Alex Laskey: How behavioral science can lower your energy bill

129,737 views ・ 2013-06-04

TED


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Translator: Joseph Geni Reviewer: Morton Bast
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How many of you have checked your email today?
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Come on, raise your hands.
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How many of you are checking it right now?
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(Laughter)
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And how about finances? Anybody check that today?
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Credit card, investment account?
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How about this week?
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Now, how about your household energy use?
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Anybody check that today?
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This week? Last week?
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A few energy geeks spread out across the room.
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It's good to see you guys.
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But the rest of us -- this is a room filled with people
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who are passionate about the future of this planet,
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and even we aren't paying attention
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to the energy use that's driving climate change.
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The woman in the photo with me is Harriet.
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We met her on our first family vacation.
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Harriet's paying attention to her energy use,
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and she is decidedly not an energy geek.
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This is the story of how Harriet came to pay attention.
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This is coal,
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the most common source of electricity on the planet,
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and there's enough energy in this coal
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to light this bulb for more than a year.
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But unfortunately, between here and here,
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most of that energy is lost to things
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like transmission leakage and heat.
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In fact, only 10 percent ends up as light.
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So this coal will last a little bit more than a month.
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If you wanted to light this bulb for a year,
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you'd need this much coal.
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The bad news here is that, for every unit of energy we use,
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we waste nine.
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That means there's good news,
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because for every unit of energy we save,
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we save the other nine.
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So the question is, how can we get the people in this room
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and across the globe to start paying attention
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to the energy we're using,
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and start wasting less of it?
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The answer comes from a behavioral science experiment
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that was run one hot summer, 10 years ago,
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and only 90 miles from here,
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in San Marcos, California.
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Graduate students put signs on every door in a neighborhood,
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asking people to turn off their air conditioning
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and turn on their fans.
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One quarter of the homes received a message that said,
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did you know you could save 54 dollars a month this summer?
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Turn off your air conditioning, turn on your fans.
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Another group got an environmental message.
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And still a third group got a message about
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being good citizens, preventing blackouts.
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Most people guessed that money-saving message would work best of all.
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In fact, none of these messages worked.
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They had zero impact on energy consumption.
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It was as if the grad students hadn't shown up at all.
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But there was a fourth message,
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and this message simply said,
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"When surveyed, 77 percent of your neighbors
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said that they turned off their air conditioning and turned on their fans.
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Please join them. Turn off your air conditioning
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and turn on your fans."
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And wouldn't you know it, they did.
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The people who received this message
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showed a marked decrease in energy consumption
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simply by being told what their neighbors were doing.
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So what does this tell us?
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Well, if something is inconvenient,
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even if we believe in it,
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moral suasion, financial incentives, don't do much to move us --
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but social pressure, that's powerful stuff.
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And harnessed correctly, it can be a powerful force for good.
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In fact, it already is.
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Inspired by this insight, my friend Dan Yates and I
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started a company called Opower.
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We built software and partnered with utility companies
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who wanted to help their customers save energy.
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We deliver personalized home energy reports
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that show people how their consumption
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compares to their neighbors in similar-sized homes.
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Just like those effective door hangers,
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we have people comparing themselves to their neighbors,
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and then we give everyone targeted recommendations
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to help them save.
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We started with paper, we moved to a mobile application,
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web, and now even a controllable thermostat,
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and for the last five years we've been running
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the largest behavioral science experiment in the world.
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And it's working.
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Ordinary homeowners and renters have saved
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more than 250 million dollars on their energy bills,
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and we're just getting started.
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This year alone, in partnership with more than 80 utilities
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in six countries, we're going to generate
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another two terawatt hours of electricity savings.
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Now, the energy geeks in the room know two terawatt hours,
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but for the rest of us, two terawatt hours
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is more than enough energy to power every home
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in St. Louis and Salt Lake City combined
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for more than a year.
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Two terawatt hours, it's roughly half
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what the U.S. solar industry produced last year.
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And two terawatt hours? In terms of coal,
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we'd need to burn 34 of these wheelbarrows
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every minute around the clock every day for an entire year
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to get two terawatt hours of electricity.
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And we're not burning anything.
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We're just motivating people to pay attention
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and change their behavior.
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But we're just one company, and this is just
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scratching the surface.
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Twenty percent of the electricity in homes is wasted,
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and when I say wasted, I don't mean that people have
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inefficient lightbulbs. They may.
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I mean we leave the lights on in empty rooms,
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and we leave the air conditioning on when nobody's home.
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That's 40 billion dollars a year wasted
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on electricity that does not contribute to our well-being
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but does contribute to climate change.
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That's 40 billion -- with a B --
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every year in the U.S. alone.
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That's half our coal usage right there.
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Now thankfully, some of the world's best material scientists
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are looking to replace coal with sustainable resources
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like these,
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and this is both fantastic and essential.
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But the most overlooked resource to get us
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to a sustainable energy future, it isn't on this slide.
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It's in this room. It's you, and it's me.
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And we can harness this resource
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with no new material science
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simply by applying behavioral science.
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We can do it today, we know it works,
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and it will save us money right away.
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So what are we waiting for?
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Well, in most places, utility regulation
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hasn't changed much since Thomas Edison.
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Utilities are still rewarded when their customers
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waste energy.
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They ought to be rewarded for helping their customers save it.
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But this story is much more than about household energy use.
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Take a look at the Prius.
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It's efficient not only because Toyota invested in material science
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but because they invested in behavioral science.
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The dashboard that shows drivers how much energy
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they're saving in real time
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makes former speed demons
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drive more like cautious grandmothers.
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Which brings us back to Harriet.
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We met her on our first family vacation.
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She came over to meet my young daughter,
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and she was tickled to learn that my daughter's name
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is also Harriet.
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She asked me what I did for a living,
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and I told her, I work with utilities
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to help people save energy.
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It was then that her eyes lit up.
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She looked at me, and she said,
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"You're exactly the person I need to talk to.
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You see, two weeks ago, my husband and I got a letter
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in the mail from our utility.
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It told us we were using twice as much energy as our neighbors."
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(Laughter)
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"And for the last two weeks, all we can think about,
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talk about, and even argue about,
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is what we should be doing to save energy.
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We did everything that letter told us to do,
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and still I know there must be more.
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Now I'm here with a genuine expert.
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Tell me. What should I do to save energy?"
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There are many experts who can help answer Harriet's question.
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My goal is to make sure
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we are all asking it.
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Thank you.
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(Applause)
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