IoT-based Smart Energy Management System Development

IoT energy management systems are revolutionizing how industries, commercial, and residential properties optimize energy consumption and reduce costs. These systems enable smart infrastructures that offer significant savings, improved safety, and enhanced efficiency while supporting sustainable practices and minimizing carbon footprints. According to reports, by 2030, the global IoT energy management market size is projected to reach $222.56 billion^[1].

IoT energy monitoring systems allow facility and energy managers to monitor usage, conserve energy, and ensure smooth supply and demand across organizations and industrial processes. As a global IoT solution provider, we can develop and integrate smart energy management systems (SEMS) that provide instant performance updates and data-driven reporting on energy consumption against set goals.

Are you considering implementing smart energy management using IoT? We have comprehensively covered IoT in energy management, including its features, key benefits, and the most suitable solutions for your business.

Table Contents:

• What is a Smart Energy Management System, and How Does it Work?
• Benefits of IoT-based Smart Energy Management System
• Key Features of IoT-based Energy Management System
• Most Popular Energy Management IoT Solutions
• Partner with Us to Integrate an IoT-based Energy Management System
• Frequently Asked Questions

A SEMS is an integrated system designed to utilize real-time power consumption data to track, monitor, measure, control, and optimize energy consumption in residential and commercial facilities. This system typically leverages technologies such as IoT, AI, cloud computing, and big data analytics to collect and analyze data on energy usage. It provides valuable insights into consumption patterns, helping to enable comprehensive energy management to improve energy efficiency and reduce costs.

IoT-enabled smart energy management systems are a significant advancement over traditional energy management systems as they enable higher granularity in measurements. As a result, these systems enable improved energy efficiency, more accurate forecasting, faster issue resolution, and greater potential for cost savings compared to traditional SEMS.

This advanced IoT-based energy management system promotes a process of creating a smart environment with an energy controller that monitors, analyzes, and manages energy consumption in real-time. Each energy-consuming device, process, and piece of equipment is equipped with an IoT-powered energy controller and modules. These system components collect energy consumption data across various time slots and transfer it to a centralized middleware module or cloud server for processing and analytics. The real-time monitoring, advanced control capabilities, and user-friendly interfaces of IoT energy management software. These features offer numerous benefits, including reduced energy consumption, lower costs, extended equipment life, and enhanced environmental sustainability.

How IoT Enables Smart Energy Management for Homes and Businesses?

IoT-powered SEMS are key to IoT-based smart cities, ensuring efficient energy delivery and utilization across businesses and homes to promote sustainability. Let’s explore the different types of smart energy management using IoT:

Smart Energy Management for Homes:

Innovations in smart gadgets and electrical appliances are helping homeowners reduce energy consumption and lower utility bills. Appliances such as dishwashers, washing machines, dryers, and air conditioners today are incorporated with smart features like built-in Wi-Fi, remote control, and monitoring. It allows them to be a part of a broader IoT ecosystem for better energy management capabilities. Additionally, these smart device collects real-time data on energy consumption, monitor consumption patterns, and empower homeowners to accelerate the use of renewable energy sources, including solar panels, and manage home energy storage systems. Moreover, a smart energy management system using IoT can automatically adjust energy use to fit a family’s lifestyle while reducing costs. This makes homes more energy-efficient and environmentally friendly.

Smart Energy Management for Businesses:

Commercial buildings with numerous offices or standalone large businesses in manufacturing, retail, healthcare, and other sectors still face challenges concerning energy saving and storage. They are rapidly upgrading to energy-efficient lighting, HVAC systems, and office equipment. Smart energy monitoring systems using IoT offer businesses benefits through real-time data gathering from multiple sources, devices, and processes, conducting data analysis for better insights, generating reports, and ensuring effective demand response, among other advantages.

IoT in energy management creates a much smarter way to save energy, ranging from 15% to 49%^[2], by leveraging real-time monitoring capabilities, advanced algorithms, and user-friendly interfaces. In this section, we will explore in more detail the key benefits offered by smart energy management systems using IoT.

Reduce Environmental Impact: IoT energy management solutions emerged with the core purpose of energy (electricity, heat, natural gas, etc.) conservation. By optimizing energy consumption across various sectors and reducing the impact on the environment, these solutions enhance efficiency. Real-time monitoring enables intelligent control of energy usage in various devices, reducing wastage and unnecessary consumption. This entire process substantially diminishes the impact of greenhouse gas emissions associated with high energy utilization. The lesser energy expended, the cleaner the environment will be. IoT-based energy monitoring systems seamlessly integrate with renewable energy sources like solar panels, further adding to their efficiency.

Cost Saving on Energy Spending: One of the perks of integrating a smart energy management system using IoT is that it allows commercial and residential users to reduce spending while ensuring sustainability. It enables businesses and enterprises to focus on long-term savings. Detailed patterns of energy consumption for devices and equipment help in identifying wasteful practices and enable wiser processes, such as automatically shifting energy-intensive operations to off-peak hours. This leads to lower utility bills and optimized energy spending. Additionally, creating data-driven forecasts allows for more accurate budgeting.

Enhanced Energy Efficiency: Integrating a smart energy management system enables granular control for precise management of energy consumption. Further, continuous monitoring in real-time helps optimize energy consumption which translates into lower utility bills. The capability of energy monitoring and data collection (EMDC) enables the adjustment of energy-consuming devices for optimal performance, promoting peak efficiency. Any inefficiency in energy-demanding equipment or processes can be easily recognized, providing room for improvement and replacement. IoT in predictive maintenance approaches saves a lot of money by preventing breakdowns and ensuring system functionality within the right temperature range.

Effective Demand Response: The energy demand and supply loop need to be managed efficiently to ensure the right amount of energy transmission without hindering interoperability. An IoT-based energy management system with effective demand response capabilities enables a balance between supply and demand. This strategy allows businesses, homes, and cities to adjust their electricity usage and requirements, especially during peak times or in response to price signals.

Data-Driven Insights: Effective applications for smart energy consumption management within working environments include data collection, analysis, and actionable results. Data is accessible from various sources like electricity meters, smart plugs monitoring individual appliances, and environmental sensors tracking temperature and humidity. Smart Energy Management Systems using IoT leverage the capabilities of machine learning, data science, and advanced data analytics tools to provide insights into energy consumption patterns. These insights provide meaningful datasets for benchmarking, performance optimization, predictive maintenance to extend equipment longevity, data-driven investment decisions, and many more benefits.

Modern IoT-based energy monitoring systems can be a one-stop solution for effective energy management. Here, are the key features you should look for:

• Real-Time Monitoring and Measures: This core feature allows monitoring of energy consumption across smart devices and sensors integrated throughout operations. Smart meters track overall electricity utilization, and smart plugs monitor energy demand by specific appliances and equipment. They collect data on energy usage patterns and consistency and detect inefficiencies and anomalies, if any. Real-time tracking and measuring features facilitate accurate benchmarking and provide detailed breakdowns of energy usage for electricity, water, gas, and more.
• Automated Control and Optimization: It is crucial for enabling real-time monitoring and adjustments to energy usage without constant human intervention. This feature helps respond to instant changes in conditions, balance loads, and even anticipate future needs. It ensures consistent energy savings, reduces operational costs and can optimize HVAC settings, lighting levels, and equipment operation without manual intervention. improves overall system performance.
• Remote Access: To make energy managers’ work easier and enable prompt actionable decisions from anywhere, this feature allows all associated entities to effectively monitor and control the system from any location. It promotes flexible work management for the entire team.
• Energy Consumption Goal Setting: This platform allows industries, commercial facilities, and residences to set specific and measurable goals for reducing energy utilization. The energy-setting feature primarily includes customizable dashboards.
• Advanced Data Analytics: Collected raw data from IoT-powered smart devices and sensors is transformed into actionable insights through advanced data analytics. This feature helps to gather information regarding identifying trends, weather forecasting, peak times, progress toward achieving defined goals, and more.
• Demand Respond Management: This feature empowers dynamic management of energy supply and demand based on real-time conditions. This allows businesses to respond intelligently to grid signals, fluctuating pricing, and peak energy demands, ultimately reducing cost-related issues.
• Integration Capabilities: Modern IoT-based energy monitoring systems are developed with the exceptional capability of integrating third-party platforms and tools. This integrative nature strengthens the power of this advanced solution and ensures a holistic approach to energy management.

IoT can be seamlessly integrated into various energy-saving platforms and solutions to enable the optimal use of energy. Here is a list of the most common yet crucial IoT-enabled energy management applications:

1) Smart Metering System: IoT-powered smart metering solution represents a digital revolution in the course of energy management. Installing a smart metering system in homes or businesses enables real-time measurement and recording of energy consumption. Then, it is transmitted directly to the energy provider or respective entity. This system is definitely a step ahead compared to the traditional approach of manual meter reading and reporting. It enables industries and residential sectors to be more vigilant about their energy demand and usage cycles, also facilitates faster identification of power outages, and reduces the cost associated with manual meter readings.

2) Smart Grids Solution: It is an advanced IoT-based energy management system is designed to enhance the efficiency, reliability, and sustainability of power distribution and delivery. Leveraging IoT capabilities, the smart grid solution proficiently monitors and manages electricity flow. Its primary focal point is to improve energy distribution through real-time monitoring and controlling, allow for proactive maintenance to reduce equipment failures, and adapt energy usage based on demand.

3) Smart HVAC Systems: HVAC, which stands for Heating, Ventilation, and Air Conditioning, is a major consumer of electricity across commercial, industrial, and residential sectors. Whether in a business, manufacturing facility, or home, HVAC systems account for a large portion of energy consumption. An HVAC smart energy management system using IoT allows for tracking various parameters such as air temperature, humidity, and lighting. Based on the collected data and patterns, this system can make real-time adjustments to optimize energy utilization.

4) Building Automation Systems (BAS) for Commercial Applications: It is designed to optimize, manage, and control various aspects of energy consumption and operation efficiency in commercial buildings. BAS integrates and automates control of various building systems, including HVAC, lighting, security, and energy distribution, to continuously monitor them and identify inefficiencies for reduced wastage and increased efficiency.

5) Smart Lighting System: The IoT energy management solution consists of light bulbs, light fixtures, and control modules that work together to provide intelligent lighting control across the infrastructure. This IoT-based system empowers remote management of light, including switching lights on/off, adjusting brightness, and changing color temperature from any location. Also, with advanced features such as scheduling timing, the process of managing lights is automated. It benefits energy efficiency, offers convenient controlling and monitoring, and provides advanced insights.

6) Energy Monitoring System: An energy management system with IoT capabilities unlocks the potential for monitoring and tracking various inefficiencies related to energy-consuming equipment, providing notifications before issues become burdensome and cause operational pauses and losses. Along with IoT, these systems are developed with other advanced technologies such as AI/ML, cloud applications, and communication protocols. Thus, this solution is a comprehensive package for managing and monitoring energy efficiency within the operational flow between equipment, machines, and appliances.

The effectiveness of IoT-based energy management systems can be further optimized through the integration of advanced technologies such as computer vision, digital twins, and drones. Let’s have a look at a few real-world examples of this intersection:

• Let’s take the example of the mining industry where VoD (Ventilation on Demand) systems use tracking of people’s location and equipment health, performance, and ongoing process impact. Therefore, cuts on energy use and CO2 emissions with regard to ventilation.
• Digital twining tracks the health and performance of industrial equipment by using real-time data collected by sensors fixed on the assets. By using this technology, companies have an opportunity for preventive maintenance, thus being in a position to note future problems in advance.
• Equipment inspection is another field that is improved with the use of computer vision since it involves the use of artificial intelligence to analyze visual information from the cameras that have been installed. This system can diagnose the condition and discover defects in the pipe and cable and the appearance of safety risks.

At Rishabh Software, we bring years of experience and have successfully helped our clients with  IoT-Based Smart Energy Management Software Development. Our team of 1000+ professionals works together to leverage multi-technologies requirements, including comprehensive IoT consulting services to help companies of all shapes and sizes of businesses achieve greater energy efficiency and cost savings.

We specialize in developing robust and scalable energy management systems. From conceptualization to deployment and maintenance, we provide full-cycle IoT software development services.

Our in-house tech experts are committed to building systems and software solutions powered by IoT capabilities, helping energy and facility managers achieve their goals of energy efficiency and cost savings. Our built-in solutions help improve energy performance, gain better control over energy conservation, gather and transmit real-time data, and ensure accurate data for better decision-making processes.

Success Story: Smart IoT Remote Refrigeration Monitoring System

Our team of IoT experts assisted one of the leading US-based pharmaceutical companies in building an IoT-based freezer temperature monitoring system. The system was designed to maintain the correct temperature for storing life-saving pharmaceutical products.

Challenges:

• Maintain optimal temperatures in commercial refrigeration across locations
• Manual monitoring risked errors, compromising supplies, and increasing waste
• The wireless monitoring system needed robust IoT infrastructure
• Ensure data security and compliance with pharma industry regulations
• Extract insights from vast data generated by temperature loggers
• Implement remote access and real-time monitoring capabilities

Solution:

We build IoT-enabled temperature monitoring systems that continuously track temperatures in cold and frozen environments. By integrating BLE beacons with temperature sensor beacons, we enhanced data logging and extraction capabilities tenfold. Within the defined time frame, the system sends notifications to safeguard medication integrity.

Benefits:

• 25% fewer temperature deviation incidents
• 30% reduction in pharmaceutical waste
• 20% increase in compliance

Read more on our innovative IoT energy management system for the pharmaceutical industry to explore how we transformed cold chain management with smart refrigeration monitoring.

Q: Why is the measurement of energy management so important?

A: Companies are increasingly integrating IoT into energy systems for both flexibility and visibility into their energy consumption, to reduce costs, and to minimize their carbon footprints. Thus, measurement of energy management and consumption is crucial to gather data on various metrics, including energy consumption patterns, identifying inefficiency across the workflow, empowering better usage of energy that reduces cost and environmental impact,

Q: What are the key components of a smart energy management system?

A: Here is a list of key components in the ecosystem of smart energy management systems using IoT:

• Sensors: Smart meters, smart plugs, current and voltage sensors, temperature sensors, occupancy sensors
• Software: Communication software, IoT data visualization, automation engine, energy storage solutions, predictive maintenance tools

Q: What are the common challenges in implementing IoT energy management solutions?

A: Here is a list of challenges that can be encountered during the implementation of IoT energy management solutions:

• Data security & privacy
• Integration with existing system
• Scalability issue
• Inefficient data management

To address the above-mentioned challenges:

• Our team implements security measures, including encryption and secure data transmission protocols, to provide a protection layer against cyber threats.
• With years of expertise in seamlessly integrating IoT solutions within the ecosystem of existing infrastructure, our designed solutions help businesses grow in an evolving market.
• Additionally, our advanced data management strategies, along with the utilization of analytics and visualization tools, ensure that raw data is transformed into easily understandable insights.

Footnotes:

1. https://www.fortunebusinessinsights.com/iot-energy-management-market-108576
2. https://www.mdpi.com/1996-1073/16/12/4835