Smart home energy devices—such as smart meters, connected thermostats, and intelligent energy management systems—hold the promise of lower bills, reduced carbon footprints, and greater control over household energy use. Yet, despite these clear benefits, the majority of consumers remain on the sidelines. The digital divide in home energy is a complex challenge, rooted in cost, digital literacy, and regional availability. For utilities, technology providers, and policymakers, closing this gap is essential to accelerating the energy transition and ensuring that the benefits of digital energy management are inclusive and equitable.
Cost is the most significant barrier to the adoption of smart home energy devices. Many consumers are deterred by the upfront expense of purchasing and installing devices like smart meters or connected thermostats. Research shows that 32% of non-users cite cost as a primary reason for not adopting smart devices. Even when long-term savings are possible, the initial investment can be prohibitive—especially for households already facing high energy bills.
Beyond the sticker price, skepticism about value is widespread. Over a third of consumers (36%) question whether the savings or benefits justify the expense, often due to a lack of transparent information about potential long-term savings. This uncertainty is a critical obstacle to broader adoption.
A significant portion of consumers (33-36%) report that they don’t know enough about smart home energy devices to consider using them. This knowledge gap is compounded by digital literacy challenges: 28% say they don’t know how to use smart devices, and many 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. Between 18% and 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:
These findings highlight the potential for smart devices to deliver real value—if the barriers can be overcome.
Utilities and technology providers must go beyond marketing to deliver clear, accessible information about what smart devices do, how they work, and the tangible benefits they offer. Digital literacy programs—ranging from online tutorials to in-person workshops and community outreach—can empower consumers to feel confident using new technology. Personalized communications, powered by data and analytics, can help customers understand how smart devices fit their unique needs and lifestyles.
To address the cost barrier, utilities and governments can provide 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.
Utilities and technology providers around the world are already piloting programs to address these barriers:
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.