Insulation or Smart Temperature Control for Domestic Heating: A Combined Analysis of the Costs, the Eco-Costs, the Customer Perceived Value, and the Rebound Effect of Energy Saving

Calculating the environmental benefits of energy saving systems in dwellings in a life cycle assessment (LCA) has two major issues, namely: how to deal with the customer behaviour and how to deal with rebound effects. Both issues are important for sustainable strategies. From a user-centred design perspective, two fundamentally different strategies are observed, namely: a ‘passive’ end-user, who invests in insulating the building and maintaining their preferred behaviour routines, versus an ‘active’ end-user; who must change his or her behaviour in order to save energy. A combined analysis of cost, (market) value, and eco-burden is used to compare and evaluate the two strategies; by applying the methods of eco-costs/value ratio (EVR) and eco-efficient value creation. Simulation software is applied to calculate the results for the active end-user approach (by means of home energy management systems [HEMS]). The energy savings for a passive user approach (applying thermal insulation) are calculated with straightforward heat loss calculations. The rebound effect of energy savings is taken into consideration. From the environmental point of view, the optimal insulation thickness is calculated, by comparing the energy savings with the environmental burden of the insulation materials. This analysis shows that HEMS are effective for poorly insulated houses, but not for well insulated houses. Governmental policies that focus only on insulation, however, lack the urgency of greenhouse gas reduction; the HEMS for existing houses is an indispensable tool for a fast transition to less domestic energy consumption.