EnergyHub Plays Both Sides Of The Residential Hardware Debate

Editor’s Note: EarthTechling is proud to repost this article courtesy of Greentech Media. Author credit goes to Katherine Tweed.

A long, long time ago, let’s call it mid-2010, there was a host of residential energy management companies with serious hardware offerings to sell to utilities.

Even though there were millions of smart meters being installed in the U.S., it turned out that most utilities weren’t interested in purchasing hundreds of thousands of in-home displays and connected thermostats to shave peak demand from startups entering the space.

EnergyHub, Mercury, Home Energy Management, Software

image via EnergyHub

EnergyHub was one of those companies. “The advantage of utilities is they can push it on a big scale,” Seth Frader-Thompson, CEO of EnergyHub, said in October 2010. “Or that’s the dream.”

It turned out to be just a dream. Instead, the tables have turned, and now companies like EnergyHub are leveraging their presence in the marketplace to do business with utilities that need all those air-conditioners that their networks manage.

That doesn’t mean that there is no market for home energy management through utilities. EnergyHub just announced two new cooperative utility contracts with Gibson Electric and Mid-South Synergy. Gibson, which is part of Tennessee Valley Authority, will offer EnergyHub’s smart thermostats and accompanying Mercury platform to provide multiple megawatts of demand reduction while also giving added value to customers. Energate is providing up to 150,000 thermostats to Oklahoma Gas & Electric in coming years to reduce peak.

Even though EnergyHub continues to sign up utilities for its hardware offering, far more of its business is coming from offering its Mercury platform as a software-as-a-service product. The SaaS does about ten times as much business as the hardware/software offering to utilities. “It was overnight,” Frader-Thompson said of his company’s success in software-only. “I won’t say it was exponential, but only because nothing in the utility business is exponential.”

Mercury allows people to optimize their energy settings on a smart thermostat, but it also offers feedback based on the household’s usage and comparison to neighbors. EnergyHub says its system can save up to 20 percent on home energy bills. Mobile apps and websites to go with the service can also be white-labeled.

Mercury is the platform for Radio Thermostat of America (sold as 3M thermostats), which sell for just $99. “The thermostat market already exists, and the percentage that’s networked is skyrocketing,” said Frader-Thompson. “It’s a really good place for us to be sitting.”

EnergyHub is partnered with Earth Networks (known for WeatherBug) to have its e5 service run on top of the Mercury platform, which can help drive more savings by incorporating the company’s weather data.

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