When it comes to saving on your electricity bill, improving the energy efficiency of your home is certainly the way to do it. However, there are two ways of achieving this through the various kinds of HVAC systems that are available.
One kind of system is known as the residential demand response (DR) program, and is sometimes a part of today’s smart grid. Although we just use the example of HVAC here, DR can be applied to many home electrical systems and appliances. Residential demand response is where utility companies are given control over the HVAC units that are in people’s homes, and reduce the power settings and temperature of the home during the afternoon and early evening hours, as there is less need for them when people are at home. This is partly because the presence of people within buildings adds to the warmth of the home so that there is less need to use more electricity from the grid in order to turn the HVAC unit on. This can be very useful for those who don’t remember to turn down their thermostats at night, so it can help to save them a lot of money in the long run and increase the energy efficiency of their homes.
Alternatively, there is the behavioral demand response program, which leaves control in the hands of the homeowner. A smart device – a smart meter – is set up in the home, reads and records data from the home, such as the time people get home and wake up in the morning, and the changing temperatures throughout the year. This data is then used in order to tell consumers how much energy was saved and how this amount can be increased in the future by altering the settings of the thermostat and HVAC system. Communication is sent via a smart phone, PC, or tablet on how much energy they saved, what the financial benefit was and what customers can do better in the future. In response, customers can appropriately adjust their devices – “two-way communication”.
This smart meter method makes it much easier for the homeowner to determine how much energy to save, rather than leaving it in the hands of the utility companies. The use of the smart meter allows people access to the device from home, so changes can be made over one’s smartphone or tablet device.
Both methods are quite beneficial and make it easy for homeowners to focus on energy efficiency. With residential demand response program, even when the energy levels are lowered by the utility companies, the thermostat within the home is going to register the change in temperature and turn on at the appropriate time anyway. Depending on the season of the year, this can still lead to the overconsumption of energy that is not needed. With behavioral demand response programs, the smart meter has to be purchased and installed within the home, and only requires some time for it to record all of the data necessary in order to produce the best results that can be used to alter the thermostat. This does not necessarily make one system better than the other, but homeowners should be aware of the differences between the two in order to come to an informed decision.