How Demand Response Works with True-Up Bills

Demand response programs offer California homeowners a powerful way to manage energy consumption, reduce electricity costs, and optimize the True-Up bill associated with Net Energy Metering (NEM). These programs, provided by utility companies like Southern California Edison (SCE), Los Angeles Department of Water & Power (LADWP), Pacific Gas & Electric (PG&E) and San Diego Gas & Electric (SDG&E), reward participants for reducing or shifting electricity usage during periods of peak demand. By participating, homeowners not only save money but also contribute to grid stability and environmental sustainability.

At Forme Solar, we’re dedicated to helping customers maximize their energy savings. Here’s how demand response works and why it’s a game-changer for managing your energy costs.

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What is Demand Response?

California’s transition to electrification has placed enormous demand on an aging electrical grid. As utilities face increased strain, they often rely on costly, polluting "peaker plants" to meet demand.

Demand response programs address this issue by incentivizing homeowners to reduce energy use during peak hours. This reduces strain on the grid, keeps electricity costs in check, and helps avoid the need for additional fossil-fuel-powered generation.

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How Demand Response Impacts True-Up Bills

Demand response programs have a significant impact on electricity bills, offering homeowners a strategic way to manage rising energy costs. As electricity rates have steadily climbed across California utilities like SCE, LADWP, and SDG&E, demand response provides a unique opportunity to reduce reliance on the grid during peak hours when rates are highest. By actively participating in these programs, homeowners can lower their energy consumption during critical demand periods, avoiding the premium costs associated with peak usage. The financial rewards, such as bill credits and rebates, can directly offset energy expenses, making a noticeable difference in overall electricity costs.

For homeowners with solar energy systems on NEM plans, the annual True-Up bill reconciles energy usage and credits over the year. While solar panels offset a significant portion of energy costs, periods of high grid consumption—especially during peak-rate hours—can increase your True-Up balance.

By joining a demand response program, you can:

• Minimize Grid Usage: Shift or reduce energy consumption during high-demand times to avoid premium rates.
• Leverage Solar and Battery Storage: Maximize stored solar energy use during demand response events.
• Earn Financial Rewards: Offset True-Up costs with credits or direct incentives from utilities.

With California's aging grid and the growing adoption of electric appliances and vehicles, demand for power has increased substantially, causing utilities to adjust rates and introduce tiered pricing structures. This trend shows no sign of slowing, emphasizing the importance of tools like demand response for long-term energy savings. By leveraging smart technologies and, in some cases, home battery systems, participants not only save money but also contribute to a more stable and sustainable electrical grid.

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Why Choose Forme Solar to Help You Participate?

At Forme Solar, we specialize in helping homeowners optimize their energy systems for maximum savings and efficiency. By participating in demand response programs, you can unlock:

• Financial Incentives: Utilities like SCE, LADWP, and SDG&E provide credits, rebates, and reduced rates.
• True-Up Bill Management: Reduce reliance on high-rate grid power during peak hours for manageable annual reconciliation.
• Environmental Benefits: Avoid adding to grid strain, helping reduce pollution from peaker plants.
• Smarter Energy Usage: Utilize connected devices to track energy patterns and take proactive steps to save.

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How to Join a Demand Response Program

Step 1: Understand Your Utility’s Program
Each utility offers unique demand response options. For example:

• SCE Smart Energy Program: Incentives for customers with connected devices like smart thermostats.
• SDG&E Peak Time Rebate (PTR): Credits for reducing energy use during peak events.

We can help you navigate these programs and find the best fit for your home.

Step 2: Upgrade Your Energy System
Many programs require smart meters, thermostats, or battery storage. Installing a solar battery allows you to store energy during off-peak hours and use it during peak times for additional savings.

• California’s Self-Generation Incentive Program (SGIP) offers rebates to lower battery installation costs. Forme Solar can guide you through this process.

Step 3: Enroll with Confidence
Enrollment typically requires your utility account details, energy usage history, and information about your home energy systems. We’ll help ensure your application is seamless and accurate.

Step 4: Monitor and Optimize Energy Usage
Most programs provide apps or dashboards to track:

• Real-time energy consumption
• Upcoming demand response events
• Earned rewards and credits

Step 5: Participate and Save
During events, utilities will either notify you to manually reduce energy use or automatically adjust connected devices. Forme Solar can show you how to set up your system for maximum participation and benefits.

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Solar and Battery Storage with Demand Response

Adding a home battery system can substantially enhance the benefits of participating in demand response programs. With a solar battery, homeowners can store electricity generated during off-peak hours or from solar panels and use it during peak demand periods when grid rates are highest. This minimizes reliance on the utility during demand response events, maximizing savings while earning financial incentives for reducing consumption. For homeowners on time-of-use (TOU) plans or with a True-Up bill, the ability to shift energy usage with a battery can significantly lower overall costs.

A solar battery also provides flexibility and control, allowing homeowners to manage their energy use proactively. During demand response events, a battery can seamlessly power essential appliances, ensuring comfort and convenience without drawing expensive energy from the grid. This makes it an invaluable tool for optimizing participation in demand response while protecting against unexpected spikes in electricity rates. Combined with demand response, the right sized battery system transforms energy management into a strategic advantage, helping homeowners save more and reduce their environmental impact. For homeowners with solar panels and battery systems, demand response offers additional advantages:

• Charge Off-Peak: Store solar energy during low-demand hours.
• Use On-Peak: Power your home with stored energy during demand response events or high-rate periods.

This strategy reduces your True-Up bill and increases the value of your investment in solar and battery storage.

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Get Started with Forme Solar

Forme Solar is here to simplify the process of participating in demand response programs. We’ll help you:

• Understand your utility’s requirements and benefits.
• Upgrade your home energy system for optimal savings.
• Maximize the financial and environmental benefits of your solar and battery setup.

Ready to take control of your energy bills and True-Up balance? Contact Forme Solar today to learn how demand response programs and solar energy can work together to save you more.

Let’s build a sustainable future while reducing your costs. We specialize in solar and battery retrofits, helping customers make informed decisions to maximize their energy savings and system reliability. Get in touch today to learn more about your options for a solar battery upgrade. Give us a call at 714-694-2262.