Remote workers save money with time-of-use fees and smart meter incentives, while shifting energy to off-peak times and reducing grid strain.
The pandemic has significantly altered our daily routines, particularly with the rise of working from home. Consequently, this shift has led to a marked increase in residential electricity usage during traditional work hours. Data from the Australian Bureau of Statistics shows that 37% of Australians were regularly working from home in August 2023, down from 40% in 2021 but still significantly higher than the pre-pandemic level of 32% in 2019.
A study conducted by Li et al. (2021) analysed data from 390 apartments in New York City to examine the impacts of COVID-19 lockdowns on electricity consumption. The study, covering the period from January to August 2020, highlights that residential electricity consumption from 9am to 5pm on weekdays increased by 15% to 24% compared to pre-pandemic conditions. Furthermore, peak demand between 12pm and 5pm surged from 35% to 53%. This new load profile poses challenges for grid management, especially with climate change exacerbating wild weather events like heat waves.
Common behaviours, such as using high-energy appliances (dishwashers, washing machines and dryers) during peak hours, contribute to these issues. Residents enjoy this convenience without considering the potential grid stress. And why would they? There is a distinct lack of awareness about the cumulative impact of these actions on energy infrastructure.
For households with smart meters, time-of-use fees encourage energy use during off-peak hours, saving tenants money while spreading demand more evenly throughout the day. By incentivizing off-peak usage, these charges reduce grid stress and support more sustainable energy habits.
For instance, running dishwashers or laundry machines when the sun is at its peak before noon (when solar energy is most abundant) rather than during high-demand afternoon hours can significantly lower both peak demand and costs.
The result: Data from the study suggests that if such tariffs are implemented widely, they could help maintain grid stability, especially as the work-from-home trend continues.
Educational campaigns can increase the benefits of time-of-use tariffs, helping tenants save money, optimise energy use, and support a flexible, sustainable grid for the future.
Are you aware of any other nudges that help to manage energy use more sustainably? Get in touch: hello@green-nudges.com
From Danielle Teychenne, Co-Founder of ClimateThrive and Learning Designer at BehaviourWorks Australia. She draws inspiration from her recent Climatestream project, where she developed a grid resilience plan for the City of Bradfield.
A brief message after selecting a plant-based lunch nudges meal kit customers to choose less meat at dinner.