One in five homes with a smart thermostat are now enrolled in a DR program

Parks Associates released a new white paper showing that about 20% of smart thermostat households, totaling approximately four million US internet households, are enrolled in a demand response (DR) program. The white paper, Next-Gen Demand Response: Engaging Consumers, Meeting Energy Demand, developed in partnership with Resideo Grid Services, evaluates opportunities to grow DR programs with broader enrollment and explores strategies to increase the number of events utilities can call in a way that maximizes comfort and minimizes impact to participants.

Parks Associates notes that 35% of today’s consumers report they barely noticed a difference when a DR event was called and another 34% said it was not as unpleasant as they were expecting. This experience is notable for the additional 13% of households with a smart thermostat who have participated in DR programs in the past but are no longer enrolled. 

“Demand for energy is continuing to rise, and DR programs calling on connected products in the home are becoming a critical resource for grid stability and flexibility,” said Jennifer Kent, VP, Research, Parks Associates. “Utilities can take advantage of the growing sophistication of DERMS providers who can design DR events that balance the needs of the grid with the comfort of consumers participating in the programs.”

Research highlights from the white paper:  

  • Increased Awareness of DR: Twenty-two percent of households considered themselves “very familiar” with DR programs in 2023, compared with 11% in 2015.  
  • Motivated by Incentives: The report shows that financial incentives work to drive enrollment, as 60% of DR participants signed up because they liked the incentive, compared to 33% who signed up due to power outage concerns or to help the community generally.
  • Minimized Comfort Impact: Consumers consistently report positive experiences with DR programs—35% say they barely noticed a difference when an event was called, and another 34% said it was not as unpleasant as they were expecting.
  • More Targeted Events: Resideo Grid Services data reveals a 173% increase in total number of events called from 2021 to 2024, but by taking a targeted approach, households are not being overwhelmed by DR requests. The average number of events each device has participated in has risen only 2% in that time.

"This new research highlights how demand response programs have evolved to be more customer-friendly while still effectively managing grid demand," said Michael Siemann, PhD, Director of Technology, Resideo Grid Services. "Fewer customers are leaving DR programs due to discomfort, which indicates that both utilities and technology providers are doing a better job of balancing grid needs with customer experience. Resideo data also shows that while event frequency has increased, smaller numbers of customers were affected by each event, reducing the impact on individual households while still delivering the load reductions needed to maintain grid stability."

This research addresses the multiple challenges utilities are facing, including rising electricity consumption, worsening peak load demand, and generation intermittency. Download the research to read more.

To schedule an interview with an analyst or to request specific data, please contact Mindi Sue Sternblitz-Rubenstein at mindi.sue@parksassociates.com, 972-490-1113.

About Parks Associates

Parks Associates is a global research, consulting, and marketing firm with 40 years of experience delivering proprietary consumer data and industry insights for businesses. The firm produces market research reports, forecasts, surveys, and competitive business intelligence on connected consumer, small business, and commercial technologies and related business solutions. A woman-owned and woman-led company, Parks Associates is a trusted partner and advisor to executives, providing custom research, strategic consulting, and forward-looking analysis across smart home, small business, and commercial markets, including security, broadband, entertainment, energy, multifamily, smart buildings, connected health, and emerging AI-driven technologies.

Parks Associates supports industry growth through proprietary research, consulting, and executive networking and convenes thousands of leaders each year through its flagship conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at https://www.parksassociates.com.

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About Resideo Grid Services
Resideo Grid Services, a business of Resideo Technologies, is a leader in demand response aggregation and program management, helping utilities and energy retailers manage grid demand with precision and efficiency. Since 2012, our team has been providing innovative solutions to reduce peak demand, optimize load flexibility, and support utility programs nationwide. Resideo currently manages or participates in nearly 300 U.S. utility demand management programs and engages in six wholesale energy markets. For more information about Resideo Grid Services, visit ResideoGridServices.com.