3 Ways to Reduce your Peak Energy Usage — Save Money and the Planet
Control Heating and Cooling Costs while Reducing Carbon Intensity and your Reliance on “Dirty Energy”
The energy needed to heat and cool our homes typically accounts for over 50% of our monthly energy bill. What’s more, electricity usage for heating and cooling generally occurs during peak periods, when rates are higher and there is already high-demand on power plants and electricity generation — which results in a greater reliance on “dirty energy” (i.e. fossil fuels) to meet this demand. For example, according to the US Energy Information Administration, as much as 70% of the energy generated during peak periods comes from non-renewable “dirty” sources such as fossil fuels, whereas non-renewables could account for 40% or less during off-peak periods, with the majority of energy coming from “clean” sources of renewable energy.
In this article, we’ll explore how energy is generated using renewable (clean) and non-renewable (dirty) sources, how this differs during peak and off-peak periods of energy usage, and 3 ways you can reduce your energy consumption during peak periods to not only save money on your energy bill, but also reduce your reliance on fossil fuels and other sources of “dirty energy”.
“Clean” vs “Dirty” Energy
The terms clean energy and dirty energy are often used to describe different types of energy sources based on their environmental impact. Clean energy sources are those that produce little to no pollution or greenhouse gases, while dirty energy sources produce significant amounts of pollution and greenhouse gases.
Some of the most common clean energy sources include:
- Solar energy: Solar energy is generated by the sun’s rays. It is a clean and renewable source of energy that does not produce any pollution or greenhouse gases.
- Wind energy: Wind energy is generated by the wind. It is a clean and renewable source of energy that does not produce any pollution or greenhouse gases.
- Hydroelectric energy: Hydroelectric energy is generated by the flow of water. It is a clean and renewable source of energy that does not produce any pollution or greenhouse gases.
- Geothermal energy: Geothermal energy is generated by the heat from the Earth’s interior. It is a clean and renewable source of energy that does not produce any pollution or greenhouse gases.
Some of the most common dirty energy sources include:
- Coal: Coal is a fossil fuel that is burned to generate electricity. It is a dirty source of energy that produces significant amounts of pollution and greenhouse gases.
- Oil: Oil is a fossil fuel that is burned to generate electricity and to power vehicles. It is a dirty source of energy that produces significant amounts of pollution and greenhouse gases.
- Natural gas: Natural gas is a fossil fuel that is burned to generate electricity and to power vehicles. It is a cleaner source of energy than coal or oil, but it still produces some pollution and greenhouse gases.
Energy Production during Peak and non-Peak Periods
The percentage of electricity produced by fossil fuels during peak and off-peak periods varies depending on the country and the time of year. However, in general, fossil fuels are used more during peak periods than off-peak periods.
This is because peak periods are when electricity demand is highest, such as during the afternoon when people are using air conditioning. During these times, power plants need to be able to generate more electricity to meet demand. Fossil fuels are often used during peak periods because they are relatively inexpensive and can be easily dispatched to meet demand.
Off-peak periods are when electricity demand is lower, such as at night when people are asleep. During these times, power plants can use less expensive sources of electricity, such as renewable energy sources. However, fossil fuels may still be used during off-peak periods to provide backup power or to meet demand spikes.
Understanding How we Use Energy and Taking Action
Understanding our energy usage and controlling our consumption during peak periods can help reduce demand spikes and therefore reduce the need to bring online sources of dirty energy. Let’s explore 3 ways we can better control our energy usage and how we can reduce our overall energy costs.
Smart Thermostats
Smart thermostats are devices that can be programmed to automatically adjust the temperature in your home based on your schedule and preferences. Smart thermostats can also be remotely controlled — by you or your energy provider — to use less energy when you are away or when energy costs / demand are high. Many smart thermostsats have 1 or more of the following features:
- Programmable thermostats: Smart thermostats allow you to set different temperatures for different times of the day. For example, you can set the temperature lower at night when you are asleep and higher during the day when you are home. This can help you save energy by not heating or cooling your home when you are not there.
- Geofencing: Some smart thermostats can use geofencing to automatically adjust the temperature in your home based on your location. For example, if you have a smart thermostat that is linked to your smartphone, it can automatically lower the temperature in your home when you leave for work and raise it when you come home. This can help you save energy by not heating or cooling your home when you are not there.
- Learning thermostats: Some smart thermostats can learn your habits and adjust the temperature in your home accordingly. For example, if you typically set the temperature lower at night and higher during the day, the thermostat will learn this and automatically adjust the temperature accordingly. This can help you save energy by not having to manually adjust the thermostat every day.
- Remote access: Smart thermostats can be accessed remotely from your smartphone or computer. This means that you can adjust the temperature in your home from anywhere in the world. This can be helpful if you forget to adjust the thermostat before you leave for work or if you are going to be away from home for an extended period of time.
Some popular models of smart thermostats include Ecobee and Nest.
According to the U.S. Department of Energy, smart thermostats can save you an average of 10–15% on your heating and cooling bills. This means that if you have a typical monthly energy bill of $100, you could save $10–15 per month by using a smart thermostat. Additionally, most energy companies provide incentives or offer programmable thermostats at a reduced cost (sometimes free).
Whole Home Energy Monitors
Whole home energy monitors (HEMs) are devices that are typically installed in your main electrical panel. Individual devices are also available to monitor energy usage one single circuit or outlet. Additionally, some utilities even offer real-time energy metering. Regardless of the method, HEMs can help reduce energy consumption in a number of ways.
- Identifying energy hogs: HEMs can help you identify which appliances and devices are using the most energy in your home. This information can help you make informed decisions about how to reduce your energy consumption. For example, if you find that your refrigerator is using more energy than you expected, you may be able to adjust the settings or replace it with a more efficient model.
- Tracking energy usage: HEMs can track your energy usage over time. This information can help you identify patterns in your energy consumption and see where you can make improvements. For example, if you find that you are using more energy during certain times of the day or on certain days of the week, you may be able to adjust your habits to reduce your usage.
- Providing alerts: HEMs can provide alerts when your energy usage is higher than usual. This can help you identify problems with your appliances or your home’s electrical system. For example, if you receive an alert that your energy usage is suddenly higher, you may want to check your refrigerator to make sure that it is not running improperly.
- Incentivizing energy savings: Some HEMs offer incentives for energy savings. For example, many utilities offer programs where you can earn points for reducing your energy usage. These points can be redeemed for gift cards or other rewards.
In addition to Energy Monitors, Smart Plugs and Switches can be used to automate turning devices on and off — such as turning on lights at sunset or turning off devices at night or when you are away. Smart Plugs and Switches can also be used to power down devices during periods of peak energy demand.
The Sense energy monitor not only shows energy usage, but also provides a breakdown of “Carbon Intensity” which is the mixture of renewable and non-renewable sources of energy generation at a given time.
Demand Response Energy Incentives
According to the US Department of Energy, Demand Response provides an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives. Demand response programs are being used by some electric system planners and operators as resource options for balancing supply and demand. Such programs can lower the cost of electricity in wholesale markets, and in turn, lead to lower retail rates. Methods of engaging customers in demand response efforts include offering time-based rates such as time-of-use pricing, critical peak pricing, variable peak pricing, real time pricing, and critical peak rebates. It also includes direct load control programs which provide the ability for power companies to cycle air conditioners and water heaters on and off during periods of peak demand in exchange for a financial incentive and lower electric bills.
OhmConnect is a company that partners with a number of major energy utilities — including Con Edison, Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric — to alert and incentivize customers to reduce energy usage during peak periods called Ohm Hours. Customers who reduce energy usage during Ohm Hours are rewarded with points that can be redeemed for gift certificates and other prizes. In addition, customers with Smart Thermostats or Smart Plugs & Switches can have their devices powered off automatically during Ohm Hours.
Click the link above to signup for Ohm Connect and start earning rewards and saving money on your utility bill today. The program is Free and requires no changes to your utility provider!
Conclusion
In this article, we learned about the difference between peak and off-peak energy consumption, how energy is produced using renewable and non-renewable sources during these periods, and how we can leverage 3 different technologies to limit our peak energy consumption, reduce our reliance on dirty energy sources, and ultimately save money.
