Behavior-Based Energy Efficiency

Historically, energy efficiency programs have relied on financial incentives to motivate people to purchase energy efficient products.  Behavior‐based energy efficiency strategies rely on other motivations that influence people’s energy consumption. These non-financial influences can be powerful motivators that encourage people to reduce their energy consumption. For example, some utilities send their customers home energy reports, which present that customer’s energy use relative to similar home. 

On average, when informed that they use more energy than a similar home, people will take steps to reduce their consumption and across a population households can save 1-3 percent.[1]  Over millions of households this adds up to a significant reduction in energy consumption.

Photo of a thermostat

Key Focus Areas

Behavioral efficiency programs and strategies are a cost-effective way to reduce energy consumption.  Behavioral insights from academic research in behavioral science, economics and psychology can also help improve the performance of traditional efficiency programs. For example, a recent study for ComEd estimates that even if energy efficient residential lighting technology is in place, there is still approximately 11 percent waste due to occupant behavior[2].   SEE Action has identified three key issues that need to be addressed to leverage behavioral insights to reduce energy waste:

  • Enabling Data Access while Protecting Customer Privacy. Customers can make better decisions to manage their energy use and costs when they have access to the right information and tools.  To develop these tools for customers, service providers need customer data.  Creating a framework that allows for data access while protecting customer privacy is a key foundation in the development of tools and resources that reduce energy waste.
  • Incorporating Behavioral Insights into Program Design.  The application of behavioral research can help program administrators design better programs.  The programs may be able to achieve more savings or increase participation rates with the application of the right behavioral science principles.
  • Measuring Savings from Behavior Based Efficiency Programs. Large scale behavior based energy efficiency programs are a relatively new strategy for acquiring savings.  Rigorous evaluation methods are needed so policymakers can be confident that savings estimates from these programs are valid and can understand issues such as the persistence of savings.

Key Initiatives

SEE Action is currently working on several initiatives to assist state and local entities, utilities and other program administrators capture energy savings through behavior-based strategies. These include:
 

  • Summarizing the range of policy approaches taken by states to provide access to customer energy use information that can be used to support and enhance the provision of energy efficiency services, while protecting customer privacy.
  • Providing recommended evaluation methods for estimating energy savings impacts resulting from residential behavior based efficiency programs.
  • Analyzing hourly and sub-hourly interval meter data to better understand more detail about the origin of the savings in behavior based efficiency programs, including the potential for peak-hour savings. 

[1] "Are Savings from Behavior Programs Ready for TRM Prime Time?" Scott Dimetrosky, Apex Analytics 2013, http://www.iepec.org/wp-content/uploads/2013/03/Presentations/Dimetrosky.pdf

[2] “ComEd Residential Saturation/End-Use, Market Penetration & Behavioral Study” April 2013

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Contact our Experts
  • Michael Li, U.S. Department of Energy,
    Customer Information and Behavior Working Group, Staff Lead