A national survey of 1,082 home owners and renters last March found 90 percent believed utilities should have advanced smart grid technologies to increase energy efficiency and prevent power outages.
Smart grid involves the use of two-way communication devices that can control appliances, the charging of electric vehicles and the flow of power from renewable sources.
The Austin, Texas-based research and consulting firm said recent gasoline price hikes in the country made 76.5 percent of the respondents more sensitive to electricity prices. This could explain why many of the residents had taken energy efficiency actions in their households, Zyprme noted in their report entitled “The New Energy Consumer”.
Despite their willingness to gain control on their electricity bills with smart grids, the study found that only 23.0 percent of respondents were willing to pay higher rates over a short time period to fund smart grid technologies for utilities.
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The highest rated potential benefit of using smart grid was saving money. Conversely, the biggest concern for the respondents was the cost to build it. This could explain why 51 percent reported they wouldn‘t be willing to pay any premium above current rates.
Around 26 percent of the respondents said they would pay 5 percent extra in their bills while17 percent said they would pay 10 percent premium. Just 6 percent agreed to pay a 20 percent premium, the report stated.
Future customers are tech-savvy
In comparison, a group of respondents in the study classified as “High Tech Users” responded differently with the same questions. These are 141 respondents who reported using a smart phone, tablet, or mobile internet device for electricity management – individuals that could likely be the future customers of smart gird-capable utilities and businesses.
The recent price surge, for instance, has made 92.2 percent of the group to be more sensitive to electricity prices. More exposed to mobile technologies, they also responded more positively when asked if they were willing to pay extra in support of the technology.
Around 31.2 percent from the group agreed on paying a 10 percent premium above current electricity rates to fund smart grid adoption while 25.4 percent were willing to pay a 20 percent premium.
Zpryme concluded that awareness and acceptance of the smart grid was associated with income levels since people that earn more were most aware and able to afford the technology.
Only 39.3 percent of the overall sample said they were aware of the smart grid, with just 3.9 percent “very knowledgeable” on smart grid technologies and its use.
This compares with 62.3 percent of the high-tech user group, who tended to be young, male, with higher income levels that used the internet/email for three to five hours per day. Around 41.3 percent of them were also regarded “very knowledgeable”.
“With mobile technology becoming synonymous with all-things-tech, energy/automotive industries forging strategic partnerships, and utilities getting closer to understanding their customers, the smart grid will play the ultimate role in how the New Energy Consumer will be born,” Jason Rodriguez, chief executive of Zyprme, said.
All said, Mr. Rodriguez pointed out the study found that the typical new energy consumer has a college degree or higher, is between 27 to 35 years old, owns their home and has an average household income between 70,000 –to $100,000.
Cost Billions, Save Trillions
While the pros and cons of smart grids are being debated across the world, it cannot be disputed that an increase in information has and will deliver significant benefits to both utilities and consumers. This is more likely with the onset of more renewable energy power plants coming online that need a more efficient and robust transmission network to handle its intermittency.
A study from the Electric Power Research Institute said that upgrading the United State’s power grid with smart grid devices could cost up to $476 billion over the next 20 years but will provide up to $2 trillion in customer benefits ranging from reduced bills to more jobs over the same period.
By the year 2050, the institute estimated the average electric bill will probably go up by about 50 percent if the smart grid is deployed. If not, Clark Gellings, an E.P.R.I. fellow and the report’s lead author, warned that the average electric bill could grow by almost 400 percent.
«We can’t use these numbers to communicate with customers today. But the industry as a whole and particular utilities need to do a much better job at effectively communicating the direct and indirect advantages of smart grid,» Mr Gellings shared with InteligentUtility.com.
Based on Zpyrme’s report, utilities have plenty of work to do in educating consumers about the smart grid. Only 18.5 percent of their 1,082 respondents said their utility has provided them with information about the Smart Grid.
