Energy controls in residential real estate: the real impact

Our industry is engaged in an important dialogue to improve sustainability through ESG transparency and industry collaboration. This article is a contribution to this larger conversation and does not necessarily reflect GRESB’s position.

When it comes to residential assets, especially in the multi-tenant real estate space, utility costs can equate to around 30% of overall operational expenditure. In the UK and Ireland, it won’t be a surprise to you that we aren’t blessed with warm weather, so with heating on consistently in energy-intensive assets like purpose-built student accommodation (PBSA), these costs can make a significant impact on NOI. Not only that, but in PBSA when all-inclusive rental models are in place, this burden is taken fully by operators.

Enter energy controls: a proptech solution aimed at reducing overheads,  utility usage and associated costs, and better yet, aimed at increasing that all-important NOI. But it’s not just about controlling heating and cooling capabilities at a room level, the real value is in remote control. The ability to set maximum and minimum temperatures from an online portal, meaning temperatures can be set at bedroom or whole asset level without the need for room-by-room action. Energy controls are committed to efficiency, proven to reduce utility costs, and a way to supercharge the decarbonization of the real estate industry.

So, what’s the real purpose, the answer, and the impact of energy control? Utopi has been on a data exploration journey when it comes to energy controls, and the insights are quite powerful.

1. Increased energy waste: Without energy controls, it’s hard to track and optimize energy usage. This can lead to unnecessary consumption, such as heating unoccupied spaces.
2. Higher carbon emissions: Inefficient energy use contributes to higher carbon emissions, which contradicts sustainability goals and ESG regulatory requirements.
3. No performance metrics: Lack of energy controls can mean limited or no data on energy consumption patterns, making it difficult to identify inefficiencies or prioritize upgrades. Regulations also increasingly require data reporting on energy use and carbon emissions. Without controls, monitoring and measuring performance for compliance becomes more challenging and costly.
4. Inefficient maintenance: Without controls to optimize usage, HVAC systems, lighting, and other infrastructure are more likely to operate continuously, leading to faster wear and tear. Frequent breakdowns and replacements due to inefficient operations drive up long-term costs.
5. Limited scalability: Managing energy consumption across multiple PBSA buildings becomes increasingly complex without centralized controls. Adapting to future technological advancements or integrating renewable energy solutions is more difficult without foundational controls.

Cost realization and operational efficiency in any residential real estate sector is a key focus; so increasing efficiency and enhancing the data landscape of an asset is always positive. But an added layer here is the type of energy controls. An industry conversation right now is all about smart panel heaters versus panel heaters with boost buttons. Which solution drives the better reductions? and when prices aren’t vastly different, where does one begin?

Utopi has tested the real impact, the real-world context of energy controls and discovered some powerful numbers around energy savings from the use of energy controls.

Case study: Smart panel heaters versus panel heaters with boost buttons

At the beginning of the 2024 heating season, Utopi was tasked with reducing the energy waste in a PBSA asset in the Midlands. With a high percentage of senior students and double occupancy, this electrically heated asset had a history of overheating and was driving significant utility costs. Energy controls would not only reduce energy waste in unoccupied spaces, but it would also control the temperature limits residents could set in their rooms. And with some rooms being heated to over 26°C, that alone would reduce energy consumption and associated costs.

An added layer would be empowering site teams with remote controls, meaning they could set maximum and minimum temperatures via The Utopi Platform. Not only that, we wanted to go one step further to test the viability of energy controls, so we aligned our install with a phased heating upgrade on site to demonstrate the benefit of smart hardware and remote controls over a standard panel heater with boost button.

Over the eight-week program, the following metrics would be tracked weekly, using temperature as a proxy for energy consumption:

1. Mean room temperature: To track energy reduction in real time.
2. Mean external temperature: To accurately map the impact of weather conditions on internal heating behaviors.
3. Mean consumption in kWh: This was taken per room, per day.
4. Percentage of rooms above 24°C: Not only so site teams could intervene with controls, but also to track progress in real time.

The results say it all, and while it was an eight-week program, results were seen in as little as one week:

Option A: Standard panel heater

• Mean room temperature: 23.3°C
• Mean external temperature: 9.4°C
• Measured occupancy: 91%
• Mean energy consumption kWh/bed/day: 11.2
• % of rooms above 24°C: 38%

Option B: Panel heater + boost button

• Mean room temperature: 22.6°C
• Mean external temperature: 9.3°C
• Measured occupancy: 85%
• Mean energy consumption kWh/bed/day: 6.3
• % of rooms above 24°C: 31%

Options C: Smart panel heaters + energy controls

• Mean room temperature: 21.8°C
• Mean external temperature: 9.6°C
• Measured occupancy: 87%
• Mean energy consumption kWh/bed/day: 4.9
• % of rooms above 24°C: 8%

The impact:

• Energy savings per bed: 1.4-6.3 kWh/bed/day
• Temperature reduction: 1.5°C (between Option A-C)
• Savings per bed from Standard Panel Heater to Energy Controls: £300 (between Option A-C)
• Savings per bed from Boost Button to Energy Controls: £75 (between Option B-C)
• The difference between Smart Panel Heaters versus Boost Buttons? The number of rooms above 24°C was 79% less with the energy control solution.

This article was written by Ben Roberts, CMO and Co-Founder at Utopi. Learn more about Utopi here.