Powering a Smarter Future: What Demand Response Means for You and Your Home


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Energy When It Matters Most

When you turn on your lights, charge your phone, or run the dishwasher, you expect reliable power at your fingertips. But behind the scenes, the electricity grid constantly balances supply and demand. When everyone uses more power at once, that balance can get strained on hot summer afternoons or cold winter evenings. The result? Higher costs for all customers and, in rare cases, the risk of outages.

That’s where demand response programs come in—and San José Clean Energy’s (SJCE) Peak Rewards program makes it simple for you to play a role. SJCE is San José’s community-owned electricity provider, delivering clean power at competitive rates to more than 350,000 homes and businesses. Whether you have a smart thermostat or an EV charger or want to shift your energy manually, Peak Rewards offers every SJCE customer a way to participate and earn bill credits.

What Is Demand Response?

According to the U.S Department of Energy, demand response is a voluntary energy management program that encourages customers to temporarily reduce or shift their electricity use during times of high demand, known as Peak Events. Instead of firing up additional fossil fuel power plants to meet demand, utilities and community energy providers like SJCE partner with customers to use energy more efficiently.

Think of it as teamwork: when the community pulls together, we avoid expensive “peaker” plants, reduce pollution, and make the grid more resilient. Customers still enjoy the comfort and convenience of their devices, but with minor, temporary adjustments—like raising or lowering the thermostat a few degrees or pausing EV charging for an hour or two.

 

How SJCE Peak Rewards Works

SJCE’s Peak Rewards program offers two simple ways to participate:

With a Smart Device

  • Enroll a smart thermostat, EV charger, or battery storage system.
  • Your device will automatically make minor changes during Peak Events, such as adjusting the thermostat by 2–4°F or delaying EV charging until demand eases.
  • You’ll still be notified before each event and can override anytime.

Without a Smart Device

  • All SJCE customers can participate by receiving Peak Rewards Alerts (via text or email).
  • When notified, shift or reduce your energy use—for example, by waiting to run the dishwasher, turning off unnecessary lights, or pre-cooling your home.
  • You’ll earn bill credits just for participating, even without connected devices.

Either way, you stay in control, and you get rewarded.

What is a smart device?

A smart device is any appliance or piece of equipment that can connect to the internet and be controlled remotely—like a smart thermostat, EV charger, water heater, or even some home batteries. These devices allow you to manage your energy use through an app or online dashboard, making it easier to save money, reduce energy waste, and take part in programs like San José Clean Energy’s Peak Rewards.

Earn Rewards

For every event, you’ll earn credits directly for your participation. The more credits you earn, the more you save on your bill.

Why Demand Response Matters

The California Public Utilities Commission encourages customers to participate in a demand response program to help manage electricity demand.

Lower Costs for Everyone

Meeting high demand by firing up fossil fuel peaker plants is expensive. By shifting demand instead, customers help reduce costs that otherwise get passed along in energy rates.

Cleaner Air and Climate Benefits

Peaker plants are not only costly—they’re also some of the dirtiest sources of electricity. Reducing their use cuts greenhouse gas emissions and improves air quality in surrounding communities.

Stronger Grid Reliability

California’s energy grid faces increasing pressure from extreme weather, wildfires, growing electricity demand from EVs and building electrification. Demand response gives grid operators a valuable tool to avoid rolling blackouts and keep costs down.

A Customer-Friendly Example

Imagine it’s a cold December evening. Everyone is running their heaters—electricity demand spikes. Instead of turning on a backup fossil fuel plant, SJCE calls a Peak Event. Your smart thermostat nudges your home’s temperature from 70°F to 68°F. Your EV charging pauses for an hour while you prepare dinner. You don’t even notice the difference, but you’ve helped stabilize the grid with thousands of other households, avoided pollution, and earned a credit on your bill.

It’s a Win-Win

San José residents who’ve joined Peak Rewards say it’s a win-win:

“I like that it’s automatic. I enrolled my smart thermostat, and I don’t have to think about it. I get a notification, but I usually just let it run because the temperature change is so minor.” – Elena, San José homeowner

“It feels good to know I’m helping the community, not just my own bill.” – David, EV owner

“Peak Rewards empowers our customers to actively build a cleaner, more reliable energy future. By working together, we can reduce reliance on fossil fuels during peak times, keep costs down, and create a healthier community for everyone in San José.” –Lori Mitchell, Director of San José Clean Energy

How Much Can You Earn?

While rewards vary depending on participation and device type, customers can typically expect:

  • Up to $35 per year for smart thermostat participation
  • Up to $36 per year for EV Managed Charging participation, plus a $25 bonus when you sign up
  • $0.13 per kilowatt hour for battery storage system participation, plus a bonus of $10 per kilowatt hour enrolled when you sign up. For a typical battery, that’s almost $700 after your first year in Peak Rewards.
  • Stacked rewards if you enroll more than one device type
  • Rewards for performance appear directly on your SJCE electricity bill as a credit—no coupons, no forms to submit

Who Can Join?

Almost all SJCE residential customers can participate in Peak Rewards.

Options include:

  • With a smart device: Wi-Fi-connected thermostats, specific EV chargers, or battery storage systems.
  • Without a smart device: Any customer who wants to shift usage when they get an alert.

The program is free, voluntary, and designed for convenience.

Demand Response in the Bigger Picture

California is transforming its energy system, aiming for 100% clean electricity by 2045. To get there, we need both supply-side solutions—like adding renewable energy and storage—and demand-side solutions—like SJCE’s Peak Rewards’ demand response program. Together, these strategies will allow us to meet rising electricity needs without relying on fossil fuels.

How to Enroll

Joining Peak Rewards takes just a few minutes:

  • Visit org/PeakRewards
  • Choose whether you’d like to enroll a smart device (Peak Rewards for Smart Homes) or participate without one (Peak Rewards for All).
  • Sign up to start receiving alerts and earning credits.

Frequently Asked Questions

Do I need a smart device to join?

No. Almost all SJCE customers can participate. With a smart device, adjustments happen automatically. Without one, you’ll receive alerts and can shift energy use manually.

Will my comfort be impacted?
No. Adjustments are minor and temporary. You can override at any time.

How many events will there be?
Peak Rewards events happen at least once a month and usually last 1–2 hours.

Do I need to buy special equipment?
If you already have a qualifying smart device, you’re set to enroll in Peak Rewards for Smart Homes. No special equipment is needed for Peak Rewards for All.

What if I do nothing during an event?

Participation is voluntary, but the more you engage, the more credits you’ll earn—and the more you’ll help your community.

What if I move?
You can transfer your participation to your new home if it’s within SJCE’s service area, or simply unenroll.

The Bottom Line: Benefits for You and Your Community

  • Earn bill credits whether or not you have smart devices.
  • Support clean energy goals by reducing fossil fuel use.
  • Help keep the grid reliable during California’s hottest days.
  • Be part of the solution for San José’s carbon neutrality by 2030.

By participating in SJCE’s Peak Rewards program, you’re not just saving money—you’re making a real difference. Small changes in our homes can add up to big changes for our city and planet.

You can make a difference!

Energy isn’t just something that happens when you flip a switch—it’s something we create, manage, and share as a community. Demand response programs like SJCE’s Peak Rewards make it easy for everyone to take part in building a cleaner, stronger energy future.

Join today. Enroll your device—or sign up to receive alerts. Start saving.

Visit https://sanjosecleanenergy.org/peak-rewards to sign up.

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