What is SGIP's demand response requirement?

Okay, but what is demand response?

Great question. Demand response (DR) programs help reduce electricity use during times of high demand, when the grid is under stress. Think of 4pm to 9pm, when everyone comes home from work and starts cooking, watching TV, etcetera. During these peak times, cities must often turn to large and expensive power plants to meet demand.

When your battery system is enrolled in a demand response program, it will team up with thousands of others to provide stored energy to the power supply and help stabilize the grid, lowering prices for everyone. If you receive a no-cost system through the SGIP program, this is a requirement.

What are the demand response requirements for SGIP?

As you know, California's SGIP program provides incentives to cover the cost of solar and battery storage systems (or standalone batteries) for qualifying homeowners, especially in areas prone to power outages or with high energy needs.

To receive this incentive, the state requires that the battery be enrolled in an approved demand response program. This ensures your system can support the grid when it’s most needed. In exchange, you're able to access a solar and battery system (or standalone battery) at no cost to you, securing regular bill savings and reliable power.

How do I enroll in a demand response program?

Participating in an approved demand response  program is a requirement of receiving an SGIP RSSE rebate. The good news is that you don't need to find an approved program yourself. If you receive a no-cost system through SGIP, Haven will help you meet the demand response requirement and guide you through the enrollment process. This usually involves authorizing your enrollment through your phone or over email.

If you're already enrolled in a demand response program with another device, like a smart thermostat for example, you will need to un-enroll before we can install your solar and battery system to ensure that the participation of your battery meets the SGIP requirement.

If you purchased a solar and battery storage system (or standalone battery) on your own, you may still choose to enroll in a demand response program because it offers other benefits. For example, in exchange for exporting stored energy to the grid during times of peak demand, a demand response program may compensate its participants financially. Please contact your utility provider directly to learn more about your options.

What happens during a demand response event?

If you receive a battery system through SGIP, you may have noticed a requirement in your application that your system be enrolled in an approved demand response program. This means your battery system will occasionally participate in what's known as demand response events. 

During a demand response event – which happens when there's a high demand for electricity, like from 4pm to 9pm – your battery will join thousands of others to export surplus electricity to the grid or switch to supplying your home. This takes your home's load, or the amount of electricity it needs, off the grid and helps stabilize it. 

Your battery will automatically respond to demand response events – you don't have to adjust anything or authorize its participation. Haven manages the process and ensures that your battery system meets SGIP's requirement while maintaining enough capacity to power your home. Demand response events will occur many times during the year – up to once a week – and homeowners are usually notified by email or text from their utility company.

If you receive a system through SGIP, you won't have to find a demand response program to enroll in. The terms of your particular demand response program will be determined by your utility provider and managed by Haven.   

Am I helping the environment by participating in a demand response program?

Absolutely. The short answer: your battery reduces our need for natural gas "peaker" plants to meet demand for electricity. You also help maximize excess wind and solar by storing it in your battery. 

"Peaker" plants produce greenhouse gases, which contribute to climate change. They also pollute the air with nitrogen oxides, sulfur dioxides, and particulate matter, which has serious negative impacts on our health and the environment.

Home batteries, on the other hand, are mostly charged by rooftop solar, a clean source with close to zero emissions. Switching to battery power during peak demand helps prevent the construction of new gas plants and speeds investment into new solar plants.

Will participating in a demand response program reduce the life of my home battery?

No, your home battery is designed to discharge electricity for thousands of cycles. Your battery's participation in a demand response program requires only a tiny fraction of its overall capability.