Residential energy consumers are a notably tricky segment to engage with utility conservation programs as their smaller consumption loads pale to larger, more sophisticated commercial users. Economic incentives exist for these customers, but it's become clear that utilities cannot make everyone an energy analyst of their home and this has caused DSM programs to return spotty success for some utilities. In general, no one wants to study their utility bills. I recently found a video online (link lost) parodying the "Thing No One Says" Internet meme with a video titled "Things No One Says About Their Energy Use." One-liners such as, "Hey, do you want to hang out tonight with me and weather normalize my energy bills over the past 12 months" comedically strike the heart of every program manager. The silly video illustrates my point well in that it actually satirizes home residential energy analysis as being mundane, complex, and boring. It is for this reason that utility DSM programs must go beyond the traditional light-bulb replacement campaigns, smart-meter installations, Energy Star ratings, and the like to engage customers on more innovative fronts and not shun the boring stuff like behavior awareness.
While the importance of traditional conservation programs has continued to grow to peak levels over the recent years, so too should the interest in new engagement methods. In a great report published by the American Council for an Energy-Efficient Economy (ACEE), available for free here, researcher Skip Laitner defends returning to behavior awareness as a critical component in DSM; "The adoption, use, and innovation of technology are firmly rooted in human beaver. Therefore, it is difficult to fully distinguish where behavior ends and technology begins, or to determine how best to attribute energy savings whether as a function of technology or behaviors. In fact, most energy savings that are through the application of new technologies also rely, to vary degrees, on changes in behavior." His comments support his work in energy-efficiency research related to behavior including notable writing on the 'rebound effect.' This and other nuances of residential energy efficiency only build the case that consumer behavior cannot only be dictated by economic theory.
Though economic theories such as Pricing Signals, Value vs. Utility, or Rational Consumption clearly have their place while developing any utility DSM program, behavior modification also demands utility attention. "Lights-off" campaigns for example should not be relegated as a boutique or bonus strategy over a technology-heavy programs given behavior changes have alone resulted in 20% reductions across various empirical studies. Behavior-heavy programs that build from insights in the social sciences, which has had tremendous success in B2C banking and financial services, could be a great starting point. Think ING Direct Online Bank's saving tools and the now-copied industry culture they created. Examples abound of industries and firms slowing their inclination to force technology on theirs customers in favor of a more combined human/tech approach. DSM across the U.S. can continue to improve on this front. Programs must become more sophisticated sellers of conservation-as-a-service.
A final dash of salt...
Investor Owner Utilities probably don't favor behavior awareness programs because their results are only faintly quantifiable. I understand this, but a clever program could overcome this barrier.
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