Home Energy Management Systems (HEMS) in various buildings

Home Energy Management Systems (HEMS) are becoming increasingly popular as a decentralized operating system in buildings. The climate targets can no longer be achieved without the consistent promotion of technological innovations in real estate and the necessary framework conditions. The legislator has recognized this and has now created the first important foundations. This blog article presents on the one hand the HEMS concept as well as the services of ROCKETHOME and shows in part 2/3 the influence of two important legislative initiatives (EEG 23 and smart meter rollout) on the new building infrastructure of the next years.

Part 1: Home Energy Management Systems as the New Operating System in Real Estate

As a provider of HEMS solutions for single- and multi-family homes and neighborhoods, we see great potential in these laws. After all, our primary goal in recent years has always been to network renewable energies in such a way that there is optimal interaction between (electricity) generators, storage systems, consumers and the smart devices in the building. In the interaction of these HEMS systems with owners, occupants and managers, we can offer a variety of new business models.

Home Energy Management Systems (HEMS)

These components in the building are connected by a HEMS:

• Photovoltaic system & storage
• Charging infrastructure
• Heat pump & room thermostats
• Hot water tank/ heating elements
• Shading and climate control
• Residential heating systems (thermostats & underfloor heating)
• Smart home and smart appliances

the whole, networked with

• Dynamic tariffs (time or load variable)
• Value-added offerings from service providers and
• Installation, maintenance and financing offers

The most important advantages of the Home Energy Management System at a glance:

Energy cost savings, climate protection and more autonomy

• Maximum transparency regarding power generation and consumption
• Automated control of consumers depending on available or self-generated electricity
• Incentive-based control of the overall system based on dynamic energy tariffs
• Increasing self-consumption rate or increasing self-sufficiency
• High cost savings due to lower grid power consumption
• Grid efficiency through connection to smart meter infrastructure
• New world of experience for energy

Our ROCKETHOME services at a glance:

• Climate IoT Cloud as a mature integration and solutions platform
• Applications with all energy modules for different target groups (services alternatively available as API)
• HEMS Gateway in different versions (from several manufacturers)
• Connectivity expertise for the integration of the required hardware in the building (Connect program)
• Property management software to manage all properties and HEMS systems
• APIs and interfaces for E2E process integration (e.g. support, service, maintenance)
• Consulting and development services for your individual solution

Part 2: EEG makes self-generated electricity via PV systems a key technology

The Renewable Energy Act (EEG) is the biggest energy policy amendment in decades and lays the foundations for Germany to achieve its climate targets.

The new version of the EEG has the ambition to accelerate the expansion of renewable energies. It sets high targets for this - because 80 percent of the electricity in the Federal Republic is to come from renewable energies by 2030. A significant part of the EEG 23 focuses on the expansion of photovoltaics across the board.

In this context, the EEG 23 focuses on incentives for investments that are intended to simplify and improve the expansion of PV systems:

• Introduction of full and partial feed-in: It is now possible to both feed in electricity and use it yourself.
• Reduced bureaucracy requirements: As of January 1, 2023, there will no longer be any restrictions on how much of a photovoltaic system's output can be fed into the public grid.
• Photovoltaic systems as an investment: Depending on the size and self-consumption, the system is paid off after about 15 years and then continues to supply cheap electricity for at least 10-15 years. This leads to a profit in the long term, increases the independence of the power grid and reduces CO2 emissions at the same time.
• Simply save taxes: Photovoltaic systems with an output of up to 30 kWp are exempt from income and trade tax.

Part 3: Smart Meter Rollout

Another package of laws was passed by the German cabinet at the beginning of February 2023 (source: Handelsblatt v. 6.2.23). The "Act to Restart the Digitization of the Energy Transition" primarily provides for intelligent electricity meters, so-called "smart meters," to be installed in many households.

This is how the smart meter rollout works:

• Mandatory for high consumption: The law is to stipulate that by 2030 all consumers who use more than 6,000 kilowatt hours of electricity per year must have a smart meter. To put this in perspective, the average four-person household has a consumer of 3,500 kilowatt hours.
• Low-cost devices: Consumers who use less than 6,000 kilowatt hours can apply for the installation of a digital device and must then be supplied with a smart meter within four months. The price for using the devices is capped at 20 euros per year. This makes it no more expensive than a conventional electricity meter.
• New electricity tariffs: Starting in 2025, the bill would require all electricity suppliers to offer dynamic tariffs to allow consumers to shift electricity purchases to lower-cost periods when renewable energy feeds into the grid are high.
• Fewer bureaucratic hurdles: Previously, for example, a device could only be approved for use by the German Federal Office for Information Security (BSI) if it had all the minimum functionalities required by law at that time, including complex functions such as remote control of equipment and consumer devices. A gradual market launch with subsequent application updates, on the other hand, was not previously envisaged. This is now being changed. The law allows an "agile rollout." In a time-limited phase, functions may be introduced gradually via updates.

Are you interested in a HEMS solution. Would you like to enter this market?

Let's shape the new energy world of tomorrow together!

Our experts at ROCKETHOME will help you with your HEMS project. Please contact us.

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