Tariff Examples

One of the best ways to learn the details of EnergyPlus Economics and how to calculate operational energy costs is to study some example tariffs and how they are entered on the Tariff dialog. The examples below illustrate the process of setting up various tariffs for a range of cases of increasing complexity. Each example includes a description of the tariff to be modelled, step-by-step instructions on how to define it and sample summary output showing the corresponding EnergyPlus economics reports.

 

Note: The examples provided below are based on entering costs in US Dollars (USD/$), but the principles are the same for all currencies. The Currency can be selected on the International tab of the Program options dialog.

List of Examples

Create Base Model - Optional Preliminary Steps for Examples A-I

The tariffs described below under Examples A-I headings can be set up for any model. However, if you would like to reproduce the summary results provided to aid your learning process, you should apply the tariffs to the same base model used to create the results below. You can create the base model by following the steps below.

 

1. Create a new file located in London Gatwick and add a building to the site with a simple rectangular block having dimensions 20m x 10m as shown below. Start by using default Model options and template settings.

 

2. Set the Detailed HVAC model option. This is a required step as EnergyPlus Economics only works with full HVAC system definitions.

 

3. Load the default "FCU 4-pipe, Air-cooled Chiller" Detailed HVAC template.

 

4. Add a PV panel on the roof with dimensions 10m x 3m and rotate it so it faces south with an inclination of 45°.

 

5. Connect the PV panel to a distribution centre. To do this, go to the Generation tab, create a new Load centre by copying the existing default "DC with Inverter" library load centre. On the Generator List tab, select your Solar collector.

 

The PV panel will be used in Example I to illustrate "net metering" and cases where electricity is sold back to the utility.

 

The model should now look similar to the screenshot below.

 

Example A – Flat Energy Charge

This example shows how to define a simple tariff which charges for electricity at a constant rate with a fixed monthly service fee. This simple approach is suitable for utilities or contracts that charge a flat rate without tiered pricing or demand charges.

 

 

This simple tariff can be set up by making the following settings on the Economics tab at building level.

 

To create this tariff structure, follow the steps below.

 

1. Create a new Tariff component:

 

 

2. On the Tariff tab of the Tariff dialog, set the fixed monthly fee to $2.51 per month using the Input monthly service charge value setting as shown below:

 

 

3. On the Charge tab:

 

 

 

Example B – Block Energy Charge

This example adds tiered energy pricing blocks to a flat fee, where cost decreases as consumption increases. This is common for residential or small commercial tariffs with step-down pricing to make higher usage rates more affordable.

 

To create this tariff structure, follow the steps below.

 

1. Create a new Tariff component:

 

 

2. On the Tariff tab of the Tariff dialog:

 

 

 

3. On the Charge tab:

 

 

The screenshot below show how the charge tab should look when you have finished.

 

 

Example C – Block Energy and Demand Charges

This example uses separate block structures for energy and demand charges. This approach is suitable for modelling commercial tariffs that include both consumption and peak demand billing components. Demand charges encourage customers to manage their peak usage patterns, not just total consumption. It is similar to the previous example except it includes demand charges as well. The energy and demand charges vary by the amount of energy and demand consumed each month.

 

 

To create this tariff structure, follow the steps below.

 

1. Create a new Tariff component:

 

 

2. On the Tariff tab of the Tariff dialog, clear any fixed tariff data as shown below:

 

 

3. On the Charge tab:

 

 

The screenshot below show how the charge tab should look when you have finished.

 

 

Example D - Seasonal Energy Charges with Minimum Charge

Utilities often have higher rates during peak seasons and minimum monthly charges to cover fixed costs. This example applies different block rates by season plus a minimum monthly fee. It is suitable for utilities with seasonal block structures (winter vs summer) and a guaranteed minimum bill.

 

 

To create this tariff structure, follow the steps below.

 

1. Create a new Tariff component:

 

 

2. On the Tariff tab of the Tariff dialog:

 

 

The Tariff tab should now look similar to the screenshot below.

 

 

3. On the Charge tab:

 

 

The screenshot below show how the charge tab should look when you have finished.

 

 

Example E – kWh/kW Energy Charges

This example shows how to model a more sophisticated rate structure which encourages efficient energy use by linking energy pricing to monthly demand levels. Higher load factors (more consistent energy use) receive better rates. Energy blocks are multiplied by monthly peak demand to reflect load factor incentives. Such tariffs may be offered when customers with consistent energy use are more cost-effective to serve.

 

 

This tariff uses a single Charge object. The monthly charge is defined on the Tariff tab. In this case the Block size multiplier is set to the totalDemand variable.

 

To create this tariff structure, follow the steps below.

 

1. Create a new Tariff component:

 

 

2. On the Tariff tab of the Tariff dialog:

 

 

The Tariff tab should now look similar to the screenshot below:

 

 

3. On the Charge tab:

 

 

The Charge tab should now look similar to the screenshot below.

 

 

Example F – Seasonal Time of Use Energy

Utilities face different costs throughout the day and year. Time-of-use rates pass these cost variations on to customers, encouraging usage during low-cost periods and discouraging use during high-cost periods. For example, tariffs sometimes have higher costs for energy consumed during the daytime than at night. In this example, four simple rates combine to create on-peak/off-peak and summer/winter distinctions. This approach is suitable for time-of-use tariffs where rates vary by both season and time of day.

 

 

The on-peak period is defined as the hours starting at 10am and ending at 7pm, Monday through Friday for June through September and 3pm to 10pm Monday through Friday for October through May. All other hours are considered off-peak.

 

The tariff is only applicable for customers that use 50KW for at least one month of the year. This restriction is implemented by entering details on the Qualify tab.

 

This tariff uses four different Charge:Simple objects to capture the variation of energy cost with time.

 

To create this tariff structure, follow the steps below.

 

1. Create a new Tariff component:

 

 

2. On the Tariff tab of the Tariff dialog:

 

 

The Tariff tab should now look similar to the screenshot below:

 

 

3. On the Charge tab:

 

 

The Charge tab should now look similar to the screenshot below.

 

 

On the Qualify tab:

 

 

The Qualify tab should now look similar to the screenshot below.

 

 

Example G – Blocks within Blocks

Some utilities create complex rate structures that combine load factor incentives with traditional tiered pricing. This requires nested block calculations. Example G shows how to implement nested block structures by first allocating a demand-scaled block, then applying standard blocks to the resulting subsets. It is suitable for modelling complex tariffs combining scaled demand blocks and traditional kWh tiers for advanced load factor management.

 

 

To set up “block within a block”, Charge:Block settings are made to separate out the first 200 kWh/kW. The “EnergyFirst200kWhPerkW” charge performs this. It uses demand to multiply the first block size by 200 and the cost for the block is simply 1 since it passes through the energy to the variable “EnergyFirst200kWhPerkW”. The remaining energy goes into the restOfEnergy variable as specified in the Remaining into variable. After this has been evaluated we have two new variables that hold energy. Each of these variables are then separately used in Charge:Block objects to evaluate the different parts of the example tariff. By using the Remaining into variable along with the concept of variables, many very complex tariffs may be modelled.

 

To create this tariff structure, follow the steps below.

 

1. Create a new Tariff component:

 

 

2. On the Tariff tab of the Tariff dialog:

 

 

The Tariff tab should now look similar to the screenshot below:

 

 

3. On the Charge tab:

 

 

The Charge tab should now look similar to the screenshot below.

 

 

Example H – Real Time Pricing

Some utilities offer hourly pricing that varies based on real-time market conditions which are typically announced day-ahead. Hourly energy prices are imported from a schedule, with no predefined charges. This example shows how to model real-time pricing tariffs where the utility provides hourly prices in advance.

 

To model this type of utility rate a schedule is used that contains the prices on an hourly basis. The Real time pricing charge schedule contains the prices and the Customer baseline load schedule setting is used to set the schedule for the customer baseline load. Not all utilities use a customer baseline load in which case this schedule does not need to be entered. The Period, Season and Month Schedules are not needed for these tariffs unless Charges are used.

 

The example real time pricing schedule results in the same energy cost as Example F – Seasonal Time of Use Energy. Note that this is only an example and usually for real time pricing the schedule values would vary throughout the year.

 

To create this tariff structure, follow the steps below.

 

1. Create a new Tariff component:

 

 

2. On the Tariff tab of the Tariff dialog:

 

 

The Tariff tab should now look similar to the screenshot below:

 

 

3. On the Charge tab of the Tariff dialog, there should be no charges, i.e. Number of charges should be set to 0. See below.

 

 

Example I – Selling and Net-Metering

When the building contains a generator, photovoltaics, or other sources of electrical power, there is an opportunity for the building generator to produce more power than the building uses. The excess power can either be sold to the utility or used to offset the energy purchased.

 

This example demonstrates two separate approaches:

 

  1. Selling to Utility: Sell surplus electricity back to utility at a fixed credit rate. The customer is generating electricity but maintains separate accounting for purchases and sales, with different rates. Use this approach if your utility contract pays a sell-back credit at a specified rate.

  2. Net-Metering: Net-metering offsets consumption using a separate tariff. A single meter runs forward for consumption and backward for generation, with net monthly billing. Use this approach if your contract allows net-metering where exported energy directly reduces consumption charges.

 

I.a. Selling to Utlility

When the excess power is to be sold, two utility rates need to be defined, one for buying electricity from the utility and the other for times where credit is received for excess energy sent back to the grid.

 

In this example, tariffs and charges are set up as follows:

 

 

This approach uses two separate tariff objects: one for purchasing electricity and a separate one for selling excess electricity back to the utility, usually at a different (usually lower) rate. This requires defining distinct tariff components with "buyFromUtility" and "sellToUtility" buy/sell fields and meters representing purchased and sold electricity separately.

Note: A negative "Cost per value" number should be entered when credit for selling electricity to the utility is required.

To create this tariff, follow the steps below.

 

1. The first step is to define a rate for selling electricity. To do this, create a new Tariff component and name it: "EnergyPlus Example Ia - Sell to Utility"

 

2. On the Tariff tab of the Tariff dialog:

 

 

The Tariff tab should now look like the screenshot below.

 

 

3. On the Charge tab:

 

 

The Charge tab should now look like the screenshot below.

 

 

Press OK to save the Tariff data and close the dialog.

 

The next step is to define a rate for buying electricity and a new Tariff component needs to be created for this.

 

4. On the Economics model data tab, set the Number of tariffs to 2.

 

5. Create a second Tariff component and name it: "EnergyPlus Example Ia - Buy from Utility".

 

6. Open the second Tariff in the Tariff dialog and on the Tariff tab of the Tariff dialog, set the fixed monthly fee to $2.51 per month using the Input monthly service charge value setting as shown below:

 

 

7. On the Charge tab:

 

 

The Charge tab should now look like the screenshot below.

 

 

The screenshot below shows how the Economics tab should look with both Tariffs set up:

 

 

 

b. Net-Metering

In this example, a "net-metering" tariff is defined with the Buy or Sell field set to 3-netMetering, and the Output meter set to 5-ElectricityNet:Facility. The Tariff is set up as follows:

 

 

To create this tariff, follow the steps below.

 

1. On the Economics model data tab, set the Number of tariffs to 1.

 

2. Create a new Tariff component and name it: "EnergyPlus Example Ib - Net-Metering"

 

The screenshot below shows how the Economics tab should now look with the Tariff set up:

 

 

5. Open the Tariff component in the Tariff dialog and on the Tariff tab:

 

 

 

6. On the Charge tab:

 

 

 

Further Examples

Another source of examples is the large set of tariff input objects provided with EnergyPlus in the macro data set file called “UtilityTariffObjects.imf” located in the “MacroDataSets” folder where EnergyPlus is installed. This file contains sets of objects in EnergyPlus' IDF file format that define tariffs for commercial customers from a collection of U.S. utility companies in August 2005.