A new white paper released by Parks Associates and Resideo Grid Services, titled “Next-Gen Demand Response: Engaging Consumers, Meeting Energy Demand,” reported that about 20 percent of “smart thermostat” households, totaling approximately four million U.S. internet households, are enrolled in a demand response (DR) program.

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services, including: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

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.

The paper evaluated opportunities to grow DR programs with broader enrollment and explore strategies to increase the number of events that utilities can call in a way that maximizes comfort and minimizes impact to participants.

The paper noted that 35 percent of today’s consumers reported that they barely noticed a difference when a DR event was called, and another 34 percent 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,” said the paper.

“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, vice president, research, for 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.” (DERMS stands for Distributed Energy Resources Management System.)

Research highlights from the white paper included:

1 – Increased Awareness of DR: Twenty-two percent of households considered themselves “very familiar” with DR programs in 2023, compared with half that number (eleven percent) in 2015.

2 – Motivated by Incentives: The report showed that financial incentives work to drive enrollment, as 60 percent of DR participants signed up because they liked the incentive, compared to 33 percent who signed up due to power outage concerns or to help the community generally.

3 – Minimized Comfort Impact: Consumers consistently reported positive experiences with DR programs with, as noted above, 35 percent saying that they barely noticed a difference when an event was called, and another 34 percent saying that it was not as unpleasant as they were expecting.

4 – More Targeted Events: Resideo Grid Services data revealed a 173 percent 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 two percent 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 for 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.”