Why Don’t Consumers Get The Smart Grid?

To utilities, a smarter grid will lay the foundation for technologies that seemed outlandishly futuristic a few years ago: electric cars, cities that can insulate themselves from rolling blackouts, homes automatically tuning themselves to the weather and alternative energy that can compete economically with coal.

But to consumers, the smart grid so far is an extra charge on their bill they don’t particularly like.

Why don’t consumers seem to care about the smart grid? The answer in part lies in a lack of awareness. A recent poll conducted by General Electric found that 79 percent of Americans were unfamiliar with the term, but those that understood it generally supported its goals.

Utilities have also chronically failed to explain the benefits, or at least demonstrate that the benefits won’t just come to them. A power distributor in Texas has noted that its 500,000 meter network-paid by surcharges to customers– will allow it to shut off an individual’s power in 30 minutes if someone doesn’t pay a bill. Consumers are not leaping for joy.

But even when consumers understand the benefits, questions persist about the need. In Canada, shifting household chores like laundry to the night time might only save 15 cents. Worse, in many places, the tools to enable advanced applications like automatic thermostat control or “smart” refrigerator defrosting haven’t even been created. Homeowners with solar panels question whether they should have to pay smart grid surcharges-aren’t they relieving congestion on the grid? When they learn the answer might be they are making it worse, arguments begin.

Will consumers respond with better price signals and information or will they be better served by putting their homes and offices on autopilot? Will your electric car provide power to utilities in blackout and, if it does, will car manufacturers honor the warranty if something goes wrong? And most importantly, can the smart grid lead to cleaner, cheaper power for consumers and higher profits for utilities-is that a contradiction or a real possibility? These are some of the unanswered questions.

The initial skepticism won’t prove fatal. Google, Microsoft, Apple, Intel, and Cisco, among others, have all devised strategies for home automation, and don’t be surprised to see them joined by Sony, LG, Comcast, Time Warner and Best Buy among others over the next 18 months. Electric cars and greater demand for solar may ultimately sway public opinion.

But in the meantime, the public stands with a raised eyebrow and folded arms. Where do you think the problem is?