Independent Analysis Determines OPOWER’s Energy Efficiency Platform Delivers up to 3.5 Percent Average Drop in Energy Consumption Across Targeted Households
OPOWER (www.opower.com), the energy efficiency software company, today announced that in its second year of deployment, the patent-pending Home Energy Reporting system has been independently verified to deliver energy savings as high as 3.5 percent in the summer months—unprecedented energy savings for an energy efficiency program of its size. The results are based on data gathered over 16 months at a long-running residential demand reduction deployment, and independently verified by Summit Blue, a leading measurement and verification firm.
"We've examined the data at OPOWER customer deployments at SMUD and Puget Sound Energy and have determined that the energy savings show robust and statistically significant declines in energy usage that persist months after the first messages are sent," said Ian Ayres, a renowned economist and William K. Townsend Professor at Yale University. "I am not surprised to see the large energy savings well into the second year of the SMUD program reported by Summit Blue. Our own analysis has shown no deterioration of impact over time."
OPOWER has pioneered one of the most successful residential energy efficiency programs in years, combining cutting-edge behavioral science with patent-pending data analytics to deliver customized Home Energy Reports to millions of utility customers. Each report provides a detailed analysis of individual monthly energy usage, coupled with energy efficiency tips designed to be highly relevant to each household based on past usage and household-specific demographic data. The unique approach has been proven to deliver large-scale energy savings for OPOWER utility partners, while enhancing the customer experience by significantly enhancing the information provided on the monthly bill.
“Our scientific research has shown that the most effective way to influence energy saving behavior is through the use of comparative data relative to a utility customer’s social network—not just comparative data on one’s own historical behavior. The substantial savings OPOWER generates stems from its ability to identify energy consumption of comparable others—those in your own neighborhood—and provide insight into how those in your social network are achieving greater efficiency,” said Dr. Robert B. Cialdini, an emeritus professor of psychology and marketing at Arizona State University, and OPOWER’s chief scientist. “OPOWER’s commitment to employing cutting-edge behavioral science is why the program has proven to grow in effectiveness year over year.”
Independent Analysis Verifies Significant Savings
OPOWER recently engaged with independent assessment firm Summit Blue to conduct a comprehensive analysis of the effectiveness of Home Energy Reporting at Sacramento Municipal Utility District, using data gathered over the first 16 months of the program. The report by Summit Blue provides a very significant data point in the debate around sustainability of behavior-based approaches and represents strong evidence the energy savings through Home Energy Reporting are not only sustained, but tend to increase over time.
According to the report, the first year of the program demonstrated energy savings “consistently estimated between 2.1 percent and 2.2 percent.” The second year however is on pace to deliver 2.8 percent in annual savings, and has delivered as high as 3.5 percent in savings over the summer months. The analysis confirms that “there is a cumulative effect to the program and as it continues over time, the participants find additional ways to reduce their energy consumption.”
“A sampling of both PSE electric and natural gas customers have been receiving OPOWER’s reports for nearly a year now, and the results of the program to date have been tremendous,” said Todd Starnes, Puget Sound Energy. “Results have also proven to get better over time, so PSE looks forward to continuing to expand the home energy reporting program by adding features that will further increase its effectiveness. The opportunities available through Home Energy Reports to leverage daily energy usage data give our customers greater insight about how they can save energy, money and the environment.”
Key findings in the Summit Blue report include:
- The Home Energy Reporting program is delivering sustainable demand reduction, estimated at 2.2 percent in the first year and on pace to deliver 2.8 percent in year two;
- Program impact is higher during peak demand Summer months, reaching 3.5 percent in demand reduction in July and August of 2009; and
- Distribution of impact indicates a significant demand reduction across all households, not just certain customer segments.
“OPOWER’s mission is to provide our utility partners with a very pragmatic and cost-effective way to achieve large-scale energy efficiency,” said Alex Laskey, president and co-founder of OPOWER. “One of the best and most cost-effective ways to do this is to successfully engage your customers and help them make adjustments to their daily consumption. Our unique approach is a turn-key solution for utilities that enables them to convert regular and smart meter data into measureable overall and peak load reduction. To end-users, we deliver easy to understand information about their energy use, enabling them to make lasting adjustments that will help them save big on their energy bills.”
About OPOWER
OPOWER is an energy efficiency software company that helps utilities meet their efficiency goals through effective customer engagement. Using cutting edge behavioral science and patent-pending data analytics, the OPOWER platform enables utilities to connect with their customers in a highly targeted fashion, motivating reductions in energy use. Six of the ten largest utilities in the United States use OPOWER to significantly improve the effectiveness of their energy efficiency portfolios. For utilities with Advanced Metering Infrastructure (AMI), the OPOWER platform represents a cost-effective way to convert hourly data into measureable peak and overall savings, delivering the value of the Smart Grid directly to their customers. Founded in 2007 and privately held, OPOWER is headquartered in Arlington, VA. For more information, please visit www.opower.com.
Contacts:
fama PR
Keith Watson, 617-758-4142
opower@famapr.com
