Quick take: We’ve told you about the slow, gradual uptick in the home energy management market in recent stories about OG&E’s successful smart grid program, why Reliant Energy is piloting in-home displays and why Tendril may be positioned for growth. Now a report from Mercom Capital reveals one trend — an increase in VC investments into smart grid — that also shows another. Peel back the covers to see just what VCs are spending their money on reveals several home security and home automation firms. That’s because — after years of dipping their toes — home security and home automation firms are now adding home energy management to the things they offer to homeowners. (A similar phenomenon is taking place on the commercial side, by the way, where the vendors of building management systems now routinely offer energy management and demand response too.)
And that’s the key, in our view — making home energy part of a mix of offerings. It’s hard to cost-justify a new in-house device just for energy management. But if that device does many other things too — security and home automation, for instance — then the math starts to work. – Jesse Berst Keep reading →