People are getting financial incentives to use less electricity during heat waves » Yale Climate Connections

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On the hottest summer days, when lots of people turn on the AC, the demand for power spikes – and the grid must be able to supply enough electricity.

So the size of the power grid is determined in large part by the scale of these short periods of intense demand.

Farabaugh: “This is quite expensive because we only have a handful of hours out of the year that are very hot and very cold.”

So Adam Farabaugh of the energy technology company Uplight says lowering that peak demand can lower costs.

Farabaugh: “We don’t have to build out as many power plants. We don’t have to build as much transmission, as much distribution.”

So some utilities now offer financial incentives for customers who reduce their energy use during periods of peak demand.

Some participants sign up for text alerts that tell them when to turn down their thermostat or make other energy-saving adjustments.

But customers who have WiFi-connected devices like smart thermostats and hot water heaters can agree to have these changes happen automatically.

Farabaugh: “So, you don’t have to think about it.”

The changes are very slight – only a degree or two.

Farabaugh: “Because ‘people want hot showers and cold beers,’ is the saying.”

But across many participants, the energy savings add up and help reduce pressure on the grid.

Reporting credit: ChavoBart Digital Media / Thanks to Midwest Energy Efficiency Alliance for logistical support



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