⚠️ California utility programs change frequently. Verify current amounts and qualifying lists at your utility’s website before purchasing.

California’s three major investor-owned utilities, Southern California Edison (SCE), Pacific Gas & Electric (PG&E), and San Diego Gas & Electric (SDG&E), all run smart thermostat programs combining purchase rebates with demand-response (DR) enrollment. California’s aggressive DR goals and time-of-use rate structures make thermostat programs pay off well for California homeowners.

Southern California Edison (SCE)

SCE serves approximately 15 million people across a 50,000 square-mile service territory in central, coastal, and Southern California.

SCE Smart Energy Program:
SCE’s Smart Energy Program combines thermostat rebates with demand-response enrollment. One application covers both.

  • Rebate: $0–100 (program structure varies; sometimes provided as a discounted thermostat; sometimes as a bill credit)
  • Demand-response credits: Ongoing seasonal credits for participating in Summer Advantage events
  • Enrollment: Through SCE’s website or through your thermostat’s app

SCE Summer Advantage: Customers enrolled in Summer Advantage allow SCE to adjust thermostats during critical peak events. Credits are paid per season.

Time-of-use optimization: SCE’s TOU-D and TOU-D-Prime rate plans reward customers who shift usage away from 4–9pm on weekdays. ecobee’s eco+ optimizes for TOU rates on its own: it precools before peak hours and avoids cooling during expensive peak windows.

Pacific Gas & Electric (PG&E)

PG&E serves the Bay Area, Sacramento region, Central Valley, and much of northern and central California.

PG&E Smart Rate Thermostat Programs:
PG&E’s smart thermostat programs include:

  • Purchase rebate: $50–75 for ENERGY STAR certified thermostats (verify current availability at pge.com)
  • SmartAC / SmartRate programs: Demand-response enrollment where PG&E adjusts thermostats during Critical Peak Pricing (CPP) events; enrolled customers receive credits
  • Demand Response: Various programs under PG&E’s portfolio, including Summer Savings Program and direct enrollment through ecobee/Nest apps

Time-of-use rates: PG&E’s TOU rate plans (Time-of-Two tariff and variants) have peak pricing windows. A smart thermostat with TOU optimization (ecobee eco+, Nest Rush Hour Rewards) can meaningfully reduce bills by pre-cooling before peak windows.

San Diego Gas & Electric (SDG&E)

SDG&E serves San Diego County and southern Orange County.

SDG&E Smart Energy Program:
SDG&E runs smart thermostat rebate and demand-response programs.

  • Rebate: $75–100 for qualifying thermostats
  • Demand-response: SDG&E’s Reduce Your Use and other programs pay credits for reducing usage on Reduce Your Use event days
  • Enrollment: sdge.com or through thermostat app

SDG&E has some of the highest electricity rates in the US, so TOU rate optimization through a smart thermostat delivers the highest absolute dollar savings of any California utility.

Demand Response vs Time-of-Use: Understanding Both

Demand Response: Utility-controlled events where they adjust your thermostat and pay you a credit. Opt-out is always available. Works best with ecobee’s eco+ or Nest’s Rush Hour Rewards.

Time-of-Use Rate Optimization: No rebate here. You run your HVAC during cheap hours and avoid peak pricing windows (typically 4–9pm weekdays in California), and a smart thermostat automates that shift. With California’s high peak rates, this can save $150–400/year for active cooling households.

Many California homeowners benefit from both simultaneously.

Qualifying Models

California-eligible thermostats: ecobee Enhanced/Premium, Google Nest, Honeywell T9/Sensi, Amazon Smart Thermostat (by utility: SCE/PG&E/SDG&E, rebate amount, DR program eligibility)

Frequently Asked Questions

Does SCE offer smart thermostat rebates?
Yes. SCE’s Smart Energy Program combines rebates (or discounted thermostats) with demand-response enrollment. Program structure varies by year, so verify at sce.com.

Does PG&E offer smart thermostat rebates?
Yes. $50–75 for ENERGY STAR thermostats, plus SmartAC and Summer Savings demand-response programs. Verify current availability at pge.com.

What is SDG&E’s thermostat rebate?
$75–100 for qualifying thermostats. SDG&E has some of the highest electricity rates in the US, so TOU optimization through an ecobee can add real savings on top of the rebate. Verify current amounts at sdge.com.

Why are California TOU rates relevant to smart thermostats?
California has high electricity rates, with peak pricing (4–9pm weekdays) far more expensive than off-peak. A smart thermostat with TOU optimization (ecobee eco+) precools during cheap morning hours and avoids running during expensive peak windows, cutting bills without cutting comfort.

Can I get a utility rebate and participate in demand response in California?
Yes. Purchase rebates and demand-response programs are separate. In some California programs they’re bundled; in others they’re independent. Check your specific utility’s program structure.