en.Wedoany.com Reported - Sonoma Clean Power (SCP), a public power utility in Northern California, has launched a program to install free smart thermostats for up to 1,000 income-qualified low-income customers as part of its expanded multi-resource virtual power plant (VPP).
SCP announced in November that the thermostat deployment is part of a broader VPP buildout encompassing thousands of electric vehicle chargers, battery energy storage systems, heat pump water heaters, and smart electrical panels. The California Energy Commission (CEC) provided a $4.99 million grant for the program, with SCP contributing $1 million in matching funds.
SCP stated that the grant and matching funds will also be used to deploy 40 smart electrical panels and battery systems in multi-family housing to increase tenant participation, and to allocate $250,000 for partnerships with community organizations to support multilingual outreach and enrollment. The grant will run through the first quarter of 2029.
Felicia Smith, SCP's Director of Customer Energy Solutions, told Utility Dive that the VPP builds on a behavioral demand response program involving approximately 12,500 participants. SCP serves about 500,000 customers in two counties north of San Francisco. Smith said the behavioral program is "simple to design and requires no technical equipment," resulting in "very high response rates." In 2025, 92% of participants responded to day-ahead phone and email alerts by adjusting their electricity usage.
Smith noted that the CEC grant and SCP's matching funds will help the company increase the number of smart devices enrolled in automated demand response, particularly among low-income and underserved customer segments where participation is currently low. Approximately 37,000 SCP customers are income-qualified for free smart thermostat installation, though not all have central air conditioning. Smith indicated that the combined value of the free smart thermostat and installation is about $400 per customer.
SCP is also promoting the expansion of its Bring Your Own Device (BYOD) program, "SCP Rewards," which targets customers who already own or plan to install smart thermostats. According to the program page, participating customers receive $200 for registering their thermostat and a $5 monthly bill credit for remaining enrolled. Smith said that while the exact number of smart thermostats among customers not enrolled in the program is unknown, the proportion is likely higher than the national average due to the relatively affluent and "tech-savvy" customer base.
However, a significant number of SCP customers still lack smart thermostats, and over 5% qualify for electricity bill discounts through California's CARE and FERA programs. Smith views the CEC grant as a critical equity tool for SCP. He stated: "We are very focused on low-income customers, and this is strategic because these households bear a heavy electricity burden." SCP is building partnerships with community organizations, which are seen as more credible than utility companies. Smith said: "If customers hear about automated demand response from a nonprofit they know, they may be more willing to enroll... This helps us strengthen our relationship with customers in a way that makes them comfortable."
Smith added that SCP's VPP has the potential to reduce its wholesale power costs and, as it scales, decrease the need for new distribution system investments. But the near-term priority is "getting people comfortable with the idea that we may need to interact more with the grid."
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