Evolving connected home market requires new strategies, experts say

YARMOUTH, Maine — As smart home energy management becomes a cornerstone of the connected home, platform providers must cater to a diverse and growing client base, said Mary Nitschke, director of strategic accounts for Public Grid, during the recent Parks Associates Smart Energy Summit. 

“If you just focus on the inhabitant, you’re going to fail, and if you focus on the owner, you’re going to fail,” she said. 

With solar incentives expiring and other hurdles potentially slowing connected home adoption, providers face a critical question: How should they pitch their platforms? 

“Foundationally we are trying to offer value to the customers by reducing the total cost, and that’s what everyone is trying to do – deliver value,” said Dr. Gabriela Bunea, chief solar innovation officer at GAF Energy. “We are trying to have a product that by design is offering value.” 

Smart energy adoption on the rise 

From smart thermostats and appliances to solar panels, batteries and EV chargers, consumers are embracing integrated platforms that promise lower bills. In fact, 56% of smart home adopters report lower energy costs, with smart thermostats reducing heating and cooling energy use by an average of 18%, according to SQ Magazine. 

Bunea highlighted the surge in solar adoption in new homes. A few years ago, she could count the homes with solar on one hand—now she can count the ones without. 

Single-family vs. multi-family: The split incentive challenge 

Does property type change how smart energy is marketed? Absolutely, said Nitschke. 

“Yeah, 100%,” she siad. “You have what is called a split incentive. If I’m renting a home, I might not necessarily be able to put the solar onto my roof, so I am seeing the benefit of the lower cost of energy, but the owner of the building has to put up the upfront cost for the initiative. So, there’s a huge disparity between who can do what, and it creates challenges.” 

For multi-family properties, the solution lies in designing programs that benefit both owners and occupants, Nitschke said. 

“It’s a challenge that way, but I think really looking at the data and understanding that the building owner might not be the occupier, and what they need from that data and what they need to get out of that program,” she said. “I think if you look at it more holistically for rental real estate, you’ll get a more positive outcome.” 

Learn more about the Smart Energy Summit at http://www.parksassociates.com.