It’s cheaper for an electrical utility to offer rebates to save energy than it is to build a new power plant. It’s far more effective for a municipal water district to incent saving water than to find new water sources and transport water. There have been numerous efforts by utilities to encourage industrial, agriculture and consumer clients to save water and energy. For consumers, this usually takes the form of WaterSense or Energy Star product rebate at time of purchase, or enrollment in a demand response program. Utilities are beginning to ask why should the fund these programs, when there is little customer choice.
So we anticipate that the next round of rebates will be only available to those with connectivity. Connectivity enables Utilities to *verify* that the consumer is using the connected thermostat or connected sprinkler controller. Because verification is an ongoing service back to the Utilities, this service can be a new revenue stream back to thermostat, HVAC and sprinkler controller companies. An example Southern California Edison Rush Hour Awards program with Nest.