The Empowered Consumer

4/20/16

SGCC: Who We Are

2

501(c)(3) nonprofit formed in March 2010

Membership organization comprised of utilities, technology companies, and nonprofit affiliates

Driven by the mission to advance a consumer‐friendly, consumer‐safe smart grid

We work by listening, educating, and collaborating

SGCC brings together leading utilities, technology vendors, and non-profit stakeholders

WORKING IN PARTNERSHIP

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NON‐PROFIT & GOVERNMENT

VENDORS

UTILITIES

The Empowered Consumer

The Empowered Consumer research examined how consumers use a variety of smart grid-enabled services and technologies, as well as the associated benefits and any perceived barriers to adoption. 1,500 completed surveys from residents across 16 states.

Incentive Payment Method

Qualifying Thermostat Capabilities

Incentive Amount

DR Enablement

Smart Thermostat Utility Program

Installation Method

Smart Thermostats as a Utility Customer Program

We created a hypothetical utility incentive program that incorporates smart thermostats and other common elements of downstream utility offerings.

Smart Thermostats: Maximizing Participation Rates

Element #1: Installation Method (3 alternatives)

Independent contractor: 

$150

Utility assigned 

contractor: $50

DIY: free

Element #2: Qualifying Thermostat Capabilities

(3 alternatives)

Auto‐adjusts + occupancy 

sensor adjustments

Programmable  + Auto‐adjusts to weather, etc.

Standard Programmable

Element #3: DR Enablement(2 alternatives)

Utility can control

Utility cannot control

A

Element #5: Incentive Payment Method

(3 alternatives)

Coupon Utility bill credit Rebate

A B C

Element #4: Incentive Amount(3 alternatives)

$50 $125 $250

A B C A B C

$250

This configuration appeals to 68% of consumers

C$125$50

A$125

B

This configuration also appeals to 68% of consumersThis configuration appeals to 64% of consumers

B

Demand Response

Element #1: Installation Method (3 alternatives)

Independent 

contractor: $150

Utility assigned 

contractor: $50

DIY: free

Element #2: Qualifying Thermostat Capabilities

(3 alternatives)Auto‐

adjusts + occupancy sensor 

adjustments

Programmable  + Auto‐adjusts to weather, 

etc.

Standard Programmab

le

Element #3: DR Enablement

(2 alternatives)

Utility can 

control

Utility cannot control

A B

Element #5: Incentive Payment Method(3 alternatives)

CouponUtility bill 

creditRebate

A B C

Element #4: Incentive Amount

(3 alternatives)

$50 $125 $250

A B C

A B C A B C

Enabling demand response reduced customer appeal by 15%

Smart Thermostat / DR Concerns

Electricity usage wouldn't be kept private 22%

Might not actually save money 21%

Might not actually save electricity 19%

Too much information for me to track and manage 15%

No time to use information 11%

kWh Usage Access

Bill Limits

kWh Pricing

Time‐Varying Rate Plan

Contract Duration

Time-varying Rates as a Utility Rate Plan OfferingWe combined the time-varying rate plan concept with some additional elements to

present a simplified rate plan offering to respondents.

Predicted participation rates in three time-varying rate plans

Element #3: Contract Duration

(2 alternatives)

Monthly Yearly

Element #2: Bill Limits(2 alternatives)

Max Bill Guarantee

No Max Bill Guarantee

Element #4: kWh Usage Access

(3 alternatives)

Monthly Bill

Weekly Summary

Online Access

A B A B A B C

60% of Customers Would Choose a Time-Varying Rate Plan with the Following Qualifiers

Maximizing Participation Rates

Element #1: kWh Pricing (3 alternatives)

A B C

Element #3: Contract Duration (2 alternatives)

Monthly Yearly

Element #2: Bill Limits(2 alternatives)

Max Bill Guarantee

No Max Bill 

Guarantee

Element #4: kWh Usage Access(3 alternatives)

Monthly Bill

Weekly Summary

Online Access

A B A B A B C

The Night-Time Rate Discount is the most popular choice

C

Concerns with Time-Varying Rate Plans

My bill might increase rather than decrease 45%

I might not actually save any energy 40%

I might need to change how or when I use energy

38%

There would be too much information for me to track or manage 28%

Smart Grid Enabled Products & Services

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Perc

ent o

f con

sum

ers

who

are

inte

rest

ed

Percent of consumers who are aware

Awareness vs. Interest

Device remote control

Rooftop solar

Smart appliances

Peak time savings

Tracking / alertTime-varying rate

Prepaid billingOnsite power storage

Smart Homes

Key Takeaways

• Consumers favor a Smart Thermostat Program that limits utility control, is free to install, and yields their monetary incentive in the form of a rebate. Enabling Demand Response reduces appeal by 15%

• 60% of consumers express an interest in switching to a Time-Varying Rate Plan

• Consumers will choose the plan that limits their financial risk in all scenarios

Empowered Consumer To Be Released on May 10th

SmartGridCC.org/Empowered-Consumer

Questions?

Nathan Shannon, Deputy DirectorNathan.Shannon@smartgridCC.org

@SGConsumer