Nest Bows Partnerships With Energy Providers for Demand-Response Program

Nest Labs, which weathered a rash of negative reports recently about an exodus of staffers and lack of new products, said Friday it's working with 50 new energy providers for its Nest Learning Thermostat rebates and rewards for residential customers. Many of the utility partners are also participating in Nest’s Rush Hour Rewards (RHR) demand-response service, which compensates Nest owners who opt in to allow power companies to reduce energy usage via thermostat during peak usage times. More than 30 percent of homes in the U.S. now have access to a Nest Thermostat rebate or RHR program through their energy provider, with the number of customers enrolled in Nest’s RHR programs doubling in the last year, Nest said. Citing Navigant Research data, Nest Director-Energy and Enterprise Business Ben Bixby said integrated demand-side management spending is forecast to grow from $40 million this year to $1.2 billion in 2025. The Kansas City Power and Light (KCP&L) RHR program is replacing KCP&L’s existing programmable thermostat program with Nest, it said. Under the program, customers can receive a free Nest Thermostat with the option for free professional installation -- or a $50 credit for self-installation -- when they agree to participate in KCP&L’s RHR program. Customers will also receive a $25 annual incentive reward following their first year of participation, it said. Nest’s solution tailors each event to individual customers' preferences and home characteristics, it said. Its RHR program uses pre-cooling and custom algorithms to reduce air-conditioning usage during peak periods, cutting AC usage for customers enrolled in RHR by more than 55 percent, Nest said. Utilities manage RHR through a stand-alone interface that includes event dispatch tools, performance reporting, and customer enrollment verification and grouping, Nest said. New energy provider partners to the Nest program are Commonwealth Edison in Illinois; Enbridge Gas Distribution, Ontario; Vectren, Indiana and Ohio; United Cooperative Services, North Texas; CoServ Electric, Texas; Georgia Power; Santee Cooper, South Carolina; Portland General Electric, Oregon; and Puget Sound Energy, Washington.