Opower

Opower is a utility-software brand focused on customer engagement, energy efficiency, and data-driven energy management. The company was founded in Arlington, Virginia, in 2007 by Harvard graduates Dan Yates and Alex Laskey. Its original proposition was that utilities could achieve measurable energy savings not only through new hardware or generation technologies, but also by giving households timely, understandable information about their own consumption and by applying behavioral-science techniques to encourage changes in everyday habits. The company's initial products were detailed home-energy reports distributed through utility providers. These reports compared a household's electricity use with that of similar nearby homes, highlighted changes over time, and offered targeted suggestions for reducing consumption. The use of peer comparisons was intended to create a social norm around efficient behavior. Opower also used visual feedback, including positive indicators for especially efficient households, after research suggested that simply telling efficient customers they were performing better than average could sometimes cause them to increase consumption. This combination of utility billing data, statistical modeling, customer communications, and behavioral design became the foundation of the Opower platform. Opower expanded from reports into a broader software-as-a-service platform for utilities. Its capabilities included customer communications, energy-efficiency program support, usage analytics, demand-response engagement, and tools designed to help utilities identify opportunities for customer savings. The platform could analyze consumption patterns without requiring a dedicated device in the home and could provide estimates of the energy used by major categories such as heating or cooling. The company stated that customers using its services typically reduced energy consumption by approximately 2% to 5%, while cumulative use of the platform was associated with substantial reported carbon-dioxide reductions. The company attracted public attention during its early growth period. President Barack Obama visited its Arlington headquarters in March 2010 and presented it as an example of clean-energy employment and technology-led economic growth. Opower subsequently opened a San Francisco office, attracted venture financing, and was recognized by the World Economic Forum as a Technology Pioneer for 2011. In 2012, it launched The Outlier, a data-oriented blog that used anonymized or aggregated energy information to examine subjects including electricity demand during the Super Bowl, consumption patterns among electric-vehicle owners, and the orientation of residential solar panels. Its advisory network also included experienced utility executives and energy-policy figures. Opower completed an initial public offering in April 2014, becoming one of the more visible publicly traded software companies serving the utility sector. Its independent public-company phase ended in 2016, when Oracle announced an agreement to acquire it for $532 million. Following completion of the transaction, Opower's product line became part of Oracle Utilities, Oracle's global utilities business. The brand therefore continues primarily as a product and platform identity within Oracle rather than as an independent listed corporation. Its present role is to support utility companies with customer-facing digital experiences, energy-efficiency engagement, analytics, and related programs.

Opower was established in 2007 in Arlington, Virginia, by Dan Yates and Alex Laskey, who had met while studying at Harvard and later reconnected in San Francisco. Both founders saw an opportunity to apply behavioral science and information services to the energy sector. At the time, much utility innovation emphasized physical infrastructure and new energy technologies. Opower instead focused on the premise that clearer information, social comparison, and carefully designed communications could influence household energy behavior at scale. Its first major service was a utility-delivered home-energy report. The reports translated billing and meter information into accessible comparisons and recommendations. Customers could see how their consumption compared with that of nearby households with similar homes, review changes in usage, and receive suggestions tailored to likely savings opportunities. The design drew on the behavioral concept of social proof: people may change their behavior when they learn how it compares with a relevant peer group. Opower also used positive visual feedback for efficient households. This was intended to recognize conservation without implying that customers who were already efficient should consume more. The company developed software that allowed utilities to provide these experiences without requiring a separate in-home device. Statistical algorithms and pattern-recognition methods could analyze consumption data, identify trends, and estimate the contribution of categories such as heating and cooling. Over time, Opower broadened its platform beyond periodic reports to include digital customer communications, energy-efficiency initiatives, demand-response engagement, and analytics for utility program managers. The company reported that participating customers commonly reduced energy use by around 2% to 5%, and it associated the platform with billions of pounds of avoided carbon-dioxide emissions. Opower's public profile grew rapidly in the early 2010s. In March 2010, President Barack Obama visited the Arlington office and described the business as an example of clean-energy job creation and technology-enabled efficiency. The company opened a second office in San Francisco in July of that year. In September 2010, the World Economic Forum named Opower a Technology Pioneer for 2011. Later that year, Opower announced a $50 million financing round led by Accel Partners and Kleiner Perkins Caufield & Byers. In 2012, Opower created The Outlier, a data blog that presented analysis from its energy-information holdings. Its published work examined subjects including changes in electricity use during major sporting events, the consumption patterns of electric-vehicle owners, and the orientation of rooftop solar installations. The company also expanded its advisory relationships. In 2013, former utility leaders John Rowe and Dick Kelly and former White House official Carol Browner joined its advisory board, while Tom Brady, formerly associated with Baltimore Gas and Electric, became advisory-board chairman. That year Opower appeared on CNBC's inaugural Disruptor 50 list and was identified by Deloitte as the fastest-growing technology company in the Washington, D.C., region and a leading fast-growing technology company nationally. Opower went public on April 4, 2014. Its independent public-company period lasted approximately two years. On May 2, 2016, Oracle announced that it would acquire Opower for $532 million. The acquisition ended Opower's existence as an independent corporation and transferred its product portfolio into Oracle Utilities. The brand remains associated with Oracle's utility-industry software business, serving as a platform identity for customer engagement, energy efficiency, analytics, and related utility programs.

1. 2016Oracle announces acquisition

   Oracle announces a $532 million agreement to acquire Opower and integrate its products into Oracle Utilities.

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2. 2014Initial public offering

   Opower completes an initial public offering and becomes an independent publicly traded company.

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3. 2012The Outlier data blog launches

   Opower begins publishing analyses of energy-consumption data and related trends through The Outlier.

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4. 2010Obama visits the Arlington headquarters

   President Barack Obama visits Opower and highlights its energy-efficiency software and clean-energy employment model.

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5. 2010San Francisco office opens

   Opower expands its physical presence by opening a second office in San Francisco.

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6. 2010Named a World Economic Forum Technology Pioneer

   The World Economic Forum selects Opower as a Technology Pioneer for 2011.

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7. 2007Opower is founded

   Dan Yates and Alex Laskey establish Opower in Arlington, Virginia, with a focus on applying behavioral science and data services to utility energy efficiency.

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A data-driven utility customer engagement platform that combines energy analytics with behavioral science to improve customer experience and encourage measurable conservation.

• Opower Customer Engagement PlatformEnterprise SaaS for utilities

  Opower's core software platform helps utilities communicate with residential customers through digital messages, personalized recommendations, usage insights, and program-related information. It combines customer data, statistical analysis, and behavioral design to make energy consumption easier to understand and to encourage participation in efficiency or demand-response programs. The platform is now positioned within Oracle Utilities rather than as an independent Opower company.

• Home-Energy ReportsEnergy-efficiency engagement2007

  Home-energy reports are personalized communications distributed through participating utilities. They compare a household's consumption with that of similar nearby homes, show historical usage patterns, and provide targeted suggestions for reducing demand. Their design uses social norms and positive reinforcement to influence behavior. The reports formed Opower's original commercial offering and established its approach of using existing utility data instead of requiring customers to install dedicated hardware.

• Energy-Use AnalyticsUtility analytics

  Opower's analytics capabilities apply statistical algorithms and pattern recognition to utility consumption data. The software can identify usage trends and estimate energy consumed by categories such as heating or cooling, helping customers and utilities identify potential savings opportunities. The approach is designed to operate without a dedicated device installed in the home and to turn billing or meter information into actionable customer feedback.

• Energy-Efficiency ProgramsUtility program management

  Opower supported utility energy-efficiency initiatives by combining customer segmentation, personalized communications, behavioral-science messaging, and measurement-oriented analytics. Rather than selling consumer energy products directly, the platform enabled utilities to promote conservation actions and communicate likely benefits to their customer base. The programs were intended to produce measurable reductions in consumption while improving customer engagement.

• Demand-Response EngagementDemand-side energy management

  Opower's utility software included engagement capabilities relevant to demand-response and other demand-side management programs. These tools could help utilities communicate with customers about energy use and encourage actions during periods when reducing or shifting demand was valuable. Specific product naming and current packaging may have changed following Oracle's acquisition.

• 2012The Outlier data storytelling initiative

  United States · International

  Opower published accessible analyses of aggregated energy data through The Outlier, using topics such as the Super Bowl, electric vehicles, and rooftop solar to demonstrate the value of its data resources.

  Outcome. Several analyses received mainstream media attention and helped position Opower as a data-led energy technology company.

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• 2010Obama clean-energy jobs visit

  United States

  Opower's Arlington headquarters hosted President Barack Obama, who used the company as an example of how energy-efficiency technology could save consumers money and support clean-energy employment.

  Outcome. The visit increased the company's public visibility and connected the Opower brand with federal clean-energy and employment messaging.

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• 2016Oracle acquisitionM&A

  Oracle sought to expand its utilities-industry software portfolio and add Opower's customer engagement and energy-efficiency capabilities.

  What changed. Oracle announced an agreement on May 2, 2016, to acquire Opower for $532 million.

  Aftermath. Opower ceased to operate as an independent corporation, and its product line became part of Oracle Utilities.

  Announced acquisition value. $532 million (2016 announcement)

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• 2014Initial public offeringOther

  After several years of expansion, venture financing, and growing visibility in the utility software market, Opower pursued public-market financing.

  What changed. Opower completed its initial public offering on April 4, 2014.

  Aftermath. The company operated as an independent public corporation until Oracle's acquisition in 2016.

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• 2007Focus on behavioral energy efficiencyStrategy

  Opower's founders saw that utility innovation was heavily associated with physical technologies and sought to create savings through information, analytics, and behavioral science.

  What changed. The company built personalized energy reports that used peer comparisons, usage analysis, and tailored conservation suggestions.

  Aftermath. This approach became the foundation of Opower's utility customer-engagement software and broader energy-efficiency platform.

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• 2016Oracle agrees to acquire Opower

  Oracle announced an agreement to acquire Opower for $532 million, bringing the utility software business into Oracle Utilities.

  M&A
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• 2014Opower completes initial public offering

  Opower held its initial public offering, entering a period as an independent publicly traded software company.

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• 2012Opower launches The Outlier data blog

  Opower began publishing statistical analyses based on its large energy-data repository, covering topics such as sports-related demand, electric vehicles, and rooftop solar.

  Product launch
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• 2010Barack Obama visits Opower headquarters

  President Barack Obama visited Opower's Arlington headquarters and cited the company as an example of clean-energy innovation, energy efficiency, and job creation.

  Other
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• 2010Opower receives World Economic Forum Technology Pioneer recognition

  The World Economic Forum announced Opower as a Technology Pioneer for 2011.

  Other
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• 2010Opower raises $50 million in venture financing

  The company announced a third venture-capital round led by Accel Partners and Kleiner Perkins Caufield & Byers to support expansion.

  Other
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1. Opower
2. Oracle Utilities Opower