By John Antonchick, NCN Associates (June 28, 2011)

Parks Associates’ conducted a survey to test three different “concept devices”. First, enhanced programmable thermostat that automatically adjusts to energy saving mode when room not occupied. Second, home monitoring device measuring all device energy usage and suggesting ways to save money. Third, a home monitoring and control device enabling direct control of devices. The survey compared providing these concepts “free” vs. “$99” cost. Key reason why respondents said not interested was belief there would be “hidden costs”. Other reasons included issues like “not enough savings to care” (compared to potential 15% savings). Comfort increase is appealing for a new device but loss of comfort is a major detriment to new acceptance/adoption of new devices/services! This has implications for acceptance of load control and other advanced services. Investigation of consumer need to “adjust” their devices (e.g. thermostat) more or less frequently indicates that people will make frequent adjustments if there is “enough” savings. Other issues investigated indicate some people are more or less willing to enroll in a program if there are upfront costs or other requirements. Responses to differing service concepts using different pricing, rebates, etc. were also investigated. Example:

Life maximizers were willing to pay $5 a month for better information (and control) while presumably getting $10 a month or more savings. Getting support/installation from the electric utility was compared to HVAC services. Electric utilities are more acceptable for this comparison; but if other service providers like security services, the results are different for Life Maximizers vs. Safeguarders. Maximizers seem more open to all types of service providers than SafeGuarders. Discussion noted that “bundling” additional services with energy management is likely to change the results (and is being studied by Parks in a new survey).

Major conclusion: 20% savings (or more) is needed to motivate many consumers for various services