Gen Z is here. No longer a glimpse of the future, the oldest of this generation is now 28 years old, and, together, they represent nearly a quarter of the U.S. population. As the second-largest generation after Millennials, Gen Z is also an increasingly large part of the economy and workforce.

As part of the “Consumer Pulse and Market Segmentation – Wave 9” research, which was released in mid-August, we analyzed Gen Z consumers’ attitudes around technology, their interests and concerns around electricity, and what they believe electricity providers should prioritize – both for customers and the grid – and how these characteristics compare to older generation.

In this month’s blog, we look at three key findings from the new “Building Awareness and Trust with Gen Z” paper that illuminate what the utility-customer relationship looks like for Gen Z:

1. They are the least trusting of and satisfied with their electricity providers.

Let’s start with the bad news: Gen Z consumers tend to view their electricity providers as noticeably less trustworthy, satisfactory and reliable compared to older generations – particularly Baby Boomers. On a 10-point scale, Gen Z respondents rated their providers 7.0 on trust and 7.2 on satisfaction, slightly lower than Millennials/Gen X at 7.2 and 7.3, respectively, but considerably below Boomers at 7.5 for both metrics. The greatest discrepancies, however, arose around reliability. Gen Z respondents rated their providers 7.3 out of 10, while Millennials/Gen X rated them a 7.8 and Boomers scored them 8.1 out of 10. These findings signal a potential engagement gap that utilities will need to close as Gen Z becomes a larger share of their customer base.

2. They are more likely to support initiatives that benefit society at large.

While all consumers value efforts to improve affordability, Gen Z consumers are more likely to support grid modernization initiatives and renewable energy deployments that will provide benefit to consumers, providers and society at large – especially compared to Boomers. When asked to select their top electricity-related concerns, 46 percent of Boomers and 43 percent of Gen X/Millennials chose “electricity rates increasing”. Meanwhile, just 19 percent of Gen Z said this was their top concern. Their concerns were far more spread out among options like “the impact of fossil fuels on air quality” (16 percent), “reliability of the electric grid” (18 percent) and “getting energy from renewable sources” (14 percent). This broader view of value makes Gen Z consumers natural allies for forward-looking initiatives from their providers.

3. They are much more comfortable with technology in all forms.

It’s no surprise that Gen Z consumers are very comfortable with technology, and this will have major implications for electricity providers developing next-generation programs and services. Gen Z is more likely to currently own an electric vehicle (EV) – 30 percent own one now compared to 11 percent of Boomers – and they’re more likely to currently have smart devices, including smart thermostats, plugs and lighting – in their homes today. While they have a similar level of familiarity with common AI applications (ChatGPT, Copilot, etc.) as Gen X/Millennials, they’re more likely to believe it will have a positive societal impact (59 percent vs. 47 percent). This comfort with technology suggests that providers can lean into digital-first engagement and AI-enabled services with this generation.

When it comes to Gen Z as energy consumers, the key word is opportunity. While they currently don’t view their providers as positively as the older generations, particularly Boomers, this could be due to their unique needs and life stage. These consumers are more likely to be renters in multifamily housing and are generally still trying to get their feet under them as they begin their careers. However, if electricity providers and other stakeholders design programs and outreach that address their barriers and help them meet their goals, they may find that many Gen Z consumers will be engaged partners in next-generation programs and services.