# Using electricity tariffs and thermal comfort management to promote residential energy decarbonization

## TL;DR

This paper explores how electricity tariffs and smart thermal management can help reduce household energy costs and emissions while avoiding strain on the power grid.

## Contribution

The study introduces combined strategies of electricity tariff design and thermal comfort management to improve system-level performance and affordability during electrification.

## Key findings

- Electricity tariffs with demand charges can manage peak loads without increasing household costs.
- Adjusting thermostat setpoints and using pre-heating/cooling can reduce emissions and electrification costs.
- These measures can mitigate network strain and affordability issues if widely adopted.

## Abstract

Household thermal demand supply through electricity could reduce emissions, but also compromise the operation of electricity distribution networks. In this work, suitable electricity tariff designs and household thermal management are investigated, individually and in combination, as ways to enhance network operability, support electrification, and improve system-level performance. Optimization results from eight combinations of building type, vintage, and climates in Australia show considerable social benefits resulting from the measures explored. Electricity tariffs that include a demand charge contain peak loads without increasing household costs. Furthermore, emission and cost savings from looser thermostat setpoints and building pre-heating/cooling are demonstrated. These are also found to reduce the upfront investment in household electrification to levels comparable with current, dual-fuel (electricity and natural gas) practices. Subject to the degree of occupants’ acceptance and policy adoption, a significant potential to mitigate, and even avoid, anticipated network strain, while tackling pressing affordability and decarbonization challenges is demonstrated.

•Optimal household response under comfort constraints across buildings and climates•Assessment of electricity tariffs and comfort management to support electrification•System-level performance is improved without increasing household costs•Potential to mitigate and avoid network strain and affordability issues is revealed

Optimal household response under comfort constraints across buildings and climates

Assessment of electricity tariffs and comfort management to support electrification

System-level performance is improved without increasing household costs

Potential to mitigate and avoid network strain and affordability issues is revealed

Energy policy