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7 Best Home Energy Management Systems to Reduce Your Electricity Bill

Posted on January 21, 2024

Home energy management systems (HEMS) in today’s world are not just a luxury but a necessity. These systems play a significant role in reducing electricity wastage in households, thus saving money.

In this article, I tell you about the best home energy management systems you can invest in and contribute to reversing climate change.

Table of Contents

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  • 1. Smart Thermostats
    • How Smart Thermostats Help Homeowners Save Money
  • 2. Energy Monitoring Systems
    • How Energy Monitoring Systems Help with Savings
  • 3. Solar Energy Management Systems
    • How Solar Energy Management Systems Save You Money
  • 4. Smart Lighting Controls
    • How Smart Lighting Controls Help with Savings
  • 5. Battery Storage Systems
    • How Battery Storage Systems Help Save Money
  • 6. Demand Response (DR) Device
    • How DR Devices Help Save Money
  • 7. Smart Plugs and Outlets
    • How It Helps Save Households Electricity and Money
  • Invest in Home Energy Management Systems to Save Money and the Environment

1. Smart Thermostats

Imagine a home where the temperature magically adjusts, saving you money and energy along the way. That’s what a smart thermostat can do for you. It’s one of the best buys for a household who wants to invest in a home energy management system (HEMS).

You can think of a smart thermostat as the Einstine of the thermostat world. Unlike normal thermostats, smart ones don’t blindly react to temperature changes. Instead, they are connected to WiFi and software that learns about your habits, anticipates your needs, and controls your heating and cooling system, giving you comfort and using electricity efficiently.

Here’s how it works:

Smart thermostats have sensors that gather data like room temperature, occupancy, outdoor weather, etc. This is what makes it ‘smart.’

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As you adjust the temperatures throughout the day, the thermostats learn what temperatures you prefer at a given point in the day. It tracks when you’re home, when you’re not, and even when you hit the snooze button.

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Using this data, the thermostat predicts the future needs. It pre-heats or cools your house before you arrive.

How Smart Thermostats Help Homeowners Save Money

  • With a smart thermostat in your house, there’s no more cooling or heating an empty house. Smart thermostats automatically adjust temperatures when you’re away, preventing energy wastage.
  • Forget cranking up the heat or blasting the AC. Smart thermostats optimize your HVAC system’s performance, ensuring it runs efficiently with no sacrifice on comfort.
  • By factoring in outdoor temperatures, smart thermostats fine-tune heating and cooling, making the most of natural warmth and coolness.
  • Smart thermostat app lets you track energy usage and adjust its use to save electricity.

So, the primary goal of a smart thermostat is to reduce electricity wastage. When a household reduces energy wastage, it will consume less electricity, leading to substantial financial savings over time.

2. Energy Monitoring Systems

If smart thermostats are your house Einstine, energy monitoring systems are the Sherlock Holmes. These systems use clever devices like smart plugs, meters, and AI-powered analysis to tell you exactly where your electricity flows.

Energy monitoring systems track what appliances are using electricity unwantedly or more, when usage peaks, and even identify phantom drains.

But remember, energy monitoring systems are only good for observation. It paints a picture, but it’s up to you to take action.

To put this observation into action, you need energy management systems.

📚 Read more about EMS: Smart Savings: How EMS Reduces Your Household Bill

How Energy Monitoring Systems Help with Savings

  • Monitoring energy usage will tell you about the devices drawing enormous amounts of electricity unnecessarily from the grid. When you have this knowledge, you can unplug idle electronics, choose energy-efficient alternatives, and adjust your usage habits.
  • Monitoring energy usage pinpoints usage patterns, showing peak demand time. This awareness lets you shift energy-intensive activities off-peak hours, taking advantage of potentially lower electricity rates.
  • Energy monitoring systems will guide you in identifying hidden power drains from standby devices.

3. Solar Energy Management Systems

Solar panels offer energy independence and lower electricity bills, but harnessing the sun’s potential requires smart management.

Solar energy management systems (SEMS) are the brains behind the solar setup. It collects data, controls energy flow, and optimizes your system for max savings. 

Here’s how it works:

Sensors on solar panels track real-time energy production, giving you a clear picture of how much sunlight you’re converting into electricity. 

Unlike traditional systems that simply dump excess energy back into the grid, SEMS prioritizes using your solar power first. It directs electricity to power your appliances, reducing reliance on expensive grid power.

What’s more, for cloudy days or night use, SEMS stores excess solar energy in batteries. 

How Solar Energy Management Systems Save You Money

  • Selling excess power back to the grid can help you get extra credits or cash.
  • By prioritizing solar power and storing excess energy, you reduce reliance on the grid, thus paying less for electricity.
  • Batter backup provides self-reliance, protecting you from power outages and volatile grid prices.

4. Smart Lighting Controls

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Smart lighting controls are like light switched on steroids. The system is connected to your WiFi or Bluetooth, letting you control them from your phone, smart speaker, or even your voice.

Here’s how this magic happens:

Start by replacing your old bulbs with WiFi-enabled or Bluetooth-enabled LED bulbs. They communicate with your control system, allowing for dimming, color change, and even integration with other smart devices.

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Smart light control systems have control hubs that receive messages from you and translate commands into instructions that the lights can understand. Some of these systems even learn for your routines and preferences, adapting lighting automatically.

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Next in the system are sensors that can detect presence. This helps it automatically turn lights on and off when you enter and exit the room, eliminating wasted energy and ensuring safety. Daylight sensors can also adjust brightness based on natural light.

How Smart Lighting Controls Help with Savings

  • Smart lighting sensors adjust to natural light levels, minimizing reliance on artificial illumination and reducing energy demands.
  • Scheduling and occupancy sensors used in smart lighting ensure lights are off when needed, saving electricity.
  • Dimming lights reduce energy use. Smart controls let you adjust brightness to the perfect level, optimizing lighting without draining power.

5. Battery Storage Systems

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Battery storage systems are giant rechargeable batteries connected to your home’s electrical system. They work by capturing excess electricity, either generated by your solar panels or drawn from the grid, and storing it for later use.

Here’s how it functions:

  • Capture: Solar panels or your grid connection feed electricity into the system.
  • Convert: An inverter translates the incoming electricity into a format compatible with the batteries.
  • Store: The battery bank, like a mini power station, safely stores the converted electricity.
  • Deliver: When you need power, the inverter converts the stored energy back into a form your home appliances can use.

How Battery Storage Systems Help Save Money

  • Reduce dependence on the grid, particularly during peak pricing periods. Use your stored energy instead, decrease your electricity bill, and take control of your energy costs.
  • No more scrambling for candles when the power goes out. Your battery becomes your backup; it keeps the lights on and appliances running during outages.
  • For solar panel owners, batteries maximize energy capture. Store excess solar generation for evening use, reduce reliance on the grid, and make the most of your clean energy investment.
  • Shift high-energy activities like laundry or dishwashing to periods when your battery is full, further reducing dependence on expensive grid power.

6. Demand Response (DR) Device

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DR devices connect to specific appliances like water heaters or pool pumps and communicate with the utility company. 

During peak energy times, the utility can send a signal, and your DR device temporarily adjusts your appliance’s energy use. 

It might run slightly less efficiently or shift its operation to a different time – just enough to take some pressure off the grid.

How DR Devices Help Save Money

  • DR programs typically target specific times of day, often during off-peak hours when electricity is cheaper. So, your appliances might adjust while you’re at work or asleep, minimizing any noticeable impact on your daily routine.
  • Your small adjustments contribute to a more stable power grid, preventing blackouts and ensuring reliable energy for everyone. 
  • By participating in DR programs, you often receive financial incentives from your utility company, lowering your electricity bill. 

DR devices are a win-win situation. You save money, the grid becomes more stable, and you contribute to a more sustainable energy future. 

But remember, DR programs vary by region and utility company. Check with your provider to see what options are available and start reaping the rewards of being a grid-savvy homeowner. 

7. Smart Plugs and Outlets

Smart Plugs and Outlets are simple yet powerful devices in the HRMS. These devices transform your regular electrical outlets into smart ones, giving you control over your appliances and devices remotely. 

Here’s how it works – You plug these devices into your existing electrical outlets and then plug your appliances into them. Once set up, smart plugs and outlets connect to your home WiFi network, allowing you to control the power of these appliances through a smartphone app or sometimes even voice commands via smart home assistants.

For example, you might have a lamp plugged into a smart plug. Through the app on your smartphone, you can turn this lamp on or off remotely or even set a schedule for when it should be on. 

Some smart plugs also allow you to monitor the energy usage of the appliance plugged into them, giving you insights into your energy consumption patterns.

How It Helps Save Households Electricity and Money

  • Turn appliances off remotely when they’re not in use, preventing ‘vampire’ energy usage (where appliances consume power even when not actively in use). Also, you can set schedules for appliances to run during off-peak hours when electricity rates are lower.
  • Many smart plugs come with features to monitor the amount of electricity being used by the appliance connected to them. This data helps identify which devices are energy hogs and need to be used more efficiently or replaced with more energy-efficient models.
  • For gadgets, smart plugs can be programmed to turn off once the device is fully charged, preventing overcharging and thus saving energy.
  • When integrated with other smart home systems, smart plugs can optimize energy usage based on your habits and preferences. For instance, they can turn off lights automatically when a smart home system detects that no one is in the room.
  • The simplicity of using a smartphone app to control your appliances makes it more likely that you’ll actively manage your energy usage, leading to more significant savings over time.

Invest in Home Energy Management Systems to Save Money and the Environment

Investing in home energy management systems isn’t just a smart financial decision; it’s a giant leap to reverse climate change. Each system, right from smart thermostats to smart plugs and outlets, works in harmony to reduce your carbon footprint, increase energy efficiency, and pave the way for a sustainable future.

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