The current grid structure is quite outdated and built for a single direction flow of energy, from the resource to your home or office. That flow of energy is changing dramatically. Green technology is intermittent due to its source, wind, solar, hydro. These creates a demand for dynamic solutions to capture energy while still maintaining the energy flow in the right direction and accountability of new energy put into the grid. In addition to this added energy directional flow issue, demand is also growing greater and our current infrastructure is being stressed to its limits.

Another growing burden on energy management is the growing consumer demand for accountability. The current system provides no way of knowing your energy consumption until after you receive your bill. This is coupled with the expensive burden of replacing currently installed equipment that does not have reporting capability.

What’s needed now is a new concept in how we get and use energy. The US has allocated approximately $4 billion in economic-stimulus dollars on smart-grid initiatives, but this doesn’t mean a smart grid for every home. In California utilities alone are spending about $4.5 billion over the next few years on smart meter installations. This would indicate a cost of approximately $50 billion nationwide. This would require hundreds of billions more poured into conventional grid infrastructure to meet US growth over the next decade.

The solution is a dramatic change in how we manage energy form the source of draw, our homes. This change will take effect within the consumer market and not from the energy companies themselves. As consumers purchase off-grid generated energy they require smart equipment to tie them into their home and businesses. As these off-grid system become grid-tie solutions the technology plugged into the grid at the source will become the next generation of the Grid.

Smart grid-tie power management devices will provide information to consumers about their usage and help utility companies more effectively control energy flow without substantial costly infrastructure upgrades to the community. These devices will empower consumers with the ability to manage their internal energy consumption at each source by allocating power as needed. This is very similar to how a landscaping sprinkler system would work. During low energy days the power can be dialed back, during a vacation it can be turned off in particular areas or managed remotely via the web, during high demand hours efficiencies can be implemented just by being aware via simple easy to ready power consumption displayed data.

Just by being aware of your power consumption through these smart home display devices our energy usage will go down dramatically. This additionally will drive the overall price of energy and provide consumers with a very effective means of price management through demand. Very similar to fuel prices.

Smart power consumption devices will add another efficiency to our near future power consumption trends. Power devices will draw less or even no power when not in use. High power consumption devices such as air-conditioners will incorporate power management technology, small portable devices will power remotely from ambient power, it will become more common to see lights & water faucets automatically turn off, and most homes & businesses will plug directly into the alternative energy they produce.

Smart meters and grid-tie inverters are about $500 to several thousands. The solution for the future home will be a combination of these devices and smart appliances. Demand for these products in our near future should bring the costs down to about $200 or no more than a DVD player.