Internet of Things or IoT devices allow businesses to make data-driven decisions and cost-efficiencies on a scale never seen before. And, according to Digiteum, “IoT applications in the energy sector gain particular attention from consumers, businesses and even governments. Apart from numerous benefits to the electric power supply chain, IoT energy management systems give way to new smarter grids and promise unprecedented savings, improved security and enhanced efficiency.” So, today we’ll be breaking down exactly how IoT and energy management systems combine for distinct P&L benefits.
Balanced energy supply and demand
When we measure and monitor at the micro-level, it’s easy to identify trends. And when it comes to energy use, those trends allow us to enhance forecasts. Medium explains, “Smart grids powered by IoT technology enable more streamlined and efficient management of household energy demand, green energy production and consumption levels. This, in turn, makes for more efficient load balancing and shedding.” And that translates to other environments too. Smart grids can lead to more efficient office buildings, factories and warehouses as well. And it’s not just regulating supply; they can manage consumption too.
Sensors and machine learning can work together to anticipate the needs of homeowners and employees. Instead of relying on human input to understand how warm to heat a room or when to turn the lights off, IoT for energy management can execute these commands automatically. According to Biz4 Intellia, “New IoT applications like smart electric meters, home automation, buildings, and street lighting are now coming into action to provide better approaches for efficient energy consumption.” And this is great for cost savings and the environment as well. And that’s helping companies meet their green agenda.
According to IoT Project Factory, “Energy usage should be systematically recorded and analyzed to increase energy efficiency. Most countries have already adopted laws requiring power monitoring systems. The only way you can work toward global climate goals is to monitor your consumption and reduce it sustainably.” Adopting IoT can help businesses meet emissions regulations and push us towards our net-zero goals. And there’s a growing consumer trend towards ethical purchasing. This sees green leaders take market share from their competitors as customers put their buying power behind their beliefs. So, using IoT and energy management systems may actually open up new markets for your organisation.
Implementing IoT for energy management
First, you’ll want to build a business case so you can get buy-in from leadership to explore an IoT deployment. For this, you’ll want to speak to an expert IoT for energy management implementation partner to help you scope that project. They’ll help you map the costs versus the ROI upside so you can secure a c-suite champion for your project. You’ll want to start small. Perhaps with just a single department or building for your rollout. Then, you’ll learn from your initial deployment and take those learnings to your full-scale plan. Plus, with some IoT in place, you’ll be realising your ROI which will help senior leadership sign off on a larger-scale project.