
For more than a decade, the phrase “first, eat your energy efficiency vegetables” has been used to encourage consumers and utilities to prioritize reducing energy use before making changes to how energy is sourced. This principle remains true today, but with a new twist: electrification. As utilities navigate the evolving energy landscape, ensuring that efficiency and electrification work hand-in-hand is critical to reducing emissions, optimizing grid performance, and keeping customer bills in check.
The Foundation
Energy efficiency (EE) has long been the go-to strategy for utilities looking to lower energy consumption, reduce peak demand, and help customers save money.
Electrification, on the other hand, can increase energy demand—especially if customers adopt electric vehicles (EVs) and heat pumps without implementing efficiency measures first. But when done right, electrification can be a powerful tool for decarbonization while still maintaining the benefits of energy efficiency.
Why Smart Load Management Matters
Electrification without efficiency is like skipping the vegetables and going straight for dessert—it may taste good in the short term but leads to problems down the line. Increased electricity consumption from EVs, heat pumps, and other electric technologies can put additional stress on the grid. The key is to integrate energy efficiency strategies with electrification efforts to balance load growth and avoid excessive peak demand.
Targeting Customers Who Are Ready for the Next Step
Not every customer is ready for a full-scale energy retrofit, but many are open to incremental improvements. The good news? Data shows that those who adopt smart thermostats or EVs are often inclined to pursue further energy efficiency improvements, and vice versa.
Utilities can leverage this customer propensity by using targeted marketing and strategic program design to enhance energy efficiency and demand response (DR) participation. Here’s how:
1. Promote Heat Pumps to Homes with Recent Insulation Work
A home that has already undergone insulation upgrades is primed for further efficiency improvements. Customers who have made the effort to reduce their heating and cooling loads are likely to be receptive to energy-efficient heating and cooling solutions.
2. Partner with Trade Allies to Streamline Smart Thermostat and DR Enrollment
HVAC contractors play a significant role in driving customer decisions. When homeowners upgrade their heating and cooling systems, that’s the perfect moment to introduce smart thermostats and demand response programs.
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Action Plan: Work with HVAC installers to package smart thermostats with new heat pump installations. Offer additional incentives for homeowners who enroll in demand response programs, making participation seamless during the installation process.
3. Leverage Meter Data to Identify EV Owners and Engage Them Early
EV adoption is on the rise, and utilities can use meter data analytics to identify homes with EVs based on their unique charging patterns. By engaging EV owners early, utilities can ensure they charge smartly and take advantage of time-of-use (TOU) rates or managed charging programs.
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Action Plan: Use analytics to detect EV charging behavior and proactively reach out to these customers with tailored messages about off-peak charging incentives, home energy audits, and efficiency programs that can offset their increased electricity use.
4. Support Behavioral DR and Promote Smart Tech for Greater Impact
Demand response isn’t just about turning devices on and off; it’s about engaging customers in a way that makes them active participants in load management. Smart thermostats, EV chargers, and connected home devices all create opportunities for behavioral demand response.
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Action Plan: Promote energy-saving behaviors through digital messaging, app notifications, and real-time energy usage insights. Offer incentives for customers who allow their devices to be optimized during peak events.
Balancing Electrification and Efficiency for a Sustainable Future
The transition to an electrified future is inevitable, but how we get there matters. By making energy efficiency the foundation of electrification efforts, utilities can ensure grid reliability, cost-effectiveness, and emissions reductions.
The strategy is clear: first, eat your energy efficiency vegetables. Then, electrify in a way that benefits both consumers and the grid. With smart load management, data-driven engagement, and strategic partnerships, utilities can successfully guide customers through this transition while maintaining energy reliability and sustainability.
By working proactively to integrate efficiency and electrification, utilities can lead the way in creating a smarter, cleaner, and more resilient energy future. And that’s a recipe everyone can enjoy.
Connect with one of our experts to learn more about how Franklin Energy can help you meet both your load management and electrification goals.