For the professional installation community, home automation systems represent a new and growing opportunity for profitable installation jobs.

According to a recent survey by the Consumer Electronics Association:

• 61% of consumers expressed interest or strong interest in a vacation setting that gives the home a lived-in look while out of town.
• 59% of consumers expressed interest or strong interest in lights that automatically turn or off when someone enters or leaves a room.
• 50% of consumers expressed interest or strong interest in the capability to turn off lights and other items when arming the security system as you’re leaving.

Further, reports from builders and contractors indicate that consumers now have a clearer expectation of what home automation is: for most, it is lighting control, temperature control and security that works together for comfort, convenience, energy savings and safety. (Vague references to “The Jetsons” are diminishing.)

One of the key features for home automation systems is lighting control, which is an ideal offering for electrical contractors. In addition to the luxury of dimming for architectural effect, automatic lighting control offers safety (lighting in a dark hallway or stairwell, lighting for quick exit in the event of an alarm) and security (having a home lighted upon arrival, or looking “lived in” while away).

Lighting control systems fall into several categories. 

Hard-wired lighting systems require the largest degree of prior planning and are the most difficult to expand, retrofit or change should the home owner wish to change or add something. Hard-wired systems use dedicated wiring to communicate commands to the switches, and are therefore best suited to new construction. However, they offer highly reliable communications in dense installations like apartments and condominiums. Hard wire systems fall into two categories: Central Control and Communicating Switches.

Hard Wire Central Control systems consist of a load control panel mounted in an electrical closet. Individual lighting loads are wired back to the load control panel. Smaller, low voltage switches are also wired back to the load control panel using low voltage signal wire. This non-standard wiring scheme must be engineered into the home at the architectural planning stage. This type of system reduces the “wall clutter” of multiple switches on a wall, replacing them with a multi-function low voltage unit that controls multiple loads. A drawback is that the system, due to its proprietary wiring, may not be as easy to maintain in twenty years.

Hard Wire Communicating Switches are light switches and dimmers that are remote controlled. Instead of a central controller, the individual light switches are wired using conventional techniques. In addition to the traditional high voltage wires, there is a low voltage wire that sends control signals to the switch. The switches are individually addressable even though many may be connected to the low voltage control wires. While not as effective at eliminating “wall clutter,” these switches can reduce it by offering multi-function switches (sometimes called “cluster switches”) in place of the second “three way” switch. This approach is modular, low in cost and has no single point of failure, since each switch controls its own load.

Wireless lighting controls are better suited to retrofit and new construction of single-family homes. There are two types of wireless systems: Power Line Carrier and Radio Frequency (RF) systems. Like Hard Wire Communicating Switches, these technologies have individual switches wired conventionally. The differences are in how they communicate with each other and with an automation controller.

RF systems communicate using radio frequency signals. Although the range of the signals is limited, some switches can act as repeaters to ensure that the control signals reach their destination. In most RF systems there is a hub that can communicate with an integration system. Depending on the needs of the customer these systems are very easy to expand, but in some case can be rather expensive if the customer wants to add one or two switches that are far away from the group (a garage or remote building) due to the need for one or more repeaters.

UPB (Universal Powerline Bus) is a new digital communication format that has been in use in commercial environments since 1999 and is now appearing in residential switches. Like X-10, the signal is sent over the existing AC wiring. Unlike X-10, the signal is sent digitally, using a pulse-position-modulation scheme that is extremely robust. The UPB digital format is inherently two-way, and the range is sufficient for all residential and most small commercial installations without repeaters. In testing, UPB has shown to be more than 100 times more reliable than X-10.

X-10 switches communicate by sending signals that are superimposed over the electric power wires already connected to the switch. X-10 protocol (the method by which the switches communicate) has been around for 30 years. As such, there is a wide variety of products that will work in an X-10 system, many of which are intended for consumer installation. Over the years, professional contractors have been less than enamored with its reliability and the resultant callbacks.

Wireless devices require little, if any, prior planning in most cases. They are the most flexible of all of the lighting systems, being easy to retrofit, fully expandable, and an easy and cost effective way to upgrade an existing house.

Most lighting control systems can also connect to a home automation system for integration with security, temperature controls and remote control. Hard Wire Central Control systems typically have an RS-232 port that can be integrated with the automation controller. Hard Wire Communicating Switches connect either directly to the controller or through a “hub” provided by the manufacturer. Most automation controllers support one or more wireless technologies, either directly or through a hub.

Automation Controllers also come in many shapes and sizes. They tend to be based on security, energy management or home theater control.

Security based automation controllers perform the functions of intrusion detection and notification, as well as automation. These controllers are very efficient in terms of cost, because the door contacts, motion detectors, and keypads commonly used for the security system can perform “double duty” for the lighting control system. Further, the remote control and notification features (by telephone or Internet) in place for the automation system can also be used for lighting, security and temperature control. A security-based controller is ideal for the electrical contractor that has a security department or partnership with a company in the security field.

Energy Management controllers are focused on saving energy by reducing burn time for lighting and run time for heating and cooling (HVAC) systems. Homeowners want to be comfortable when they are home, so these systems are typically programmed to ensure energy savings when they are away. Sensing occupancy with motion detectors and door contacts is an essential feature,

Home Theater control systems can be very impressive. They are highly specialized, require a significant amount of programming and are very costly. They are best suited for high-end custom installations, where the all of the audio/video equipment is being installed as part of the job, so that the control system can be programmed for it. A subset of home theater automation is distributed audio, an attractive, low cost alternative to a home theater control system. Many electrical contractors are installing in-wall or in-ceiling speakers, and connecting them to distribution amplifiers and wall mounted volume controls.

How should an electrical contractor approach this new business opportunity?

The answer is the same as with any product or service:

1. Select a quality product with the best price/performance ratio.
2. Learn how to sell it effectively.
3. Install it with care and respect for the customer’s property.
4. Do it as often as you can!

Here are some things to look for when selecting products to offer:

1. Reliability: Your best plans will be spoiled if your profits are consumed by callbacks. Select a system with a track record, and be sure that it affords remote maintenance using your office computer. Not only should you be able to “download” the system’s programs and set-up items, the system should support real time status monitoring of temperatures, security zones, status of lights and control items, messages and any other system features. Having more information at your fingertips could prevent rolling out to the customer site.
2. Price: Although pricing is less sensitive in home automation systems than in more common security-only systems, it is still an important consideration that must be observed. Choose a product line with “small, medium and large” offerings, with enough commonality that you don’t have to stock or learn three completely different systems. Be sure the product selected is competitive with other offerings in the marketplace.
3. Support from the vendor: The “do it often” part means selling lots of systems and gathering revenue from lots of customers. Check the vendor’s end user brochures, sales tools and website to be sure that your customer can verify the quality and prominence of the system. See if there is a lead program for referrals generated by the vendor. Follow up on them, since they are often hot leads from customers looking for exactly that system.
4. Flexibility: Choose a system with programming capability and the capacity to connect to other home systems. Bear in mind that flexibility is a double-edged sword and sometimes comes with greater complexity. Look for “connectivity partners” that vendors have established to select systems that are engineered to be compatible, for example, a home security and automation controller and a touchscreen. Many systems can interconnect using serial strings sent via RS-232 or RS-485.
5. Retrofit Capability: Keep retrofit in mind - be sure your system can address the retrofit market. Wireless options for security and lighting control assure that you can install in new or existing homes. Often, selling in an existing home is easier than a home under construction: the job can be completed in a few days without the detailed scheduling often required in a new build.
6. Network and Expansion Capacity: For clients with an interest in networking and computers, an Ethernet port on the home automation system allows connectivity to the in-house network, enabling any computer to control the system. Your vendor should offer enough expansion capacity to accommodate new protocols and features as time goes on. Look for an expansion port, expansion bus or other feature that the vendor can add when a new feature comes out.
7. Internet interface capability: Whether optional as a software package or built into the controller, monitoring and controlling the home over the Internet using web-browser technology is an important feature to have. Systems without it will soon be considered obsolete.
8. Availability: Getting the parts to install and complete a job are critical. Your vendor, whether a manufacturer or a distributor, should stock everything you need for your job and be able to get it to you quickly.

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Trends in Home Automation

There are some important new trends emerging in the home automation markets. Until recently, the industry had evolved at a slower pace than other industries. Now, due to new technology, lower prices and increased consumer interest, contractors are broadening their horizons to offer home automation to their customers. 1.      What’s the newest technology being used in home automation systems now? HAI recently announced its support of a new lighting control technology called UPB (Universal Powerline Bus).  This new lighting control technology is considered the next evolution in Powerline lighting control, such as the commonly used X-10.  UPB however, is much more robust than X-10. 2.      What kind of products is it being used in? For now light switches 3. Can it be used to control other aspects of home automation? Yes, one manufacturer is using it to momentarily turn off a vacuum when the phone or doorbell rings so you can hear it. UPB provides low cost, low data rate communications over existing powerlines that is perfect for home automation. 4.      What advantages does it offer over the previous technology? Because of the digital method of sending signals over the powerline, UPB is much more robust and reliable than X-10.  Also all UPB switches use two-way communication so the components can automatically verify proper reception of commands. Most X-10 switches are one way only. 5.     What is the most popular home automation application in the remodeling segment? (Programmed lighting controls, household operation systems controls, distributed audio, etc?) According to a recent survey conducted by HAI at the Seattle Home Show, the most popular home automation applications cited were lighting control, energy management, and temperature controls. 6.      What’s the next biggest thing going to be in Home Automation, from your company’s perspective? We are intrigued by the new digital Media Centers that will be coming to the broad consumer market for Christmas, 2004. A Media Center is a digital entertainment center that can pause and rewind live TV, play DVDs, CDs and store your digital music, photos and videos. It can browse the Internet, do e-mail and run computer applications. Combine it with an automation system, (such as HAI and Microsoft Windows Media Center) and you can settle in for a great movie with the lighting, temperature and security adjusted exactly as you please. 7.      What’s driving the growth of the home automation category—consumer interest? Consumers are certainly having an impact – they’re tech savvy and understand the benefits of tying together the systems in a home for enhanced comfort, convenience, and safety.  The consumer demand is in turn compelling security installers, electrical contractors, builders, and architects to educate themselves on this technology and begin offering it to their clients. 8.      How can electrical contractors successfully “sell” applications like lighting control systems, or household communication systems, etc., to their homeowner clients? The most important thing for an installer to remember when selling home automation applications is to sell the “benefits”, not the “features”.  Also, he must keep it simple and focused on the specific needs and budget of the client.  Additionally the installer must do his homework on what products are the most reliable, are reasonably priced, have a good track record, and will be supported by the manufacturer in the future with product warranties, developments, and technical support.  He should focus on a few lines that he can become an expert in and sell with confidence to the consumer. 9.     Please give five ways that electrical contractors can introduce these types of computerized home control products into their businesses. Electrical contractors are well positioned to offer home controls, especially if the system is closely related to the dealer’s core business of lighting control and electrical wiring.  1. Be sure that you are properly equipped to sell and service low voltage systems. Many successful electrical contractors have opened a division or a business unit that handles this higher-tech clientele, with a youthful sales manager that understands the “lingo.” This is a perfect opportunity for an owner to bring a son or daughter into the business, if they are so inclined. 2. Select a product line that is mature, reliable and well supported, as some offerings are not quite ready for prime time. The important thing to remember about home controls, especially those that are professionally installed, is that they will be expected to work for 15 years - not the 3 to 5 years typical of a computer or VCR. 3. Develop a package offering that is simple for your sales force to explain and sell to the customer. Offer an incentive for the sales force to up-sell the added benefits of energy savings, convenience and safety. Younger buyers, especially computer experienced college grads, are expecting these amenities in their homes! 4. Form alliances with an HVAC contractor and possibly a security contractor. In most cases, you can replace a thermostat, but heavier work should be left to the appropriate contractor. 5. Have an expert on staff to program and download the systems after the technicians install and test it, and to answer questions for the sales force. Most customers are candidates for automation, so offer it as a premium system to appropriate clients. Builders and homebuyers for new or existing homes are the best candidates. The systems have more everyday usefulness. Customer loyalty and retention are improved. Your company image is kept up to date. 10.       Please describe, in your opinion, where the future of computerized home control products is going. What new products are going to be coming out? What will their functions be? The future is that every home built will have some form of automated control, as surely as cars and buildings do today. The explosive growth of broadband Internet access, with its “always on” feature, will allow people to easily keep tabs on what’s happening at home. Products will continue to evolve. Manufacturers are partnering to ensure interoperability between products. The future is bright for contractors who step in and lead the way! ------------------------------ Jay McLellan graduated Georgia Tech in 1980 with a degree in Electrical Engineering and co-founded HAI (Home Automation, Inc.) in 1985.  He serves as President and CEO. Under McLellan's direction HAI has developed a comprehensive line of products that coordinate security, temperature and lighting for comfort, convenience and safety, and HAI is considered a market share leader in home automation systems. McLellan was the 1999 recipient of the Home Automation and Networking Association (HANA) Leadership Award, the industry's highest honor for outstanding contribution and leadership in his field.  For 2004, McLellan is the Vice-Chair of the TechHome Division of the Consumer Electronics Association (CEA), and in 2005 will be on the Board of Directors for the CEA.