Reducing Energy Expenses in Homeholds: A New Approach to Savings

Cutting Energy Costs for Households Around the World

A recent study by MIT researchers has shown that providing better information to households about their energy usage, combined with coaching on how to increase energy efficiency, can lead to substantial reductions in energy consumption and costs.

In Amsterdam, an experiment was conducted involving 67 households, which received either a report on their energy usage or the same report along with a smart device displaying real-time energy data. The results showed that homes reduced their monthly electricity consumption by 33% and gas by 42%, while lowering their bills by 53%. Additionally, the percentage of income spent on energy decreased from 10.1% to 5.3%.

The researchers found that one of the key factors in reducing energy consumption was changing behavioral habits, such as heating only rooms that were in use and unplugging devices not being used. However, they also discovered that households tended to lose interest in using smart devices for frequent monitoring of their energy usage after a few weeks.

To alleviate energy poverty, which affects families worldwide, the researchers emphasize the need for a close understanding of what drives individuals to change their behaviors. They suggest that smart devices should be accompanied by coaching and education on how to increase energy efficiency.

The study’s findings have implications for policymakers, who can use this evidence to develop more effective policies to reduce energy poverty. For example, retrofitting residential buildings to lower energy costs is a promising approach, although it requires finding ways to fund the retrofits without passing the costs on to tenants.

Households can also take steps to reduce their energy consumption by investing in products such as better insulation, windows, or heating components. However, for low-income households, this may be a challenge due to the high upfront cost of these measures.

Key Takeaways

• Providing better information and coaching on energy efficiency can lead to significant reductions in energy consumption and costs.

• Behavioral changes, such as changing habits around heating and using devices, are key factors in reducing energy usage.

• Smart devices should be accompanied by coaching and education on how to increase energy efficiency.

• Retrofitting residential buildings is a promising approach to reduce energy poverty, but funding must be found without passing the costs on to tenants.

• Households can take steps to reduce their energy consumption by investing in products such as better insulation or windows.