2024 has been another year of change and challenge for energy consumers – but also one of opportunity. We’ve seen inflation continue, extreme weather events occur across the country and a somewhat bumpy road for electric vehicles (EVs) emerge at times.
At the same time, renewable energy, heat pumps, energy efficiency and other smart energy technologies continue to grow, bolstered by the Inflation Reduction Act (IRA) and other initiatives.
To uncover consumers’ needs and provide guidance to stakeholders looking to improve the customer relationship, the Smart Energy Consumer Collaborative (SECC) published three consumer research studies and three short-form Smart Energy Snapshot Surveys this year – with a fourth and final study coming in early December.
In this blog, we share five takeaways that we have learned about U.S. energy consumers from this year’s research:
1. Consumers are interested in AI services from electricity providers.
In 2024, AI officially entered the mainstream, and in August, we released a Snapshot Survey to assess consumers’ familiarity with AI systems and their interest in using AI for energy-related purposes. The survey revealed reasonably high interest in the five AI services tested, with “proactive notifications about power outages and upcoming maintenance” topping the list (69 percent were interested). However, personalized recommendations – both for reducing electricity consumption at home and for lowering carbon footprints – also saw considerable interest. Fifty-seven and fifty percent of consumers, respectively, were either somewhat or very interested in these AI services. Surprisingly, chatbots and virtual assistants for customer service inquiries received the lowest interest – yet 42 percent were still interested in these services.
2. Nearly all consumers view modernizing the electric grid as important.
As grid modernization continues to progress, we conducted an in-depth study to assess consumer support for grid modernization initiatives and consumers’ satisfaction with and trust of their electricity providers. When asked whether it was important that electricity providers take steps to modernize the grid, consumers were nearly unanimously in agreement; 87 percent said that this was either very or somewhat important. The study also revealed near-unanimous agreement for the benefits of grid modernization. Eighty-five percent said that grid modernization helps their provider plan for future electricity needs, while 76 percent said that modernizing the grid will improve the quality of life in their communities. Despite there being a wide range of views and values related to energy, consumers appear to be relatively united in the belief that the grid should be modernized.
3. Consumers are overwhelmingly finding their energy data to be useful.
In the “Customer Satisfaction and the Smart Grid” study, we also explored whether consumers are engaging with the energy usage data delivered by smart grid technologies. We found that most consumers who have access to their usage data are finding it useful: 91 percent of consumers said that it’s either somewhat or very useful. When asked what benefits they have seen since they’ve started reviewing their energy usage data, consumers say that they understand their bills better now (58 percent), that they have saved money (42 percent) and that they know what uses the most electricity in their homes (34 percent). Twenty percent have also said that they have reduced their carbon footprints, while only 14 percent said that they have not seen any benefits.
4. The purchase price continues to be a barrier to electric vehicle adoption.
While it’s been somewhat of an up-and-down year for EVs, it seems like EV sales are poised to end the year on a high note. In May, we released a Snapshot Survey that explored consumer interest in EVs and the cost-related challenges consumers are facing on the road to electric transportation. The survey revealed that the purchase price is the main cause for concern among consumers who don’t currently own an EV, with 64 percent citing this as a barrier. Additionally, when asked to select one cost-related barrier that has the biggest impact on EV ownership, purchase price really rises to the top – 40 percent of non-owners said this was the top barrier, with the next highest barrier at 14 percent. While there’s strong consumer interest in EVs, it’s clear that consumers need help addressing the initial cost barrier.
5. Consumers are looking to their electricity providers for ways to save money.
Finally, the forthcoming “Modern Energy Messaging: Transactions to Relationships” report studied the types of energy-related messages that consumers are seeing from varied sources (electricity providers, manufacturers, government, retailers, etc.) and which of these messages are driving action. The new study – which will be released in December – found that electricity providers are the preferred source for energy messaging. Fifty-one percent of respondents said that this was their ideal source for energy-related messages, with friends/family and government being the next highest at eight percent. When we tested various messages with the survey respondents, messages relating to saving money on energy predictably rose to the top. However, home comfort, air quality and reliability were also seen as relatively important to respondents.
As we look toward 2025, we will continue to study consumers’ needs and serve as a trusted source of information on consumers’ views of grid modernization, energy delivery and usage. We invite you to join us at our next in-person event – the 2025 Consumer Symposium at DISTRIBUTECH – where we will continue the conversation on improving the utility-customer relationship.
