Smart thermostat maker Nest plans to shut down its energy data service, MyEnergy, three years after Nest acquired the service through buying a startup.
Nest, which is owned by Alphabet (the recently established parent corporation of Google) (GOOG), told customers on Tuesday that it plans to discontinue the data service within 30 days. The company added customers can retrieve energy use information through other reports once their energy providers connect to Nest.
MyEnergy, once known as EarthAid, developed algorithms to collect and analyze energy data in order to provide recommendations about reducing energy usage. The company was founded in 2007 by Ben Bixby, who has been a fixture at Nest ever since the acquisition.
It’s unclear if Nest is cutting the service because it was under utilized, software issues, or an overlap in energy data services.
Nest sent Coins2Day this statement on why it’s shutting down the service: “Nest acquired MyEnergy... Because it was the best way to track customers’ electric, gas and water use in one place. Now, instead of customers having to provide us with their utility account login information, we’ve created a way for them to simply authorize their energy company to share that data with Nest (through an API).”
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A handful of other companies have built businesses around helping utilities deliver detailed energy reports to customers. Opower [fortune stock-symbol=”OPWR”] is one of the largest companies focused on utility energy data.
Energy companies and utilities can partner with Nest to use smart thermostats to help manage the power grid. Called “demand response,” utility customers that have Nest thermostats can agree to have their thermostats turned down slightly at peak times of day, like on a hot summer afternoon.
Nest thermostats are also tuned to try to be as efficient as possible and to encourage energy savings without sacrificing comfort. Some utilities that want their customers to use Nest thermostats will give Nest thermostats away for free or with significant rebates.
In recent years, Nest has expanded beyond its thermostat and launched a connected smoke alarm, and a smart home video system.
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However, Nest has historically been more focused on working with consumers directly instead of having to go through utilities to reach consumers. Yet, in the email from Nest to customers about the end of MyEnergy, the company wrote, “Even though we’re shutting down MyEnergy, Nest now has a simple way for energy companies to connect to your Nest Account. As energy providers join, you’ll be able to see all the energy you use in your monthly Home Report.”
Perhaps this suggests a more utility-focused energy data strategy in the future.
Customers who wish to download their MyEnergy data can do so here. Nest promised it will “keep building on what MyEnergy created to help save energy.”
Updated: At 12:45 est on March 1 with a statement from Nest.
