Six Things Utilities Must Consider While Marketing Energy Efficiency: PACMAN Model
- Jul 26, 2022 7:33 am GMT
This item is part of the Special Issue - 2022-07 - Energy Efficiency, click here for more
The consumer perception of energy efficiency has two components:
(1) Upfront investment in expensive appliances or weather-proofing their homes that need upfront investments.
(2) It may or may not reduce the energy bills monthly by any certain amount. Thus, the value of investing in new appliances isn't clear.
These two factors influence consumers to continue to use older, less efficient home appliances. It also leads them to use sub-optimal methods (aka 'hacks') to seal the chilly draft in their homes during winter.
Utilities have a significant opportunity to defer capital investments by enabling their customers to be more energy efficient. It sounds counterintuitive that utilities want to "sell" less of their products and cut down on their revenues. Energy efficiency helps them save capital investment on expensive peaker plants. "Energy Efficiency Programs Improvement Act of 1990" encouraged regulators to work with utilities to design programs that'd improve the energy efficiency of individual residential households.
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