Social Proof To Reduce Energy Use

From the Innovation files of BusinessWeek comes this report about how software startup Opower is partnering with utilities and applying behavioral psychology to reduce energy consumption.

"In the past 18 months, Arlington (Va.)-based Opower has partnered with 21 utilities to incorporate neighbor comparisons into gas and electric bills. Based on the success of pilot programs in Sacramento and Washington state's Puget Sound area, Opower just added two high-profile clients to its roster in October: National Grid of Waltham, Mass., and Seattle City Light. About 1 million households currently receive the reports, which show them how much energy they are using vs. similar households in their neighborhood. (To establish "comparable neighbors," Opower looks at the square footage of the home, its type of heating system, whether there's a swimming pool, and so on.)

The result: Customers in the program have reduced annual energy usage by an average of 2.8%, or the equivalent of 280 kilowatt-hours per year. In its test with the Sacramento Municipal Utility District, the effect has been biggest in households that were the biggest energy hogs pre-Opower: They've reduced consumption by more than 6% on average."

Opower's Chief Scientist is none other than Dr. Cialdini.

Read the full article.