Energy & EnvironmentSocial normsPositive

Opower Home Energy Reports

Opower (now Oracle Utilities) / 12 US utilities · United States (multi-site) · 2012

Summary

Telling households how their energy use compared to similar neighbors—and providing a simple smiley face showing whether they were above or below average—produced a consistent, durable 2% reduction in consumption across 12 utilities and 600,000 households. The effect is modest in absolute terms but highly cost-effective and replicates reliably across contexts. The 'neighbor comparison' mechanism has since been applied to water, waste, and other resource consumption domains.

Research question

"Can social comparison home energy reports reduce household electricity consumption?"

Methodology

Intervention

Bi-monthly letters comparing household usage to similar neighbors, with efficiency tips and social messaging

Assignment

Randomized controlled trial (household)

Sample size

600,000 households

Primary outcome

Household electricity consumption

Effect estimate

−2.0% electricity consumption; effect equivalent to 11–20% temporary price increase

Decision

Program expanded to 100+ utilities serving tens of millions of households globally

Result

Positive

−2.0% electricity consumption; effect equivalent to 11–20% temporary price increase

Evidence strength

Strong

Randomized trial, replicated across multiple sites or studies.

Replication status

Replicated

Institution

Opower (now Oracle Utilities) / 12 US utilities

Location

United States (multi-site)

Year

2012

Policy area

Energy & Environment

Mechanism

Social norms