Green is chic. Many luxury homeowners consciously strive for carbon-neutral or net-zero homes. Electrification is a core strategy for achieving these sustainability goals: i.e. swapping out gas-fired appliances like furnaces, stoves, and water heaters for electric alternatives. The goal is an all-electric home powered by clean energy, reflecting the client’s values without sacrificing comfort or performance.
A carbon-neutral home needs a reliable, high-quality energy supply to live up to its promise. Power outages are increasing in frequency and duration. In addition to electrification, many luxury homeowners now demand the ability to “island” from the grid for days or weeks by drawing power from battery walls, renewables, and/or a backup generator. Ironically, electrification itself can contribute to grid instability. The National Renewable Energy Laboratory has warned that electrification without smart management could raise peak power demand by 70 percent on average across the United States—and in 23 states, it would more than double.
There is a way out of this sustainability Catch-22. The risks come from electrification without smart management; electrification with smart management is another story. Islanding capabilities give homeowners a fallback plan when the grid goes down, but new solutions and standards are rising to prevent outages from occurring in the first place. Across the U.S. and around the globe, Automated Demand Response (ADR) technology is helping utilities and power customers smooth out peak loads and improve grid resilience.
What is Demand Response?
Demand Response (DR) refers to programs that encourage or automate adjustments to electricity usage during peak periods or when the grid is under strain. This strategy helps to maintain grid stability and supports integration of renewables by adding flexibility to counter variable supply. ADR works by sending signals to smart connect devices during DR events to smooth out peaks in power demand. Common ADR applications include:
- Smart Thermostat Programs: homeowners enroll their smart thermostat in a utility DR program. During a peak event, the utility may adjust the HVAC set point. It may also take preventative action, like pre-cooling spaces before a forecast hot day, thus shifting the power expenditure away from the anticipated peak time.
- Water Heater Load Control: DR programs can use an electric water heater essentially as a thermal battery, pre-heating water during off-hours and then turning off the heating element at peak times.
- Managed EV Charging: an EV might not begin charging as soon as it’s plugged in, instead waiting till off-peak hours to begin drawing power. In some pilot programs, the EV even sends power back to the grid during peaks.
DR programs are increasingly common around the globe – even required in some countries, including Germany and Australia. DR incentives and regulations are also on the rise across the United States, especially in regions with high energy demands stemming from extreme temperatures, including California, Texas, Florida, and the Northeast.
The Integrator’s Role
Integrators have a critical role to play in making ADR successful for their luxury clients. ADR requires sophisticated device integration and control—and even devices and appliances designed to improve a home’s efficiency often lack ADR capabilities out-of-the-box. For example: the most efficient HVAC systems used in electrification projects – Inverter AHUs and heat pumps – can’t communicate with smart thermostats or control systems without a third-party control bridge. HVAC control is one of the most effective DR applications, but without proper integration, Inverter HVACs can’t be enrolled in ADR.
ADR-capable homes have unique integration requirements and mastering them can be an important differentiator. The home automation hub itself, including any energy management system or control system, should be able to receive price signals or DR event triggers from the utility. Within the control system, you will need to identify which power loads are discretionary versus critical: Homeowners can wait to start the dishwasher or run the dryer during a DR event, but they can’t shut down their home office. The DR technology landscape is fragmented—you will need to verify ADR capabilities with the local utility—but OpenADR is fast emerging as the dominant ADR interface across the United States. Even in regions that don’t yet offer ADR, specifying OpenADR-compliant devices can help future-proof your solution.
Integrators can also increase the efficacy of ADR and preserve the homeowner experience with well-designed smart home automations. For example, if a DR event triggers HVAC power reductions, you could deploy sensors and zone control to ensure the temperature only changes drastically in unoccupied spaces. You could also lower smart window coverings to cool the house naturally.
Client Buy-In and Autonomy
Integrators can play a pivotal role in DR program success by making sure homeowners understand how ADR works and giving them options so that DR events don’t unduly interfere with their lives. Talk to your sustainability-minded clients about how ADR aligns with their goals. If they’re on board, you can build notifications and override options into their home automation system. For instance, the control panel or app might display a notification like “Grid Save Event: 30 minutes left – your home is helping avoid an outage. Tap to resume normal settings if needed.” Make sure clients know how to override ADR commands when they need to – if they feel in control, they’ll enjoy the virtues and benefits of ADR without ever feeling frustrated.
A well-integrated smart home can make ADR nearly invisible. By tailoring the home’s DR strategy to your client’s preferences and needs, you can deliver true sustainability without lifestyle sacrifice. By building ADR-compliant systems, integrators can help their clients achieve a lower carbon footprint without negatively impacting the grid: a win for the planet, the homeowner, and the community.
