Smart Energy Monitoring Systems as a Catalyst for Affordable and Sustainable Housing: A Comprehensive Analysis of Implementation Strategies and Policy Frameworks in the United States

Abstract

Adedotun Ademowo, Philip Akingbemisola and Adetunji Oduduwa

This study evaluates the effectiveness of Smart Energy Monitoring Systems (SEMS) in enhancing energy efficiency, affordability, and sustainability in U.S. affordable housing. Rising energy costs disproportionately affect low-income households, many of whom spend over 10% of their income on utilities. While SEMS have proven effective in commercial settings, their adoption in low- income housing remains limited due to high upfront costs, digital inequities, and policy gaps. Using a mixed-methods approach, we analysed SEMS deployment across 15 geographically and demographically diverse affordable housing developments. Quantitative data assessed energy consumption, cost savings, and peak demand reductions, while qualitative insights from residents, managers, and policymakers captured user experiences and barriers. Results indicate an average 16.7% reduction in energy use, peak demand reductions of 18.3%, and annual savings of $267 per household. Integrated systems with AI, real-time feedback, and resident engagement achieved savings of up to 24%.

Beyond energy and cost outcomes, SEMS promoted digital literacy, workforce development, and operational efficiency. Financial analysis confirmed long-term viability, with most systems achieving a positive net present value. However, barriers such as the split incentive dilemma and regulatory fragmentation persist.The study concludes that SEMS, if supported by inclusive policies and sustainable financing, can reduce energy poverty and support climate resilience. Policy recommendations include federal SEMS mandates in HUD programs, utility cost recovery frameworks, and community-centered implementation strategies. With the right frameworks, SEMS can become a cornerstone of equitable, smart, and sustainable housing.

PDF