The world is developing at unseen rates due to technology improving constantly. Technology has changed everything from the disseminating information to the masses to the way that consumers communicate daily. The introduction of technology usually has the aim of making life more convenient. Online shopping is dominating the market due to its convenience when compared to shopping at a brick and mortar retail store. Smart technology is improving as the convenience that it offers is unmatched within the home. The energy sector is looking at an immense change with the emergence of energy as a service. The diversification of income incorporating this smart technology is just in its infancy. Incorporation of technology, data, and more personalized services than just energy itself.
The driving force of this movement is that of reducing the carbon footprint of people while offering convenience to consumers. Reduction of costs is important as many consumers want the option that is most ecofriendly and affordable. The following are how the energy sector will change and how consumers will be impacted by energy as a service.
1. Merging of the Energy and Tech Sectors
The convergence of the energy and tech sectors is going to continue to grow. Large energy providers are starting to purchase and partner with startups offering smart technology in regards to energy. The monitoring and AI that can now be incorporated into a thermostat is staggering. The ability to learn the habits of a homeowner in order to provide comfort and savings simultaneously is now possible with technology. The area that should concern current energy companies is that of having an archaic business model. Tech companies have had to adapt over the course of time while the model of energy companies have been stagnant. The strategic partnerships with tech companies by energy providers can help them corner the market. The Amazon Alexa is the perfect example of a widely owned tech item that can integrate with smart home and energy technology.
2. Resistance by Certain Consumers
The consumers that might resist these changes are ones that do not want a potential increase in pricing. There are those that want their water and electric companies just to provide this utility. Smart technology being engrained throughout an entire home is not what some people want. The susceptibility of Ring systems or even the Amazon Nest to hacks has been widely publicized. Customers that have been stuck with a specific energy provider due to lack of competition could change their views with more options. As new homes are built with smart home capabilities energy as a service will become the only reasonable option for many individuals.
3. Increased Competition and Service Options
There are going to be new companies that energy providers will start to consider as competition. One energy provider offering a service another does not due to a partnership with a tech company can help an energy provider stand apart. The partnerships can also tap into the loyalty that a consumer might have for a corporate juggernaut like Amazon or Google. As mentioned above, certain individuals are forced into picking an energy provider with only one option in the local area. The level of customer service or a provider that frequently overcharges can be immensely frustrating for a person that has no other choice.
4. Reduced Carbon Footprints of Individual Consumers
The more accurate meter readings and reduced waste by consumers is a huge benefit. With the reduction of carbon emissions for entire households, the overall waste for cities and countries will also drop dramatically. For consumers that are looking to take their business to a company concerned about doing business in an ecofriendly way, energy as a service will be the best option. A few large hacks of systems could lose the trust of the public but tech giants are used to protecting incredibly important information with quality cybersecurity.
5. How Prices Will Fluctuate
The ability to know how prices will fluctuate can be difficult to predict due to the new nature of this business model. Prices could increase during the acquisition of technology by the customers. The savings will come in the form of reduced waste by utilizing technology that will allow the home to use energy in the most efficient way possible. Once the market stabilizes and mutually beneficial partnerships are created, the competition will drive energy prices down. The bundling of services much like a cable company is sure to debut as energy as a service develops.
Energy as a service will disrupt this massive sector and change the way that consumers view electricity companies. There are going to be growing pains as mentioned above but demand from consumers will only improve the overall customer experience. The way business is run in today’s technological age will continue to develop in various ways as the consumer continues to be the main focus.
Article Submitted By Community Writer