Optimal Operation of Residential High Performance Water Heater for Reduction of Electricity Cost and Peak Demand Through Field Validation

Abstract

Water heating accounts for about 18% of a typical US home’s energy use. Modern water heaters have enabled control options through APIs, offering customers the opportunity to reduce their energy cost and peak demand by dynamically adjusting settings. A water heater’s capacity to store energy using its storage tank makes it an asset for peak demand reduction and energy cost savings. For this reason, a mixed-integer linear programming model is proposed to minimize the energy cost of a high-performance water heater while also reducing the peak demand of the residential household under a time-of-use utility rate by dynamically changing the water heater’s running mode. Specifically, a multi-objective optimization model is formulated to determine the mode settings of the water heater considering hot water use, time-of-use rate, and peak demand limit of the residential household. The mode settings are associated with different dead bands of water temperature for triggering on/off action of the heat pump and heating element. A 66-gal hybrid electric high performance water heater was used for numerical simulation and practical experiments. The simulation results were well aligned with measurements of practical experiments, validating the soundness of the thermodynamic model. In addition, reductions of energy cost, enabling affordability, and reducing peak demand are demonstrated. The research team also developed a software framework with dashboards to automatically and continuously monitor and manage devices.