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Going Green, Saving Green
FGI Research study suggests consumers are willing to use smart-grid technology to reduce energy consumption, but some have lingering doubts.
As companies worldwide endeavor to rebrand themselves as “environmentally friendly,” and stories about “going green” pervade the news, the cultural emphasis on sustainable living is becoming indisputable. Wal-Mart has announced an initiative to make its outlets “greener” by 2015. Other companies are capitalizing on the green trend by using clean energy sources in their production processes, creating eco-friendly products (like Clorox GreenWorks), or incorporating recycled materials in their designs. In a new study, FGI Research focuses on the question of saving energy from the consumer’s perspective. In it, we find that 9 in 10 respondents think reducing home energy consumption is “somewhat” or “very important.”
“If you take steps to reduce your electricity usage, for what reasons do you do so?”
Using FGI’s online panel, SmartPanelTM, we asked U.S. consumers whether they took conscious steps to reduce energy consumption and, if so, what their motivations were. The vast majority (93%) of those who responded said they took steps to save energy at home. As their impetus, many cited concerns about the environment and the economy. FGI Research delved deeper, asking about the ways that respondents saved energy and how they felt about technologies like the smart grid, which increase efficiency. Are customers willing to give up control over some aspects of energy consumption to “go green” and “save green”?
Consumers Take Action to Save Energy
One of the most widely-recognized ways of saving energy is by purchasing appliances that bear the EnergyStar label. This label means the product meets EPA efficiency standards. Other ways of saving energy include turning off lights, using appliances at certain times, investing in home improvements, and using energy-conscious climate control. The FGI Research study asked which of these steps respondents took.
The most common way consumers save energy is by turning off lights upon leaving a room (95%), followed by using compact fluorescent bulbs (88%). Consumers also cut energy costs by keeping the thermostat at a reasonable temperature (88%) and wearing seasonable clothing to reduce the need for air conditioning or heating (78%). About three-fourths (74%) of those surveyed unplugged appliances and chargers when not using them. Slightly fewer people reported using appliances during off-peak hours (69%) and investing in home improvements to improve insulation (63%).
Smart Grid: the Provider Steps In
These energy-saving tactics are all consumer-driven. But the advent of smart-grid technology creates the opportunity to reduce energy expenses and consumption even more. Smart grid achieves this through collaboration among manufacturers, consumers and electric utilties. Specifically, energy providers have greater control over how and when power is used. The smart grid relies on two-way digital communication to monitor all electricity-use within a network. It may or may not incorporate smart meters or other devices that let customers see how much energy they use in their own homes.
Customers receive incentives, such as paying lower rates, when they take steps to save energy like operating appliances at “off-peak” (lower-demand) hours –for instance, running the dishwasher late at night. Some smart grids allow a provider to link appliances to a network and turn them on or off remotely to suit these hours. Although this option takes control out of the user’s hands, it reduces the utilities bill at the end of the month and offers benefits to the system overall. These benefits include more accurate and timely monitoring, quicker service response, reduced risk of black- and brownouts, reduced pollution, and reduced need for additional power plants. Boulder, Colorado is an example of a smart-grid-enabled city (the first “Smart City”) already reaping such benefits.
Consumers Attracted to Economic, Environmental Pluses
FGI Research asked residential customers whether they knew what a smart grid was, whether they were attached to one or would be open to trying it. An overwhelming majority (96%) said they were either using one already or would use one, given the option. Nine out of ten respondents said the smart grid would save them money. Eight out of ten said the technology would save electricity. Roughly two-fifths (43%) said that ceding some control to their utilities provider would actually reduce stress, since it would save them money and energy with minimal effort on their part.
Smart Grids or Not-So-Smart Grids?
Notwithstanding overwhelming support for the smart grid’s benefits, many worry about the disadvantages. 62% of consumers say they hesitate to have someone else decide when they can or cannot run appliances. Two out of five (41%) were particularly worried about having a loud appliance turn on in the middle of the night. About half (48%) expressed anxiety about technical difficulties or glitches in the system. Nevertheless, benefits of the smart grid appeared to outweigh the pitfalls. A mere 4% of respondents indicated they would not be open to trying the technology.
“In your opinion, which of the following are disadvantages of Smart Grid/Smart Meter?”
Actionable Insights
The results of this FGI Research study illuminate several clear insights. First, customers want to save energy for economic as well as environmental reasons. Second, many are already taking individual steps to do so. Finally, most favor the idea of a smart grid, if they are not already attached to one, even if some see downsides to implementing the technology. Energy providers can benefit from this information in several ways, if they have the information and the opportunity to act.
- Providers can field an awareness/usage study to put in perspective their customers’ level of understanding of smart grids and, where necessary, take steps to educate them. Adequate education may lessen customers’ concerns about problems they see with grid updates.
- Providers should undergo research to find out how their customers feel about smart grids and smart meters. Surveys can indicate the overall level of support for network updates, while online focus groups and communities can bring up subjective concerns of individual customers. New concepts and price points can be accurately evaluated.
- As always, providers should engage in ongoing research to monitor customer satisfaction and respond with actions that make sense from a customer-service standpoint.
Survey Methods This nationally-representative sample consists of adults aged 18 and up and is balanced to the US population using recent census data. One can say with 95% confidence that the maximum margin of sampling error is ±4 percentage points.
Next Steps You Can Take
Respondents: 131
Date of Survey: May 25-June 1, 2010
Sample Source: FGI SmartPanel2 Responses to “Going Green, Saving Green”
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June 15th, 2010 at 1:51 pm
Nice study results.It is easy to understand.
June 15th, 2010 at 2:09 pm
the final survey results was exactly what i thought it would be:) i think that in this day and age not only is it smart but also essential to save energy and help all of us live a longer life.