Can smart thermostats really save you money?

17

October

2017

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Nowadays, companies such as Google and Amazon focus more and more on increasing the customers’ ease of life with the use of smart home assistants, such as Google Home and Amazon Echo. But, before the introduction of these smart devices, there was already another smart instrument in some people’s living room: the smart thermostat. The first smart thermostat that was able to learn from your behavior, surroundings and preferences was the Nest Learning Thermostat that was introduced in 2011 (Nest, 2011). This device could program a heating and cooling timetable itself, based on your personal schedule. Furthermore, it could detect whether you are at home, and if not, it would automatically switch off the heating. A few years later, the smart thermostats still have largely the same functionalities, but are optimized because of machine learning on data of users (Nest, 2017).

The most important claim made by producers of smart thermostats is that they save energy and thus will help you save money. However, is this claim true? Producers of smart thermostats have done some research themselves. Nest (acquired by Google in 2014) produced a white paper in which they state that the device can save you up to 29% of your heating costs in the Netherlands (Nest, 2014). Ecobee found that customers in the US saved on average 23% on their heating and cooling bill (Ecobee, 2013). However, research by independent parties are less positive. In August 2016, Florida Solar Energy Center conducted a research with smart thermostats and found that heating and cooling costs would decrease on average with 9.5%. However, in some of the participating houses cooling costs increased after installation of the smart thermometer (Florida Solar Energy Center, 2016). Kassa, a Dutch consumer television program focused on reviewing and testing consumer products, also tested different smart thermostats. They even concluded that the thermostats would not save you any money at all (Kassa, 2014).

There are three reasons why smart thermostats do not deliver what they promise. First of all, producers often calculate cost savings compared to people who keep their thermostat at the same temperature during day and night (Kassa, 2014; Florida Solar Energy Center, 2016). Secondly, the thermostat is only able to learn properly from your schedule when you have a regular lifestyle (Consumentenbond, 2017). Lastly, the thermostat works best when the household consists of only one person (Kassa, 2014).

Based on the above, one could suggest that smart thermostats do not work and will not work in the future. Also Heisler (2016) concluded that thermostats did not increase their capabilities in the last couple of years. I, however, believe that they have a bright future in front of them. I think that smart thermostats are already useful for households who meet certain conditions. Furthermore, I believe that the thermostats will become useful for a larger group of costumers in the future, because of the Internet of Things (IoT). Thanks to IoT the thermostats will be connected with a multitude of devices, increasing the amount of information on which the device makes decisions. The recent announcement that Johnson Controls will introduce a smart thermostat which includes Microsoft’s Cortana, only strengthens me in this view.

What do you think about the future of smart thermostats? Leave a comment below!

 

References:

Consumentenbond. (2017). Slimme thermostaat: je centrale verwarming slim bedienen. [online] Available at: https://www.consumentenbond.nl/energie-vergelijken/slimme-thermostaat#no2 [Accessed 17 Oct. 2017].

Ecobee. (2013). Saving money with ecobee smart WiFi thermostats. [online] Available at: https://www.ecobee.com/savings/ [Accessed 17 Oct. 2017].

Fitzsimmons, M. (2017). Microsoft’s first smart thermostat is called GLAS, and it’s gorgeous. [online] TechRadar. Available at: http://www.techradar.com/news/microsofts-first-smart-thermostat-is-called-glas-and-its-gorgeous [Accessed 17 Oct. 2017].

Florida Solar Energy Center. (2016). Evaluation of the Space Heating and Cooling Energy Savings of Smart Thermostats in a Hot-Humid Climate using Long-term Data. [online] Available at: http://www.fsec.ucf.edu/en/publications/pdf/fsec-rr-647-16.pdf [Accessed 17 Oct. 2017].

Heisler, Y. (2016). Google’s Nest acquisition was more disastrous than we thought. [online] BGR. Available at: http://bgr.com/2016/06/06/googles-nest-acquisition-was-more-disastrous-than-we-thought/ [Accessed 17 Oct. 2017].

Kassa. (2014). Slimme thermostaat bespaart geen energie. [online] Available at: https://kassa.bnnvara.nl/nieuws/slimme-thermostaat-bespaart-geen-energie [Accessed 17 Oct. 2017].

Nest. (2011). Nest Labs Introduces World’s First Learning Thermostat. [online] Available at: https://nest.com/press/nest-labs-introduces-worlds-first-learning-thermostat/ [Accessed 17 Oct. 2017].

Nest. (2014). Nest Learning Thermostat Efficiency Simulation for the Netherlands. [online] Available at: http://downloads.nest.com/press/documents/efficiency-simulation-white-paper-nl.pdf [Accessed 17 Oct. 2017].

Nest. (2017). Hoe bespaart de 3e generatie Nest Learning Thermostat energie?. [online] Available at: https://nest.com/nl/support/article/eu-savings [Accessed 17 Oct. 2017].

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Will Blockchain revolutionize the Real Estate Industry?

12

October

2017

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An industry that suffers strongly from information asymmetry is the real estate industry. Because of asymmetry, investors put their trust on intermediaries to process and verify information and agreements, which is really costly. However, despite the effort, the real estate industry is still known for the fraud that is committed because of the lack of transparency.

A technology that could revolutionize the industry is blockchain. Blockchain is most known for the cryptocurrency Bitcoin, but the technology can be useful for many other industries. With blockchain, data is stored in a distributed ledger (record book of all transactions). This book is distributed to all members in a network who use their computers to authenticate the transactions. As a result, information is not only available to everyone in the network but also validated by everyone (Deloitte, 2016).

According to consultancy firm Deloitte (2016), blockchain has three major benefits for the real estate industry.

Firstly, the costs associated with deal completion will decrease sharply. At the moment, firms need to hire intermediaries at high costs because only those parties have access to insightful information needed to complete a deal. With blockchain this information will be available to all parties in the network. As a result, there is no need to hire an intermediary firm.

Secondly, the number of fraud cases will decrease because information is available to everyone in the network. In the past, people could commit fraud because information on transactions, price, ownership and agreements was not available to others. Nowadays, this information is available and verified, reducing fraud opportunities.

Thirdly, the time needed to complete a deal will decrease. Blockchain enables the use of “smart contracts”. With smart contracts transactions are automatically executed when predefined criteria are met. Nowadays, when ownership over a property is exchanged for a certain amount of money, an third party will validate whether the criteria are met before the property is transferred. With blockchain this will be done automatically when the money is received (Realcomm Advisory, 2016).

Because of the abovementioned benefits, there are currently a lot of blockchain initiatives that are focussed on real estate. For instance, velox.RE and ChromaWay completed pilots focussed on storing data on property records and land registry with the use of blockchain. While Factom uses blockchain technology in the mortgage-industry to prevent problems that caused the crisis of 2008 (Fast Company, 2017). Although it will take several years before blockchain will live up to its potential, several firms are already working with the technology. The future of real estate will be very different thanks to blockchain.

What do you think? Is the real estate sector the number one industry that could benefit from the use of blockchain? What initiatives are most promising according to you? Leave a comment below!

 

References:

Deloitte. (2016). Blockchain: the next game changer in real estate? | Real Estate Predictions 2016. [online] Available at: https://www2.deloitte.com/nl/nl/pages/real-estate/articles/blockchain-the-next-game-changer-in-real-estate.html [Accessed 11 Oct. 2017].

Fast Company. (2017). Will Blockchain Revolutionize Global Real Estate Next?. [online] Available at: https://www.fastcompany.com/40449268/will-blockchain-revolutionize-global-real-estate-next [Accessed 12 Oct. 2017].

Realcomm Advisory. (2016). What Is Blockchain And How Does It Apply To Real Estate?. [online] Available at: https://www.realcomm.com/advisory/738/1/what-is-blockchain-and-how-does-it-apply-to-real-estate [Accessed 12 Oct. 2017].

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