Report on U.S. Consumer Trends in Energy Efficiency and Alignment with Sustainable Development Goals

Executive Summary

A recent survey by the Smart Energy Consumer Collaborative (SECC) reveals significant shifts in U.S. consumer attitudes towards energy efficiency, driven by younger demographics and evolving motivations. These trends present opportunities and challenges for achieving several United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action). This report analyzes the survey’s key findings within the framework of these global goals.

Key Finding 1: Generational Divide in Energy Engagement

The survey identifies distinct consumer segments with varying levels of engagement in energy efficiency, highlighting a generational shift crucial for advancing SDG 12 and SDG 13.

• Informed and Engaged Consumers (34%): This group, primarily under the age of 55 and with children, demonstrates a high interest in energy efficiency and technology. Their engagement is a positive indicator for fostering patterns of responsible consumption.
• Turnkey Comfort Consumers (13%): Comprised mainly of affluent retirees, this segment prioritizes reliability over energy savings, indicating a need for targeted outreach to align their priorities with broader sustainability goals.
• Youth-Led Momentum: Gen Z and Millennial consumers show unprecedented attention to energy consumption, actively connecting technology with energy management. This trend supports the long-term integration of sustainable practices required for Climate Action (SDG 13).

Key Finding 2: Evolving Motivations Towards Sustainability

Consumer motivations for adopting energy-efficient practices are broadening, moving beyond purely economic concerns to encompass environmental responsibility, a core tenet of the SDGs.

1. Rising Environmental Concern: While cost remains a primary driver, concern for the environment is increasingly influential in consumer decision-making. This shift directly supports the objectives of SDG 13 (Climate Action) by fostering a culture of environmental stewardship.
2. Affordability as a Persistent Driver: The economic aspect of energy efficiency remains critical, directly impacting progress on SDG 7 (Affordable and Clean Energy) and SDG 1 (No Poverty).

Key Finding 3: Energy Affordability and its Impact on SDG 7

The challenge of energy affordability has intensified, underscoring the urgency of achieving SDG 7. The report highlights a growing struggle among households to manage energy costs.

• Increased Financial Strain: 31% of respondents reported difficulty paying their electricity bills in the last year, an increase from 25% two years prior. This directly challenges the “affordable” component of SDG 7.
• Consumer Mitigation Strategies: In response, consumers are adopting measures aligned with SDG 12 (Responsible Consumption):
  • 48% reduced heating and air conditioning use.
  • 37% reduced appliance usage.
  • 29% replaced inefficient bulbs with LEDs.

Key Finding 4: Technology as an Enabler for Sustainable Energy Systems

The adoption of smart home technology is growing, offering a pathway to enhance energy efficiency and build resilient infrastructure, contributing to SDG 7 and SDG 11 (Sustainable Cities and Communities).

• Smart Technology Penetration:
  • 47% of respondents own a smart thermostat.
  • 43% own at least one smart appliance.
• Potential for Grid Stability: Smart appliances and thermostats are foundational for demand response programs and virtual power plants, which enhance grid resilience and support the integration of clean energy, crucial for building sustainable communities.

Conclusion and Recommendations for Advancing SDGs

A significant barrier to leveraging these positive trends is a lack of consumer awareness. To accelerate progress towards the SDGs, utilities and regulators must improve outreach and education.

1. Bridge the Awareness Gap: Data indicates that 54% of customers with smart thermostats are unaware of demand response programs. Closing this gap is essential for maximizing the contribution of households to SDG 7 and SDG 11.
2. Empower Consumers: By educating consumers on available programs and technologies, stakeholders can empower them to make slight behavioral adjustments that collectively mitigate rising energy demand and support climate goals (SDG 13).
3. Integrate Programs with Consumer Lifestyles: Designing and marketing programs that align with diverse consumer lifestyles and motivations will be key to unlocking widespread participation in the clean energy transition.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy
2. SDG 11: Sustainable Cities and Communities
3. SDG 12: Responsible Consumption and Production
4. SDG 13: Climate Action

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 7: Affordable and Clean Energy

• Target 7.1: Ensure universal access to affordable, reliable and modern energy services. The article directly addresses the affordability aspect of this target. It highlights that “Thirty-one percent of respondents said they struggled to pay their electricity bill in the last 12 months, up from 25% just two years before,” indicating a significant challenge in ensuring energy is affordable for a portion of the population.
• Target 7.3: Double the global rate of improvement in energy efficiency. The core theme of the article is energy efficiency. It discusses consumer interest, the adoption of technologies like smart thermostats and LEDs, and the role of utility-led energy efficiency and demand response programs in managing energy consumption. The article notes that these programs “have gained prominence as the country faces new load growth.”

SDG 11: Sustainable Cities and Communities

• Target 11.6: Reduce the adverse per capita environmental impact of cities. Improving energy efficiency within households, as discussed in the article, is a key strategy for reducing the overall environmental footprint of urban and residential areas. The article notes a shift in consumer motivation, stating, “We are seeing that environmental concern, especially, move up closer and closer to their concern around cost,” which connects consumer behavior directly to environmental impact reduction.

SDG 12: Responsible Consumption and Production

• Target 12.2: Achieve the sustainable management and efficient use of natural resources. The article details how consumers are changing their behavior to use energy—a natural resource—more efficiently. It mentions actions such as “lowering heat and air conditioning consumption (48%), reducing appliance usage (37%) and replacing inefficient bulbs with LEDs (29%).” The adoption of smart technologies for energy management also supports this target.

SDG 13: Climate Action

• Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation. The article explicitly identifies a lack of awareness as a major barrier to progress. It states that “limited customer awareness remains a barrier to greater participation in efficiency programs” and cites a report finding that “54% of nonparticipating customers had not heard of such [demand response] programs.” This directly points to the need for improved education and awareness, which is the focus of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

SDG 7: Affordable and Clean Energy

• Indicator for Target 7.1 (Affordability): The article provides a direct metric: “31% of respondents said they struggled to pay their electricity bill in the last 12 months.” This percentage serves as an indicator of energy affordability.
• Indicators for Target 7.3 (Energy Efficiency): The article implies several indicators through survey data on technology adoption and consumer behavior:
  • Percentage of households owning a smart thermostat (47%).
  • Percentage of households owning at least one smart appliance (43%).
  • Percentage of consumers replacing inefficient bulbs with LEDs (29%).
  • Percentage of smart thermostat owners participating in a demand response program (about 20%).

SDG 11: Sustainable Cities and Communities

• Indicator for Target 11.6 (Environmental Impact): The article implies that the rate of adoption of energy-efficient behaviors and technologies can serve as a proxy indicator for reducing the per capita environmental impact. The growing motivation of “concern for the environment” among consumers is a qualitative indicator of shifting attitudes that drive this progress.

SDG 12: Responsible Consumption and Production

• Indicators for Target 12.2 (Efficient Use of Resources): The article provides specific behavioral data that can act as indicators of more responsible energy consumption:
  • Percentage of people lowering heat and air conditioning consumption to save money (48%).
  • Percentage of people reducing appliance usage (37%).

SDG 13: Climate Action

• Indicator for Target 13.3 (Education and Awareness): The article provides a clear indicator for the lack of awareness, which can be used to measure progress in education: “54% of nonparticipating customers had not heard of such [demand response] programs.” A decrease in this percentage over time would indicate progress toward the target.

4. Table of SDGs, Targets, and Indicators

Source: utilitydive.com