Smart grid + bill prepay explored as home energy efficiency strategy
Summary: What if you could pay the amount that you're willing to set aside for your electricity upfront every month, and then use smart metering applications and other home energy management technologies to manage household consumption against that amount?This concept of "prepaid" utility services was recently examined in a consumer survey marketing firm EcoAlign, and the top-level results probably won't surprise you that much.
What if you could pay the amount that you're willing to set aside for your electricity upfront every month, and then use smart metering applications and other home energy management technologies to manage household consumption against that amount?
This concept of "prepaid" utility services was recently examined in a consumer survey marketing firm EcoAlign, and the top-level results probably won't surprise you that much. Slightly less than half of the respondents to the 1,000-person online indicated that they had no interest in such services. That's despite the fact that data shows prepay options can help result in 5 percent to 15 percent energy savings among those consumers that use them. Stuff like privacy concerns and the notion that if you somehow exceeded your limit, you would lose electricity access were the issues turning people off.
Here are some of the more intriguing findings reported in EcoAlign's report, "EcoPinion: Is Prepay the Way? Consumer Perceptions of Prepay in the Utility Sector":
- Of those consumers who ARE using prepay options of some sort (the other half of the respondents), 75 percent told EcoAlign that they are satisfied with those services. Mind you, this applies to ALL prepay gift cards and services, not specifically those for utility companies.
- Survey respondents between 18 years and 30 years old were more interested in the "ease" and "convenience" of prepay options.
- Renters were more apt to use prepay services than home owners.
- However, when asked explicitly about prepay utilities, only 17 percent of the respondents say they are "extremely" or "very" interested. The demographic trends are similar to those for prepay options in general.
- Interest levels rise when it is suggested that voluntary prepay options could be linked to a discount of 10 percent or more off their utility bills.
Consumers see the following as the top three benefits of prepay options: Paying for energy as it is used, getting rid of end-of-the-month surprises, more control over costs.
Maybe I'm just jaded, but the negative power of the way that people have "always done things" is something that those of us excited about new technology potentially overlook. I love the spirit of this idea, especially because I would love to have way more as-we-go insight into my personal electricity bill but I just do see many people of my generation moving all that quickly on prepay. I think it is a generational thing that will take at least a decade to work its way into our collective consciousness, no matter how much we would love to see it happen more quickly.
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Talkback
Get rid of wireless smart meters and combine with prepay
RE: Smart grid bill prepay explored as home energy efficiency strategy
RE: Smart grid bill prepay explored as home energy efficiency strategy
RE: Smart grid bill prepay explored as home energy efficiency strategy
RE: Smart grid bill prepay explored as home energy efficiency strategy
How to make smart meters interesting
What I do object to is being forced to pay as a line item on my utility bill for the new smart meter deployment, while there are still no specific and available advantage to them for me as a consumer.
If I were offered the opportunity to prepay for electricity, got at least a 10% discount on my rate, allowed pick my monthly deposit based on my predicted usage, able to roll over unused balance month to month, allowed to add credit at any time before I run out for no additional fee, and if I missed doing this I would have a reasonable "overdraft" fee and notification to correct it before additional costs pile up, then I would be extremely interested in my new smart meter.
Absolutely! Plus...
Also, if we're so concerned about saving power with smart meters... this tells me we're living too close to the edge of current power generation limits. One good heatwave and the smart grid won't save us from the rolling brownouts that would occur.
Instead of focusing so much on smart grids, how about building some new power plants? They may be more inefficient, but drastically lowers the risk of the system being overwhelmed.
And you call this an advantage?
Well, it is going to be quite a surprise when your electricity is cut off because you used up all of your prepaid credit!!
What's so great about smart meters?
Prepay can introduce savings by minimizing billing work, with savings passed onto the users. However, this is risky as someone else noted in that "what happens when you exceed your prepay account balance?" Do they shut off your electric?
Smart meters can introduce savings by tracking usage minute by minute IF power companies offer discounts for off-peak usage. If this is the case, CUSTOMERS choose to delay usage to off-peak... such as running clothes dryers at night instead of during the day.
But this isn't magically because of smart meter technology. Its simply providing more info to the customer so that they can change their usage patterns to whats in their best interests.
Color me unimpressed with the hype from magazine editors. How is this revolutionary? It's more akin to tracking phone call usage against your plan, for on-peak versus off-peak usage... and we've had that for years now.
RE: Smart grid bill prepay explored as home energy efficiency strategy
If you pay for 100 kwh in a month, and only use 92 kwh, what happens to the remaining 8? Does the power company keep it and use it to offset the discount for prepaying, or does it roll over to the next month?
There are better ways to reduce usage than the threat of running out of service at the end of the month. Off-peak and interruptible service discounts, and rebates for efficient appliances are two. Maybe a reward program for reducing usage would be good- say a 10% discount for months that you use 15% less electricity that your previous year's average usage.
The main problem with smart meters is that most people don't care to analyze the data that they can get from them (or don't know how to analyze it and decide what to change).
RE: Smart grid bill prepay explored as home energy efficiency strategy
"There are better ways to reduce usage"
You mean there are less-bad ways to reduce usage. I don't want to reduce usage. There's no reason to reduce usage.
RE: Smart grid bill prepay explored as home energy efficiency strategy
Uh, yeah, OK.
RE: Smart grid bill prepay explored as home energy efficiency strategy
It would serve as incentive for me to build a shed in my backyard to house a diesel or gasoline powered electric generator (which I'll begin saving up for Real Soon Now).
I don't need anyone to "incentivize" my electricity usage, or control my behavior. Y'all can bugger right off.
RE: Smart grid bill prepay explored as home energy efficiency strategy
I am currently served by an energy monopoly: no choice. A true "smart" meter would allow me to select from a higher priced provider of wind power or a nuclear provider if I chose. It could allow consumers that believe in the technologies to subsidize biofuels, etc. instead of everybody paying for them via the government and subsidies.
Most of what I have read about so far has little value or interest to the consumer over the existing system.