This article assesses the possibilities of using consumer innovation in the electricity sector, which is slow-moving, yet faced with huge challenges and opportunities to become "smart" and "low carbon." We study the benefits of engaging innovative consumers ("lead users") in product, service, and business innovation in terms of (a) the capacity of lead user-consumers to innovate in the highly regulated electricity market, (b) the attractiveness of such lead-user generated ideas for mainstream consumers, (c) the usefulness of lead-user engagement for companies in the energy industry, and (d) the usefulness of lead user engagement for the necessary broader societal transition processes. We conclude that consumers can stimulate industry-wide innovation even in challenging contexts like "smart" and "low-carbon" solutions and the highly regulated energy industry. Lead user-consumers can also articulate societal and social responsibility concerns that are relevant for the entire market.