Energy Bill Savings Research Articles

A multi-dimensional evaluation of upgrading fenestration systems in single-family dwellings and implications for rebate structures

This paper presents a novel methodology of four interdependent stages to evaluate the economic, environmental, and health benefits of replacing low-energy performing residential windows with higher-performing ones in single-family dwellings. A modeling-based approach is developed to compute and monetize reduction in heating and cooling energy transmittance, greenhouse gas emissions, and premature mortality associated with the decrease in the outdoor fine particulate matter. Linear regression models of energy prices, carbon pricing, and a value per statistical life approach quantify these benefits monetarily. Factors like upgrade type, dwelling window-to-wall ratio, deterioration in energy performance, geographic location, and window placement by orientation are analyzed for their impact on benefits. A case study examining two locations in the province of Ontario, Canada, is carried out. Results show that energy bill saving is sufficient to justify investing in windows with energy-efficient recognition across all dwelling categories in Southern Ontario, though government rebates are necessary for some dwelling types opting to upgrade to the most energy-efficient models. In contrast, rebates are unnecessary in Northern Ontario for any upgraded models due to substantial energy bill savings. The study proposes a per-window rebate policy based on realized benefits, considering various upgrade models, distinct single-detached dwellings, and geographic location eligibility.

Optimization of Feed-in Tariff mechanism for residential and industrial photovoltaic adoption in Hong Kong

Due to the late introduction of Feed-in Tariff (FiT) Scheme to Hong Kong's context, its effectiveness, efficiency, and optimization have merely been investigated yet. Therefore, this study proposes two FiT mechanisms according to the policy characteristics and structure elucidated from existing literatures (i.e., payoff, tariff, and contract structures) (i) Mechanism 1 (i.e., M1): follows the current policy characteristics with a short-term contract structure, which terminates in 2033; and (ii) Mechanism 2 (i.e., M2) introduced a widely adopted policy characteristic with a long-term contract structure, which allows to sell all electricity generated to the power grid. The proposed FiT rate under M1 and M2 guarantees the profitability of the solar photovoltaic (PV) installers with different scales. For residential PV installers (i.e., small-scale PV systems with installed capacity less than10 kW), 6–10 years of discounted payback period (DPB) is considered as the optimization objective. As for industrial PV installers (i.e., large-scale PV systems with installed capacity of 200–1000 kW), 8–12% of internal rate of return (IRR) is considered as the optimization objective. Results indicate that the current FiT rate is slightly high for residential PV installers, and it is recommended to be lowered after 2024 to fit the proposed FiT range, and then levered up in 2028 to ensure the profitability of late participation under M1. Meanwhile, the current FiT rate is found significantly low for industrial PV installers, and it is suggested to be levered up to the proposed FiT range. Furthermore, policy reform is highly recommended altering from M1 to M2 when current policy expires (i.e., 2033). In terms of the techno-economic analysis based on the calculation of levelized profit of electricity (LPOE) where self-consumption of PV system-generated electricity is considered as energy bill savings under M1, the long-term profitability for industrial PV installers under M1 is found to be higher than M2, whereas the opposite is observed for residential PV installers. The contribution of this study is attributed to the flexibility and applicability of the optimized results, the context-specific investigation of the market-independent renewable energy development, and the comprehensive parameters considered in the model development. The results of this study are believed to shed light on policy implications, grid parity, and investment recommendations for the government, utility companies, and PV installers in the long run.

Computational tool for technical-economic analysis of photovoltaic microgeneration in Brazil

This paper proposes a new computational tool, called SolarEnergy, which was implemented through an innovative methodology to perform technical-economic analysis of photovoltaic (PV) microgeneration in Brazil. SolarEnergy calculates energy flow and energy bill savings based on the rules of the Brazilian NEM scheme. From the maximization of the net present value, SolarEnergy provides the optimal nominal power according to the orientation and slope of PV panels and the electricity consumption profile. This functionality is crucial to avoid undersizing or oversizing, which commonly occurs in practice. In addition, the tool provides the following information: (i) electricity generation, (ii) net present value, (iii) modified internal rate of return, (iv) discounted payback time, and (v) sensitivity analysis of key parameters (e.g., nominal power, pv system cost, electricity tariff, and minimum attractive rate of return). Currently, such particularities are characterized as relevant differences in relation to other computational tools. The validation and applicability of SolarEnergy are demonstrated from case studies of PV systems installed in the state of Goiás, Brazil.

Exploring The Feasibility Of Residential Solar Panel Adoption In Algeria’s Arid And Hot Regions: A Cost-Benefit Analysis Of An On-Grid System

This research aims to explore the economic and technical feasibility of residential solar panel adoption in Algeria, specifically in its arid and hot regions. By analyzing the potential for solar energy generation and assessing the economic viability of solar panel systems, this study aims to evaluate the financial impact on energy bill savings and the economic feasibility of solar panel adoption. A case study of a residential building located in the city of Biskra is used as a representation of the potential for solar energy in these specific areas, along with real data of energy consumption over the last five years. A simulation of an on-grid system using Skelion plugin and PVsyst software was performed to evaluate the financial impact on energy bill savings. The study also evaluated the economic feasibility through the calculation of costs and benefits, including the payback period, net present value (NPV), and the internal rate of return (IRR). Results showed that solar energy has great potential in Algeria and that residential solar panel systems can provide a positive net present value and internal rate of return, indicating that they are economically viable. Additionally, the payback period for these systems was found to be reasonable. Homeowners who install solar panels on their roof can reduce their dependence on the traditional electricity grid by generating their own electricity, which can lead to significant savings on energy bills and reduce their carbon footprint.

Heat Pump Installation in Public Buildings: Savings and Environmental Benefits in Underserved Rural Areas

Heat pump technology offers a path towards reducing the use of fossil fuels to heat space, providing energy bill savings and reducing air pollution and GHG emissions. The choice of heating method is based on costs; hence, this study examines the gains from operating heat pump systems in public buildings as well as alternative systems using electricity, LPG, and heating oil. The study focuses on the Ruda-Huta municipality in Poland that, as is common in rural areas, lacks access to a district heating system or piped gas. The empirical analysis includes heat pump installations in eight municipal buildings. The study found that the use of ground source heat pumps proved competitive with existing heating systems in terms of payback time. Calculations for three heating energy source scenarios, i.e., electricity, LPG, and heating oil, used the Simple Pay Back Time (SPBT) and the Levelized Cost of Heat (LCOH) methods and the average prices of the three energy types for the period 2012–2021. The payback period calculations disregarded the EU subsidies for heating systems utilizing renewable energy sources (RES). The payback time for electric, LPG, and heating oil were, respectively, 6.7–7.8 years, 4.1–6.1 years, and 6.7–6.9 years. Much larger spreads favoring heat pumps were calculated using the LCOH, and the costs in the case of electric heating were nearly three times higher and doubled when using heating oil and LPG. The gains from investing in heat pump systems have been offset by the increase in electricity, LPH, and heating oil prices, which have been predicted to continue to increase in the foreseeable future supporting the use of heat pumps in rural areas lacking access to, for example, district heating systems. The switch to heat pumps reduced local air pollution by eliminating the burning of fossil fuels to heat space in public buildings.

Consumer Baseline Estimation Analysis for Implementation of Demand Response Programs

Demand response (DR) is the short-term change of consumers energy usage patterns in response to power utility needs. The utility benefits from DR adoption in terms of better load management, reduction of peak power deficits, energy deficits, enhanced reliability, and improved economic performance. Consumers gain from energy bill savings and incentive payments. Accurately estimating the consumer baseline load (CBL) is critical for evaluating the success of a DR program implementation. Estimation of CBL helps to decide the volume of load curtailment, decide the incentives to be offered, and assess the impacts of consumer participation. The real-time domestic 11 kV feeder data of the 6.3 MVA substation of Goa electricity board, Goa, India is used to analyze the performance of the DR program. For CBL analysis time series average, adjustment, exponential moving average, decomposition, and forecasting techniques are applied. For performance evaluation of DR programs, the Artificial neural network (ANN) based CBL estimation technique is utilized. The ANN-based technique of estimation has better prediction accuracy, lower bias, and reduced variability as compared to other CBL estimation techniques. Consumer response to demand changes is computed using elasticity and consumer benefit function. The ANN-based CBL estimation and demand variation obtained from elasticity values are further used to analyze the technical and financial performance factors, for dynamic price and incentive-based DR program implementation. The research can assist a state power utility that is implementing smart grids in categorizing consumers, establishing a baseline, identifying potential demand reductions, and evaluating the feasibility DR programs.

The influence of risk perception on energy efficiency investments: Evidence from a German survey

Energy efficiency investments are typically based on either one of two opposing perspectives on financial risk. This study conducted a choice experiment based on a simulated online shop for energetic retrofitting. Here, the resulting financial risk of retrofitting was presented in different treatment groups from these two perspectives. In this vein, participants in the first treatment group were confronted with the resulting risk of deviating energy bill savings (investment risk perspective), which increases with the investment. In the second treatment group, participants were confronted with resulting risk of deviating energy bills after the investment (energy bill risk perspective), which decreases with investment. In the third treatment group, we displayed risk from both perspectives. We found that participants deciding on retrofitting measures within the online shop displaying energy bill risk invested about 20% more than participants in an online shop displaying the investment risk, tested for significance. These findings establish a new way of nudging individuals towards energy efficiency investments, which is especially important for energy policymakers. We, therefore, recommended actively leveraging the risk-reducing potential under the energy bill perspective when promoting energy efficiency investments.

Estimating fair rent increases after building retrofits: A max-min fairness approach

Residential building retrofits are one crucial instrument to reduce greenhouse gas emissions. Due to the high proportion of rental dwellings in Germany, one particular focus is on rental building retrofits. To increase the attractiveness of retrofits, landlords can charge a certain percentage of the investment amount in retrofitting on top of the current rent, i.e., a percentage-retrofitting-fee. This study applies a max-min fairness scheme to derive a model from estimating fair percentage-retrofitting-fees, including tenants, landlords, and society's environmental and economic interests. Additionally, this model includes the tenant's risk of uncertain energy bill savings after the retrofit, using expected utility theory. Further, two policy instruments, subsidies and environmental taxes, are included in the analysis and their impact on fair percentage-retrofitting-fees is derived. The results of a case study on the German retrofitting market show how the efficiency standard of the building and the investment amount in energy efficiency influence the fair percentage-retrofitting-fee. This study reveals that current regulations concerning percentage-retrofitting-fees are not fair for either the landlord or the tenant. Above that, we illustrate that the fair percentage-retrofitting-fee increases with either the height of the subsidies or the height of an emission tax rate.

Understanding the risk perception of energy efficiency investments: Investment perspective vs. energy bill perspective

Promoting energy efficiency is an important element of environmentally friendly energy policy and necessary to avert climate change. In this context, understanding the investment decision-making of individuals is important to develop and implement effective policy instruments. Literature analyzing decision-making of energy efficiency investments and especially the influence of connected risk finishes with two different conclusions, i.e., analyzes risk from two different perspectives. First, studies within the investment perspective describe investment risk, caused by volatile future energy bill savings, as a key barrier for energy efficiency investments. Second, studies within the energy bill perspective argue that energy efficiency is reducing energy price exposure and the resulting decrease of overall risk is described as investment promoting. This dichotomy in risk perception is the focus of our study. With the help of a theoretical model as well as a case study based on real-world data of the German retrofitting market, we analyze how the contrary perspectives influence expected utility, i.e., decision-making. Thereby, we find that decision-makers invest more in energy efficiency when evaluating from the energy bill perspective and derive important implications for environmentally friendly energy policymaking.

Optimizing Solar-Plus-Storage Deployment on Public Buildings for Climate, Health, Resilience, and Energy Bill Benefits.

Climate change, public health, and resilience to power outages are of critical concern to local governments and are increasingly motivating investments in on-site solar and storage. However, designing a solar-plus-storage system to co-optimize for climate, health, resilience, and energy bill benefits requires complex trade-offs that are not captured in current analyses. To fill this gap, we integrate the climate and health impacts of grid-purchased electricity into the REopt Lite optimization model using forward-looking marginal emissions costs. Using this new model, we quantify the impact of including energy bill, climate, health, and/or power outage cost savings on the optimal sizing, battery dispatch, and economic returns of solar-plus-storage on three public building types (a hospital, school, and warehouse) across 14 U.S. cities. We find that monetizing and co-optimizing for climate and health benefits, as compared to only energy bill savings and resilience, increases the net present value of the solar-plus-storage systems by $200k to $5.2M and makes larger systems financially attractive. Our results illustrate significant differences across geographies and building types, highlighting the need for site-specific analyses and associated policies regarding the costs and benefits of solar-plus-storage.

Does information encourage or discourage tenants to accept energy retrofitting of homes?

We study whether providing information about the consequences of residential energy retrofitting encourages public housing tenants to agree with retrofitting, and how this differs by type of information offered. We run a choice experiment in which tenants select between retrofitting packages that differ on the renewable technology used, the energy bill savings, the corresponding rent increase and the CO2 reduction. Two subsamples of participants get additional information on the financial respectively comfort-related consequences of retrofitting. We find that an average tenant is willing to agree with retrofitting when energy bill savings are 30% higher than the rent increase. Information on comfort-related consequences of renovations makes people more likely to choose for retrofitting. On the contrary, information on financial consequences reduces the support for retrofitting.

Techno-economic performance analysis of synergistic energy sharing strategies for grid-connected prosumers with distributed battery storages

Renewable energy planning, electrochemical storages, and prosumer-based energy management and sharing in smart grids are critical elements for the transition towards carbon neutrality, whereas the synergistic effects between distributed renewables and storages have not been sufficiently investigated regarding spatiotemporal compensation between energy supply and demand. Moreover, the economic benefits of individual prosumers need to be quantified to motivate their participation in the sharing scheme. In this study, a peer-to-peer (P2P) energy sharing paradigm was formulated, consisting of hybrid solar-wind renewable systems, battery storages, grid-connected commercial prosumers (a high-rise office building and a high-rise hotel), and flexible energy management. Different sharing scenarios with/without storage sharing were studied for performance improvements. Case studies show that, compared to the traditional peer-to-grid operation, the proposed P2P sharing operation with storage sharing can promote the self-consumption from 0.591 to 0.795 and reduce the net cost from 80.4 to 52.7 HKD/m2·a by 34.5%. The formulated energy sharing strategies can also contribute to energy bill savings for each prosumer when considering the profit from transactive energy and grid feed-in tariff, whereas the storage sharing may shorten the battery service life. The research can provide synergistic sharing strategies, energy planning, and economic policy guidelines to achieve carbon-neutral communities.

Feasibility analysis of rooftop solar photovoltaic for non-academic building in an educational institution in Malaysia

An educational institution is one of the sectors that consume a high amount of energy. An identify the energy consumption gives information to forecast the energy saving. The research aims to utilize rooftop solar photovoltaic (PV) at non-academic buildings in Malaysia’s educational institution. A detailed energy audit has been conducted at Politeknik Sultan Azlan Shah (PSAS) involving three non-academic buildings to identify the buildings’ energy usage. The three different building involved is the Islamic Centre (Mosque), Sports Centre, and Multipurpose Hall. The energy audit analysis is divided into four end-load groups comprising lighting, fans, air conditioning, and other equipment to identify each type of load’s energy consumption. Which equipment consumes the highest amount of energy in non-academic buildings in PSAS is determine. The results show that the highest energy consumption at the Islamic Centre and Multipurpose Hall is an air conditioner for a while Sports Centre is lighting equipment. Annual power generation and energy bill savings are calculated based on rooftop solar PV installation for self-consumption. From the feasibility analysis, the forecast of energy-saving for at-least 5% per year has been estimated. It significantly reduces the amount of carbon emission release to the environment.

Achieving renewable energy, climate, and air quality policy goals: Rural residential investment in solar panel

Heavy dependence on fossil fuels among rural households contributes to GHG emissions and air pollution while increasing landfill loads in Poland. This study examines benefits from the renewable energy utilization support program that subsidized household purchase and installation of thermal solar panels. This review of synergy between energy, climate, and air quality policies focuses on solar panel subsidies funded through the European Union and county governments in Mazowieckie Voivodship in Poland. County government offices, using the unpublished list of households receiving subsidies for thermal solar panel installation, mediated in the implementation of the survey and collected 123 completed questionnaires in May and June 2015. The heteroscedasticity-corrected OLS estimates two equations identifying and quantifying factors influencing the purchase price of solar panels and rural household monthly energy bill savings after installation using the gathered data. Among sociodemographic variables, increasing age was associated with an increasing price paid for the panels, but education was associated with paying a lower price for solar panels and lower self-reported energy bill savings. Panel purchase price increased if the respondent was a farmer, viewed subsidies as important, and preferred domestically manufactured panels. Location of household increased the price as compared to the reference county. Savings on monthly energy bills increased if respondent had a positive view of solar energy, expected a decrease in the bill following the purchase of panels, and heated large areas in the house. Subsidy programs have been important in increased household solar energy utilization, especially among farm households, while self-reported energy bill savings increased with positive attitudes towards renewable energy and the larger heated areas in rural residences.

Modeling energy efficiency insurances and energy performance contracts for a quantitative comparison of risk mitigation potential

Financial risk mitigation via Energy Performance Contracting or Energy Efficiency Insurances may overcome individual barriers for energy efficiency investments. However, while the financial industry, and especially insurance companies, may have compelling reasons to get involved in energy efficiency investments, the research on and real-world applications of risk transfer contracts for private decision-makers are scarce. Thus, this study quantitatively compares the risk mitigation potential of risk transfer contracts based on a comprehensive energy bill savings forecast model comprising stochastic processes for weather, commodity prices, and technological energy efficiency performance. The model is fitted with a unique dataset for German residential buildings. Our findings indicate that risk transfer contracts positively affect individual decision-makers' willingness to invest in energy efficiency. Generally, we find Energy Performance Contracts to be superior in most scenarios when transaction costs are not considered. However, insurance companies may benefit from diversification effects and by ceding risks to global capital markets and reinsurance companies.

Flip sides of the same coin? A simple efficiency score versus energy bill savings information to drive consumers to choose more energy-efficient products

Together with our utility clients, Enervee is experimenting with behavioural intervention strategies to see which are most effective in nudging purchasing decisions toward more efficient products. This paper presents results on decision-making, preferences and online shopping behaviour obtained from a series of observational (utility-branded marketplace platform analytics) and experimental studies (randomized controlled trials). Within the trials, we tested potential direct and interaction effects of two distinct but related energy product attributes that improve market transparency: an energy score (a relative product model energy efficiency index) and energy savings (estimated energy bill dollar savings compared to a base model benchmark). The trials all show that the use of an energy score has a significant effect on consumer product choices, encouraging them to select more energy-efficient products, consistent with the observational data. These robust results make a strong case for leveraging heuristics-based nudges to drive energy-efficient purchasing behaviour at scale. Responses to the energy bill savings information varied across the studies, offering insights about the influence of buying context and decision styles on consumer choice. The simple-to-process energy score appears to elicit a hot/impulsive decision style, whilst the cognitively more complex energy bill savings information prompts a reflective/cool decision style. Overall, the studies provide intriguing and robust insights to inform the continued development of cost-effective and scalable interventions to drive more energy-efficient consumer product choices.

Energy Trading in the Smart Grid: A Distributed Game-Theoretic Approach

In this paper, we propose both a centralized solution and a distributed game-theoretic approach to solve the problem of energy trading in the smart grid. In particular, we consider a number of geographically distributed consumers that need to buy energy from the neighboring users who have a surplus stored energy to meet their local demands. While buyers minimize their energy bill by buying energy at prices lower than that of the grid, sellers can make pro?t by selling the extra stored energy, which could have been acquired from affordable renewable resources. Buying energy from neighboring users also helps in reducing the stress on the main grid, which decreases electricity prices and protects the environment. We ?rst formulate the energy trading problem as a centralized optimization problem. Then, we propose a distributed solution based on the game theory that requires each user to merely apply its best response strategy to the current state of the system. Buyers play the game by deciding how much energy to be bought from each seller in order to minimize their energy bill taking into account different constraints tied to the grid infrastructure. Extensive simulations con?rm the effectiveness of the proposed approach in terms of energy bill savings, convergence in acceptable times, and fairness to its users.

Semiconductors and Information Technologies

Semiconductors and Information Technologies

Ensuring emergency power for critical municipal services with natural gas-fired combined heat and power (CHP) systems: A cost–benefit analysis of a preemptive strategy

Electric power failures in the aftermath of disasters cripple the delivery of critical emergency services. While emergency generators are available in some facilities, these systems are designed for short-term use and support limited functions. The substantial investment required to ensure emergency power for all critical services is difficult to justify because of the uncertainty associated with the likelihood and magnitude of future disasters. Investment evaluations change when a new source of emergency power is considered. This study evaluates the costs and benefits of a program to preemptively install new building-sited electric combined heat and power (CHP) generation technologies to ensure reliable long-term power for critical municipal services in hurricane-prone regions of the US. Three municipalities are selected for this analysis: Houston, Texas; Miami, Florida; and Charleston, South Carolina. Analysis indicates that costs of such a program can, in some cases, provide net energy bill savings regardless of the occurrence of a disaster.

Scenarios for a clean energy future

This paper summarizes the results of a study—Scenarios for a Clean Energy Future—that assess how energy-efficient and clean energy technologies can address key energy and environmental challenges facing the US. A particular focus of this study is the energy, environmental, and economic impacts of different public policies and programs. Hundreds of technologies and approximately 50 policies are analyzed. The study concludes that policies exist that can significantly reduce oil dependence, air pollution, carbon emissions, and inefficiencies in energy production and end-use systems at essentially no net cost to the US economy. The most advanced scenario finds that by the year 2010, the US could bring its carbon dioxide emissions three-quarters of the way back to 1990 levels. The study also concludes that over time energy bill savings in these scenarios can pay for the investments needed to achieve these reductions in energy use and associated greenhouse gas emissions.