Smart thermostats and the future of VPPs

Smart thermostats have long played a vital role in grid stability, supporting demand response programs while delivering energy savings to consumers. As grid pressures mount due to aging infrastructure, plant retirements, electrification, AI-driven data center growth, and extreme weather, these devices offer a scalable, cost-effective solution.

The U.S. faces a projected 40% increase in peak demand by 2050, yet over 82 million homes equipped with central HVAC systems remain an untapped resource. If paired with smart thermostats and integrated into virtual power plants (VPPs), these homes could unlock nearly 70 GW of flexible load capacity.

Despite this potential, most grid operators fail to leverage these assets effectively. Programs like Nest Renew and Rush Hour Rewards demonstrate how smart thermostats can provide real-time, localized load relief, improving infrastructure efficiency and grid reliability. Renew Home is leading this transformation, ensuring smart thermostats evolve from passive energy savers to dynamic, dispatchable grid resources.