Consumers have doubts about the benefits of smart energy technologies
Published on 6th May 2015
Between now and 2020, every household and small business across England, Scotland and Wales will be offered a smart meter by their energy supplier at no extra cost. But energy firms still need to overcome barriers to adoption: new research shows that consumers have concerns about data privacy in the era of smart metering, and are sceptical about the possible cost savings.
The study, published in the journal Nature Climate Change, indicates that people’s reluctance to share data about their energy use is likely to be a major obstacle when implementing ‘smart’ technologies. One of the features of smart meters is their ability to monitor energy consumption, with this information potentially being used to support more energy efficient practices.
Researchers from the University of Nottingham, together with colleagues at the universities of Cardiff, Exeter and York, analysed responses to an online survey of 2,441 UK residents. They found that more than half of the participants (58%) were willing to reduce their personal energy use but some were wary about sharing their information with third parties.
Although cost is likely to be a significant reason for many people to adopt demand-side management (DSM) systems such as smart meters, those concerned about energy costs were actually less likely to accept the new technology. A significant proportion of people, particularly those concerned about affordability, said that they were unwilling to share energy data or had concerns about it.
Co-author Dr. Catherine Butler from the University of Exeter *said*: “The research indicates that highlighting cost-saving as a mechanism for promoting smart meters may be misguided. It further suggests a need for more research to understand the views and perspectives of socio-economically vulnerable groups on the rollout of smart meters.”
Dr. Alexa Spence from the University of Nottingham commented: “Notably, new smart energy technologies are being presented to consumers as a means of saving money but people who are most concerned about costs, often those in most of need of cost savings, are actually least accepting of these. In particular people concerned about energy costs are less willing to share their energy data and that relates to this lower acceptance of DSM.”
Spence went on to explain: “This may partly be due to lower levels of trust in this group: people concerned about costs may also be less likely to own their homes, less likely to be able to afford any upfront investment that might be required, and may be distrusting of the payback that DSM might offer.”
The researchers concluded that “substantial public engagement and further policy development” are necessary for widespread DSM implementation in Britain.
