A general framework for customized transition to smart homes

Highlights: • Modeling and optimization of the integration of smart home components. • General framework for the optimal set of smart appliances and investment timing. • Maximization of the return on investment. • Economic feasibility shown for three case studies in different countries using real data. • Quantification of the payback for each site and application. -- Abstract: Smart homes have the potential to achieve efficient energy consumption: households can profit from appropriately scheduled consumption. By 2020, 35% of all households in North America and 20% in Europe are expected to become smart homes. Developing a smart home requires considerable investment, and the householders expect a positive return. In this context, this work addresses the following question: what and/or when equipment should be bought for a specific site to gain a positive return on the investment? This work proposes a framework to guide the smart-home transition considering customized electricity usage. The framework is based on linear models and gives a simple payback analysis of each combination of equipment acquisition for any specific user taking into account geographical location and local conditions. It also possible to use the framework for equipment sizing. The results quantify the dependence of the simple payback on the site and the application.