There’s a good chance that your local utility is running a demand response (DR) program and you may be eligible to participate. With increasing stress on the grid and smart thermostats gaining popularity, DR programs are also rising. But what are these programs exactly?
Using cutting edge technology, DR programs learn how your home uses power to optimize your energy usage while keeping you comfortable. When demand for energy is highest (typically during extremely hot summer days), demand response programs will schedule Active Savings Events that precool your home before the peak hours of the day, when energy use is highest and most expensive. This shift in energy usage allows for the impact on the power grid to be reduced. If an event occurs on a day or time that is inconvenient for you, you have an option to opt out of participation.
Demand response programs require a smart thermostat such as Sensi that is connected to Wi-Fi. This allows for your thermostat to make small, automatic adjustments during peak times.
Active Savings Events - These are the most common demand response programs that require your consent to participate. During these events, the energy company will adjust your set point to reduce energy consumption. There may be pre-cooling or pre-heating before the event to cool or heat your home so you stay comfortable during the event.
Ongoing Energy Efficiency (EE) Optimizations – Through EE Optimizations, your utility company regularly adjusts your thermostat during peak usage season in order to save you energy and money on your electricity. This is another program that customers must provide consent to the utility in order to optimize their energy use.
Time of Use (TOU) Optimization - Energy costs are more expensive during peak demand times of the day (think when most businesses and schools are open and using the most power). The higher the electricity demand, the higher price utility providers charge for energy during those times. TOU Optimization programs adjust your thermostat to avoid using excess energy in those peak times to keep your bill low and reduce load on power grids.
By participating in a demand response program, you may use fewer kilowatt-hours of energy when demand for energy is the highest—and added bonus, could even save money. You can reduce energy usage and prevent the need to turn on more expensive and less-environmentally friendly resources on extreme temperature days.
When the demand for energy is reduced, so is the possibility of rolling blackouts or periods of power outages. A reduced demand also offsets the need to build new power plants to increase supply. It’s the age-old principle of supply and demand.
Over time, the goal is for participants in DR programs to become more conscious of their energy usage and make positive changes to reduce their consumption.
Plus, many utilities provide rebates, instant discounts, bill credits and more for customers to enroll and participate in a DR program.
DR programs also allow utilities to add more clean energy to the grid and reach their net-zero carbon emission goals—so communities just like yours can benefit!
Check the Sensi app or contact your utility company directly to see if they have a demand response program. Utilities may have unique names for their DR programs and offer enrollment incentives that can vary by utility. Check out utility rebates and incentives in your area.
To sign up directly on the Sensi app, from the dashboard, follow these steps:
1) Tap the account icon
2) Tap “Simple Savings”
3) Tap “Energy Programs”
Your thermostat will only adjust to a different setpoint if you are enrolled in a DR program through an energy provider. You do still have the option to change your thermostat and opt out of a DR event if you are uncomfortable with your home’s temperature.
You may change your mind on participating in a DR program. If you do wish to unenroll, reach out directly to your utility customer service team and they may assist in your unenrollment.
Keep in mind, you may be able to opt out of single events and not the entire DR program participation. This can be done via your smart thermostat app or smart thermostat device.
