Smart home energy devices—like smart meters, connected thermostats, and intelligent energy management systems—promise a future where households can save money, reduce their carbon footprint, and enjoy greater control over their energy use. Yet, despite these clear benefits, the majority of consumers remain on the sidelines. Recent consumer research reveals that 71% of people do not use smart devices to manage or track their home energy. This digital divide is not just a matter of technology adoption; it’s a complex challenge rooted in cost, digital literacy, and regional availability. Understanding and addressing these barriers is essential for utilities, technology providers, and policymakers who aim to accelerate the energy transition and make its benefits accessible to all.
Cost is the most significant barrier to the adoption of smart home energy devices. For many consumers, the upfront expense of purchasing and installing devices like smart meters or connected thermostats is simply too high. Survey data shows that 32% of non-users cite cost as a primary reason for not adopting smart devices. Even among those aware of the potential for long-term savings, the initial investment can be a deterrent—especially for households already feeling the pinch of rising energy bills.
But cost is not the only financial consideration. A substantial portion of consumers (36%) say they don’t see the value in these devices, questioning whether the savings or benefits justify the expense. This skepticism is often compounded by a lack of clear, transparent information about how much money smart devices can actually save over time.
A third of consumers (33-36%) report that they don’t know enough about smart home energy devices to consider using them. This knowledge gap is a critical obstacle. Many people are simply unaware of what these devices do, how they work, or how to get started. For others, the challenge is more about digital literacy: 28% say they don’t know how to use smart devices, and some are intimidated by the prospect of setting up and managing new technology in their homes.
This lack of awareness extends to green energy options more broadly. While 70% of people say they would prefer to purchase energy from renewable sources, 41% are unsure whether their utility even offers such options. The same uncertainty surrounds smart devices—consumers are often left in the dark about what’s available, how it works, and how it can benefit them.
Not all consumers have equal access to smart home energy technology. About 18-27% of non-users say that smart devices are not available in their area. This regional disparity is often linked to the pace of grid modernization and the rollout of digital infrastructure by utilities. In some regions, especially rural or underserved communities, the necessary infrastructure for smart meters or connected devices simply isn’t in place. This digital divide risks leaving entire populations behind as the energy sector modernizes.
For the 29% of consumers who do use smart devices, the motivations are clear and compelling:
These findings highlight the potential for smart devices to deliver real value—if the barriers can be overcome.
Utilities and technology providers must invest in consumer education. This means more than just marketing; it requires clear, accessible information about what smart devices do, how they work, and the tangible benefits they offer. Digital literacy programs—whether online tutorials, in-person workshops, or community outreach—can empower consumers to feel confident using new technology. Utilities can also leverage data and analytics to personalize communications, helping customers understand how smart devices can fit their unique needs and lifestyles.
To address the cost barrier, utilities and governments can offer targeted incentives, rebates, or financing options that lower the upfront expense of smart devices. These programs should be designed to reach low- and middle-income households, who are most likely to be deterred by cost. Transparent pricing and clear information about long-term savings can also help consumers see the value in making the switch.
A seamless, user-friendly digital experience is essential for driving adoption. Utilities should prioritize intuitive apps, easy onboarding, and responsive customer support. The goal is to make managing home energy as simple as using a smartphone—removing friction and building trust. Partnerships with technology providers can help utilities deliver best-in-class digital experiences, while also ensuring that solutions are accessible to users with varying levels of digital literacy.
Closing the regional gap requires continued investment in grid modernization and digital infrastructure. Utilities, regulators, and policymakers must work together to ensure that smart devices and the benefits of digital energy management are available to all communities—not just those in urban or affluent areas. This may involve public-private partnerships, targeted infrastructure projects, and regulatory frameworks that encourage innovation and inclusion.
The digital divide in home energy is a critical challenge—but it is also an opportunity. By addressing the barriers of cost, digital literacy, and regional availability, utilities and technology providers can unlock the full potential of smart home energy devices. This will not only help consumers save money and reduce their environmental impact, but also accelerate the broader transition to a cleaner, smarter, and more resilient energy system.
The future of energy is digital, but it must also be inclusive. Bridging the gap will require collaboration, innovation, and a relentless focus on the needs of all consumers. By taking action now, the industry can ensure that the benefits of smart energy technology reach everyone—not just the few.