The results are based on data gathered over 16 months at a long-running residential demand reduction deployment, and independently verified by Summit Blue, a measurement and verification firm.

Opower has combined behavioral science with patent-pending data analytics to deliver customized Home Energy Reports to utility customers.

The company said that each report provides a detailed analysis of individual monthly energy usage, coupled with energy efficiency tips designed to be relevant to each household based on past usage and household-specific demographic data.

Robert Cialdini, chief scientist of Opower and an emeritus professor of psychology and marketing at Arizona State University, said: “Our scientific research has shown that the most effective way to influence energy saving behavior is through the use of comparative data relative to a utility customer’s social network—not just comparative data on one’s own historical behavior.

“The substantial savings Opower generates stems from its ability to identify energy consumption of comparable others—those in your own neighborhood—and provide insight into how those in your social network are achieving greater efficiency.”

Opower recently engaged with independent assessment firm Summit Blue to conduct an analysis of the effectiveness of Home Energy Reporting at Sacramento Municipal Utility District, using data gathered over the first 16 months of the program.

According to the report, the first year of the program demonstrated energy savings “consistently estimated between 2.1% and 2.2%.” The second year however is on pace to deliver 2.8% in annual savings, and has delivered as high as 3.5% in savings over the summer months, Opower said.