Energy costs are increasing day by day. In such a scenario, it is important to conserve and optimize energy produced. Buying or consuming electricity as an individual is usually more expensive. This is why systems have been developed to make cheaper electricity available to everyone, which are known as embedded networks.

Not only do they bring the energy costs down, but it makes managing the infrastructure easier. Buying electricity directly from energy companies can be rather expensive, even for large office buildings and shopping complexes. This poses an even bigger problem when they are attempting to cut down operating costs. Let’s look at how you can optimize your energy bills with an embedded network:

What Is the Concept Behind Such Networks?

An embedded network follows the concept of bulk purchasing. Whenever you purchase any item in bulk, you get a discount. You can properly understand this by looking at how wholesalers work. They directly purchase items from the manufacturer at a stated cost. The advantage that retailers have in this scenario is that the more they purchase, the lesser they have to pay. Hence, the price that a wholesaler charge is significantly less than what retail would charge.

An embedded network revolves around the same concept. A private utility network is set up, and this network receives electricity directly from energy companies. This energy is then distributed over to the users within the network. Due to the set up of this network both residential and commercial buildings are able to cut down on their energy costs.

How Does an Embedded Network To Cuts Down Costs?

An embedded network has three components.

The first is a gate meter. The purpose of the gate meter is to monitor the total energy consumption of the network. This makes it easier for the utility network to purchase electricity from utility companies.

The second is a common area or public meter. Within an infrastructure, energy is produced mostly for public lighting. This obviously cannot be billed to a specific individual, and hence is billed separately.

The third is a tenant meter, which records the electricity consumption for individual offices and homes. The total electricity consumption is tallied against the individual consumption and public lighting consumption. This way the network is able to determine the total energy consumed for a certain period and bill accordingly.

Is This Infrastructure Effective?

There are many speculations about this type of infrastructure not being effective. The truth is that an embedded network proves to be extremely cost-efficient. Business complexes, residential buildings, etc. can get energy at significantly discounted rates.

Not only does this prove helpful for the network, as they can turn over a profit by selling at a higher rate, but also to end users. Even after the energy is sold at a slightly higher rate, it still proves to be cost-effective than other options.

To sum up, this infrastructure proves to be efficient in cutting down energy costs, and it also provides a better service to end users.