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.
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
By participating in demand response, you may reduce your energy usage during the hours when energy is most expensive, so you avoid paying the highest costs for electricity. Plus, many of these programs also provide an enrollment bonus ranging from $50-$150 and an ongoing participation bonus of $2-$5 per month or other rewards for participation.
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.
Some program options let you choose how to save. For those programs, you receive notifications over email or text, alerting you to adjust your home energy usage manually.
Other program options will connect directly to a home appliance such as your thermostat or home battery. The program communicates automatically with the equipment, so you don’t have to do anything to save.
Many of the demand response programs listed don’t have a direct connection to your home equipment and don’t collect data directly. Some demand response programs may gather data about energy usage to provide a customized experience and to refine the effectiveness of the program, but user data is never sold or shared publicly. The data will not include any personally identifiable information (PII), reducing the risk to customer privacy.
No. You can enroll in any qualified demand response program (it is not required to be heat pump specific) to receive TECH Clean California incentives. See the list of qualified demand response programs below.
You must remain enrolled in a qualified demand response program for at least three years. Most programs allow customers to opt out of participating as needed without penalty.
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
(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
(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.
