Energy Management As Business Opportunity Looms On CEDIA Expo Docket

With historical AV revenue models in transition if not in serious jeopardy, electronic systems contractors (ESCs) attending this week’s CEDIA Expo in Atlanta will be scanning the aisles for ways to expand their portfolios and boost profitability. Green electronics -- including programmable systems that control temperature and integrate natural and artificial light, solar power and energy management -- will be among the disciplines integrators will evaluate as high-margin add-ons to their traditional AV portfolios.

Consulting firm GreenTech Advocates held a webinar last week in advance of CEDIA promoting energy management as a business opportunity for ESCs. Citing figures from Pike Research, GreenTech estimated the total home energy-efficiency market to reach $50.2 billion by 2014, up from $38.3 billion in 2009. According to Steve Castle, co-founder of GreenTech, service providers Comcast, Verizon and others are planning “connectivity” solutions that include energy monitoring and management. ADT, he said, is already marketing a connectivity solution with security cameras and remote monitoring, and plans a rollout of energy management as well. “Their markets have plateaued in the other services they provide, and they see home energy management as a huge opportunity,” he said.

Citing Shelton Group’s GreenLiving Pulse 2010 report, Castle said customers with incomes above $100,000, the target CEDIA client, are the group most interested in investing in energy-efficient homes. Opportunities in that segment include integrating ventilation systems with home control for not only energy management but home health as well. Castle noted that green homes are built tight for better insulation, but can trap stale, unhealthy air as a result. “These homes need to be ventilated 24/7, and often use energy or heat recovery ventilators to exhaust stale air and bring fresh air in,” he said.

Creative integrators have devised systems that heat the fresh air with warmth from stale air to be energy-efficient, Castle said. Thermal chimneys, he said, can help exhaust stale air while keeping a home cool in summer. When the internal temperature reaches a preset setting, ceiling fans can be programmed to automatically turn on and vent out warm air through motorized windows using a control system like those from Crestron and AMX. “Even a skylight with a ceiling fan nearby can be a thermal chimney,” Castle said.

A lot of consumer education is required before energy management becomes a significant part of integrators’ business, Castle said. “Most people who want a green home also can’t name the features of a green home,” he said, saying 97 percent of respondents to a Shelton Group study didn’t know that power plants are a primary source of carbon dioxide and greenhouse gas emissions. Because there’s so much misinformation about green living, it’s important not to overstate the potential benefits of energy efficiency in the home, Castle said. People want to be more energy efficient, he said, and they often feel guilty that they aren’t. “But they need guidance in seeking and purchasing green products.” Many consumers overstate how green they are and overestimate the energy savings of products they consider, so managing expectations is important, he said. “Don’t let them think that an energy monitoring device, for example, is going to save them 50 percent on their electricity costs.”