Quantification of Energy Cost Savings through Optimization and Control of Appliances within Smart Neighborhood Homes

Electric utilities are driving towards enabling automatic scheduling and control of the consumption pattern of appliances such as heating, ventilation, and air conditioning (HVAC) and water heater (WH) systems (e.g., through preheating and pre-cooling, etc.) within smart neighborhoods to minimize energy cost and peak load demand. Quantifying economic savings through direct comparison of the optimized energy usage profile on a specific day with the typical non-optimized usage profile on another day is not a fair comparison because energy usage highly depends on weather conditions and human behaviour especially appliance like HVAC on those days. In this paper, we propose a novel approach of identifying similar weather day pairs which can then be used to compare the energy use profiles within homes between the identified pairs. We then demonstrate how the proposed approach can be used to compute cost savings due to optimization and control of smart appliances at home and neighborhood-level within a future-focused smart neighborhood of 62 residential homes. We also demonstrate a simulation based approach to quantify cost savings and showcase our findings through customized and interactive visualizations.