Utilities today are navigating a rapidly changing energy landscape. Grid reliability concerns are growing, costs are rising, and customer expectations for better service continue to increase. At the same time, many traditional demand response (DR) and time-of-use (TOU) programs struggle with low adoption, limiting their overall impact. Despite years of investment, participation remains modest. Only 19% of U.S. households are enrolled in TOU rate plans, and just 13% participate in demand response programs. 

HVAC stands out as a nearly universal touchpoint across U.S. homes with untapped demand response opportunity. Nearly 90% of households have air conditioning, making HVAC a far more inclusive foundation for demand-side programs than niche technologies. HVAC systems also account for nearly half of a typical home’s energy usage, load shifting, shaping, and shaving, particularly when managed intelligently, especially at an aggregated level or paired with battery storage. Many current DR strategies remain narrowly focused on smart thermostats or device-centric switches. These approaches can limit reach, participation, and long-term value.

The challenge is not just technical but also about customer engagement. Traditional programs often require behavior changes, upfront investments, or limited perceived value for consumers.

Parks Associates research suggests the market is more ready than many utilities realize. 52% of single-family homeowners find advanced HVAC service concepts appealing, signaling openness to new experiences that go beyond basic energy programs. This creates an opportunity to reimagine demand response as a service that aligns utility goals with customer comfort, convenience, and value.

The new white paper, Demand Response for All: Scaling Capacity & Flexibility, developed in partnership with Carrier, examines how utilities can overcome adoption barriers and reach a broader customer base. It explores:

  • Why traditional DR and TOU programs struggle to scale
  • Gaps in device-centric and thermostat-only approaches
  • The role of behind-the-meter solutions and storage
  • How non-thermostat HVAC demand response can unlock system-wide benefits
  • Ways to deliver value to both utilities and customers through innovative program design

To meet future grid challenges, energy providers must look beyond incremental improvements to existing programs. Scaling capacity and flexibility will require solutions that work for the majority of households and not just early adopters.

Download the white paper, Demand Response for All: Scaling Capacity & Flexibility, developed in partnership with Carrier, to explore how utilities can expand participation, improve grid performance, and unlock new value through HVAC innovation.