Utility customers overestimate cost savings with energy-conservation plans

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December 3, 2018

When deciding whether to participate in programs designed to conserve energy during peak hours, consumers appear to rely more on their intuition about how much money they’re saving rather than on proof their bills are smaller, a new study has found.

Actual savings for utility customers who participated in a program that encouraged thoughtful energy usage – things like running loads of laundry during non-peak times and turning off the air conditioning during peak evening hours – was real, but minimal, the study found.

“What really prompted customers to decide whether they wanted to stay in the program was their perception of how much money they were saving – not so much actual savings,” said study author Nicole Sintov, assistant professor of behavior, decision making and sustainability at The Ohio State University. “People thought they were saving more than they were, and they were making decisions to renew the program based on these ideas, not on real savings," Sintov says. "These are surprising results, and could suggest that there’s a disconnect that could undermine the goals of these programs.”

The study appeared Dec. 3, 2018, in the journal Nature Energy. Sintov, a Sustainable and Resilient Economy Discovery Theme faculty member, worked on the research with Lee White, who is a postdoctoral researcher at Ohio State.