Innovative Policies for Energy Efficiency and the Use of Renewables in Households

Abstract

Renewable energy sources (RES) are gradually becoming one of the key elements in the process of achieving energy efficiency worldwide. This trend can be observed in many developed Western economies—for example, in the United States, as well as in the United Kingdom. Hence, the role of innovative policies for promoting energy efficiency is becoming crucial in transition to the post-carbon economy. The shift to the carbon-free future make all actors to face forgoing commitments Nevertheless, customers and residential households are the first and the most important players in the pursuit of the energy-efficient future. Without them, carbon-free economy based on RES would never take the shape as envisaged. Our paper focuses on the innovative strategies and policies studying the effect and the scope of RES penetration into the households. We employ and empirical analysis of the effects from using RES in households using an example of the residential households in the northwest region of the United Kingdom (UK) with and without solar photovoltaic (PV) panels and electric vehicles (EV). We analyse the four scenarios that are aimed at analysing the system dynamics and providing differentiation between systems in terms of the varying values of the gross demand, tariffs, metered import, and the total revenue. Our results demonstrate that the solar PV leads to the transfer of costs and wealth regardless of the ownership of PV and EVs. Solar energy generation reduces the share of UK solar PV households per kWh costs of the distribution system which causes the augmenting of the per unit charges as well as to the changes in payments for the electricity that impoverishes less wealthy customer groups. It also becomes clear that with the increase of EV penetration, the existing energy efficiency schemes would have to be revised.