Daniel Holcomb, Senior Analyst at Parks Associates, recently joined the Wi-Fi Alliance’s SIGNAL podcast to explore how Wi-Fi and IoT are reshaping energy management in the home. With energy prices on the rise and consumer expectations shifting, Daniel shared data-backed insights into how connectivity and affordability are driving smart energy adoption—starting with thermostats and extending to solar, EVs, and smart panels.
Energy Costs Are Driving Consumer Action
Recent Parks Associates research reveals that 61% of U.S. internet households feel their energy costs are too high. Monthly energy spend has risen from $131 in Q4 2020 to $156 in Q4 2024, underscoring the growing interest in energy-saving technologies.
Smart Thermostats: The Gateway to Smart Energy
Smart thermostats remain the most widely adopted energy management device, but adoption is still in its early phases—only 16–17% of households currently own one. However, among those adopters, 37% are part of the “early majority”, signaling growing mainstream appeal.
“The number one reason why consumers buy smart thermostats is to control them remotely. A Wi-Fi connection is really important for that.” – Daniel Holcomb
Despite growing interest, barriers remain: cost, perceived complexity, and lack of awareness. That’s why new “value tier” thermostats from brands like Ecobee and Honeywell Home (priced around $120) are expected to play a key role in market expansion.
Beyond Thermostats: What's Next?
Adoption of larger-scale energy technologies, like solar (5%), smart panels (4%), and EVs (5%), remains low due to high upfront costs and shifting incentives and utility reforms (e.g., net metering changes in California) may further slow adoption in the short term.
Still, innovation continues:
• Span’s Edge, a utility-grade device enabling easier electrification.
• A new Ecobee smart thermostat that interfaces with Generac battery systems.
• The promise of kesterite, an emerging material that could make solar panels cheaper and cleaner.
Wi-Fi Is the Backbone
Wi-Fi connectivity is critical to ensuring that smart energy devices deliver on their promise - whether through remote control, automation, or grid-responsive programs like demand response.
“It’s not enough to sell a smart thermostat. It has to be connected. White-glove installation services and better Wi-Fi infrastructure are key.”
Programs and Participation: What's Missing?
Only 22% of smart thermostat owners currently participate in demand response programs, largely due to low awareness and discomfort with automated control. But bill credits and utility incentives are a strong motivator, sometimes even more compelling than free hardware.
Looking Ahead
As Wi-Fi standards continue to evolve, with Wi-Fi 6 widespread and Wi-Fi 8 in development, smart energy management will become more seamless, responsive, and accessible. The development of Matter over Wi-Fi also promises greater interoperability across smart home ecosystems.
Listen to the full episode: Wi-Fi and IoT Empower Smart Energy Management at Home - The SIGNAL Podcast
Explore more smart energy insights: Parks Associates Research
