Ronald J. Zimmer CAE President & CEO Continental Automated Buildings Association

Ronald J. Zimmer CAE President & CEO Continental Automated Buildings Association Smarter Solutions for the Smart Grid

State of the Connected Home Market Member Participants

Remote control, lower energy bills, safety & security drive interest in the connected home; ease of use matters to those who like the connected home Top Connected Home Benefits Total Online Consumers (% Range for US & Canada) Matters most to: Remote control and having an easier way to control are related concepts Remote control from anywhere 44%-47% Those with the most interest in the connected home Women Saving money on energy bills 43%-48% Everyone ( Those least interested in the connected home care most about saving energy) Safety & security 42% Everyone Easier to control 19%-29% Those with the most interest in the connected home Men Summary: Benefits & Barriers Source: CABA’s State of the Connected Home Market 2011

Among energy consumers, the list of benefits is the same as for the general consumer population—remote access, saving money and safety/security Top-3 Connected Home Benefits Total Online Energy Consumers 18+ US 2011 (n=618) Canada 2011 (n=209) Enhanced safety & security More comfortable/pleasant home environment Reducing the amount of energy your home uses Ability to know when household members have arrived or left Saving money on energy bills Nothing Energy (net) Ability to control locks, alarm, temperature and/or lights while away from home Easier way to control & monitor home systems/devices Access to desired entertainment content on any device More convenient way to control locks, security, temperature and/or lights while at home Simplified management of home maintenance/repairs Control & monitoring (net) Source: CABA’s State of the Connected Home Market 2011

Among energy consumers, potential demand for smart appliances is relatively robust Interest in Smart Appliances Top-2 Box; % Definitely Buy At a ‘Reasonable’ Price Online Energy Consumers % 30% US 2011 (n= ) Canada 2011 (n=62-85) Air conditioner Range, cooktop or oven Water heater Thermostat Refrigerator Dishwasher Furnace Washing machine/dryer Home security system 37% 35% 34% 32% 33% 41% 31% 27% 31% 23% 30% 26% 30% 25% 30% 27% Potential demand is roughly even across device types, though furnaces stand out in Canada. Click here for concept description Likelihood to Purchase a Smart Appliance At a ‘Reasonable’ Price, When in the Market, Online Energy Consumers 18+ % ‘Definitely’, Top 2-box US 2011 (n=614) Canada 2011 (n=209) *Discounted Demand Source: CABA’s State of the Connected Home Market 2011

Reducing energy usage is less important than saving money in the US, while in Canada, it is nearly as important. Ability to get maintenance alerts and remote access are of lower importance.  Users of alarmed security systems are the most interested group in maintenance/repair alerts (US).*  Smartphone owners are more interested in remote control and monitoring than other consumers (US)* The top motivator for smart appliance purchase: saving money Smart Appliance Feature Importance Online Energy Consumers 18+ Mean Importance Based on 100-Point Allocation US 2011 (n=618) Canada 2011 (n=209) Ability to get maintenance/ repair alerts Ability to monitor or control remotely Ability to save money on energy costs Rebates or other cost incentives Reduced home energy usage Money/cost incentives (net): Source: CABA’s State of the Connected Home Market 2011

Dynamic pricing and smart meters are more familiar to energy consumers in both the US and Canada than other smart grid concepts. Canadians are generally more familiar with dynamic pricing and smart meters than Americans—though most still know little if anything about HEMS or HANs Smart Grid Familiarity Total Online Energy Consumers 18+ US 2011Canada 2011 Dynamic Pricing (n=618) Demand Response (n=618) Smart Meter (n=618) Home Energy Management System (HEMS) (n=309) Home Area Network (HAN) (n=309) Never heard of it Heard of it, but not much else Know something about it Know a lot about it (n=99) (n=209) (n=110) Never heard of it Heard of it, but not much else Know something about it Know a lot about it Source: CABA’s State of the Connected Home Market 2011

In US, both homeowners and renters, young and old are interested in smart appliances; in Canada, older homeowners have highest interest Summary: Target Markets Those very interested in Home Dashboard/HEMS (US): Have smartphone (73%) and/or tablet PCs (28%). Are more likely to participate in a clean energy (16%) or energy management program (17%) with their electric utility than those not interested (4%, 5%). All consumer types are interested in dynamic pricing– but tablet PCs are more common among those who are (23% in US). Those very interested in smart appliances: Own home (79% US; 97% Canada) Median age (41; 56) Women (54%; 60%) Annual HH income $50K+ (55%; 59%) Have smartphone (66%; 55%) Have tablet PC (23%; 39%) Use/interested in dynamic pricing (55%; 58%) Use equipment maintenance program (18%; 23%) Use fiber-optic Internet (17%-US) Women somewhat more focused on laundry & kitchen Source: CABA’s State of the Connected Home Market 2011

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