Smart Grid and AMI – Leading to Smart Appliances

As advanced metering installations are developing throughout the U.S., industry attention is now shifting to understanding and encouraging the actions and technologies necessary for customers to capture the promised benefits of Smart Grid and AMI. This customer focus will logically include the system’s ability to communicate with numerous household appliances. Like many of the challenges confronting electric utilities in driving energy efficiency and conservation, the customer needs to be an aggressive, albeit voluntary participant.

Educating Consumers on Benefits

Appliance retailers, home builders, and manufacturers will play a significant role in explaining the advantages that can potentially accrue to customers who alter their consumption behavior. They will also play a critical role in educating the consumers on the specific financial benefits that can be achieved from their energy saving.

Some of the specific changes that will be needed to influence customer behavior include:

• The new smart appliances will need attractive time-of-use rates, or
• Lower prices will need to be promised.

Typically these “energy smart” appliances are on average 10 to 20 percent more expensive than comparable appliances. The projected energy and operating cost savings, though substantial over the long run, often do not offset the increased price soon enough to engender enthusiastic support from the typical consumer. Consumer acceptance of these high efficiency appliances will ultimately be a function of the relative sophistication of the customer base and their understanding and acceptance of these benefits.

Consumer Receptivity

In California, where new and emerging related technologies frequently enter the market and where a majority of the industry’s smart meters have already been installed, there appears to be more receptivity to purchasing, and more importantly using the technologies encompassing smart appliances. This trend will extend to other regions as customers who are actively engaged in conservation efforts begin to realize the benefits of energy efficiency without a noticeable change in their lives.