Consumer Smart Grid Attitudes: The Positives and the Negatives Jul 14, 2010

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Getting consumers on-board with smart grid demand-response programs from electrical utilities may be a matter of offering the right type of financial incentive, according to results from an IMS Research survey.

The recent U.S. and UK survey of consumers about smart home energy management split respondents by their attitudes – positive or negative - to demand-response programs. A demand-response program consists of smart (communications network-enabled) in-home devices that react to signals from electric utilities to reduce consumption during peak demand.

Those with a positive attitude to demand-response selected, on average, 2.75 devices that they would allow to participate in such a program in exchange for a financial incentive.

A key difference between the two types of respondents is the type of financial incentive most likely to motivate them to take part in a demand-response program.

"'Demand response positive’ respondents found time-of-use pricing to be the most motivating financial incentive to encourage demand-response participation," said IMS Market Analyst Lisa Arrowsmith. "In contrast, ‘demand-response negative’ respondents would consider a percentage rebate from their annual electricity bills more compelling."

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