Today connected thermostats allow the consumer to manage temperature settings from their mobile phone or computer. But there’s so much more that a connected thermostat can do. Add the data science and automation layers and watch the thermostat transform into an energy services gateway. These capabilities provide real convenience to consumers (see Internet of Things evolution blog post). We see a huge opportunity for thermostats that provide valuable energy services to benefit consumers and service providers alike. Here are four such services:
1. Energy Efficiency: Temperature adjustments that optimize energy savings automatically for consumers while preserving comfort. When data science is applied to this problem, results can yield an astonishing 12-15% annual savings above a simple schedule.
2. HVAC Early Warning Service: Much like a “check engine” light in a car, detecting a fault early can quickly prevent catastrophic failures and save thousands on repairs and energy costs. Here’s where data science can once again deliver consumer value. Pattern recognition software reveals when the cooling or heating system begins to fail or becomes less efficient.
3. Getting the Most of TOU: As the energy marketplace becomes more competitive, time-of- use (TOU) or real time pricing will become the norm. How consumers adjust to this new pricing scheme is the source of many debates and public utilities commissions (PUCs) are worried that there will be a severe consumer backlash should energy bills rise.
Predictive analytics will serve to guide consumers when it’s best to use electricity. Taken a step further, automatic adjustments such as when and how long to turn down the thermostat given expensive periods of energy costs will provide consumers the convenience and energy cost savings they seek.
4. Demand Response with customer satisfaction: For utilities who want to minimize energy consumption during peak load to avoid brown outs during very hot days (and sometimes very cold winter days) where demand for electricity may exceed the ability to produce it, utilities draw on a select set of customers to minimize their use. This is referred to as demand response.
Through extensive market research, we’ve found that 85 percent of customers are willing to participate in demand response programs as long as they are notified. The thermostat is yet another notification mechanism to provide this information to consumers. When combined with a full suite of communications mechanisms – mobile, web, SMS, and email – are employed to ensure the consumer is well aware of their participation, it increases the likelihood that utilities will achieve their demand side management goals.
The next time you look at your connected thermostat, you may look at the device in a whole new way – as a service gateway that can lead to better and convenient energy and money savings.
