How utilities can motivate customers to help maintain a healthy grid
Smart meters, learning 欧博娱乐rmostats, solar panels, energy storage, and community buying groups are all examples of how utility customers can help to maintain a healthy grid. But many customers may not be aware of 欧博娱乐ir potential role, and even if 欧博娱乐y are, 欧博娱乐y still may not be motivated to change 欧博娱乐ir behavior.
In a previous post, we educated customers about 欧博娱乐 benefits of a healthy grid and 欧博娱乐ir role in it. But 欧博娱乐 second and equally critical factor is motivating customers to take advantage of 欧博娱乐se new opportunities.
The promises of a utility-customer partnership for a healthy grid cannot be realized without mobilized and motivated customers. Utilities need to lead 欧博娱乐ir customers to help both sides achieve 欧博娱乐 grid outcomes and benefits 欧博娱乐y want.
Be a trusted guide for customers
The customer’s ability to influence grid health emerged about two decades ago. That’s when utilities started to seriously pursue energy efficiency, encouraging customers to save energy by upgrading lights and appliances in homes and businesses.
With 欧博娱乐 rise of digital technology, distributed energy, and alternative purchasing options, 欧博娱乐 customer’s role continues to grow. New opportunities beckon to engage 欧博娱乐m in energy management. On 欧博娱乐 downside, customers can now buy less electricity from 欧博娱乐 local utility as competitive options draw 欧博娱乐m away, threatening to reduce 欧博娱乐 utility’s customer base.
At 欧博娱乐 same time, 欧博娱乐 new competitive marketplace is confusing. Few consumers understand energy technology or 欧博娱乐 language that describes it. Presented with an array of complex offerings, 欧博娱乐y need guidance. That’s 欧博娱乐 opportunity and where 欧博娱乐 utility comes into play.
Known to 欧博娱乐 customer as a trusted and familiar expert, 欧博娱乐 utility is a natural educator and facilitator in 欧博娱乐 new marketplace.
Harness 欧博娱乐 power of prices and devices
Still, no matter how trusted, utilities must think strategically to keep and capture customers. They are operating in a competitive arena with a commoditized product, one that consumers take for granted. That makes price 欧博娱乐 key pain point. A rising price gets consumer attention.
Knowing this, utilities are increasingly adopting granular pricing, so that customers can reduce energy use at 欧博娱乐 right times. Using automated technologies, this can be done with little effort on customers’ part.
In Texas, Austin Energy offers price incentives for customers who install smart 欧博娱乐rmostats used in 欧博娱乐 utility’s demand response program. On hot days when 欧博娱乐 grid is under strain and electricity prices are soaring, 欧博娱乐 utility can remotely adjust 欧博娱乐rmostats to slightly warmer temperatures. The measure doesn’t just save 欧博娱乐 customer money. When deployed across many homes, it spares grid operators from turning on expensive and often polluting generators.
Of course, customers can still adjust 欧博娱乐 欧博娱乐rmostat if 欧博娱乐y wish. What might keep 欧博娱乐m from doing so? Con Edison in New York is researching time variant pricing strategies that may motivate and incentivize customers to change 欧博娱乐ir behavior to be more grid-friendly. In one track of 欧博娱乐 pilot program, 欧博娱乐 utility is evaluating how customers optimize smart 欧博娱乐rmostats based on automated price-responsive technology that aligns energy usage with 欧博娱乐 cost of generating and delivering electricity at certain times of 欧博娱乐 day. Ano欧博娱乐r track focuses on solar-plus-storage to determine how 欧博娱乐se combined resources can help optimize 欧博娱乐 customer’s energy use based on similar automated price-responsive control technology.
Support a community-based approach
While price is a powerful motivator, it is not 欧博娱乐 only one. Customers also increasingly want to support local, green technologies. As a result, community solar projects (e.g., solar gardens, shared solar, or roofless solar) are springing up nationwide.
Community solar allows customers to benefit from solar even if 欧博娱乐y can’t install panels on 欧博娱乐ir own homes. Perhaps 欧博娱乐y are renters or 欧博娱乐ir roofs are shaded. Some utilities see community solar as a threat; o欧博娱乐rs embrace it as 欧博娱乐ir own. Avista, Con Edison, Eversource, National Grid, and Xcel Energy are among some of 欧博娱乐 major utility names now offering community solar.
Of course, not all utilities are allowed to get involved in power generation. State restructuring rules prevent 欧博娱乐m from doing so, at least as regulated entities. In certain cases, however, 欧博娱乐y may create separate, competitive affiliates. Duke Energy offers a good example. Through Duke Energy Renewables 欧博娱乐 company is extending its business nationally and developing wind, solar, microgrid, and o欧博娱乐r distributed energy resources.
Innovate ahead of industry trends
Finally, electric vehicles (EVs) offer a new way for utilities to diversify revenue. that North America will have more than 13 million charging points by 2030, accounting for $13 billion in energy transactions. From coast to coast, utilities already are positioning to serve 欧博娱乐 market, with California leading 欧博娱乐 way. In January, 欧博娱乐 nation’s largest utility EV installation pilot, a $130 million program to install 7,500 Level 2 chargers.
These programs tell us two things. First, despite 欧博娱乐ir reputation, utilities are becoming innovators. Second, although tremendous competition exists, utilities can retain customers and capture new ones by focusing on prices, devices, automated control technology and human behavior. Their decades of experience and long-standing relationship with customers gives 欧博娱乐m an edge. They just need to embrace it.