In search for market-based energy efficiency investment in households: smart home solutions as an option for optimized use of energy and reduction of costs for energy

Abstract

Investment in energy efficiency measures lacks regulatory incentives, and a lot depends on how actively energy efficiency is promoted by utilities. If large-scale energy efficiency does not work, consumers have to get motivated individually. Utilities are well positioned to deploy market-based energy efficiency initiatives that require accessible investment from households and energy efficiency product from utilities. Smart home solutions that include energy efficiency elements are being tested on the market by utility companies in search of a mutual benefit – energy and cost saving for the consumer and profit for utilities.Mass deployment of technologies benefiting consumers in terms of energy efficiency depends on applicability and acceptance of technologies and gains for the consumers expressed in value propositions – economy, comfort and security. Data from the households involved in testing smart home solutions indicates that installation of smart home technologies has had no immediate impact on energy consumption and costs for energy. Some of the factors affecting the results are identified, but further qualitative analysis is needed for a more detailed insight that would allow drawing conclusions about what has to and can be done to stimulate investment in innovative energy efficiency solutions. Indicatively, the answers rest within consumer behavior, regulatory environment, factors related to the energy market, and ability and willingness to invest.