1Q 2018

Maximizing the Residential Energy Customer Experience with Emerging Solutions

The global electric power industry is facing a fundamental shift from centralized generation toward a mix of distributed energy resources (DER) and smart grid solutions. This mix, known as the Energy Cloud, is poised to disrupt traditional utility models for residential customers. Meanwhile, technology disruptors looking for new market entry points are bringing smart home/home energy technology and big data analytics to these utility customers. These trends are revolutionizing the way people interact with their homes while also extending the role a home can play in the Energy Cloud transformation.

As the grid evolves into a cleaner, more distributed, intelligent, and increasingly mobile infrastructure, incumbent utilities will be looking for new prospects for utility customer-centric products and services. This transformation will present opportunities that leverage service-based business models. These models, in turn, will rely on technology platforms that can offer the potential to scale faster and yield greater profit margins than before. In the meantime, the integration of smart home and home energy technology with the rise of big data analytics is also pushing non-utility technology disruptors to look for new opportunities. For some residential utility customers, developing a different relationship with their existing utility will provide the best solution options for these new needs, while for other customers, the best option might be working directly with a new technology market entrant.

This Navigant Research report examines the evolution occurring in technology and customer-focused solutions for residential utility customers. The study analyzes DER, mobility, community energy, and smart home/home energy technology trends that are creating the need for new residential utility customer solutions. It also discusses how traditional utility models for residential customers are being disrupted, as well as the new customer segments and business models arising from these trends.

Pages 18
Tables | Charts | Figures 10

  • How have new DER/smart home technology solutions created new customer needs trends?
  • How are traditional utility models for residential customers being disrupted?
  • What business models are emerging from the convergence of the Energy Cloud and smart home technology?
  • How has the evolution in technology and customer-focused solutions resulted in new residential utility customer segments?
  • Why are incumbents and disruptors looking for new market entry points?
  • Which market participants are introducing integrated and customer-centric solutions for residential utility customers?

  • Regulated utilities and deregulated utility service companies
  • Smart home technology manufacturers
  • Mobility software platform companies
  • Residential DER technology providers
  • EV technology providers
  • Residential solar PV systems integrators
  • Federal, state, and local policymakers
  • Investor community

Spark

Context

Recommendations

Residential Utility Customer Solutions Are Evolving

Solutions Are Creating New Residential Utility Customer Needs

Customer Demand Increasing for Integrated Solutions

New Competitors Are Integrating Energy Market Services and Smart Home Technologies

DER and Smart Home Technologies Are Maturing and Converging

Changing Regulations Are Pushing Disruptive Energy Applications

Business Model Innovation Is Becoming a Game Changer

New Solutions Target Emerging Customer Segments

Early Adopters: Willing to Lead

Fast Followers: Willing to Follow

Mainstreamers: Simple and Practical

Elderly: Mobility and Independence

Integrated Personalized Solutions: Creating a Sense of Community Spectrum Sharing

Five New Business Models Emerge for Residential Utility Customers

DER Optimization

Community Energy

Smart Home Solutions

Mobility

Lifestyle and Care

Transition Is Spurring Disruptive Platform Business Models

Residential Utility Customer Solutions Creating New Value

Incumbents and Disruptors Looking for New Market Entry Points

Business Model Innovation Will Become Common

New Business Models Face Both Drivers and Barriers for Deployment

DER Optimization

Community Energy

Smart Home Solutions

Mobility

Lifestyle and Care

Providers Should Pursue New Solutions to Meet Customer Needs

  • The Energy Cloud
  • The Smart Home
  • Personalized Residential Utility Customer Management
  • The Coupling of Consumer and Utility Value via Virtual Power Plants
  • Third-Party Owned Community Solar
  • Utility-Owned Community Solar
  • Smart Home Value Proposition
  • New Platform Models
  • Utility and Technology Disruptor Market Participants
  • Early Movers into New Residential Utility Customer Solution Markets

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