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Executive Summary

Continental Automated Buildings Association (CABA) Energy as a Managed Service Consumer Opportunity Assessment Final Summary Report January 20, 2011. Executive Summary. Overview

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Executive Summary

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  1. Continental Automated Buildings Association (CABA)Energy as a Managed ServiceConsumer Opportunity Assessment Final Summary ReportJanuary 20, 2011

  2. Executive Summary Overview Traditionally, energy has been a low interest product category, but there is an opportunity to redefine the delivery of residential energy in this new era of fast-rising prices and advanced Internet networking technology. Providing Energy as a Managed Service (EMS) potentially broadens the scope of energy product/service offerings and allows for the redefinition of the customer relationship. With the advent of network-enabled smart appliances and home systems, homeowners can potentially better understand and control their energy use and reduce their energy consumption and monthly bills. Sponsoring members of the Continental Automated Buildings Association (CABA) collaborative Research Program sought to better understand homeowner opinions and attitudes about and implications for energy as a managed service for the home.To this end; Sponsor companies contracted with POCO Labs to execute a qualitative and quantitative research project exploring a number of energy management topics with the most natural initial target market: homeowners aged 25 – 64 with broadband Internet access and a minimum household income of $50,000. Both US and Canadian consumers were included in this study.

  3. Executive Summary Overview Research Objectives Consumer reactions to a number of EMS concepts, devices and products/services were measured. Purchase consideration determined consumer preferences, price thresholds, relationships to current energy costs and different energy pricing scenarios. The degree in EMS was correlated with a desire to save money and with attitudes towards conservation. EMS consumer segmentations were identified and quantified.

  4. Executive Summary Results and Conclusion Acceptance of Energy as a Managed Service The concept of Energy as a Managed Service (EMS) appeals to a great majority of homeowners, and the market is currently ready for EMS. Primary motivations for getting and using EMS are money related, not environmental. Consumers who have a higher awareness of their energy usage and costs are significantly more receptive to EMS. Current Time-of-Use customers showed an even stronger appeal, as the benefits of EMS offsetting the impact of different electricity prices are easier to see for this group. Appeal for EMS was consistent across all markets, regardless of current average residential electricity costs or potential future price increases.

  5. Executive Summary Results and Conclusion Purchase Considerations Consumer appeal varies between devices and appliances. There is an opportunity to engage some consumers by starting with just one or two EMS components. Consumers also showed a willingness to purchase EMS product and service bundles. There are some “must have” EMS devices, especially ones that include HVAC control. Respondents indicated their preferences when determining how and where they would purchase EMS products and services, along with the price premium for this information. Consumers would prefer to have an independent EMS rating system provide substantiation.

  6. Executive Summary Results and Conclusion Energy Information Comparisons Consumers indicated the preferred data sampling rate would be cost per day. The notion of aggregate data from similar homes for comparison purposes was only moderately appealing with survey participants. Impact of Time-of-Use The impact of Time-of-Use (TOU) pricing on consumer behavior toward EMS was compared between current and future TOU customers. The majority of those surveyed expected to change their pattern of electricity consumption if they switched to TOU pricing. The expected consumption changes were compared to reported consumption changes from TOU customers whom had already switched. Consumers would be willing to change their consumption behavior provided their expectations of energy savings were met.

  7. Executive Summary Results and Conclusion Conservation and Energy Management Attitudes EMS adopters are significantly more likely to have already demonstrated “green” behaviors like using CFL’s, buying an energy efficient appliance, and switching to reusable grocery bags. EMS Market Segmentation Based upon attitudes about energy consumption, conservation, and climate change, self-reported conservation behaviors, and motivations for adopting EMS, the market consists of five unique segments. Primary and secondary motivations for getting EMS were identified and quantified by segment.

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