From consumers to prosumers: paving the way to a greener future

The energy crisis and the transition to low-carbon fuels are changing the energy landscape and driving take-up of more distributed energy resources and technology, such as onsite microgrids and rooftop solar panels. This means that an increasing number of individuals and organisations no longer passively consume energy. Known as prosumers, these individuals and businesses can now actively manage their consumption and produce their own energy, which can be fed back into the grid.

Prosumers will play an imperative role in the urgent and essential adoption of clean energy, thanks to their ability to deliver much-needed scale. The potential is huge: according to the International Energy Agency, solar panels on half the world's rooftops could meet the residential electricity demand of the entire world. The European Environment Agency, for example, says that almost everyone in the EU could become a prosumer. Increasing participation will accelerate investments in “renewable energy production, electric cars, heat pumps and energy storage”.

As adoption continues to rise, the energy landscape is shifting from unidirectional – energy flowing one way from the grid to homes and buildings – to bidirectional, in which energy flows between homes and buildings and the grid.

How does one become a prosumer?

Motivation for would-be prosumers is gaining substantial traction. “As individuals grapple with the strain of escalating energy expenses and endure the frustration of recurrent blackouts, the allure of taking control of their own energy production becomes increasingly appealing,” says Nadège Petit, Chief Innovation Officer and EVP of Schneider Electric. She adds that a growing sense of environmental responsibility has ignited a desire to proactively contribute to a healthier planet for future generations and participate in the transition to a more sustainable and resilient energy landscape.

Some may start this journey simply by becoming more active consumers, using products that help monitor and manage energy usage, such as a smart thermostat – a technology that is becoming more widespread as our homes become “smarter”.

The road to becoming a prosumer varies according to residential or business needs, and can include adoption of grid-connected devices, electric vehicles or onsite renewables production. What is becoming clear is that however someone gets started, there are several roads to choose.

Some prosumers make just part of what they use, such as installing solar panels on their rooftops. Others go a step further and become completely energy independent, relying on a combination of solar panels, wind turbines and energy-efficient technologies. “Additionally, prosumers may invest in electric vehicles to reduce their carbon footprint and lower their reliance on fossil fuels,” says Petit.

On a corporate level, forward-thinking businesses are building electric vehicle fleets to reduce emissions and contribute to a greener transportation sector. Furthermore, some prosumers embrace energy storage solutions such as home battery systems, enabling them to store excess electricity and even sell it back to the grid during peak demand periods. “Whichever path they take, prosumers help us progress towards a more sustainable future,” says Petit.

Promise unrealised

It’s the future – but we’re not there yet. While affordable and reliable energy is a good incentive, it’s not always enough to induce consumers to adopt prosumer technology. One solution is to improve engagement by offering personalised opportunities that give visibility and control over energy choices. Better access to information can increase understanding about strategies, solutions, operations and maintenance.

In a world where we can monitor, control and visualise as many or as few of our devices as we choose, consumers are opting for those that offer them a balance of saving money, driving sustainability and making our lives easier. For example, Schneider Electric’s home energy management solutions offer granular knowledge of how every device is using – and potentially abusing – electricity. Through an app, users can act to maximise efficiency through smart electrical panels, back-up batteries, EV chargers, smart switches, dimmers and outlets.

It is not only homes that can benefit from these technologies and strategies. Commercial users have been integrating onsite renewables, battery energy storage and grid-interactive technology to meet the challenges of rising energy costs, increasingly unreliable utility grids and long-term sustainability needs. Petit highlights how the urban developer Citycon has used Schneider microgrid technology to optimise its onsite solar energy, energy storage and demand flexibility with the grid. As a result, its city centre project in Lippulaiva, near Helsinki has reduced CO2 emissions by 335 metric tons per year, making it the most environmentally responsible and environmentally friendly city centre in Europe.

Interoperable innovation

“We need to make the journey to becoming a prosumer simpler and easier for all participants,” says Luis D’Acosta, Chief Executive of Uplight, a company that works with energy providers and Schneider Electric to move towards decarbonisation goals. “To accomplish this we’ll need more customer engagement and activation, in addition to interoperability, integrated platforms and end-to-end data-driven management.”

One way the company helps to nudge people towards becoming prosumers is by engaging with prospective buyers of electric vehicles, helping them to install chargers, enrol in utility programmes that offer lower rates for off-peak charging, and creating a continuous feedback loop of data that helps them understand how their electric vehicle is using energy. “A lot of the digital tools we need are already available,” says D’Acosta. “We need to accelerate the adoption of these tools and continue to advance with utilisation of data and tools like AI to continuously improve.”

With growing uncertainty around energy availability and prices, it’s no surprise that more and more consumers are seeking self-protection and profit by transforming their houses into personal power plants. Not only can prosumers use their buildings to optimise and meet their own energy demands, but they can also monetise their on-site energy through grid connectivity. With the additional government incentives to help drive adoption even further, the arguments for becoming a prosumer – at home and in business – sound more persuasive than ever.