This article explores the social and psychological factors that influence user interactions with smart energy management systems (SEMSs). Modern life is becoming more closely interlinked with the use of modern technology, and electricity demand management systems exemplify this. The energy production, distribution, and consumption system is becoming increasingly complex, and energy consumers are becoming active participants in it—both as prosumers and as consumers determining their energy demand. This article also describes this transformation of the individual energy consumer’s role, highlighting the importance of the social dimensions that influence their acceptance and involvement in the use of SEMSs. Based on social research conducted in two European projects that assessed user engagement with SEMSs, we identified trust, knowledge, sense of control, and values as relevant factors influencing user engagement with this new smart environment. The analysis reveals key roles for energy knowledge, environmental awareness, well-designed user interfaces, and incentive mechanisms that motivate users in ways that reach beyond financial incentives. Based on these insights, we advocate a holistic approach to the design and implementation of SEMSs, where users’ needs and capabilities are considered throughout the design process.