What Is Utility Savings/Demand Response, and Should You Participate?
Key takeaway: You know you can get paid to save energy through a demand response utility savings program? Keep reading to learn how.
By Anne Fonda
In residential HVAC terms, a demand response energy program is a utility incentive program that pays homeowners or even multi-family dwellings to reduce their power usage during periods of high demand or when there is a risk of brownouts or power blackouts. These periods of high demand on the electric grid happen most commonly during extreme heat waves.
Because they adjust the demand side of electricity, these programs are also known as demand side response programs. Reducing electricity demand during periods of high demand helps balance the power grid. This can potentially prevent blackouts and can result in utility cost savings for both the power company and the homeowner.
In a nutshell, it's a way for utility companies to manage energy consumption during peak periods by shifting or reducing demand, rather than increasing supply, which may not even be possible.
Some of the advantages of enrolling in a utility demand response program include:
- You can earn rebates of up to $150 by enrolling in a utility savings program.
- You might get a credit on your monthly bills.
- The program will help reduce strain on the power grid during peak demand times.
- Participating helps stabilize the power grid for everyone.
“Utility Savings Programs go beyond merely conserving energy; they focus on optimizing its usage and timing. By getting involved, homeowners can receive incentives, lower their peak energy usage, and help create a more stable and efficient grid, all without compromising on top-tier comfort.”
- Michael Morey, Product Management Leader, Hardware at Trane Technologies
How does a utility demand response program work?
Participation is voluntary, but you need a smart thermostat to enroll. By signing up, you give the utility company permission to remotely control your thermostat only during periods of demand response. Not only do American Standard smart thermostats help you maximize energy efficiency and future energy savings, but they can also result in further utility cost savings.
For example, during times of peak demand, the utility company may overcool your home and then remotely adjust your thermostat up by a few degrees, without significantly impacting your home comfort.
Our Utility Savings Program allows homeowners to save energy while still maintaining comfort. We partner with homeowners and utility companies via your American Standard smart thermostat to shift energy use during peak hours, resulting in incentives or rebates for you.
How do I find out if my utility company has a utility savings program?
Open the American Standard Home App and scroll down to the Utility Savings Program for more information. Search by zip code, and if your utility provider has a demand response program offer listed, sign up with them and get rewarded.
Financial rewards may include an upfront rebate of up to $150 or a monthly credit on your utility bill. Another option some energy providers offer is time-based rates, such as critical peak pricing and off-peak pricing. Rates go up during peak pricing, so you save money if you reduce your energy consumption.
Once you’ve enrolled, you’ll receive an alert in the Home App when you are in an active Utility Savings Event, as shown in the image below. However, you remain in control. You can choose to override the event, but if you override too many, you may be automatically disenrolled from the program and forfeit savings.
Our smart thermostats help you save money by reducing energy consumption during peak demand, while assisting utility companies in balancing supply and demand. This allows you to do your part to help prevent brownouts or blackouts in your area. Participating in a demand response program also reduces the need for additional power generation and supports renewable energy.
Content Writer, Trane Technologies
A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.
She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.
When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.
Expert review by Michael Morey, Product Management Leader, Hardware at Trane Technologies
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