Energy Coaching Cuts Household Costs by 50%, MIT Study Shows

Smart tech and coaching slash energy costs, helping fight energy poverty.

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Research from MIT’s Senseable City Lab investigated how energy coaching combined with smart technology interventions can reduce household energy costs and help to break the cycle of energy poverty.

A study in Amsterdam revealed that households could cut energy expenses by up to 53%, with electricity consumption decreasing by 33% and gas usage by 42%. Notably, three-quarters of participating households successfully moved out of energy poverty, defined as spending more than 8% of annual income on energy bills. These results have significant implications for energy consultants, utility providers, and smart device manufacturers seeking to offer consumer-centric energy solutions.

Energy poverty is a global problem for households and consumers. In the Netherlands alone, approximately 550,000 households are affected, while across the European Union, nearly 50 million households face similar challenges. In the U.S., around one-third of households report difficulties paying energy bills, presenting a vast market for energy efficiency solutions aimed at reducing costs.

Smart Technology and Energy Coaching: A Powerful Duo

The study employed two key intervention strategies: traditional energy coaching paired with detailed usage reports, and a second approach that combined coaching with real-time energy monitoring devices. Interestingly, while participants engaged with the smart devices actively for only three to four weeks, this short-term usage was enough to instill lasting energy-efficient behaviors.

Successful energy-saving strategies don't always require ongoing monitoring or complex technologies. Instead, simple actions—like targeted room heating, unplugging unused devices, and adopting basic efficiency upgrades such as improved insulation—can lead to significant long-term savings. These insights offer a valuable blueprint for businesses aiming to develop cost-effective energy management systems that are easy for consumers to adopt and maintain.

With energy costs remaining a financial burden for millions of households worldwide, the demand for sustainable energy solutions and smart energy management systems is rising. By focusing on easy-to-implement interventions, businesses can tap into this growing market while helping consumers save money and improve their quality of life.

Environment + Energy Leader