Is energy efficiency just? Examining social equity in residential demand response programs in Texas

Abstract

Extreme heat and other weather-related hazards increase the risk of power outages and their associated health threat. Residential demand response (RDR) programs—incentive-based initiatives from energy providers that customers can opt into that allow providers to change their electricity usage in response to conditions—can improve electric grid resilience; however, little is known about the fairness of these programs across populations. In this qualitative study, we explored the barriers to participation in RDR programs by low-income households in the United States and how, if at all, program providers consider equity in the design of RDR programs and in what ways that can impact customer participation. Between January–May 2024, we conducted qualitative interviews with energy providers and regulators in Texas (n = 22) and subject matter experts in energy policy nationwide (n = 5). We identified six themes using NVivo: 1) equity is often overlooked in program design; 2) programs do not benefit everyone equally; 3) programs may be harmful for certain groups; 4) poor communication is a barrier to program participation; 5) mistrust in energy providers is a barrier to program participation; and 6) tenants face unique challenges in adopting programs. With climate change expected to increase extreme weather events and the threat to energy infrastructure and health, energy providers should consider partnering with energy-burdened households to design RDR programs that benefit both these households and ultimately all residents across energy provider service regions.