The Google PowerMeter is a great innovation for two reasons. But it's not a home run for one big reason.

Let's start with the good news.

First, this service allows users to monitor their home energy usage in a simple, up to the second fashion. Studies have shown that the mere act of measuring and providing instant information on energy usage creates incredible behavior change (the 'Prius Effect'). In fact, one of the Google engineers interviewed on the project said his energy usage dropped 65% with no significant behavior change. The numbers I've heard are closer to 35%, but let's not quibble with success.

Second, this is not a 'green' product. It is definitely positioned in the 'tech' and 'making life better' camp. There are already products like this in the market, but I believe this one not only has the chops, but the exciting pedigree of Google to push it successfully forward where others have had marginal success. Had it been positioned as a 'green' product, I believe it would have had to fight the negative 'blink' perception of being a product that promoted austerity and sacrifice - not things people want to hear.

So where's the Achilles heel? It's finding smart meter networks to couple the device to. Although implementation is moving forward throughout the US, smart meters are a significant investment for utilities, and come with their own red tape. It could be some time before this device has enough smart meters to plug itself into to move it from interesting footnote to headlining technology. Of course, the folks at Google certainly understand this - perhaps their strategy is to test the product in smart meter markets like California, build the demand, and thereby hasten implementation in other markets.

Final review - great product, great position, perhaps a bit ahead of its time. As an innovation, i believe it has the signs of being a game-changer.