Australians Could See Lower Energy Bills With Smarter Air Conditioning: IEEFA

Encouraging the use of smarter electric reverse cycle air conditioners (RCACs) can help reduce electricity bills of Australians, a think tank said.
RCACs are the most commonly installed cooling technologies in Australian homes, which accounts to 40 percent of the total energy used to keep households comfortable for living, according to the Institute for Energy Economics and Financial Analysis (IEEFA).
WiFi controllers, as an example, enable users to dynamically manage their energy use with smarter RCAC systems.
Furthermore, a prior report from the Department of Climate Change, Energy, the Environment and Water (DCCEW) said that the demand for efficient air conditioning will increase because of greater affordability, rise of split systems, and greater expectation for thermal comfort.
“At the moment, air conditioning products sold in Australia are required to meet minimum efficiency standards, but not minimum smarts,” said Gabrielle Kuiper, IEEFA guest contributor and author of the new briefing note, “Smart air conditioners could reduce energy bills for consumers.”
“As increasing numbers of homes electrify their heating to reduce their energy bills and lower their emissions, ensuring that RCACs can be used as flexible demand will be an important way to help lower costs for consumers, improve the operation of the electricity grid, and reduce emissions.”
At present, the International Energy Agency (IEA) projected that there will be 5.5 billion air conditioning units in 2050, furthering calls for energy efficiency measures to reduce the said appliance’s carbon footprint.
Smart technologies are often seen as more expensive than its traditional counterparts as the average supply and installation cost for a new reverse cycle split-system air conditioner range between $2,500 to $5,000 considering the brand, size, and labour.
In addition to smarter cooling and heating units, the think tank recommends that the government should consider subsidising the availability of add-on sensors and devices to make existing RCAC units smart.
Kuiper said that Australia’s two largest energy retailers already have diverse offers to incentivise the use of smart technologies in Australian appliances.
“Two of the largest energy retailers in Australia are already offering opportunities for households with smart meters to earn rewards for voluntarily flexing their electricity use at times of peak demand,” said Kuiper.
“Our research shows a strong public appetite for these schemes. They not only reduce household energy costs. Demand flexibility can also help to minimise whole-of-system costs, which will become increasingly important as Australia transitions to greater levels of variable renewable energy generation.”