Adopting Smart Grid Services Under Uncertainty: A Mixed-Method Study of Privacy Calculus in Household Decision-Making

Abstract

Smart Grid Technology (SGT) can support sustainable energy use by offering households personalized energy insights, consumption monitoring, and financial incentives. However, its adoption remains uncertain because SGT relies on detailed household energy data, raising privacy, security, and control concerns. Drawing on Privacy Calculus Theory (PCT), this study examines how household decision-makers evaluate SGT adoption under uncertainty. We used an exploratory sequential mixed-method design. Phase 1 involved five focus group interviews with 23 urban European household decision-makers to identify perceived benefits, risks, and assurance needs. Phase 2 used a privacy-assuring User Interface (UI) and a scenario-based pilot survey with 52 European respondents, along with PLS-SEM analysis. The findings show that households value personalized benefits and monetary rewards but remain concerned about profiling, cyber attacks, data misuse, and loss of control. Pilot results suggest that trust reduced privacy and control concerns, while transparency increased perceived personalized benefits. The study conceptualizes SGT adoption as an assurance-driven privacy calculus process and highlights the role of privacy-assuring interfaces in supporting sustainable smart energy adoption.