Opower

Opower

Type	Private
Industry	Software
Founded	Arlington County, Virginia (2007)
Founder(s)	Dan Yates Alex Laskey
Headquarters	Arlington, Virginia, U.S.
Area served	Worldwide
Key people	Dan Yates (CEO) Alex Laskey (President)
Products	Home Energy Reports Software as a service Energy-efficiency portal Utility CSR tools
Employees	230 (August 2011)
Website	[1]

Opower is a privately held software-as-a-service company that partners with utility providers to promote energy efficiency. Through contracts with 52 utility companies in 22 states, Opower's software creates individualized Home Energy Reports for utility customers that analyze their energy usage and offer recommendations on how to save energy and money by making small changes to their energy consumption. The average customer receiving Opower reports has cut energy usage by more than 2.5 percent.^[1]

Opower's energy reports currently reach 2 million homes, and the company expects to quadruple that number in 2011.^[2] The American Council for an Energy-Efficient Economy concluded in a June 2010 report^[3] that customer-feedback programs, like Opower's, could boost energy security, help the environment and save consumers money. "[F]eedback is proving a critical first step in engaging and empowering consumers to thoughtfully manage their energy resources," the study said.

History and Growth

Founded in 2007 by long-time friends Dan Yates and Alex Laskey, Opower is headquartered in Arlington, Virginia. As of March 2011, it employs 185 people.^[4] In June 2010, iLike founder Hadi Partovi joined Opower's board to advise on its West Coast growth strategy.^[5] In July 2010, Opower opened a second office in San Francisco and had Fred Butler, a former president of the National Association of Regulatory Utility Commissioners (NARUC) and commissioner of the New Jersey Board of Public Utilities, join its board.

On September 1, 2010, the World Economic Forum announced the company as a Technology Pioneer for 2011.^[6]

In November 2010, the company announced its third round of venture capital funding, a $50 million investment led by Accel Partners and Kleiner Perkins Caufield & Byers, to accelerate its expansion.^[7]

During a visit to Opower headquarters in Arlington in 2010, President Obama said the company's growth is "a model of what we want to be seeing all across the country."^[8]

Science & Technology

Opower's software uses statistical algorithms to perform pattern recognition analysis from data in order to derive actionable insights for utility customers. Without any devices installed in the home, the platform can perform usage-disaggregation analysis, presenting end users information such as heating or cooling usage apart from overall usage, and thus allowing them to spot additional opportunities to save money.^[9]

Opower's Energy Reports incorporate the behavioral science techniques of Robert Cialdini, Opower's chief scientist and the author of "Influence," a 1984 book on persuasion.^[10] The reports include targeted tips that seek to motivate customers to lower their energy consumption to the "normal" neighborhood rate. The reports also feature smiley-face emoticons for the most energy-efficient homes, a feature that Opower added after research showed that some consumers who used less energy than average started using more once they knew the norm. The reports also compare energy usage among neighbors with similarly-sized houses.^[11]

The company mails the reports to consumers, but also offers the information in other formats, including internet portals, text messages, email and in-home energy displays.^[12] Opower's software enables customers to input more information to generate recommendations about specific types of energy use, such as air-conditioning and heating.

President Obama's Visit

President Barack Obama visited Opower headquarters in Arlington, Virginia, on March 5, 2010. He touted the company as an economic "success story" amid a troubled economy and as a "great emblem" for clean-energy jobs.^[13]

He made the visit two months after announcing a $2.3 billion program^[14] of tax credits for "green jobs." "The work you do here ... is making homes more energy efficient, it's saving people money, it's generating jobs, and it's putting America on the path to a clean energy future," Obama said at Opower.^[15]

The White House released a video^[16] of Obama's appearance.

See also

• Energy management software
• Smart grid
• Clean technology

References

1. ^ "Energy Use: Neighbor vs. Neighbor," Bloomberg Businessweek, Nov. 9, 2009
2. ^ "The Top 10 Clean-Tech Companies," The Wall Street Journal, Mar. 4, 2011
3. ^ "Advanced Metering Initiatives and Residential Feedback Programs: A Meta-Review for Household Electricity-Saving Opportunities," American Council for an Energy Efficient Economy, June 2010
4. ^ "The Top 10 Clean-Tech Companies," The Wall Street Journal, Mar. 4, 2011
5. ^ "Opower to Expand to West Coast, Names iLike Founder Hadi Partovi to Advisory Board," TechCrunch, June 29, 2010
6. ^ Thirty-One Visionary Companies Selected as Technology Pioneers 2011
7. ^ "Opower plans expansion with $50 million investment," The Washington Post, Nov. 30, 2010
8. ^ "Remarks by the President on Clean Energy Jobs," White House release, March 5, 2010
9. ^ "Opower Separates Heat, Light in Home Energy," Greentech Media, Dec. 17, 2009
10. ^ "Finding the 'Weapons' of Persuasion to Save Energy," The New York Times, June 21, 2010, originally published in ClimateWire
11. ^ "Do you use more energy than your neighbors?" USA Today, Feb. 1, 2010
12. ^ "Opower looks to add human touch to smart grid," CNET, May 2, 2010
13. ^ "Remarks by the President on Clean Energy Jobs," White House release, March 5, 2010
14. ^ "Obama unveils $2.3 billion for clean energy jobs," CNN Money, Jan. 8, 2010
15. ^ "Can Small Lifestyle Changes Lead to Huge CO2 Cuts?," Time, March 17, 2010
16. ^ "Creating New Jobs in a Clean Energy Economy," White House YouTube channel, March 5, 2010

External links

• Opower.com