The evolving energy industry is constantly experiencing disruption as new technologies emerge and customer preferences change. In years past, consumers sought safety and reliability from their energy utility, but have evolved to also expect comfort, convenience and control. Energy efficiency and demand response programs, coupled with connected and smart appliances, allow utilities to engage customers and address these new preferences.

The emergence of smart home products, such as smart thermostats monitored through mobile phones, digital keypads offering keyless entry, cameras integrated into doorbells and smart lighting solutions, have led home automation companies to also develop products that support energy efficiency initiatives. For example, while traditional thermostats served a utilitarian function, newer models tend to be programmable, self-learning and sensor driven.

As utilities nationwide have adapted to navigate the new environment and meet their customers’ changing needs, a growing demand for Instant Rebate Tools has emerged. Knowing consumers are firmly rooted in their digital devices and platforms, utilities benefit from teaming up with retailers, in partnership with manufacturers, that sell energy efficient products and offering instant rebates to consumers who buy their products. Instant rebate programs streamline the experience for customers by offering savings in real time and incentivize participation in energy efficiency utility programs. Such tools also help utilities and manufacturers take their customer-centric efforts to the next level.

Value of and Implementation of Instant Rebate Technology

Instant Rebate Tools support the evolving energy business model by allowing utilities to empower customers to make their own purchasing choices, while also decreasing strain on the grid. Instant rebates are fundamental to providing a transformative customer experience as they meet customer expectation, immediately at point of purchase versus delayed traditional mail-in rebates. Knowing a smart thermostat can help the average homeowner save up to $145 per year in energy costs, customers can also expect to see increased savings over time on their utility bills.

Another benefit of Instant Rebate Tools is that, in comparison to downstream, both the development and implementation support cost-effectiveness. Programs can be productized for profitability for varying utility and market sizes, but still customized to meet utility needs without losing market awareness. Relationships with retailers and manufacturers provide more leveraged support in marketing campaign efforts. Instant Rebate Tools enable utilities to tailor programs to meet the economic climate they operate in, as well as the client base they serve.

Instant rebate engagement opens the door to logical cross promotion for other programs, like demand response. By putting a spotlight on the need to save energy, rebate tools provide an opportunity to educate consumers about the importance of home energy conservation and connectivity, including techniques to impact power consumption during peak hours. The tool, coupled with marketing, also allows utilities to engage targeted audiences, like the low- and moderate-income (LMI) demographic, effectively aiding those most in need with a pathway to lowering their own cost expenditure over time.

Accessibility is another benefit of implementing an instant rebate program as the tool is conducive to in store and online shopping. Many utilities are challenged with rural markets and the Instant Rebate Tool allows customers to get rebates from their homes without having to drive miles to the nearest participating big box store. Convenience is not just about the ability to choose the product, it’s about where and how you purchase it. Meanwhile, as technology advances to adapt to the needs of the average consumer, it is a necessity to give users control while they are on the go. Web-enabled platforms are designed to work on mobile phones and tablets to streamline participation, offering users immediacy and control while shopping in brick and mortar store locations.
 

Another advantage instant rebates offer is early stage validation to help inform customers’ purchasing decisions. Customers enter verifiable information, like a name and home address, into the app or website to verify their qualification. Historically, patrons have been required to complete and mail in a cumbersome application that could take weeks to process upon submission. By informing customers they are eligible for a rebate prior to purchase, the process is streamlined and the cost savings is immediate, resulting in an improved customer experience.

Mostly, participation is designed to be easy. The respective retailers, and sometimes partners, provide a unique barcode to be used at participating retail stores upon the purchase of energy efficient products, like smart thermostats and heat pump water heaters. One example is a rebate program launched in Illinois which offers $100 instant rebates to customers who purchase a new ENERGY STAR certified thermostat—select the product, verify eligibility, receive the barcode, save instantly at the point of purchase.

Overall, launching an Instant Rebate Tool can be an integral step forward in a utility’s effort to delight customers, and a critical move to be a trusted partner when customers have increasing choices in who to turn to for their energy solutions. The tool and technology will continue to evolve, the products and offers will continue to expand, and the customer engagement opportunity could be limitless. By providing instant savings on select energy efficient products, utilities, retailers and market partners empower customers to make smarter, more affordable purchasing decisions that will ultimately save them time, money and energy.