The global home energy management solutions market will grow from $4.4 billion in 2019 to $12 billion in 2028, according to Guidehouse Insights.
A primary driver of this growth is the adoption of smart meters, which has been on the rise across all utilities and is expected to reach a penetration of 67% by the end of 2020.
Leveraging artificial intelligence to provide customers with detailed insights about their energy use will help consumers to address decarbonisation, electrification, OpEx cost reduction, load shifting and demand response, according to a new whitepaper issued by Bidgely and Guidehouse Insights.
AI-based home energy management can help utilities to improve:
- Customer Experience: mid-cycle and monthly alerts reduce high bill calls by 50% and increase energy savings by 2X.
- Home Energy Reports: digital-centric HER programmes drive 80% increase in savings, as experienced by Rocky Mountain Power customers.
- Demand Side Management: behavioral energy efficiency programs contribute to higher customer savings, while non-behavioral DSM enables more effective product targeting, recommendations and rebates.
- Call Center Operations: reduction in high bill calls and call handling time for greater service center value.
- Online Audits: higher flexibility and reach to drive field audits through online audit tools.
- New Revenue Generation: diversification of utility offerings to non-commodity products and advisory services, as implemented by Slovakia’s leading utility, VSE.
Neil Strother, a principal research analyst with Guidehouse Insights, said: “The analysis of large data sets is helping to identify usage patterns that can alter market perceptions of what is possible for HEM.
“Utilities have invested significantly in updated smart meter infrastructure. To maximise their investments, they should embrace AI technology in its many forms and create a data-centric and customer-centric culture. Utility managers and staff need to become familiar and comfortable with AI tools to exploit the increasing volumes of systemwide data that is there to be utilized.”
“The traditional approach at utilities of data silos is giving way to an overarching new approach that places the customer at the center of data gathering and analysis,” said Gautam Aggarwal, chief marketing officer for Bidgely. “This opens the door for enterprise-level analytics and personalised energy management approaches that enable a utility to better serve their customers across all segments, whether it is high consumption users or low-medium income customers. This new mindset is especially important for providing greater insights and recommendations to customers in times of financial challenges and economic uncertainty.”