Revolutionizing Heating Costs: How AI is Transforming Energy Management in Older Buildings

In the city of Umeå, the Brf Umeåhus 14 housing cooperative embarked on a significant journey to optimize its heating costs while maintaining resident comfort. Established in a building from 1967, with four units housing 36 apartments, the cooperative faced the common challenge of escalating heating expenses attributed to poor insulation in older structures. The board sought a solution that would not only mitigate these costs but also enhance the overall living experience for residents. When Riksbyggen, the property management company overseeing Umeåhus 14, introduced its AI-driven heat optimization service, the board was eager to explore its potential. Roland Lundberg, the chairman of the cooperative, explained, "We had high heating consumption due to our old property, and when Riksbyggen proposed AI optimization, we jumped at the opportunity. We would likely never have come up with this ourselves if they hadn’t raised the issue." Adopting a technology that enabled an algorithm to manage heating resulted in some initial concerns among residents. Questions arose about the potential reduction in warmth and the perceived invasion of privacy with the installation of sensors. To address these apprehensions, the cooperative opted to install sensors only in about half of the apartments, focusing primarily on outer units. This compromise allowed for cost savings while easing residents' fears. "The installation was relatively simple; we just placed a small puck on the wall without needing any cables, and within a day, everything was ready," Lundberg recounted. The results of this innovative approach were impressive. Between March 2023 and March 2024, energy consumption dropped from 707,000 to over 533,000 kilowatt-hours—a reduction of 24%. This achievement translated into substantial savings of approximately 113,000 kronor. Although this figure might seem modest compared to larger cooperatives, Lundberg emphasized its significance for their operating budget of around 18 million kronor amid rising interest rates. "Freeing up a hundred thousand kronor is critical for our maintenance and savings," he added. Beyond the financial benefits, the AI technology also positively impacted the everyday life of residents. Complaints about the indoor climate had been a frequent issue, but with the new system in place, many residents reported a more consistent and comfortable environment. The AI-controlled system dynamically adjusts heating based on outdoor temperatures and weather forecasts, ensuring that indoor temperatures remain steady without excessive energy use. Even though some residents still felt it was colder in certain spots, the board could present accurate measurements to refute those claims. The effects of AI control have been twofold—economical and improved comfort. Mattias Palmqvist, project manager at Riksbyggen, noted that this specific project stood out due to a simultaneous ventilation check that revealed over-ventilation in the building. Correcting this inefficiency, alongside AI optimization, produced a significant cumulative benefit. "The AI learns the building's heating behavior and adapts to both internal and external temperatures, aiming to maintain an energy-efficient indoor climate," he explained. The tangible success of this initiative has also led to fewer complaints among residents regarding heating issues. For Lundberg, this shift is refreshing, as discussions in board meetings often revolve around grievances. "It’s nice to be able to report savings and a more stable climate. That feels positive," he revealed. The AI system now provides the board with factual temperature data, making it easier to address any discrepancies in residents' perceptions and allowing for reasoned adjustments as necessary. Looking forward, this project underscores the potential financial and comfort-related benefits of modern technologies like AI in managing older buildings. As Lundberg summarized, "It costs a bit in the beginning, but in the long term, you save money, particularly in larger associations or those with older properties. The results can be quite remarkable." Ultimately, the Brf Umeåhus 14 experience highlights how integrating AI into energy management can lead to meaningful savings and enhanced residential satisfaction, setting a precedent for other housing associations facing similar challenges. Related Sources: • Source 1 • Source 2