Consumers favor solar over smart grid

May 16, 2013 | By Barbara Vergetis Lundin

A recent report from Navigant Research shows that consumer acceptance of renewable energy sources such as solar and wind is nearly 70 percent among respondents. However, concepts like smart grid are looked upon favorably by just over 35 percent (about half the favorability of solar) of consumers surveyed, with 65 percent viewing the smart grid either negatively or having no opinion one way or the other. The results show a distinct disconnect concerning the relationship between renewables and the grid.

The improved flexibility of the smart grid allows for greater penetration of variable renewable energy sources. For example, smart grids can coordinate power production from large numbers of small power producers such rooftop solar, which would otherwise be problematic for utilities.

Despite the efforts of organizations like the Smart Grid Consumer Collaborative (SGCC), education efforts have not progressed as well as hoped, although momentum is growing. Consumers want dialogue with their utilities beyond just saving money. Consumers are especially interested in renewables, according to SGCC's Consumer Pulse and Segmentation Study, presenting an ideal opportunity for utilities to slide the relationship between renewables and smart grid into the conversation.

Still, the majority of consumers don't know what the term 'smart grid' even means. The desire to learn is there, however, so utilities should be encouraged to ramp up their education efforts, especially as they relate to solar and wind (and other renewables) integration.

Consumer smart grid perceptions remain less positive and more uncertain. Perhaps most telling is that 56 percent of respondents were either neutral or had no opinion on the concept of smart grids, according to Navigant Research. Thus, despite the low level of unfavorable responses, utilities upgrading their infrastructure to include smart grid capabilities must do a better job of educating consumers about the benefits the smart grid can provide.

When it comes to smart grid education, it's not one-and-done. Utilities are faced with an ongoing challenge. In 2009, 47 percent of respondents had a favorable impression of the smart grid, according to Navigant, but this has fallen or remained stagnant throughout the years -- to 37 percent in 2010 and 2011, and 36 percent in 2012. As consumer education and/or knowledge of the smart grid drops off, this is an indication that utilities' efforts must ramp up. Advances in smart grid technology are ever-evolving, and so too should utilities' engagement with their customers.

Complicating the task of educating consumers is the fact that different segments of the population have different levels of knowledge. The favorability rating for smart grid varies by education level, gender and income. According to Navigant, those respondents with household incomes in the $75,000 to $125,000 range held a 48 percent favorability rating versus 27 percent for those earning less than $35,000 annually. In addition, only 29 percent of women held a favorable view versus 41 percent of men. As it relates to education, there is a 23 percentage point difference in favorable impressions of the smart grid between the lowest education levels (25 percent) and the highest education levels (48 percent). Not only will utilities have to constantly reinforce and update their education outreach efforts with customers, they must also make sure they are appropriately geared toward the varying market segments. -- Barb

http://www.fierceenergy.com/story/consumers-favor-solar-over-smart-grid/2013-05-16