We speak with system integrators across a multitude of industries. One of the most popular IoT use cases we get asked about is smart energy management.
It’s one of the easiest and fastest ways to get IoT into an organization and provide value immediately. That’s because the cost savings can be immediate and significant, high enough to return a positive ROI on your IoT investment.
McKinsey & Company analyzed the value of energy management from increased efficiency and decreased malfunctions. They estimated:
- Intelligent energy management systems can reduce energy use in offices by 20%, making your energy company a lot more attractive. Overall, in the office space, IoT can produce a potential economic impact of $11.7 billion to $20.5 billion per year in 2025.
- In the factory setting, firms could save 10-20 percent on energy by switching to your IoT-enabled energy management.
- Applications in smart cities could have an impact of $33-$64 billion per year globally in 2025.
So how do you track and manage energy consumption?
You add a simple sensor to monitor and manage the electricity consumption of anything that consumes electricity in an organization.
- Lighting – Coordinate with motion sensors to keep lights off automatically when not in use. You can also get real-time alerts when light bulbs go out.
- HVAC – Monitor and adjust room temperatures remotely and independently of other room temperatures. Coordinate with real-time weather to provide the perfect “just right” conditions and motion sensors to turn off automatically when not in use.
- Refrigeration – Monitor refrigerators continuously. Create alerts when power consumption is abnormally high, the door may have been left open or there may be a mechanical issue you wish to examine.
- Office devices – Ranging from PCs and servers to lab equipment, monitoring these devices is usually a low priority, but there’s a large savings potential across large office buildings or companies with many employees.
- Industrial – Monitoring motors, steam systems, boilers, and other heavy energy consumers can present an opportunity for energy savings through more efficient processes and heat recycling.
- Smart meters – Detect loss of electricity in distribution as part of a smart building or smart city initiative.
A successful smart energy project always begins with monitoring. Once you know what your energy consumption problems are, you can take steps to reduce consumption with data to ensure your investment will pay off through energy reduction. Check out our complete Service Provider’s Guide to scalable and profitable IoT here.
We’ve also seen successful implementations start small and scale once ROI is proven. You can start with refrigeration in one outlet of a fast food chain, and then expand once you’ve discovered you can reduce refrigeration energy consumption to justify the cost of the sensors and platform.
Axonize customers we work with on smart energy projects can expand into additional monitoring, cost savings, or revenue-generating applications. The Axonize IoT platform works with any sensor or protocol. We also allow you to easily expand or combine IoT applications, so IoT project growth is scaled to meet the customer’s individual business goals.
We’ve also put together this smart buildings whitepaper for you to learn more about the trends and solutions we’re seeing in this space.