, 62 per cent of Australians aged 18-34 say they’d be at least slightly likely to buy an EV, compared to 26 per cent of those 55 or older.

And while young people aged 18-34 value sustainability as their leading priority after cost when choosing an energy provider, the report reveals that the same group exhibits more energy-wasting behaviours compared to older generations.

The research also tells us that Gen Z and millennials are more engaged, optimistic and confident in the future of Australia’s energy, including in their ability to manage energy costs, in the transition to renewable resources, and energy security.

“Gen Z have grown up with lifestyle comforts and conveniences in a digitally saturated era,” said social researcher Claire Madden. “They’ve seen a lot of disruption, a lot of automation and a lot of personalisation, so they’re used to devices working for them.

“They’re used to convenience in all aspects of their life. With the click of a button, or a voice command, they can get information, answers and directions. They have expectations as consumers that they’ll always have such conveniences and comforts. This includes things other generations might consider wasteful. I think what we’re seeing here around their electricity use is a follow on from that.”

Technology and data is like oxygen for Gen Z, Madden explained. “The always-on nature of technology, and the electricity that goes into charging devices, is not something young people think about. Technology is simply essential for life, whether it’s for communication, information, social connection or entertainment,” she said.

Millennials optimistic, but more wasteful

62% 26%

“Gen Z have grown up with lifestyle comforts and conveniences in a digitally

saturated era”

At least slightly likely to buy an EV if buying a car tomorrow:

18–34 year-olds 55 or older


And what about the older generation and their attitudes, behaviours and beliefs on energy, now and into the future?

Australians aged over 55 are less engaged by new technologies and digital transformation and they’re more conscious of wasting energy, the report tells us. The classic image of the parent walking around the house and turning off lights left on in empty rooms, and scolding the kids for long showers, is very much a reality.

Price is the main driver for older Australians, followed by customer service. Over 55s have high expectations of energy providers, but lower levels of confidence in the future, coming in lowest on all measures, including the future of our energy security, cost, supply and transition to renewables. Energy optimism appears to be much more for the young.

Boomers value customer service

People who feel more optimistic than 5 years ago about:

Over 55s are more conscious of wasting energy

Australia’s transition to renewable energy sources

47%41%

40%30%

Australia’s energy generation and supply

The cost of energy

46%32%

Their ability to influence their energy costs

32%18%

Age groups: 18–34 55+

7Future Energy Report 2021 7

73%47%Dress more warmly instead of turning the heater on

Run the air conditioner with the windows open 6%12%

Energy saving (and wasting) behaviours by the ages:

Purchase energy-efficient appliances

Leave the heating or cooling on for pets when not home

55%

3%

34%

Like to take a bath 7%31%

16%

18–34

Age groups:

55+

5%13%Leave the television on as company for my pets

Takes a shower longer than 5min 21%53%

Use a fan instead of the air conditioner 59%48%


Different attitudes and behaviours across generations can be seen in the way customers are interacting with their energy provider, reveals Brendan Manzie, Group Manager – Future Energy, Origin.

“However, with some of our most tech rich solutions like home batteries connected to our Virtual Power Plant, customers skew older because some are settled in their long-term home, have an established family, or are preparing for retirement. And these customers are massively engaged, using the Origin app about ten times more than the average app user.”

“Then there’s an older segment that is less digitally engaged and therefore places greater value on a more traditional service model, with access to help on the phone. We need to provide all our customers with high levels of service whether it’s on our digital platforms or our traditional channels.”

Meeting different customer needs

Number one consideration when choosing an energy provider:

“The key here is that we need to provide all our customers with high levels of service whether it’s on our digital platforms or our traditional channels. Energy providers also needed to be conscious that not all customers have access to ways of using energy more efficiently so need to find ways to connect all customers to easier, smarter and cleaner energy.

“There are customers who can afford to spend thousands of dollars on solar and battery set-ups to bring down their bills dramatically, but at the other end of the spectrum, it’s likely that bills are higher proportionally because the house you live in might be less efficient or you’re running older appliances,” Manzie said.

Origin launched Australia’s first mass market demand response program, Spike, in late 2020, rewarding customers for using less electricity during peak periods called SpikeHours and requiring only a smart meter to participate. As of July 2021, the program has provided more than 60,000 customers with more than $1.6 million in Spike points.

Pricing

Service

Sustainability

54%64%

13%20%

14%8%



How customers monitor their energy use:

64% 4% 9%54% 20% 15%

Reviewing their energy bills

Energy retailer app

Smart plug or smart appliances



People who said they could never imagine having:

A demand-management platform A home battery

An electric vehicleA connected home solution that allows them to remotely manage appliances

32% 22%

28%23%

51% 43%

48%52%


11Chapter 2

Hip Pocket TestWhile interest and knowledge in energy has been growing over the past five years, one thing hasn’t changed – cost is still the dominant driver of choice.


Hip Pocket Test

When it comes to energy, cost is king. The number one priority for 69 per cent of Australians when selecting an energy provider is price. Coming in second is service, which is the main priority for just 18 per cent of respondents. Third, at 10 per cent, is sustainability.

Interestingly, the pandemic has driven higher customer expectations, with the number of Australians nominating price as their number one priority when choosing an energy retailer falling three percentage points since last year. Customer service meanwhile increased by three percentage points since last year. A Digital Pulse report by PwC stated, “In a world dealing with a global emergency … customers (and indeed, employees) are in need of even more when it comes to their relationships – in particular, a certain amount of compassion and care will go a long way to gaining loyalty.”

In addition to influencing which provider a customer will choose for their energy, the potential for cost saving has driven the uptake of solar, choice of appliances, installation of solar batteries, and the purchase of electric vehicles.

Number one priority for customers when selecting an energy provider:

Pricing

Service

Sustainability

Years: 20212020

72%

15%

11%

69%

18%

10%

https://www.pwc.com.au/digitalpulse/customer-behaviour-consumption-expectations-covid-19.html


The main motivation in installing solar was to lower energy bills (85 per cent) followed by reducing reliance on buying energy from the grid (63 per cent) and reducing a home’s carbon footprint (47 per cent).

Cost was also a deterrent for some, with about 78 per cent of people without solar saying it is too expensive, while 58 per cent said the savings weren’t enough to offset installation costs.

“The upfront investment in rooftop solar is typically around $4,000 to $6,000, including any solar rebate,” said Damien Power, Solar Product Manager at Origin. “If this only produced a saving of $400 to $500 annually, the panels would be paid off within ten years. But solar panels tend to save significantly more than that. When you look at the savings as well as the upfront costs, you’re typically going to pay back that investment over a relatively short period of three, four or five years.”

“It can seem an expensive purchase up front, but figuring out whether solar is worth it is less about the upfront purchase price and more about comparing the upfront purchase price to the saving you will make on your electricity bill.”

Cost of solar

85%of solar panel owners were

motivated to save on energy bills

For households who don’t already have solar

78% 58% 15%

53% 50%

Barriers to solar

Will decrease my home value

Solar savings not enough to offset install costs

Installing solar is too expensive

Don’t know who to trust with solar install

Ongoing maintenance costs

47%

Have concerns about long-term reliability


Batteries make sense – they can be charged using free solar electricity from rooftop systems during the day and used to power the house when the sun goes down at night. But uptake so far has been slow. While in 2020 there were 378,451 rooftop solar installations, the number of home batteries installed was only around 23,7861.

Our research shows that the main barrier to installing a home battery was price, with 76 per cent of respondents saying they were too expensive.

“Batteries are expensive now but like rooftop solar, prices will come down as the technology improves,” said Jan Prichard, General Manager, Customer Care at Origin says. “If you look at the cost of solar a decade ago, when it was first released it was quite prohibitive and only purchased by early adopters. As customers demand more, it’s very important that we have those solutions available.”

While the payback period for batteries does not make them economical for most people today, the expectation is that battery prices will reduce as EV adoption ramps up. Batteries will have an increasingly important role to play in the home, at a community level and at a large-scale grid level.

For customers who have taken the plunge and already purchased a home battery, the research tells us they are motivated by reduced reliance on energy from the grid (77 per cent), saving on energy bills and maximising unused solar energy (both at 72 per cent each). Batteries are the only instance where saving money is not the first priority.

Batteries are the only instance where saving money is not the

first priority

And what about EVs? Once again, the motivation is around saving money: those who purchase them say reduced fuel costs are their main purchase driver (55 per cent). Most of the barriers to buying an EV are similarly cost-focussed, including concerns about purchase, maintenance and charging costs.

Cost of home batteries & EVs

55%

77%

of EV owners are motivated by saving money on fuel

of home battery owners are motivated by reducing their reliance on energy

from the grid

1 Clean Energy Australia Report 2021, published by Clean Energy Council.

https://www.cleanenergycouncil.org.au/resources/resources-hub/clean-energy-australia-report


It is important to make sure that all customers have access to affordable energy solutions that are right for them and their needs.

“One in five Australian households have rooftop solar and unfortunately it doesn’t suit all properties or situations. Examples include homes with roofs under heavy shade or west-facing aspect and multi-story apartment buildings,” said Anne Armansin, energy consultant with the St Vincent de Paul Society and founder and director of EnergyAid.

“Approximately 30 per cent of Australians are on some sort of income support, so technology like solar is very much a dream discretionary purchase, even though it will save them money in the long run.”

Trials like the NSW Government’s Solar for Low Income Household’s program have an important role to play. As an approved installer, Origin is helping provide free 3kW solar systems to eligible low-income households that otherwise may not be able to afford solar. Since 2019, Origin has installed 350 solar systems, which can save households up to $600 per year on their electricity bills.

Other programs like Origin’s Power On also help, providing support for customers who are experiencing vulnerability, including tailored payment plans, matched incentive payments, information about available government support, and referral to financial counsellors.

Origin is helping provide free 3kW solar systems to eligible

low-income households in NSW

Providing affordability for all customers


Cost of working from home

COVID-19 impact on energy as a result of working from home:

It’s no secret that the pandemic has driven changes in the way we think about relationships, health, lifestyle, travel, work and more.

One of these changes, as revealed in the research, is in our attitude towards energy use mainly driven by the fact that so many of us have been working from home.

The Future Energy Report found 54 per cent of Australians were working from home in 2021. Time spent working remotely has made us more aware of the cost of the energy required to charge our devices and for lighting, heating and cooling.

The research tells us that 66 per cent of people who work from home believe they are now more conscious of the energy they use while working than they were before.

The broader benefit of heightened energy awareness is that more people who work from home are now interested in buying energy-efficient appliances (62 per cent), improving the energy efficiency of their home (61 per cent) and living sustainably (57 per cent).

61%More interested

in the energy efficiency of their home

66%More conscious of their energy

use when working from home

62%More interested

in buying energy-efficient

appliances

57%More interested

in living sustainably

43%More interested in home battery

and solar solutions


57%

44%

42%

65%

56%

48%

More interested

More knowledgeable

Increased energy interest and knowledge Compared to five years ago, respondents are more interested in, and more knowledgeable about, energy

How the electricity they use is generated

How much electricity they use

New technologies that allow them to measure and manage their energy use

18Chapter 3

Solar success holds key to the futureResearch shows solar customers are the most informed and positively engaged energy users, and they will help drive the uptake of new energy solutions.


There are numerous benefits that flow from improved energy knowledge and engagement. For households it can result in lower energy bills, for businesses it can result in cleaner energy, while more engaged customers can help balance supply and demand across the network.

Chau Le, Origin’s head of e-mobility, says cost remains a sticking point for adoption of some technologies, but as prices for second-wave technologies like home batteries and electric vehicles continue to fall, we’ll see exponential growth.

“Based on the Future Energy Report’s key findings, it’s clear there are some misconceptions about the true costs and benefits of these new technologies – just as there was in the early days of the introduction of solar panels,” she said.

“Although Australia lags most countries in the transition to battery-powered cars, falling battery costs mean a tipping point is fast approaching and we expect that by 2025, EVs will reach cost parity with petrol vehicles.”

With only 11 per cent of Australians saying they would be likely or very likely to buy an EV if they were to buy a car tomorrow, Le believes education has a role to play to help speed up the transition to EVs in Australia, but more substantive reform is also needed.

“This research identifies that greater education is needed to dispel some of the myths about EVs. Concerns about inadequate charging infrastructure are largely misplaced with the majority of EV charging

expected to take place at home or at workplaces, and there is a good network of public fast charging being built out across the east coast of Australia. Equally, ‘range anxiety’ should not be an issue for most drivers with new model EVs able to travel approximately 400km on a single charge. As EVs have many fewer moving parts, they don’t require regular servicing and EVs are about 70 per cent cheaper to run than comparable petrol-powered vehicles.1

EVs are about 70 per cent cheaper to run than comparable

petrol-powered vehicles

“But the biggest barriers at the moment remain the upfront purchase cost of EVs and the lack of available models in Australia. As seen in many countries overseas, supportive national policy settings can help address these barriers, and it’s great to see some encouraging policy coming out of Australia’s state governments recently.”

Furthermore, as the uptake of EVs accelerates, they will also play another role in the broader energy system over time.

Education is key

Here’s what people who don’t own an EV said is stopping them from plugging in:

Ongoing costs of charging the battery

at home

Too expensive to purchase

Not enough vehicle

charging infrastructure

Concerned about how far they can

drive on one battery charge

Too expensive to maintain

72% 42% 28% 39% 37%

1 Comparative running costs taken from here

https://electricvehiclecouncil.com.au/about-ev/myth-busting/


As many electric cars are likely to spend extended periods parked in the garage, these vehicles can also work like ‘batteries on wheels’,” said Le. “When plugged in, car batteries can soak up excess power from rooftop solar panels and also dispatch it later into virtual power plants – hundreds or thousands of homes with solar and batteries linked up to manage demand and energy flows – and allow these customers to be paid for helping to support the network.”

“Our role is to help our customers understand these opportunities and to make solutions available

that are as simple and easy as possible”

It comes back to building better knowledge of solutions that deliver more control and lower cost to households, a more efficient grid network, and a cleaner environment.

“Our role is to help our customers understand these opportunities and to make solutions available that are as simple and easy as possible,” Le said.

Batteries on wheels

Comparison of Australians with and without solar panels:

55%

39%

39%

38%

63%

50%

48%

44%

About how much electricity they use

About their ability to manage their energy costs

How the electricity they use is generated

To influence their energy costs

More knowledgeable

More optimistic

63%

46%

71%

54%

In how much electricity they use

In how electricity is generated

More interested

With solar Without solar


The ‘Internet of things’

70% Believe that having their home battery is allowing them to make the most of their solar generated energy

66% Are very or extremely satisfied with overall performance and reliability

64%Are satisfied with the cost savings on their energy bills

62% Are satisfied with the value they have received from the investment

Battery satisfactionAmong the few respondents with home batteries, satisfaction is high:

Joanna Nelson, Origin’s General Manager, Future Energy, draws an image of what we might expect in a future with even more engaged and knowledgeable customers.

“There’ll be an increasing penetration of internet-enabled devices in the home, many of which will be energy-related” said Nelson. “Depending on the level of access customers are comfortable allowing, energy retailers might be offered some control of internet-connected assets in their home. We then have the ability to create and customise individualised solutions for customers, who can choose their level of engagement in the process.

The future is already here“These are processes that exist right now – allowing the remote controlling of air conditioning during times of high demand or high cost, for example. But on a larger scale, this level of control will switch things on and off in the background to achieve lower energy bills, a smaller carbon footprint and an increasingly reliable energy supply”

To build broader adoption of these new technologies going forward, it needs to be simple and easy for customers to engage. Benefits need to be clear, easy and accessible for customers to realise, not just the Daniels of the world [see page 22]. But to make this happen, retailers first need to earn customer trust to be able to provide them with these solutions.

Is this even possible? Of course it is, Nelson said. As a nation, we’re already leading the world in rooftop solar because energy customers have developed a good appreciation of its value. And customer engagement with solutions like Origin Spike show customers will engage in new and emerging solutions if the benefit is clear to them and it is easy for them to engage.


Prior to going all in on his family’s electric future, Daniel from Canberra wanted absolute confidence in his decision. After all, he was about to spend $24,000 on energy upgrades to his family’s two-storey, five-bedroom house.

The IT professional analysed his bills going back several years. He took into account the cost of energy used during peak and off-peak periods, as well as feed-in tariffs for solar. He investigated ACT Government incentives and interest-free loans from energy providers.

In doing so, Daniel developed a clear picture of his family’s energy-use behaviours. This enabled him to crunch the numbers and realise that the high upfront cost would pay itself off quickly. Once the initial outlay was recovered, savings would be enormous.

Daniel had a 10.56-kilowatt solar-panel system and a Tesla Powerwall 2 battery installed. For his Tesla Model 3, he also had an EV Wallbox charger installed in his garage, as part of Origin Energy’s EV Smart Charging trial.

He upgraded to a smart meter and to get the most out of a comms-enabled meter, Daniel joined Origin’s Spike program.

“I’m not a renewable energy fanboy,” Daniel said, “but I know that as a civilisation, we have to do something. Also, when we lived South Australia a few years ago and experienced the massive blackout, it was a reality check for me.”

Daniel’s energy bills have now come down from about $1800 a quarter to anywhere between $660 and $800, apart from the winter bill which is still up around $1700. This means his $10,000 rooftop solar system will have paid for itself within three years. In fact, over the next decade he expects to save about $23,000, including the cost of solar installation.

With the EV, he’s now also saving $400 to $500 per month that was previously spent on diesel fuel for his car. It covers half of the loan repayments.

Most valuable, Daniel said, is the app that came with the Tesla home battery.

“I’m not a renewable energy fanboy”

“It’s not just about the battery offering energy during a blackout,” said Daniel. “The app gives me complete transparency into our energy usage. It has given me the ability to track down items in and around our house that waste power, and get rid of or replace them. It has also taught me about how my family can change our behaviours.”

Daniel’s story: Knowledge is power

23Chapter 4

Energy for the futureTechnology and behaviour are helping to drive this energy revolution. Both hold the key to helping deliver a better, more sustainable and affordable energy future.


The future of energy is already upon us. Smart devices and solar energy, home batteries and EVs, digital meters and energy consumption apps are all becoming increasingly mainstream.

Origin’s Executive General Manager, Retail, Jon Briskin said: “Customers with smart meters now have access to over 17,520 points of data per year about their own household energy use – compared to historically four points of data taken from physical meter reads. This is amazing, but for most people it is also completely overwhelming.”

46% of over-55s believe we’ll never hit net-zero emissions,

only 30% of 18–34s are that pessimistic

“As a retailer, our role is to help take the complexity out of things for the customer, and to help use this data to design better products and solutions for customers. And the role of digital to enable these solutions is critical.”

As highlighted in previous chapters, take up of these technologies is being driven by younger customers and by early adopters like Daniel [see page 22]. To help more customers realise the benefits of this smarter, cleaner, more electrified and connected energy world, we must design solutions that appeal to all types of customers – not just the Daniels of this world.

The research tells us there is powerful optimism, particularly among younger Australians, about Australia’s energy future. But this is tempered by scepticism from some about Australia hitting its net-zero emissions targets. While 46 per cent of over-55s believe we’ll never hit net-zero emissions, only 30 per cent of 18-34s are that pessimistic.

Energy for the future


Personal home tech predictions

68%believe new technologies will revolutionise how we

use and purchase energy in our homes

Within the next 10 years Australians expect to have:

30%Voice-activated home assistant

46%Smart appliances

45%Connected home

solutions

40%Demand-management

platform

60%believe new energy

technologies will make it easier to manage their electricity

consumption and bills


When the National Electricity Market (NEM) started operating more than 20 years ago, it was a network built around sending electricity from big, coal-fired and gas-powered plants to homes and businesses around the country.

With the solar boom and the introduction of batteries, the network has monumentally changed from a centralised system to one that is much more decentralised, said Joanna Nelson, Origin’s General Manager, Future Energy.

As more renewables continue to be added to the electricity system, the network will become less reliant on major, centralised coal-fired power stations.

“More of that demand-supply equation is individualised on a local level, because it happens closer to the customer,” said Nelson. “Some of it will actually happen in the home – it already is happening for people with solar and batteries. So it will happen locally, rather than at large power stations far away.”

What’s in our energy future?

Predictions for Australia’s energy future:

52%optimistic about the future energy system

58%believe Australia is well placed to be a leader in

renewable energy

57%believe within 10 years households will mostly use renewable energy


Demand management: It’s a game

One of the ways that customers will be able to play a role is through demand management platforms – which 40 per cent of respondents told us that they expect to be using within the next 10 years.

Demand management platforms are a way of encouraging customers to alter their home energy usage in response to variations in network supply and demand. For example, when solar generation across the network is at its peak, encouraging (or automating) customers to turn on their pool pumps or hot water systems, and when demand across the network is at its peak, encouraging customers to reduce their energy usage.

“Spike is unique – a gamified experience... to make energy

saving fun and rewarding”

The challenge is getting customers to respond to these market signals and change their behaviour. According to Gavin Freeman, behaviour and performance psychologist and director of The Business Olympian, there’s one clear solution – gamification, which is the creation of a game-like experience in a non-game environment. Members of supermarket rewards programs would be familiar with points and rewards that drive behaviours, such as discounts on petrol. Perhaps the greatest example of gamification is airline rewards clubs, with bronze, silver, gold and platinum levels, each with its own set of special and desired benefits, driving greater loyalty to the airline.

Origin’s Spike platform is an example of how gamification can drive behaviour change with energy usage.

“Spike is unique – a gamified experience developed by the team behind games like Words with Friends and FarmVille, to make energy saving fun and rewarding,” explains Brendan Manzie, Group Manager – Future Energy, Origin. “Spike provides customers with the opportunity to earn cash rewards for reducing their energy usage during nominated SpikeHours.

“We launched Spike in late 2020 and as of August 2021 we have more than 60,000 customers on board who have earned more than $1.6 million Spike points. in rewards. Customers are actively participating and enjoying the platform, with over 1,000 smart devices connected to the platform already, and some of the most engaged customers earning more than $300 in cash rewards in less than nine months.

Such programs are powerful influencers of long-term behaviour, Freeman said.

“Cognitive change, or changing the way somebody thinks, is very hard to influence,” he said. “But behavioural change can actually be quite easy. If I give you enough incentive, I can convince you to maintain or perform a behaviour.”

The bigger question is: how do we get sustained behavioural change?

“This is where gamification comes into play,” said Freeman. “It only works when it’s a sustained game over a period of time and the rewards meet some of my basic needs. That means once I start playing, I need to keep playing to either stay where I am or enhance my status. And as the game gets longer, we have to keep improving rewards without diminishing returns. That’s the key.”


The rapidly increasing amount of web connected devices in people’s homes – such as air-conditioning units, swimming pool systems, washing machines, dishwashers and dryers – presents even more opportunity for customers to take advantage of the digital smarts of their home and automate their household energy usage.

Indeed, the Future Energy Report says 19 per cent of households already use web-connected, voice-activated devices such as Google Home and Amazon Alexa. Another 12 per cent have one or more smart appliances that can be remotely monitored and managed.

“As trust builds, people will take advantage of new and customised solutions that we offer them. This will be driven by their individual needs, such as peace of mind, cost, carbon reduction, or independence from the grid. Once again, this is already a reality, such as switching on assets during the day when solar power is plentiful, or adjusting air-conditioning temperatures slightly, and often unnoticeably, during times of high demand and therefore high cost,” Nelson said.

Digital connected future

This might include switching on devices driven by solar power during sunlight hours, or adjusting air-conditioning temperatures slightly, and often unnoticeably, during times of high demand and therefore high cost.

“In that home control situation, we’d first be optimising for cost, but also for sustainability.We know cost will always be the major driver of behaviour and decisions, but we also know awareness around sustainability and carbon neutrality is constantly increasing. The real beauty of the future is that you’ll be able to have both affordability and sustainability. They will co-exist,” she said.

19% of households already use web-connected,

voice-activated devices


Over the past 10 years, the energy sector has shifted dramatically towards one that is cleaner, smarter and more centred around the customer. And as explored throughout this report, customer expectations and behaviours have also changed.

The challenge and the opportunity for energy companies is to continue to be at the forefront of this change – to listen and respond to customers’ needs and demands. To make sure that they are looking after their customers today, while always having an eye on the future and on the coming trends and technologies that will provide tomorrow’s solutions.

Of course, there will always be other factors that influence behaviours. Government policy, legislation and regulation for example. And, of course, the pandemic has changed behaviours enormously.

What’s important is that individuals and organisations realise government is not the only powerful influencer of behaviour within our communities, Freeman said. Often it’s businesses and individuals that drive change, as is the case right now with EVs. When there’s a lack of supportive government policy, others step up to make change.

“Energy companies will play a huge part in driving behavioural change,” he said. “When energy companies focus on supporting new technologies, such as batteries and EVs, etc., demand and supply will change, costs will fall and a new journey will begin.”

Conclusion

Energy companies will play a huge part in driving behavioural change


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