IoE executives believe that the “active home” does not translate into active participation from consumers and prosumers. In fact, for large-scale participation from the mass market to occur, consumers and prosumers’ role should be limited to selecting their preferred IoE device and simply “plugging it into” the active home.
At the heart of every home are the people that live within the confines of its walls. Consumers and Prosumers’ willingness to invest in solar panels, electric vehicles or sensors to “smarten” their heat pumps, which will unleash the Internet of Energy (IoE), needs to be incentivised with clear financial gains for homeowners or homebuilders. In addition to being financially appealing, there will also be a need for IoE technologies to be appealing on a human level, for instance by providing improved standards of living.
To be convinced that their interests are being served, it makes sense that holistic integration and management of IoE devices and appliances occur within the home first. A “first dibs” mentality prevails — once the needs of my household are met, then the needs of the wider ecosystem can be catered to. Additionally, such integration can also deliver noticeable improvements in living standards, which will be particularly attractive for consumers. This “all-under-one-roof” approach is believed to be most easily understood and accepted by consumers and prosumers, and is hence most likely to succeed.
Furthermore, while it is possible for each IoE device within a home to interact directly with the outside world, the benefits of a holistic approach to energy management at the home level are evident. The holistic integration of IoE technologies within a home, giving rise to active homes, is the optimal way for clear benefits to emerge and be measured for consumers. Specifically, most consumers would prefer to receive a consolidated payment to reward them for all their shifted load capacity or energy supplied back to the grid, instead of receiving piecemeal paybacks.
Active homes will deliver greater value to consumers while positively contributing, rather than challenging, the resilience of the entire electricity system. In fact, active homes hold the key to demand-side flexibility and decentralised energy systems.
The “active home” does not translate into active participation from consumers and prosumers. In fact, for large-scale participation from the mass market to occur, consumers and prosumers’ role should be limited to selecting their preferred IoE device and simply “plugging it into” the active home. Consumers and prosumers must not be burdened, and everything should be fully automated. This means that the inherent complexities behind configuration and upgrades, integration of devices with different operating systems, communication, data collection, cleaning and analysis, for example, must have all been previously sorted out and harmonised by the numerous IoE ecosystem players — another reason why integration is so vital.
This blog has been extracted from the whitepaper “The Internet of Energy – Enabling Residential Demand Management” produced independently by the IDC (International Data Corporation). You can download a full version of the whitepaper here.
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Active homes will deliver greater value to consumers while positively contributing, rather than challenging, the resilience of the entire electricity system.