Smart meters, broadband adoption, real-time control and new standards are helping to drive the deployment of new energy management solutions and services. Over time, they will help the industry improve consumer engagement in energy management. Currently, consumer interest is there, but actual action, as well as basic knowledge of what is available, is limited. For example, even though 62 percent of U.S. broadband households strongly believe that saving energy and lowering their utility bills are desirable, only 19 percent have taken advantage of energy programs, and 39 percent are unfamiliar with energy programs despite the fact that utilities have spent years marketing them to their customers. 

Engaging the consumer is still very much a challenge for the industry, but increased product development and marketing will help increase awareness to consumers about the value proposition of energy management solutions. Continued deployment of smart meters and the wide adoption of broadband and smartphones provide the foundation for utilities, appliance manufacturers, and service providers to enhance their offerings and expand the value proposition to consumers.

At first glance, the benefits of smart meters go primarily to the utility. Smart meters reduce the cost to read meters, manage distribution losses, allow remote connect and disconnect capabilities, and reduce billing disputes. However, they also provide utilities with the capability to provide variable rate plans to consumers and the ability to provide consumers with information on how to reduce energy consumption. Smart meter data can help change the relationship between consumers and utilities from supplier and rate payer, to advisor and partner.

From the article, "IP-based Energy Management Services: Tools to engage consumers" by Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates