How to Lower Your Energy Bills: Demand Flexibility Explained (2025)

The US faces a critical energy crisis, and a simple solution could be the key to unlocking a brighter future. Imagine a world where you're rewarded for using less power during peak hours, not only helping you save money but also reducing the strain on our fragile energy grid.

A controversial approach, perhaps, but a powerful one. The concept, known as 'demand flexibility', is gaining traction as a bipartisan tool to tackle the growing energy demands of AI datacenters and soaring household power bills. With peak power demand projected to surge by 20% in the next decade, driven by AI, manufacturing, EVs, and air conditioning, the pressure on our energy system is immense. And it's not just about cost; it's a matter of life and death, as states like California and Texas face higher risks of deadly blackouts during extreme weather.

But here's where it gets interesting: demand flexibility can be a game-changer. By incentivizing customers to reduce power usage during high-demand periods, we can ease the burden on the grid and even encourage the use of renewable energy sources like solar panels. This approach has already shown promise in the UK during the 2023 energy crisis, where smart meters rewarded customers for reducing energy consumption.

Yet, there's a catch. The Trump administration's response to rising energy demand has been to double down on fossil fuels, boosting gas infrastructure and delaying the shutdown of coal-fired power plants. This approach not only harms our climate but also misses the potential of demand flexibility. According to a Duke University study, implementing flexibility policies could add over 100GW of new capacity, equivalent to a massive renewable energy boost.

And this is the part most people miss: it's not just about large-scale solutions. In Republican and Democratic states alike, innovative programs are emerging. Rocky Mountain Power in Utah pays residents for solar power captured by their battery storage systems, while Baltimore Gas Electric in Maryland offers rebates for smart thermostat installations. These local initiatives are keeping power bills low and communities resilient.

However, not everyone is on board. In California, Governor Gavin Newsom vetoed a bill that would have required regulators to study demand flexibility, citing a heavy workload. But with other states, like North Carolina, actively creating task forces to address energy demand, the pressure is on to find solutions.

So, the question remains: will demand flexibility become a widespread practice, or will it face resistance from powerful interests? The potential is clear, but will it be realized? Share your thoughts on this controversial yet promising approach to our energy crisis.

How to Lower Your Energy Bills: Demand Flexibility Explained (2025)

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