Can We Achieve a "Smart Home" Future?

Meg Cichon, Associate Editor, RenewableEnergyWorld.com
December 20, 2011 | 5 Comments

The concept of the smart grid continues to mystify both utilities and consumers alike. Is it cost-effective? What is the best method for deployment? Is the public ready for it? Do we actually need it?

J.D. Power and Associates recently released its "2011 Smart Energy Consumer Behavioral Segmentation Study," which analyzes consumer knowledge and behaviors related to energy efficiency and smart grid initiatives. The study breaks down consumers into different segments, ranging from "innovator," customers who will significantly invest out-of-pocket for environmental and financial benefits, to "indifferent," those who are not likely to change their energy habits at all.

The study hopes to give utilities methods for optimizing energy efficiency and consumer habits. "Rather than focusing on how customers perceive smart energy, the key to creating engagement lies in understanding the kinds of behaviors that different types of customers will undertake - behaviors that utilities hope to encourage," said Peter Shaw, senior director of the smart energy practice at J.D. Power and Associates. "This provides an efficient framework for optimizing effective customer education and engagement strategies designed to introduce smart energy behaviors to large, diverse customer populations."

So what methods work for the majority of consumers? We live in a tech-savvy world, where the public eagerly awaits the next iPhone so they can spend their free time on social media sites like Facebook and Twitter. Can utilities cater to our web-based culture?

To determine the possibilities, test projects are running throughout the U.S., including the National Rural Electric Cooperative Association (NRECA) demonstration project that was funded by the Department of Energy. It is set to reach more than 700,000 consumers across 12 states. The project has many goals, one of which is to reduce costs and increase efficiency where distances between homes are often significant and where utilities are forced to travel great lengths to provide services. It also aims to educate its customers with energy efficiency practices.

The project is set to implement innovative technology strategies including in-home displays, web portals and other advanced infrastructure to improve energy monitoring and efficiency to achieve its goals.

Other big-name companies are gearing up to release "smart home" technology. At the recent 2011 Solar Power International show in Dallas, Texas, Sanyo announced that it is partnering with Brightgrid to unveil a new solar leasing program. With each contract, they will include a free 3D television. What does this have to do with a smart home? Sanyo revealed that its ultimate goal is to release a home energy management system to be displayed on the televisions it gives away.

Customers will be able to view their energy consumption habits, monitor their renewable system's efficiency, and use social media to share statistics with family, friends and neighbors. "We are trying to make it a community program. People are disconnected today, and we're just trying to reconnect them," said Matt White of Sanyo. Not only will consumers be connected, they will be educated. The system includes games and other features to teach users about energy efficiency. "It's the next step towards a smart home," said White.

SunReports recently entered the social media market with a Facebook application that displays solar panel efficiency. "If you post it on Facebook, you might get your friends asking questions about, 'Oh, I didn't know you had solar. How's that working?' That stimulates the dialogue and raises the awareness of solar for everyone," said Tom Dinkel, CEO of SunReports. The overall goal is to promote the adoption of renewables and energy efficiency.

So with each test project and innovation, utilities take a small step closer to integrating the smart grid in our lives. The question is: Are they on the right track?

5 Comments

Robb Benson
December 31, 2011

Thomas I think you missed the whole point of my post the company down here doing the NEBs and testing the smart grid you have no meter your home is the production and storage device they call it a leapfrog system which goes in waves so you use as much as you want heat all your water no bill no meter but as industry requires they can syphon the exess like the ocean waves.

I was given a Reuters article about editions revenge and it sizes this company up to a tee. it was like it was written with them in mind but the analysts are off as they are testing systems this year not in 8 or 20.

I didn't realize this but as one of my sources pointed out this company may be the next tesla as the madman,seer,genius inventor in it has some advanced tech

Thomas M
December 31, 2011

As with most new technology, it can be used for good and evil. First, adding monitoring systems would increase electrical use. Using smart grid technology gives the supplier control over how you use electricity. Associated products have to be manufactured and installed, wasting yet more energy. Big brother and the electric or energy police will be watching.
The good side is that systems can be monitored to determine how efficient a system is for future design. Knowing your energy usage can be determined by looking at your already metered utilities bills at no additional charge. In off grid systems, do meters really matter? The amount of energy you gain is out of your hands and can only be increased by increasing system size. The amount of energy you use is up to you.
The real motivation should be in pushing education on how to be energy savvy. Installing automatic switches to turn off lights and such only diminishes peoples minds to the point where turning off a light is no longer their concern, it is something that is done automatically. We used to just post a sign at the door saying "turn off lights", after some time, turning off the lights became automatic in our brains. We have to get back to that mentality first before we can ever hope to truly conserve.
Now they have figured out how to monitor your hot water usage a little better. Here in MA, if you want local rebates, you have to install one of these meters at your cost. Add that cost to the added SREC required products, along with all the application fees, and your rebate may just cover all the added and unneccessary components and costs.
So much for the old Keep it Simple S***** theory. Make it diffucult, make them pay and keep them S***** should be the new motto.

Robb Benson
December 27, 2011

There is a company down here that has been building NEB ( No Energy Bill) homes for years and according to the tech notes I read they will be testing a wireless power transfer system next month which all compliment there storage device. If the results show promise that could bring in a whole new paradigm for how we receive and use energy.

They have a whole different attitude towards the green philosophy as they say use what you want we will build a system to fit your needs. They are totally anti conservative for individuals as they build there systems to exceed conservation so the user doesn't ever have to think of it and they can recycle just about everything as your home uses your waste to power and heat (including water) the home.

Yes it would be good reference material for teaching but I know in our area that last home had over 3200 visitors in 5 days which if you think of it is more than I have ever had in my house in years so that is a deterrent for most home owners although there is also a business but they wouldn't be able to run tours all the time either.

Edward Warren
December 22, 2011

Building and maintaining interesting hands on demonstration "Smart Homes" aimed at informing archetects, builders, realtors and science teachers for a few months before selling them would help to demystify and popularize them.

Gerry Wootton
December 22, 2011

Americans are power hogs but that can be a good thing: if Americans somehow put their energy consumption on a par with Denmark (probably a stretch goal), they'd use half as much energy. Factoring in the law of supply and demand, they'd pay less than half as much for energy. Such a large increase in energy intensity would be very good for the economy. If you stack self-generation on top (e.g. rooftop solar), particularly for commercial and industrial customers, the economic benefit would be even higher.
Another aspect of smart buildings might be energy storage including thermal storage - the resulting load leveling would help to improve QoS and reduce transmission losses as well as allowing more generators to operate at an optimum steady state instead of cycling. At the residential level, an energy efficient home can be considered to be a storage system in itself since it's demands for energy for climate control and other purposes can be less instantaneous.
One thing that demand shifting by a smart grid and overall reduction in demand through energy efficiency could fix is poor quality of service and rotating blackouts. The economic impact of this issue on industry is huge and can be counted in 10's of billions of dollars lost each year.
One of the biggest challenges of a smart grid would be the ability to integrate variable generators although more precision in dispatching of all generators and better management of demand would be beneficial in any event - the amount of generating capacity wasted is substantial and can be counted as a direct economic loss that is reflected in everyone's energy bill.

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Meg Cichon

As associate editor of RenewableEnergyWorld.com, I coordinate and edit feature stories, contributed articles, news stories, opinion pieces and blogs. I also research and write content for RenewableEnergyWorld.com and REW magazine. I manage...

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