Common Sense Canadian
 

Home Energy Management – Green Business Opportunity

2
Posted October 23, 2013 by Common Sense Canadian in Energy and Resources
Green Business Opportunity HEM - Home Energy Management

The home energy management (HEM) market continues to attract attention, especially with the increasing presence of newer stakeholders like broadband service providers (e.g., Verizon, AT&T, and Comcast) and security companies (e.g., ADT and Vivint). However, the products and services that constitute the HEM market continue to struggle for more traction. In recent years, the industry’s expectation had been that a smarter grid would enable a wider use of new tools and incentives for consumers to use energy more efficiently, such as demand response (DR) or dynamic pricing. People would save money and utilities would benefit from lower overall consumption and not having to spend capital so quickly on new power-generating plants.

Over the coming decade, a continued desire among consumers to reduce bills, regulatory mandates for greater efficiency, wider use of variable pricing schemes, and a strong green sentiment will combine to help drive adoption forward with growth of the home energy management market from $300.7 million in 2012 to $1.8 billion in 2022.

But the HEM market has been fairly sluggish, with plenty of trials and only a few cases of utility-led deployments or significant consumer uptake. That view is starting to change a bit. Over the coming decade, a continued desire among consumers to reduce bills, regulatory mandates for greater efficiency, wider use of variable pricing schemes, and a strong green sentiment will combine to help drive adoption forward. These market forces will be countered by indifference to potential savings, a resistance to paying extra for HEM hardware, unsettled standards for interoperability, a crowded vendor space, and tepid support by many utilities. Nonetheless, the driving forces will spur some gains, particularly where mandates are strongest.

Navigant Research forecasts that global revenue from various segments of the HEM market will grow from $300.7 million in 2012 to $1.8 billion in 2022.


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2 Comments


  1.  
    We notice

    Here is the Toronto Star article with the explanation for the recent Ontario hydro increases.
    Note, rise in rates for “off peak hours”. There are also 300+ comments from customers:
    http://www.thestar.com/business/2013/10/17/hydro_bills_to_rise_as_offpeak_power_rates_jump_sharply.html

    As mentioned in first comment, if homeowners weren’t meant to lower their home energy bills after all, then the whole program is false advertising.
    It is an expensive pretense at “going green” that only benefits the seller.




  2.  
    We notice

    This just in: Ontario with its smart meter time of use peak pricing, just raised their NON-peak prices, making conservation for home energy use a non-incentive. You pay high for peak, you pay high for non-peak. This smart-metering is obviously a direct taxation, not energy conservation as touted.





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