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Understanding Your Utility Bills: Natural Gas

As a fossil fuel NG is a colorless and odorless gas in its natural state and is one of the cleanest burning hydrocarbons. The factors that contribute to the popularity of natural gas in the US manufacturing sector include ease of availability, clean burning properties, market deregulation, and increased domestic production. Analyzing natural gas (NG) bills can sometimes pose unique problems. Learning to read your utility bills and understand why your utility charges different fees is critical in maximizing your cost savings through energy efficiency. A key to creating a baseline is collecting and analyzing natural gas utility data. Historical data from NG bills can identify trends and help to find the baseline usage for a manufacturing operation. This guide intends to help Better Plant Program partners in understanding natural gas bills and analyzing usage to reduce costs. The guide focuses on natural gas production and transportation, understanding key charges on bills, different rate structures, and saving opportunities. A fictitious worked out example in the final section demonstrates how readers could go about analyzing natural gas bills.

03 NATURAL GAS↗

Understanding Your Utility Bills: Water

Better Plants partners join the program by setting energy intensity goals over a 10-year period. Over the same period partners have the option to set water and waste goals. "Understanding Your Utility Bills: Water" is intended to help companies comprehend their bills and assist with analysis for annual reporting.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Role of On-Site Generation in Carbon Emissions and Utility Bill Savings under Different Electric Grid Scenarios

Energy-efficient and sustainable technologies are necessary to lower energy and carbon footprints. Many technologies are being pursued to meet the increasing energy demand in buildings. An attractive option is efficient utilization of available energy resources, including renewables, to support current and future building energy needs while targeting grid resiliency, energy, and environmental security at an affordable cost via on-site cogeneration-based approaches. This must include energy-efficient technologies with lower greenhouse gas emissions and optimized cost, performance, and reliability. This paper presents the economic and environmental benefits associated with power technologies such as thermionics and solid oxide fuel cells. Hybrid configurations consisting of heat pumps, power systems, and renewable photovoltaics in cogeneration and trigeneration modes of operation are presented. The role of such technologies in lowering CO2 emissions while improving energy resiliency and serving the needs of underprivileged communities is discussed. The key barriers of affordability and potential solutions for large-scale implementation of these promising technologies are reviewed. Case studies demonstrating the influence of power rating, electrical efficiency, design configuration, carbon dioxide intensity of the grid, and fuel on annual greenhouse gas emissions are presented for residential and commercial buildings.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Stabilizing the Grid and Reducing Utility Bills Through Price-Responsive Controls for Heat Pump Water Heaters

The electricity grid is facing increasing challenges in cost-effectively balancing supply and demand. These challenges are exacerbated by increased penetration of photovoltaics, which causes mid-day overproduction, and electrification of gas appliances, which increases peak-period electricity demand. Decarbonization requires shifting building loads from fossil-intensive high-cost times to renewable-intensive low-cost times while maintaining quality of service to occupants. Utilities and ISO’s are investigating new ways of incentivizing this load shifting. One promising method is the use of Highly Dynamic Prices (HDPs). HDPs feature continuously changing prices that reflect real-time grid generation and distribution costs and capacity constraints, and thus incentivize consumers to shift their loads. California’s CPUC CalFUSE proposal and Hawaii’s recent changes demonstrate that electricity tariffs are moving towards this model. For this to work however, loads must have the capability to respond to these prices. Heat pump water heaters (HPWHs) are an ideal device for this purpose because their storage tanks decouple delivery of domestic hot water from electricity consumption. The storage enables control strategies that consume midday solar power to increase the energy stored in the tank, then provide evening peak domestic hot water services using the stored energy. Berkeley Lab's CalFlexHub project is pioneering price-driven load flexibility by developing and deploying cost-minimizing controls for many flexible loads - including HPWHs - in response to HDP. Control development is based on simulations using the Flexible Heat Pump Water Heater Performance Predictor which captures the control decisions of the on-board controller in a residential, integrated HPWH . The price-responsive controls a) shift load in ways that consume additional midday solar power to help stabilize the grid and reduce overall emissions, b) ensure that occupants receive equal or better hot water delivery service, and c) minimize the operating cost for each home in the fleet. On the grid level, the resulting shift will reduce utility operating costs and emissions, and can avoid expensive system capacity expansions. The control approach is customized to each home based on typical hot water consumption patterns. HPWH controllers, whether on the device or remotely, will receive a schedule of CTA-2045-B signals or set temperature adjustments customized to the current HDP price schedule and home. Simulation results for a fleet of 148 HPWHs on a summer day in Berkeley, California show cost savings of 29% and high price electricity consumption reductions of 80%, while maintaining full quality of service.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Multi-facility analysis using metered power data to quantify MRI energy use and utility bill costs across scanner operating modes

This study quantifies the energy consumption of magnetic resonance imaging (MRI) scanners across discrete operating modes during routine clinical workflows, based solely on electrical power measurements. Although previous studies have investigated MRI energy consumption within single hospitals or specific clinical settings, this research provides a broader and more systematic analysis. Researchers analyzed electrical power data and applied a previously developed semi-automatic method for identifying MRI operating modes using load duration curves for 20 MRI scanners across four different U.S. healthcare facilities, encompassing outpatient, inpatient, and mixed-use clinical settings. A key innovation is the inclusion of localized hourly utility rates to estimate costs, a parameter absent in prior literature. Key findings indicate significant variability in energy and cost profiles between weekdays and weekends. Scanner characteristics, including magnet strength, manufacturer, vintage, location, and clinical setting, influenced average daily energy consumption and power thresholds for operating modes. Notably, the clinical setting of a scanner predominantly determines its energy use. For example, the scanners in outpatient facilities consumed more energy. The breakdown of energy usage and costs by operating modes showed scanners spend between 61% and 93% of their time in nonproductive modes, with one outlier spending 34%. Average daily energy use for the scanners in the study ranged from 160 to 1069 kWh, with energy costs ranging from $\$$9 to $\$$149. This study uses an existing framework to quantify MRI energy behavior, leading to insights that can enable improved performance and cost savings across different healthcare environments.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Understanding Your Utility Bills: Electricity

Electricity bills can often be difficult to decipher. Depending in the electricity provider, bills can be very long and detailed or extremely short, with only a few totals listed. Different charges can appear each month with no apparent explanation of how or why they are calculated. Learning how to read electricity bills and understand why different charges are assessed is key to maximizing cost savings through energy efficiency. This document provides guidance on the basics of understanding electricity bills and covers electricity generation, rate structures, usage trends, and savings opportunities. The information in this guide can be used to help companies collect and report their energy efficiency improvements to the DOE Better Plants Program.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The impact of energy-efficiency upgrades and other distributed energy resources on a residential neighborhood-scale electrification retrofit

We report ambitious targets for carbon emissions reductions are highlighting new challenges for electrification strategies, leading to an increased focus on building load flexibility and energy management to complement the variability inherent in renewable energy generation. Over the next decade millions of existing homes could undergo electrification retrofits, and there is an urgent need to understand the potential impacts of electrifying major residential loads such as water and space heating on community load characteristics, resident energy bills, and the utility's distribution system. Behind-the-meter distributed energy resources (DERs), including efficiency measures, photovoltaics (PV), battery storage, managed electric vehicle (EV) charging, and controls such as home energy management systems (HEMS), can significantly alter a neighborhood's load profile and provide benefits to both the residents and the grid. We present a novel approach to characterizing the impact of a hypothetical neighborhood-scale residential retrofit program on individual homes' energy use profiles, associated utility bills, and the local distribution system. We modeled a mixed-fuel community of 30 single-family homes in Denver, Colorado, and compared the effects of retrofit scenarios ranging from conventional energy-efficiency upgrades to full electrification with and without more advanced DER technologies. We analyzed which packages of DERs most reliably enable demand flexibility in response to a time-of-use (TOU) rate for this and similar neighborhoods. Our buildings-to-grid co-simulation framework includes a generic secondary distribution feeder model to capture voltage profiles, transformer loading, and other grid impacts in each case. We also calculated the carbon emissions associated with energy use in the community. The methodology developed here can be broadly applied to community-scale beneficial electrification studies in other regions, climates, utility infrastructures, and building typologies to make specific, targeted recommendations based on quantified projections of energy demand in any given community. Our findings indicate that residential electrification can be achieved without negatively impacting the monthly utility bill, and that a combination of conventional energy-efficiency measures, PV, battery, controls, and managed EV charging to maximize a community's demand flexibility is a promising strategy. Adding DERs (especially PV) as part of efficient electrification produces much bigger savings than efficient electrification without DERs. A key barrier is that upgrades require upfront costs, and modest utility bill savings result in long payback periods.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Cost Reduction of School Bus Fleet Electrification With Optimized Charging and Distributed Energy Resources: Preprint

Considerations for electrifying school buses are presented with an analysis of battery sizing to match bus driving requirements. The charging and vehicle-to-building dispatch of the electric school buses were optimized to evaluate the potential to reduce the impact of the bus charging on the school's electric utility bill. Distributed energy resources (DER) and flexible building loads were also considered with the school bus electrification to evaluate the further reduction in energy costs with enhanced system integration and optimized dispatch. The effect of degradation on the school bus batteries was analyzed to determine if the smart charging and vehicle-to-building battery operation decreases the life of the battery. The results show that there is an opportunity to mitigate the increase of electric utility bills with improved charging controls and bi-directionally operating the school bus batteries to reduce building demand charges. The battery degradation analysis using dispatch with optimized charging and discharging shows acceptable battery life.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Modeled Results of Four Residential Energy Efficiency Measure Packages for Deriving Advanced Building Construction Research Targets

The Advanced Building Construction (ABC) Initiative from the U.S. Department of Energy Building Technologies Office is working to accelerate industrialized construction innovations for decarbonizing buildings. To inform performance and cost targets for research under the ABC Initiative, this analysis used the ResStock™ tool to evaluate the energy savings, utility bill impacts, and carbon emissions impacts of four simulated upgrade packages with specific target performance levels on a large sample of residential dwelling units (approximately 550,000) representative of the U.S. housing stock.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Industrial battery operation and utilization in the presence of electrical load uncertainty using Bayesian decision theory

Behind the meter battery storage is becoming increasing popular in all sectors, though enthusiasm has recently lagged in the industrial sector. Even though there may be many factors contributing to this including lack of innovation, prohibitive costs, and undesirable rate structures, a difficulty arises in accounting for uncertainty of electrical load in industrial facilities while still attempting to utilize battery storage as much as possible all while trying to achieve fiscal profitability. Here this study utilizes Gaussian process regression and Bayesian decision theory to organize load data and quantify electrical load uncertainty to properly and effectively discharge industrial battery storage. The study employs a simulation model to set battery load setpoints for the span of the utility billing period according to the degree of risk aversion. This combination of economic analysis according to utility billing period and utilization of degree of risk aversion to make decisions on the uncertainty of the data has not before been applied to battery storage. The method resulted in an annual average reduction of peak demand by 3.8 % at the lowest amount of savings and lowest risk aversion. The highest risk aversion resulted in an annual average reduction of peak demand of 7.5 %. The maximum reduction of peak load in any month was 13.8 % in the month of December with a relatively high risk aversion. With a the highest amount risk aversion tested, the model reduced demand ten of the twelve months of the year.

25 ENERGY STORAGE↗

Community-scale interaction of energy efficiency and demand flexibility in residential buildings

Demand-side management (DSM) strategies, including energy efficiency (EE) and demand flexibility (DF), contribute to cost-effective operation of the electricity grid. From a system-level perspective, such programs reduce costs, enhance reliability, and reduce network issues. Similarly, DSM programs help participating customers reduce utility bills while maintaining occupant comfort. Understanding the relationship between EE and DF is key to realizing the full potential of DSM programs. In this study, we modeled an all-electric residential community based on a 498-home community that is planned for construction in Fort Collins, Colorado in the United States. We used this community model to study the relationship between different EE measures, including building envelope upgrades and smart appliances, and DF enabled by a home energy management system (HEMS) responding to a time-varying tariff. Various EE levels in the homes – code-minimum, zero energy ready, and even higher levels of envelope efficiency – were simulated. DF is enabled by the HEMS, which coordinates behind-the-meter resources, including flexible building loads, PV, and home battery systems, to minimize utility bills while maintaining occupant comfort. When comparing to the code-minimum homes, EE upgrades alone reduce HVAC energy use during peak hours by up to 50% and the HVAC utility bill by up to $312/year. With the addition of HEMS, the average daily peak demand can be reduced by up to 0.58 MW or 1.2 kW/home in the higher envelope efficiency homes. The combination of EE upgrades, HEMS, and home battery systems is expected to save homeowners up to $590/year while increasing community load flexibility. However, HEMS and home battery systems are less effective in increasing the DF in the more efficient homes due to the lower load.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Bill Savings vs. Backup Power: Evaluating operational tradeoffs for home solar+storage systems [Slides]

This study explores tradeoffs between the use of home solar+storage systems for backup power versus day-to-day utility bill savings. The study focuses specifically on the “reserve setting” available with most home battery storage systems, which allow the customer to maintain some minimum level of storage in reserve in case of an unforeseen power interruption. The more capacity that is held in reserve, the greater the customer’s ability to ride-through possible power interruptions, but less capacity is then available to manage utility bills on a day-to-day basis. This study evaluates this operational tradeoff across a diverse set of locations and residential electricity tariff structures, relying on Berkeley Lab’s PRESTO model to stochastically simulate power interruption events, and exploring a range of sensitivities, including variations in customer value of lost load (VoLL), interruption frequency, and other key drivers. The results show that, in most circumstances, the opportunity cost of holding storage capacity in reserve, in terms of foregone bill saving, tends to outweigh any gains in reliability value associated with mitigated power interruptions. This finding is robust across tariff structures and across most of the sensitivities considered, including those related to rate level, customer load level, and storage sizing. There are a limited set of circumstances where raising the reserve setting improves the overall customer value (comprised of bill savings plus reliability value). Specifically, that exception occurs when all of the following conditions apply: (a) the customer resides in a location with exceptionally poor reliability, (b) the customer has exceptionally high VoLL; (c) the customer is on a net billing rate or on a TOU rate that allows grid discharging but not grid charging; and (d), depending on the location, the price arbitrage differential on that rate is relatively small. In all other circumstances analyzed, total customer value declines with reserve level.

14 SOLAR ENERGY↗

Bill Savings vs. Backup Power: Evaluating operational tradeoffs for home solar+storage systems [Slides]

Adoption of residential solar photovoltaic+energy storage systems (PVESS) is driven by both bill savings opportunities and customer demand for backup power. Prior work by this team (Gorman et al., 2022; Gorman et al., 2023) explored PVESS backup power capabilities during long-duration power interruptions (e.g., due to severe weather events), when customers are assumed to be able to anticipate the event and charge their batteries in advance. In many cases, however, power interruptions are unpredictable (and often relatively short); for those types of events, a customer will typically set its battery to maintain some minimum capacity in reserve in case of an interruption, which reduces the capacity available for managing utility bills. This study evaluates this operational tradeoff to help customers and installers configure backup reserve settings, and to inform decision-making more generally about the customer value of backup power services compared to utility bill savings. This study utilizes Berkeley Lab’s PRESTO tool to produce stochastic simulations of (predominantly short-duration) power interruption events, and builds on an earlier case-study demonstrating PVESS backup performance during short-duration interruptions (Baik et al., 2023).

14 SOLAR ENERGY↗

Colorado Residential Retrofit Energy District (CoRRED) Phase I: Final Modeling Results

Electrification of buildings and transportation coupled with increased deployment of distributed energy resources (DERs) has been identified as a key step toward meeting emissions reduction goals across the U.S. Examples of pilot projects that feature innovative, 'smart' electric neighborhoods are largely focused on new construction projects, but there is a need to address the millions of existing homes so that they too may accommodate cleaner yet variable energy production in ways that benefit both the utility grid and the homes' residents. The Colorado Residential Retrofit Energy District (CoRRED) project used building and grid co-simulation tools to model an advanced energy district demonstration in an existing residential neighborhood in Denver, Colorado, and explored how existing building and utility infrastructures can be enhanced with combinations of traditional energy-efficiency retrofit measures and integration of solar panels and other DER technologies to provide better affordability and reliability. We analyzed which packages of DERs most reliably enable demand flexibility in response to a time-of-use (TOU) rate. Our results clearly indicate that incorporating DERs into efficient electrification produces much bigger utility bill savings on an annual basis than efficient electrification without DERs. While electrifying a neighborhood will increase the maximum load, batteries and solar panels can reduce load during peak hours so that the community can be a net producer during peak periods. A remaining challenge is to overcome first cost barriers to implementing energy-efficiency and DER technologies, as modest utility bill savings require long payback periods that are not practical for most homeowners.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Pueblo of Laguna Village Community Solar

The project was to install approximately 11.44 kilowatts (kW) rooftop solar photovoltaic (PV) system on the Mesita Village Community Center, an approximately 9.24 kW rooftop solar PV system on the Paguate Village Community Center, an approximately 21.56 kW rooftop solar PV system on the Paraje Village Community Center, and an approximately 11.00 kW rooftop solar PV system on the Seama Community Center, for a total of about 53.24 kW on four village community centers. The systems were expected to generate approximately 93,329 kWh annually. Installing solar PV systems on the four village community centers would have helped achieve the Pueblo of Laguna’s six energy objectives: community development (decreased utility bills, funds for other needs), economic development (training and participation in the renewable energy economy), energy reliability (future storage), community resilience (alternative sources), relationship to people and the natural world (reducing fossil fuel use), and energy sovereignty (Pueblo decision-making). Installing solar PV systems would have also met specific project goals to offset not less than 85% of each selected building’s annual electricity use, ranging from 87% to 103% of demand; save a minimum of 70% of the cost of utility bills per year for each building, ranging from 75% to 77% percent (including service charges); and would have had payback periods shorter than the estimated useful life of the project

14 SOLAR ENERGY↗

Achieving 50% Energy Savings in Chicago Homes: A Case Study for Advancing Equity and Climate Goals

Since 2019, the National Renewable Energy Laboratory (NREL) and Elevate have collaborated to identify pathways to deep energy retrofits in Chicago's housing stock, document equity implications and co-benefits of this transition, and validate the findings by implementing retrofits in real Chicago homes. This document summarizes our analysis process to model advanced retrofit packages that lead to greater than 50% energy savings in Chicago homes. Based on these findings, we have also developed a roadmap with the City to guide implementation, and are deploying the recommended retrofit packages in real Chicago homes to realize these energy savings. This work was developed in collaboration with two key stakeholders - the City of Chicago and Commonwealth Edison (ComEd) - and funded by the U.S. Department of Energy (DOE). NREL's Residential Buildings team maintains the best-in-class ResStock™ energy model of the U.S. residential building stock. For this work, we calibrated ResStock to Chicago's unique local housing stock to accurately simulate energy use in Chicago homes both for current conditions and with various retrofit scenarios. We simulated a wide range of potential building retrofits covering all aspects of residential energy use and then grouped these into packages based on energy and utility bill savings. ResStock can model diverse building types and housing characteristics, so we're able to observe the range of outcomes that might occur when these upgrades are deployed across the entire housing stock. We can then estimate potential energy savings from an advanced retrofit program on Chicago's housing stock by comparing the modeled energy use before versus after a retrofit. This novel version of ResStock, calibrated to Chicago with data from Elevate, can help City officials, ComEd, and other partners plan for community-scale decarbonization via residential retrofits. Specifically, this work contributes the following project goals: Develop a building retrofit prioritization strategy for Chicago single-family and 2- to 4-unit buildings; Identify neighborhoods and home types that have the highest potential for savings from electrification; and Assess the impact of advanced building retrofits on energy use, utility bills, and CO2 emissions at the city and building level. Although this study is specific to Chicago, its methods and learnings are applicable across the United States. These findings are especially notable for heat pumps and electrification retrofits in cold climates.

building energy modeling↗

Software defined grid energy storage

Today, consumer battery installations are isolated, physical devices. Virtual power plants (VPPs) allow consumer devices to aggregate for grid services, but they are are vertically integrated, vendor controlled systems (e.g., Tesla’s VPP). Consumer batteries are therefore unable to participate in energy markets or other grid services outside what their vendor provides. We describe a software system that provides software control of multiple, networked battery energy storage systems in the electric grid. The system introduces two new ideas that enable flexible and dependable management of energy storage. The first is a virtual battery, which can either partition a battery or aggregate multiple batteries. The second is a reservation-based API which allows asynchronous control of batteries to meet contractual guarantees in a safe and dependable manner. Virtual batteries and a reservation-based API address the unique challenges of achieving high and efficient utilization of energy storage systems, including heterogeneity of battery systems such as varying C-rates, participation in energy markets, utility bill management systems, community resource sharing, and reliability. Using a testbed comprised of sonnen Inc. storage units installed in several homes and a lab, we demonstrate that virtualized batteries can seamlessly replace physical batteries, flexibly manage energy storage resources, isolate multiple clients using a shared battery, and create new energy storage applications.

25 ENERGY STORAGE↗

Backup power or bill savings? How electricity tariffs impact residential solar-plus-storage usage in the United States

Adoption of paired solar-plus-storage systems has accelerated in recent years, driven by both the demand for backup power and a desire to manage utility bills. Tradeoffs between those two uses can arise through the reserve setting on the battery storage system, which serves to maintain a minimum state of charge in case of a power interruption. Our paper applies an economic framework to evaluate this tradeoff in terms of changes in bill savings and customer reliability value across reserve levels, considering how those tradeoffs depend on the underlying electricity rate structure and levels. The analysis is based on a representative set of load profiles, solar profiles, tariff designs, and stochastic power interruption events across ten different regions in the United States. We find that the opportunity cost of holding storage capacity in reserve, in terms of foregone bill reductions, outweighs any gains in reliability value from mitigated power interruptions in the majority of customer situations. Higher storage reserve levels increase total customer value only in specific circumstances, such as for customers with inferior reliability (10x average interruptions), with a very high value of lost load ($50/kWh), and with tariff or interconnection rules that disallow grid charging. However, even this result is dampened when considering tariff designs with higher price differentials that increase the opportunity cost of holding storage in reserve (e.g. import/export or time-of-use rates). Allowing grid charging in tariffs essentially eliminates the necessity to hold any storage in reserve in all sensitivity cases explored.

Electric resilience↗