In response to the COVID-19 pandemic, safe social distancing necessitated that many utilities pause energy efficiency programs for customers, which traditionally required in-person assessments of customer homes. In the economic fallout that followed the pandemic, utilities braced for hits to their revenue, as impacted customers struggled to pay electricity bills. As in many other industries, virtual and digital technology has quickly risen as an important tool for utilities to maintain customer service in the new socially-distanced reality, and with this increased adoption, many previously unrealized benefits have become known.

The case for customer control

According to 2013 data from the Lawrence Berkeley National Laboratory, the average annual energy bill for a typical single-family home is more than $2000¹. Yet that number may well be higher now due to stay-at-home orders and preferences that have largely shifted energy usage from commercial buildings to residential homes. Now more than ever, improving energy efficiency in the home is pivotal to reducing energy usage and electricity bills. Recent trends in customer behaviors, where demand for more transparency and control of energy usage has reshaped utility business models over the last few years, have become even more exaggerated as customers look to tighten their belts amidst an ongoing economic recession.

In response to these extraordinary circumstances, virtual approaches have very rapidly risen as a critical solution for continuing to engage utility customers and their unique needs. Where energy technicians once needed to enter a customer’s home to perform a thorough energy efficiency assessment, the control now quite literally sits in the hands of customers where they can conveniently operate guided assessments via a tablet or smartphone.

As utilities adapt to new ways of serving and engaging customers in a COVID-19 world, virtual assessments and programs may soon become the new normal for the many benefits, advantages and cost savings it provides over traditional in-person service models.

Energy efficiency gets a virtual boost

Traditionally, when utilities conducted an energy audit or assessment of a home’s energy efficiency, a technician may visit a customer’s home armed with tools including a digital tablet, infrared camera, tape measure and a work order document requiring a customer signature.

The technician would start by examining the outside of the home, including walls, windows and attics to locate any potential leaks for energy that might be seeping into or out of the home. They would explore the attic and insulation, examine electrical lines and holes for proper sealing and assess the condition of the water heater and furnace. They might have also performed a blower door test that uses an infrared camera to spot leaks through doors and windows and check the lights throughout the home to determine if upgrades to more energy-efficient models were needed, such as switching from standard incandescent light bulbs to light-emitting diodes (LEDs).

Throughout the traditional assessment process, customers are typically passive participants, receiving a summary of findings from the technician at the conclusion of the assessment and a recommendation for ways to improve energy efficiency. This could include upgrades to windows to reduce air leaks, where the technician may take measurements of the window dimensions. It may also include a recommendation for installing window coverings to reduce heating from sunlight, resealing doors or windows, upgrading water heaters and lighting and more.

With a virtual assessment, customers are connected to a utility technician in real time through their smartphone or tablet, without needing to download an app. Using augmented reality (AR) via a smartphone or tablet camera, customers receive live instructions from a technician that allow them to accurately assess and perform the same energy efficiency assessment as an in-home audit from a safe distance. Depending on the design of the virtual program, built-in user-friendly tools could also help navigate customers through thermostat installations or reconfigurations, allow them to take accurate measurements of window dimensions, lighting or water heaters, and potentially even help them identify air leaks. As in many virtual and digital applications, privacy control measures and settings allow customers to pause the video call, use a mute function, control certain permissions and perform other safety and privacy functions.

Virtual assurance programs can perform field verification and installation quality assurance using similar approaches and with similar benefits. This technology limits the need for further appointments to be scheduled for home and business owners. In process, virtual inspections also reduce the need for costly go-backs for program contractors. Additionally, using time-stamped and geo-located photography from the virtual assurance record, programs can provide best practice levels of confidence in installations to program evaluators and participants.

Virtual assessments tap into higher levels of customer engagement

Unlike traditional energy efficiency audits, virtual assessments and assurance can ensure utilities can deliver important customer programs while maintaining safe social distancing requirements. A virtual approach also gives customers full control over the inspection of their home and to take a more active role in identifying issues and opportunities. AR technology makes it easy to follow directions and give customers the opportunity to ask questions throughout the process. AR technology also empowers customers to become more knowledgeable about their options, improving their energy efficiency and make smarter decisions. 

Homeowners would also have the opportunity to see where simple do-it-yourself improvements can make a significant difference and provide instant savings, such as installing window treatments and coverings, switching out lightbulbs for more efficient models, or adjusting their thermostat settings.

Due to the remote capabilities of a virtual program, utilities can better ensure the safety of their technicians as well as increase the number of customer assessments and appointments that could be conducted daily. Where travel to various customer locations for in-person audits may have limited customer assessments to only three to four per day, virtual assessments allow for as many as seven to eight per day when travel time is removed.

The convenience of a virtual assessment not only gives customers more choice and control, but it also creates a more personal touchpoint with utilities that goes beyond a simple video call. Utility programs can more easily diagnose and troubleshoot issues remotely, map out installations and respond to customer issues faster, ultimately improving the way they engage with and service customers.

A new virtual norm

As utilities look for solutions to the new circumstances of social distancing and economic strain, virtual assessments and assurance could be one important way that utilities safely continue supporting customers by identifying energy efficiency opportunities for more affordable energy bills. Data and analytics will be critical to this effort, particularly as utilities examine swift solutions for low- to moderate-income neighborhoods that have been hit especially hard by the pandemic.

Furloughed utility employees could also resume traditional field activities remotely and virtually, as they tap into new digital technology capabilities that streamline response times and improve the average number of customers that can be assisted daily.

These virtual program approaches are already being implemented in commercial, single-family and multi-family residences and will very quickly become the new virtual norm given both the intuitive and user-friendly nature of the virtual engagements. Data from early virtual pilot initiatives are also driving the industry into further virtual innovation as programs explore on-demand energy advising, EV site assessment, electrification readiness panel inspections, etc. As the industry works to break down traditional models of customer service in favor of faster, virtual models, regulatory plans and policies may soon follow suit to encourage wider adoption.

¹ https://www.energystar.gov/products/where_does_my_money_go