New Dynamics in Residential Energy Use
Published: March 16, 2011
Todd Camnitz
Utilities face new challenges and opportunities with regard to their residential customers. Changing attitudes toward the environment and energy efficiency, growing participation in energy consumption management, and increasing plug loads are all contributing to new dynamics in residential markets. In 2009 and 2010, Nielsen Claritas conducted a survey about appliance and equipment saturation, interest in utility-sponsored products and services, and specific attitudes toward energy utilities, with responses from over 32,000 U.S. households each year. We analyzed the data for the E Source Residential Energy-Use Study: 2011, and here are some interesting excerpts from our findings.
Utilities need to deliver on a variety of fronts to keep customers happy. Nearly one-third of survey respondents indicated that they would likely choose a different electricity provider if given the option. However, another third indicated that they would stay loyal to their current provider if given the chance to switch utilities. Poor or high marks in customer service, perceived community responsibility, environmental friendliness, value provided, and effective communication were strongly correlated with a desire to switch or remain with current providers, respectively.
Participation and interest in energy-efficiency programs varies. Between 2 and 7 percent of survey respondents claimed participation in energy-efficiency programs in the past 12 months, with appliance rebate programs enjoying the highest levels of participation. Roughly two to three times the number of respondents who participated in efficiency programs in the past indicated that they were likely to participate in the next 12 months. However, compared to 2009, the 2010 survey showed an across-the-board increase in program participation, but an equally pervasive decrease in respondent interest in future program participation.
The public is interested in smart meters, but not in paying for them. Sixty-five percent of respondents indicated that they were interested in viewing household or appliance energy usage as allowed by a smart meter; only 15 percent indicated no interest. However, when asked what a fair monthly rate for smart meter–enabled energy management would be, 15 percent marked $10, 27 percent marked $5, and nearly half marked just $1.
Some programmable thermostats remain unprogrammed. Forty percent of respondents have programmable thermostats. Of this 40 percent, 68 percent have programmed their thermostat to go down in the winter, 61 percent have central air conditioning and have programmed their thermostat to go up in the summer, and 28 percent have not programmed their thermostat at all.
Interest in electric vehicles (EVs) sticks with the younger crowd. When asked which type of EV respondents preferred, about 58 percent chose hybrids and only 8 percent chose all-electric vehicles. The remaining 34 percent marked “unsure.” Consumers in the 18-to-34-year-old bracket were two to four times as likely as those over the age of 55 to indicate that their next car would be an EV.
Compact fluorescent lamps (CFLs) still have a place in program portfolios. Twenty percent of survey participants still use 0 CFLs, 13 percent have 1 to 2, 25 percent have 3 to 5, and 43 percent have 6 or more. Homeowners are using more CFLs than are renters, with respondents in campus housing reporting usage numbers that fall somewhere between those two groups.
The data from this survey are available by region and can be used to inform your demand-side management program planning, rate design, new product planning, and even your approach to customer service. In addition, trend data between the two survey years are now available and can provide greater insight into how residential energy markets are changing—or not.
If you’re interested in learning more about this market research study and how it can be customized for a specific utility, please contact us for more information. |
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About the Author
Todd Camnitz
RESEARCH ANALYST, E SOURCE
Todd Camnitz helps maintain DSMdat, the comprehensive E Source database of energy-efficiency and demand-side management initiatives in the U.S. and Canada. He also answers Member Inquiries and contributes to the E Source Residential Energy-Use Study, which is based on Nielsen Claritas survey data. Todd has a BA from the University of Colorado at Boulder. |
