Cut your electricity bill with smart energy solutions

Summary

• Smart energy solutions can lower your electricity bill and make your home more comfortable.
• Optimizing space heating offers particularly significant savings, but controlling domestic hot water heating, ventilation, and electric vehicle charging can also reduce costs.
• Options range from energy monitoring devices that cost a few dozen euros to comprehensive home automation systems.
• Smart energy solutions can help keep household demand peaks under control, thereby reducing the impact of power fees on the electricity distribution bill.

A variety of smart solutions optimize household energy use, helping lower electricity bills.

The greatest saving opportunities are typically found among the home’s biggest electricity guzzlers: space heating, domestic hot water, ventilation, and electric vehicle charging.

A smart EV charger can schedule charging for lower-priced periods on the spot electricity market. A ventilation unit can be equipped with a humidity or carbon dioxide sensor that adjusts its output as needed.

Controllers are also available for water heaters, allowing water heating to be scheduled based, for example, on spot electricity prices. Smart thermostats can be connected to radiators or underfloor heating systems.

How much can home automation reduce electricity use?

The savings achieved through smart solutions vary depending on factors such as the amount of energy saved and spot electricity prices.

One example involving smart heating solutions comes from the University of Oulu. In her 2022 doctoral research, Sanna Tuomela, a postdoctoral researcher specializing in smart energy technologies, found that home automation reduced the electricity use of participating households by

• up to 30 percent during the winter months, and
• an average of 15 percent annually. 

The energy management solutions used in the study lowered indoor temperatures, thereby reducing the energy used for heating. This can be done without sacrificing comfort.

– For example, the indoor temperature can be lowered while people are at work and school, then raised before they return home. It is also common to set bedroom temperatures lower at night, Tuomela says.

In the study, automation also shifted electricity use to late-night and early-morning hours, when electricity is typically less expensive.

– Electricity use decreased during typical peak periods – from 7 to 9 a.m. and from 5 p.m. onward, when people return home from work.

How much does a smart solution cost?

Prices for smart home solutions vary widely. A simple wireless solution connected to an electricity meter may cost only a few dozen euros, while extensive wired home automation systems, often installed during construction, can cost thousands of euros.

You can also learn more about home automation and how to purchase it on Motiva’s website.

Can a smart system help avoid power fees?

Can a smart system help avoid or reduce power fees, which are becoming more common in the industry? This is one of the questions being explored in the Research Council of Finland–funded Flaire project, in which postdoctoral researcher Sanna Tuomela is also involved. The project examines energy system flexibility and demand response from the perspective of households.

– In the Flaire project, we have been considering how people can participate in demand response while taking power fees into account. At times, this may conflict with the most sensible way to use electricity based on its price, Tuomela says.

Demand response aims to shift electricity use to times when electricity is readily available and prices are low. At the same time, power fees for electricity distribution encourage households to smooth out their highest demand peaks.

In practice, this may mean scheduling EV charging, water heating, and other household electricity use at different times instead of running several high-consumption devices simultaneously.

The purpose of a power fee is to balance the load on the electricity grid. It may be more cost-effective than a traditional distribution rate if household electricity use can be smoothed out using smart home solutions, for example, with a maximum demand setting.

Frequently asked questions about smart home energy solutions

Can smart home solutions lower your electricity bill?

Yes. The amount saved depends on how much flexibility the home has to control space heating, domestic hot water, or EV charging, for example. The greatest savings usually come from optimizing electric heating because this makes it possible to take advantage of lower-priced periods on the spot electricity market.

Do smart energy solutions require a comprehensive home automation system?

No. A range of solutions is also available for monitoring and controlling energy use, including smart home devices, individual smart thermostats, smart EV chargers, and water heater controllers.

How does a smart thermostat save energy?

A smart thermostat can lower the temperature during the workday or while residents are away on vacation, then raise it before they return home. This prevents energy from being wasted on heating empty rooms.

Can ventilation be controlled automatically?

Yes. Many ventilation units can be equipped with humidity and carbon dioxide sensors that increase ventilation when needed.

How can smart energy solutions help manage power fees?

They can help smooth out peaks in household electricity use. For example, a smart solution can schedule EV charging and water heating at different times while still ensuring that the vehicle is charged and hot water is available when needed. Smart solutions can also be used to set demand limits for household electricity use.

Who benefits most from smart energy solutions?

They are suitable for anyone who wants to monitor and optimize their energy use. People with electric heating, EV owners, and households with mechanical ventilation generally benefit the most. In cabins and vacation homes, smart solutions can not only save energy but also improve safety and comfort.