A consumer-centric evaluation of the attractiveness of demand-side management technologies and business models

Demand-Side Management (DSM) plays an important role in stabilizing energy systems and enhancing energy efficiency. DSM technologies optimize residential energy consumption patterns through smart devices, real-time monitoring, and automated control systems. While factors influencing consumer DSM adoption have been extensively studied, less attention has been paid to the role of business models (BMs) in shaping consumer willingness. This study uses survey-based literature to identify the key factors influencing consumers' intention to adopt DSM technologies and analyzes how different BMs incorporate such factors into their offerings. Focusing on Finland, the study categorizes DSM companies into six BM archetypes based on their value propositions and revenue mechanisms. A consumer-centric evaluation is applied to evaluate BM adoption potential, enabling standardized scoring and cross-case comparison. Results indicate that consumers’ willingness to adopt is primarily driven by perceived ease of use and usefulness, while environmental considerations and saving potential are gaining importance. Product-oriented BMs receive slightly higher scores than service-oriented BMs, particularly for features such as remote and automatic control. A geographical sensitivity analysis for the evidence base reveals that Finnish consumers prefer offerings from traditional utilities and smart device providers, instead of software providers. These insights offer valuable guidance for designing consumer-centric DSM BM strategies, emphasizing the necessity of innovation to ensure these BMs effectively support energy transition and sustainability goals.