WORLD-GENERATION NOVEMBER/DECEMBER 2016
10
HOUSTON, TX - A motivational
trifecta of environmental sensitivity,
practicality and affordability is driving
residential consumers and businesses to
find ways to utilize more renewables and
expand energy management practices.
The survey highlights the increasing
influence of millennials aged 21-34, the
largest and most dominant consumer
group, as a dynamic force behind the shift
to cleaner sources of energy inspired by
the desire to reduce their personal carbon
footprints.
This trend is really being led by the
millennial generation, whose wants and
needs are not only relevant, but
increasingly an influential factor in the
transformation of electricity providers.
We have passed a tipping point! The
concept of reducing energy consumption
has become engrained, despite record-low
energy prices that have reduced the need
to cut costs. Seventy-one percent believe
climate change is caused by human
actions, and 65 percent now say they are
“very concerned” about climate change
and their personal carbon footprints,
climbing 4 percentage points from 2015.
MILLENNIALS LEADINGTHE CHARGE
Millennials are more concerned about
shifting to cleaner sources of energy, are
more willing to pay for this shift through a
surcharge in their electricity bills, and are
also more interested in incentives for
saving electricity and purchasing related
technologies.
Eighty-six percent of millennials
believe the government should be active in
setting a vision and path for driving U.S.
energy strategy, compared with 80 percent
of Gen X (aged 35-48), 76 percent of baby
boomers (aged 49-67) and 63 percent of
matures (aged 68+).
Although there is a growing
willingness among all consumers to pay a
surcharge on their electric bills for
developing sources of renewable energy,
the highest support was among millennials
and lowest favorability was among
matures.
Millennials also are leading the way in
using energy apps, with 34 percent
indicating use of software apps to be
smarter about energy consumption,
compared to 26 percent of the general
population.
Fifty-two percent of millennials are
receptive to solar, with 60 percent noting
that solar does not contribute to climate
change.
Forty-six percent of millennials were
extremely interested in purchasing a share
in a utility-scale solar installation that
would allow them to meet some or all of
their energy needs.
ENERGY MANAGEMENT
Despite an ongoing commitment to
energy management, consumers still have
not acted on their intentions to deploy
tactics that require greater effort and
investment, such as rooftop solar, smart
thermostats, and energy efficient doors
and windows. Beyond the cost barrier,
consumers fear biting off more than they
can chew in terms of taking energy-
management efforts to the next level.
Most consumers fail to see the merits
of “smart” technologies: Only 5 percent
have a programmable thermostat with
smart phone accessibility, and just 2
percent have a home automation system
that can be accessed by a mobile device.
Just over 1 in 10 (12 percent) with
basic thermostats plan to upgrade to one
that can be accessed or changed via a
mobile device or to purchase a home
automation system in the next year.
Sixty percent of those who have basic
thermostats indicated they don’t plan to
upgrade because their current device does
its job, and 29 percent say it’s too
expensive.
Despite the strong interest in rooftop
solar, there are still barriers. For the third
consecutive year, perceptions of being
expensive (42 percent) and fears of the
panels not working as promised (23
percent) remained the main barriers to
residential consumer interest in solar.
SOURCING INCREASING
Consumer interest in sourcing at least
one additional service from their
electricity providers is growing across
generations, and this growing trust in
electricity providers could open the door
for utilities to evolve business models to
offer other services.
Seventy-five percent of residential
consumers would consider sourcing
another service from electricity providers.
About half (48 percent) of residential
consumers are interested in purchasing
energy-efficiency services from their
electricity providers; the same percentage
would be interested in purchasing Internet
services as well from their electricity
providers.
Other desired services were cable
services (38 percent), telephone services
(31 percent), home security systems (25
percent) and home automation systems
(18 percent).
Only 25 percent of residential
consumers would not consider sourcing
another service from their electricity
providers, with 48 percent attributing
“electricity companies shouldn’t be in the
business of providing these services” as a
reason, down from 55 percent in 2015.
“We see similar trends on the business
side as we do with residential consumers,
with customers leading the way for
companies to be resourceful and
demanding greater environmental
stewardship,” said John McCue, vice
chairman and U.S. energy and resources
leader, Deloitte LLP.
PERSPECTIVE
DELOITTE SURVEYS MILLENNIALS
BY MARLENE MOTYKA,DELOITTE’S US ALTERNATIVE ENERGY LEADER