Home Energy Management Systems (HEMS) on the verge of a breakthrough

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. Legislators have recognized this and have now laid the first important foundations. This blog article presents the influence of two important legislative initiatives (EEG 23 and smart meter rollout) on the new building infrastructure of the next few years (parts 1-3).

Part 1: EEG makes self-generated electricity via photovoltaic systems a key technology

The Renewable Energy Sources Act (EEG) is the largest amendment to energy policy legislation in decades and lays the foundations for Germany to become climate-neutral.

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

The EEG 23 focuses on incentives for investments in photovoltaic systems that simplify and improve their expansion:

  • Introduction of full and partial feed-in: Now there is the possibility to feed-in electricity as well as to use it oneself.

  • Lower bureaucracy requirements: From 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 of the system and self-consumption, the investment is recouped after about 15 years. After that, the solar system continues to provide cheap electricity for at least 10-15 years. In the end, this leads to a profit, increases independence from the power grid and reduces CO2 emissions at the same time.

  • Save taxes easily: Photovoltaic systems with an output of up to 30 kWp will be exempt from income and trade tax.

Part 2: Smart meter rollout

Another legislative package 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.

How the smart meter rollout works:

  • Mandatory for high consumption: The law will require that all consumers who use more than 6,000 kilowatt hours of electricity per year have a smart meter by 2030. 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 provided with a smart meter within four months. The price for using the devices is capped at 20 euros per year. This means that it is no more expensive than a conventional electricity meter.

  • New electricity tariffs: Starting in 2025, the bill calls for all electricity suppliers to offer dynamic rates to allow consumers to shift electricity purchases to lower-cost periods when renewable energy feed-in is high.

  • Fewer bureaucratic hurdles: Up to now, for example, a device could not be approved for use by the German Federal Office for Information Security (BSI) until 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 provided for in the past. This is now being changed. The law allows an "agile rollout." In a time-limited phase, functions may be introduced gradually via updates.

Part 3: Home Energy Management Systems as a new operating system in real estate

As a provider of HEMS solutions for single and multi-family homes or neighborhoods, we see great potential in these laws. After all, our primary goal in recent years has always been to connect renewable energy sources 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 Systeme (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
  • Smart home and smart appliances
  • Dynamic tariffs (time and load variable)

    The most important advantages of the Home Energy Management System at a glance:
  • Maximum transparency regarding power generation and consumption
  • Automated control of consumers depending on available or self-generated electricity
  • Incentive-based control of the entire system based on dynamic energy tariffs
  • Increasing self-consumption rate or increase of self-sufficiency
  • High cost savings due to reduced grid power consumption
  • Grid efficiency through connection to smart meter infrastructure

Our ROCKETHOME services at a glance:

  • HEMS Gateway in various types
  • Connectivity expertise for integration of the required hardware in the building (Connect program)
  • Climate IoT Cloud as a mature integration and operation platform
  • Applications for different target groups
  • Property management software to manage all properties and HEMS systems
  • APIs and interfaces for end to end process integration (e.g. support, service, maintenance)
  • Consulting and development services for your individual solution

We help you!

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

Arrange an appointment with us now.

Websites: www.rockethome.de, www.rockethome-climate.de, www.rockethome-estate.de
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