What are demand response programs?

Demand response programs use smart thermostats to offer customers the ability to automatically shift a portion of their electricity use to another time of day in exchange for either monthly or seasonal credits on their electricity bills. Even for customers that are enrolled in demand response programs, the programs are often designed to allow a participating customer to opt out of participating in an individual demand response event if it conflicts with their needs at the time of the event.

How are smart thermostats used for demand response programs?

Participants of demand response programs are provided with networkable thermostats, often referred to as “smart” thermostats. The networkable aspect of a smart thermostat is based on the fact that they can connect to a home’s wifi, or a dedicated wireless hub.

Smart thermostats have several additional features and abilities above and beyond a standard digital programmable thermostat. In addition to allowing a homeowner to program heating set points based on their typical weekly schedule, it also allows the homeowner to remotely access the thermostat from anywhere in their home, or even when they are away from the home.