“This nascent market has yet to find real traction among consumers even though market drivers do exist,” said senior research analyst Neil Strother. “Consumers’ desire to reduce their monthly energy bills, new-home construction, and home remodeling present opportunities to install the necessary hardware, and the increasing competition among BSPs in this space demonstrates some market validation. BSPs, however, will need to lower barriers in order to maximize this somewhat limited opportunity.”
Those barriers include the relatively high cost of home energy management hardware, in addition to recurring service fees; contracts that require multi-year commitments; uncertain returns on investment for consumers; energy costs that, for the moment, are relatively low and stable; a lack of technology standards; a crowded, confusing market; and lukewarm utility support. Most U.S. consumers (63 percent) say they are interested in home energy management, according to a recent Pike Research survey, but most are not aware that BSPs currently offer home energy management services.
Publication date: 2/25/2013