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Demand response

By making the smart choice to install a heat pump, you’ll get valuable incentives on your new equipment when you work with a TECH Clean California contractor. To receive this TECH Clean California incentive, you’re required to enroll in a demand response program. The state of California, which is providing this incentive funding, is requiring this to help ensure that customers with new electric appliances can reduce their energy consumption during certain times of the year when the grid is constrained. Here is what you need to know about the demand response program requirements.

Residential programs Commercial programs

What is a demand response program and what are the benefits?

The cost of energy fluctuates depending on demand. When demand for electricity is at its peak, electricity prices are also at their highest. It can also mean that the energy grid may have to rely on “peaker” power plants that are more expensive and typically have higher greenhouse gas emissions. A demand response program encourages you to temporarily adjust when you use electricity to avoid the need to use peaker plants.

While you’re maximizing your electricity savings, you’re also helping to make California’s energy grid cleaner, more reliable, and more affordable for everyone. You and your family or business contribute to cleaner, healthier air, and a more resilient and sustainable energy system.

There are different types of demand response programs that offer a variety of rewards and ways to participate.

Many demand response programs pay you incentives to enroll and to participate by making temporary adjustments in your energy use either manually, or automatically by connecting home appliances like a smart thermostat. The table below shows the incentives offered by each program.

Frequently asked questions

Demand response program options for TECH HPWH customers

Demand response enrollment is required for anyone who receives their electricity from PG&E, SMUD, SCE, or SDG&E. Please review your options in the tables below and enroll in a program to meet your TECH heat pump water heater requirement for earning incentives. Rewards for participation vary from program to program, so review the program options carefully and choose what works best for you.

You may already be enrolled in a demand response program that meets the enrollment requirement but is no longer open to new enrollments and as such is not listed in the table below. These programs include but are not limited to PG&E Smart AC, SDG&E AC Saver, and SMUD Peak Corps.

Residential demand response programs

Where is it available/ Who can enroll?	Program Name	Program Summary	Eligible Appliances and Equipment	Benefits and Incentives	Can Single Family and Multifamily Customers Enroll?	Enrollment Link or Contact
PG&E, SCE, and SDG&E electric customers	OhmConnect	Receive alerts via email or SMS for “OhmHours” when energy prices spike in your neighborhood and get paid to save energy when you reduce your electricity use. OhmHours are about one hour per week on average.	No technology requirements	Cash and gift rewards. The more you save, the more you earn!	Both	Program website
PG&E electric customers	FlexSaver	Earn cash rewards for reducing your electricity use during "Power Hours", which mostly occur during some summer evenings.	Manually adjust a variety of equipment such as smart plugs and other smart devices. No equipment connection is required but there is also an option to connect thermostats, electric vehicles and electric vehicle charging stations.	Gift card at the end of DR season. Amounts vary based on level of participation	Single-family, and multifamily with their own meter	Program website
PG&E electric customers (cannot be a CCA customer)	Smart Rate™	Manage your summer electricity costs and help California conserve energy resources. Receive a discount on your current electric rate in exchange for minimizing your electricity usage up to 15 days a year from 4 to 9pm. You are notified a day before events.	No technology requirements	Pricing plan that guides your use of energy to low cost times of the day	Both (multifamily customers must have their own smart meter)	There are two pathways to enroll: self-enroll through your PG&E account online; or call 1-866-743-0263. Program website
SCE electric customers	Summer Discount Plan	Install a smart switch on your AC and choose between Maximum Comfort, Comfort, Savings with Override Control, and Maximum Savings participation options.	Air conditioning connection required	$45 - $180 monthly bill credit across 4 participation options	Single-family only	Program website
SCE electric customers	Smart Energy Program	During an SCE energy event, your smart thermostat provider will temporarily adjust the setting on your thermostat by up to four degrees. You may override these adjustments at any time.	Smart thermostat connection (select models) required, HPWH (planned)	$75 enrollment credit plus up to $40 a year for ongoing participation Jun 1-Sep30 annually. $30 rebate (provided separately by third party) for recycling old thermostat	Single-family only	Program website
SCE electric customers in Ventura, Santa Barbara, and Orange County	Local Virtual Power Plant	Get help purchasing or financing batteries for your home and business. Charge your battery when energy prices are low and/or store energy generated from your solar PV. Gain greater control and independence of your energy use.	Battery connection required	Financing for batteries, upfront signup and annual incentives	Single-family only	Ventura and Santa Barbara: Program website; gridprograms@swellenergy.com Orange County: Program website; gridprograms@swellenergy.com
Clean Power Alliance electric members (Los Angeles and Ventura Counties)	Power Response	Earn rewards for reducing your electricity use during "Energy Saving Events", which mostly occur from 4pm to 9pm and last no more than 4 hours.	Manually adjust a variety of equipment such as smart plugs and other smart devices. No equipment connection is needed but there is also an option to connect electric vehicle charging stations and battery storage systems.	$25 signup incentive, $2 per kWh during Events	Single-family, and multifamily with their own meter	Program website
SDG&E electric customers (cannot be a customer of Clean Energy Alliance or San Diego Community Power)	TOU-DR-P Pricing Plan	This pricing plan meets your time-of-use rate and demand response enrollment requirements! The TOU-DR-P contains three pricing periods that encourage you to use energy during lower-priced nights, weekends, and holidays instead of during the daily high peak times of 4-9pm. This plan also includes up to eighteen Reduce Your Use Days a year. You’ll be alerted to conserve from 4 to 9pm on these days to avoid those highest priced days.	No technology requirements	Pricing plan that guides your use of energy to lower cost times of the day	Both	Sign into sdge.com/MyAccount Click > Billing Tab> Pricing Plans - Select and enroll in TOU-DR-P for your household - If TOU-DR-P is not listed on your Pricing Plans page, please call 800-411-7343 for enrollment assistance Program website
SMUD customers	Peak Conserve℠	SMUD installs a small device on your Air Conditioning system. During summer peak events, the device turns your AC off for 40 minutes each hour of a conservation event, likely only up to 2 hours in one day. Your fan will still run.	Installation of a small cycling device on central AC system required, installed by SMUD at no cost.	One-time sign up incentive of $50. Plus $25 for each summer of participation.	Single-family only, no renters	Program website Comparison page for Peak Conserve℠ and My Energy Optimizer®
SMUD customers	My Energy Optimizer®	During summer peak events – no more than 15 a summer season - your smart thermostat provider will temporarily adjust the setting on your thermostat by a few degrees. You may override these adjustments at any time.	Central AC, and installed and connected smart thermostat required.	Up to $75 discount on a new smart thermostat OR $25 one-time sign up bonus. Plus $25 for each summer of participation.	Both	Program website Comparison page for Peak Conserve℠ and My Energy Optimizer®
SMUD customers	My Energy Optimizer®	Throughout the year, SMUD communicates directly with your battery to send energy to the grid.	A battery storage unit already installed or in the process of installation.	Up to $2,500 one-time sign up incentive. Plus recurring quarterly payment of up to $307 depending on the system.	Single-family only, no renters	Program website; gridprograms@swellenergy.com Comparison page for Peak Conserve℠ and My Energy Optimizer®

(1) Open to central Orange County residents and businesses (large parts of Cities in: Irvine, Tustin, Santa Ana and Newport Beach, as well as all or parts of the cities of Aliso Viejo, Corona del Mar, Costa Mesa, Laguna Beach, Laguna Woods, Laguna Hills, Laguna Niguel, Lake Forest and Mission Viejo). Must be located on a circuit interconnected with Santiago or Johanna High Voltage Substation.

This table was last updated on 1/18/2024.

Commercial demand response programs

Where is it available/ Who can enroll?	Program Name	Program Summary	Eligible Technologies	Benefits and Incentives	Enrollment Link or Contact
PG&E, SCE, and SDG&E electric customers	OhmConnect	Receive alerts via email or SMS for “OhmHours” when energy prices spike in your neighborhood and get paid to save energy when you reduce your electricity use. OhmHours are about one hour per week on average.	No technology requirements	Cash and gift rewards.	Program website
PG&E, SCE, and SDG&E electric customers	Day-Ahead Emergency Response	Earn cash for reducing your electricity use during peak events. Voltus helps you identify the best options and tailors benefits to you based on your participation.	Any equipment connected to an energy management system can potentially participate	Determined by the aggregator	Program website
PG&E, SCE, and SDG&E electric customers	Capacity Bidding Program and Demand Response Auction Mechanism	Earn cash rewards for reducing your electricity use during peak events. Enersponse helps you to identify the best options and tailors benefits to you based on your participation.	Focus on Retail HVAC, Lighting, and Pumping controls	Determined by the aggregator	Program website & Contact
PG&E, SCE, and SDG&E electric customers	Capacity Bidding Program	Earn rewards for reducing your electricity use during peak events. CPower helps you identify the best options and tailors benefits to you based on your participation.	Any equipment connected to an energy management system can potentially participate	Determined by the aggregator	Program Website; Robert.Nielsen@CPowerEnergyManagement.com
PG&E, SCE, and SDG&E electric customers	GridPoint Intelligence	Earn rewards for reducing your electricity use during peak events. GridPoint helps you identify the best options and tailors benefits to you based on your participation.	Focus on HVAC connected controls (Gridpoint provides EMS controller and thermostats) for retail, restaurant, convenience, movie theater, automotive, and more	Determined by the aggregator	Program Website
PG&E and SCE customers	Base Interruptible Program	Receive monthly credits for being available to shed at least 100 kW of load with either a 15- or 30- minute ahead notification. Events are limited to 1 per day, 10 per calendar month, and up to 6 hours each for a maximum of 180 hours per calendar year.	No technology requirements	Monthly peaktime credits vary by DR provider and season (summer or winter). Payments range from $6.30/kW-month to $26/kW-month. This program has penalties for non-performance, which also vary by DR provider.	PG&E: Program website SCE: Program website & Enrollment link SDG&E: Program Website
PG&E electric customers	FlexSaver	Earn cash rewards for reducing your electricity use during peak events. AutoGrid helps you identify the best options and tailors benefits to you based on your participation.	Thermostats, eV’s, EVSE’s, BDR (Behavioral Demand Response), more technologies to be added incl. electric Water heaters.	Gift card at the end of DR season. Amounts vary based on level of participation	Program website
PG&E customers	Peak Day Pricing	This optional rate offers businesses a discount on regular summer electricity rates in exchange for higher prices during 9 to 15 event days. Prices are highest from 4 to 9pm on event days but customers can avoid incurring the costs by minimizing usage during those times	No technology requirements	Pricing plan that guides your use of energy to low cost times of the day and encourages a more stable and sustainable electric grid.	There are three pathways to enroll: work with your PG&E account representative; self-enroll through your PG&E account online; or call 1-800-987-4923. https://www.pge.com/en/account/rate-plans/find-your-best-rate-plan/peak-day-pricing.html
SCE and SDG&E bundled electric customers	Critical Peak Pricing	This optional rate offers businesses a discount on regular summer electricity rates in exchange for higher prices up to 15 (SCE) or up to 18 (SDG&E) event days. Prices are highest from 4 to 9pm on event days but customers can avoid incurring the costs by minimizing usage during those times.	No technology requirements	Pricing plan that guides your use of energy to low cost times of the day and encourages a more stable and sustainable electric grid.	SCE: CPP is the default rate if you are on an eligible TOU rate (unless you have opted out). To enroll, contact the Demand Response Help Desk at CPPsupport@sce.com, your SCE Account Manager, or self-enroll through Rate Plan Comparison Tool (The tool requires 12 months of consecutive billed usage to display the rate analysis for Non-residential and Net Energy Metering customers). Program website SDG&E: Sign into sdge.com/MyAccount Click > Billing Tab> Pricing Plans - Review the pricing plans based on your 12 months of historical usage - Select and enroll in CPP-D for your household - If CPP-D is not listed on your Pricing Plans page, please call the Business Care Center at 1-800-336-7343 or contact your assigned account rep for enrollment assistance Program website
SCE electric customers in Ventura, Santa Barbara, and Orange County	Local Virtual Power Plant	Get help purchasing or financing batteries for your home and business. Charge your battery when energy prices are low and/or store energy generated from your solar PV. Gain greater control and independence of your energy use.	Battery connection required	Financing for batteries, upfront signup and annual incentives	Ventura and Santa Barbara: Program website; gridprograms@swellenergy.com Orange County (1): Program website; gridprograms@swellenergy.com
SCE electric customers	Summer Discount Plan	Install a smart switch on your AC and choose between Maximum Comfort, Comfort, Savings with Override Control, and Maximum Savings participation options.	Air conditioning connection required	$45 - $180 monthly bill credit across 4 participation options	Program website
SCE electric customers	Agricultural and Pumping Interruptible Program	Receive monthly credits for allowing SCE to automatically turn off certain pumping equipment when the grid is experiencing high demand in exchange for incentives.	agricultural irrigation pump connection required	$10.87/kW-month in the winter and $19.62/kW-month in the summer per meter	Program website & Enrollment link
Sacramento Municipal Utility District electric customers	PowerDirect®	Technical support and incentives to automatically adjust equipment operation on peak days. Participate for at least 2 hours during peak days, no more than 8 days from June 1 through September 30. Intended for larger commercial & industrial customers.	Integrate your energy management, lighting and HVAC systems to receive event notifications and pre-program reduction strategies	$175/kW of automated energy reduction, with option to offset up to 100% technology and equipment cost. Plus $7.00/kW per month for 1-year commitment	Program website powerdirect@smud.org; 1-916-732-5322

(1) Open to central Orange County residents and businesses (large parts of Cities in: Irvine, Tustin, Santa Ana and Newport Beach, as well as all or parts of the cities of Aliso Viejo, Corona del Mar, Costa Mesa, Laguna Beach, Laguna Woods, Laguna Hills, Laguna Niguel, Lake Forest, and Mission Viejo). Must be located on a circuit interconnected with Santiago or Johanna High Voltage Substation.