Within the next decade, more homes will become energy balanced with the help of smart technology. As the number of energy balanced homes grows, energy efficiency will increase, decreasing the amount of energy consumed by individual consumers. Energy balanced homes will have energy efficient appliances, including air conditioners and heat pumps, at least one electric vehicle (EV) connected to a smart charger, and a load sequencing panel adjacent to the circuit breaker panel. Energy balanced homes will rely on smart chargers and load sequencing panels with internet connectivity to reduce household energy demand during peak load periods without impacting customer comfort.
To encourage energy balanced homes while still making a profit, electric utilities will need to update their billing strategy. An updated billing method would charge customers for KWH monthly usage and peak KW demand during the previous calendar cycle. With an updated billing strategy and more energy efficient homes, electric utilities will still see the profits they need while spending less on infrastructure.
Let’s dive into the details of how energy balanced homes will encourage energy efficiency while still ensuring electric utilities have sustainable revenue.
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Reduce Peak Load Demand with Smart Technology
Smart chargers allow EV owners to charge their vehicles during the most cost-effective and energy efficient time of day. Typically, this will be at night for EV owners who commute to work; however, ideal charging times could also occur during a sunny day when solar panels are at peak production, especially on weekends or weekdays for remote workers. Smart, bidirectional chargers will also allow EV owners to support the grid when frequency drops by automatically switching to grid support mode, in which energy is leaving the EV battery to support the grid. With this technology in place, energy demand during peak load periods can be reduced, and energy consumption can be better spread out across all hours of the day.
Load sequencing panels are switching panels, where the flow of energy is controlled by a microprocessor. Load sequencing panels will reduce peak load demand by monitoring residential energy usage in real time, and opening breakers to non-essential circuits when energy demand is high. These devices encourage energy efficiency because they allow users to track their energy spending in real time, and easily make changes to energy consumption via the corresponding app. Â
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Energy Balanced Home Models
Figure 1 shows energy consumption in a model single family home that is energy balanced and all-electric, with two full-time commuters. This home has rooftop solar panels, one electric vehicle, and a load sequencing panel. The figure displays energy consumption on a typical weekday in July. As you can see, a smart EV charger allows for charging during late night hours and supporting the grid during peak load hours. Solar energy production occurs during daylight hours. Air conditioning and ventilation maintain room temperature around 72 degrees. Other loads, such as electric stoves, refrigerators, and microwave ovens are included in the household KWH.
Figure 1: Hourly Electric Load, Energy Balanced Home
In comparison, Figure 2 shows energy consumption in a model single family home that is non-energy balanced, though still all-electric with two full-time commuters. The figure displays energy consumption on a typical weekday in July. This home is not equipped with rooftop solar panels, a smart charger, and a load sequencing panel, though it does have an EV. When air conditioning and other household energy consumption is considered, peak load for this home is estimated to be around 40% higher than in an energy balanced home.
Figure 2: Hourly Electric Load, Non-Energy Balanced Home
The house in Figure 1 is significantly more energy efficient than the house in Figure 2. The house in Figure 1 will require a smaller service transformer because of the energy efficiency devices that have been installed there: a smart EV charger to support the grid during peak load periods and monitor the grid for ideal charging times; a load sequencing panel to reduce peak load by altering the on-off times of air conditioners, hot water heaters, and other loads; and rooftop solar panels, to provide on-sight energy production.
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Updated Billing Strategies Support Energy Balanced Homes and Utility Profits
Customers with energy balanced homes will save money each month because they use less electricity. Electric utilities will likely see this as detrimental because their profits will decrease. Without updating their billing strategy, electric utilities will need to implement rate increases to recover their costs. This means that customers without energy balanced homes will be subsidizing customers with energy balanced homes as they pay increased rates each year.
However, electric utilities can update their billing strategies to incentivize energy balanced homes with increased energy efficiency while still maintaining sustainable revenue. To do this, electric utilities would implement a two-pronged approach to billing, in which they charge customers a small fee for their monthly KWH usage, and a larger fee per KW of peak demand during the previous calendar cycle. For example, residential customers would be charged $0.07 per KWH for energy each month and $15 per KW of peak demand during the previous year. The cost of electricity to existing customers without energy balanced homes will remain the same annually. However, this new pricing model will encourage customers to install rooftop solar panels, load sequencing panels and smart chargers, because each of these devices will reduce their electric bills by reducing both energy consumption, KWH, and energy demand, KW.
This means that fewer facilities will be needed for energy balanced households as each customer will require less energy during peak load periods. Because of this, more customers can be connected to each distribution line, substation, and transmission line. Extrapolating the data in Figures 1 and 2 across multiple days of the year will clearly show that energy balanced homes require fewer facilities to support the energy needs of each home. This will be a cost savings for electric utilities, who will need to invest less in infrastructure each year than they currently do.
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Engage Customers, Advocate for Energy Balanced Homes
To begin the transition to energy balanced homes, electric utilities will need to advertise the benefits of new energy efficient smart technologies to consumers. In addition to traditional advertising outlets such as television and radio ads, electric utilities would use social media campaigns to target homeowners. Another potential avenue is to mimic the marketing strategy of solar panel installation companies, who use door-to-door sales tactics to speak directly with homeowners. By sending advocates for energy balanced homes to neighborhoods that would directly benefit from them, electric utilities would build customer buy-in.
Finally, electric utilities should advocate for all newly constructed homes to be energy balanced from the start. New homes would have an outlet compatible with a smart, bidirectional EV charging readily available. Load sequencing panels would be installed preemptively so that homeowners have access immediately upon move-in. Solar panels would be a regularly available add-on for new homes, much like an air conditioning unit or fence around the property.
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Conclusion
Energy balanced homes that include a smart EV charger, load sequencing panel, and rooftop solar panels will increase energy efficiency. In addition to saving consumers money, electric utilities will find that more energy efficient homes will save them money on investment in new infrastructure.
Some of this smart technology, such as bidirectional EV chargers and rooftop solar, are already available on the market. Other technology, such as load sequencing panels, are still in the development phase. The combination of these technologies could be available within the next decade. Will electric utilities and consumers be ready?