What Is Utility Savings/Demand Response, and Should You Participate?
Discover how you can get paid to save energy through a demand response utility savings program.
By Anne Fonda
Demand response utility savings programs refer to utility incentive programs that pay consumers to reduce their power usage during periods of high demand or when power grid reliability is at risk. These periods of high demand on the electric grid occur most frequently on hot summer afternoons.
Because they regulate the demand side, these utility savings programs are also known as demand side response programs. Reducing demand during peak periods helps stabilize the electrical grid, potentially preventing blackouts, and can result in utility cost savings. Essentially, it's a way to manage energy consumption by shifting or reducing demand, rather than simply increasing supply.
Benefits of participating in a utility savings demand response program include:
- You can earn rebates of up to $150 by enrolling in a utility savings program.
- The program will help reduce strain on the energy grid during peak times.
- Participating supports a more sustainable future.
“Utility Savings Programs aren’t just about saving energy; it’s about optimizing how and when we use it. By participating, homeowners can earn incentives, reduce their peak energy consumption, and ultimately contribute to a more stable and efficient grid, all while maintaining best-in-class comfort.”
- Michael Morey, Product Management Leader, Hardware at Trane Technologies
How do utility savings demand response programs work?
It’s important to know that to participate in an energy demand response program, you need to have a smart thermostat. Not only do Trane smart thermostats help you maximize energy efficiency and future energy savings, but they can also result in further utility cost savings.
Contact your utility provider for specifics.
Our Utility Savings Program allows homeowners to participate in energy savings while still maintaining home comfort. Trane and utility companies partner with homeowners via their Trane smart thermostat to shift energy use during peak hours, resulting in incentives or rebates for consumers.
How do I find out if my utility company has a utility savings program?
Open the Trane Home App and scroll down to the Utility Savings Program for more information. Essentially, you search by zip code, and if your utility provider offers such a program, you enroll with them and get rewarded.
Financial incentives 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.
After you’re enrolled, you will receive an alert in the Home App when you are in an active Utility Savings Event, as shown in the image below. 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 can help prevent brownouts or blackouts, minimize additional power generation, and support renewable energy.
Anne Fonda, Content Writer
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
