PRESIDENT'S POST
March 29, 2025
President's Posts
Topics
Consumer Research, Demand Response
As energy providers increasingly turn to demand response to maintain grid stability and ensure customer comfort over the winter months, the Smart Energy Consumer Collaborative (SECC) conducted a nationwide survey to uncover consumers’ interests, concerns and preferences around participating in such a program.
The survey found significant consumer interest in winter demand response, particularly for a behavioral program where 79 percent of respondents said that they were likely to participate. A direct load control (DLC) program still garnered considerable attention, especially if respondents had a smart thermostat at home.
However, there were some concerns noted by respondents. In this month’s blog, we note three concerns that can help electricity providers and other stakeholders when developing programs:
1. Some consumers are wary of giving up too much control.
As noted, about 80 percent of consumers said they were likely to participate in a behavioral demand response program during the heating season. However, for a DLC program where the energy provider adjusts the heating system, consumers were noticeably less interested. Yet a majority (59 percent) still said they were likely to participate. When asked directly about challenges foreseen in participating in a winter demand response program, “ensuring the temperature meets everyone’s needs” rose to the top (47 percent for all consumers, 56 for smart thermostat owners). It seems likely that consumers are concerned about the ability to opt out of an event in DLC program if the temperature isn’t keeping their home comfortable.
2. Most consumers want personalized insights on the program’s performance.
Throughout SECC’s consumer surveying, respondents frequently cite a lack of transparency on energy and financial savings as a barrier to program participation, and the new Snapshot Survey was no different. “Knowing the program is saving me money” was the second most-cited concern (46 percent), and consumers also had concerns about knowing that the program is “being as energy efficient as possible” (39 percent) and knowing how much heat they have already used (23 percent). Providing consumers with personalized, actionable data on how the program is going will likely boost customer participation and satisfaction.
3. Some consumers are concerned about the condition of their HVAC system.
Purchasing a new HVAC system is one of the costliest upgrades a homeowner is likely to make, so it’s no surprise that about one-third of consumers (30 percent) were concerned about “ensuring the program does not put excessive wear on the heating system”. Among respondents with a smart thermostat at home, concern was slightly higher (36 percent). As demand response programs make only minor and temporary adjustments to thermostat settings, participating in one isn’t any more likely to cause wear to an HVAC system than other normal use. In addition, programs typically allow for opting out of events if there’s a concern on a specific time or day.
As energy providers increasingly offer programs aimed at shifting or reducing demand during the winter, they will likely find many consumers willing participants, particularly if they address common concerns around home comfort and monetary savings. To learn more about what consumers think about winter demand response, view the new Snapshot Survey here.
About the President & CEO
Nathan Shannon
President & CEO, Smart Energy Consumer Collaborative (SECC)
I am the president and CEO of the Smart Energy Consumer Collaborative where I lead the organization's research, membership and policy initiatives. I came on as SECC's Deputy Director in early 2015, and in this role, I grew membership almost 40 percent to over 150 members. Along with my work on the Research and Policy committees, I lead member recruitment and engagement and routinely present SECC's research at major industry conferences and policy workshops.