The encyclopedia · Product & Design · Product decision · 2013–2021
OhmConnect pays Californians to switch off, then sells the saved power at peak prices
A free app bundles households' unused electricity into wholesale demand response — users earn $50–150 a year for delaying the laundry.
OhmConnect
the move
OhmConnect launched in California around 2014 with a contrarian pitch: don't just save electricity, get paid to use less. Users authorize access to their smart meter and connected devices; a few times a week the company alerts them to grid stress or dials devices down automatically.
The money comes from wholesale markets: utilities pay premium prices to avoid firing up expensive peaker plants, so OhmConnect aggregates its users' avoided consumption into a bundle and sells it, taking a 20% cut. Wired reported typical user earnings of $50 to $150 per year.
A California Energy Commission-funded study concluded the company proved a market could be cultivated for residential demand response, acquiring more than 31,000 users for the project and finding that monetary incentives yielded stronger reductions during #OhmHour events than environmental messaging.
why it works
- Users get paid, so participation beats virtue-signaling.
- Automation makes saving effortless for members.
- Aggregation makes tiny household cuts marketable.
- Peak-time scarcity prices fund the payouts.
what transfers
If you can measure a good behavior you can pay for it: pool households' meter-level reductions, sell them at scarcity prices, and the customer's laziness becomes the product.
what came after
The CEC study concluded residential demand response could participate in the wholesale market, and OhmConnect kept growing its member base and device integrations; paying households for flexibility is now a standard feature of demand-response programs in California and beyond.
references
- The Internet of Anything: The System That Pays You to Use Less Electricity
- Reinventing Residential Demand Response: Breaking Through the Barriers with Gamification and Devices (CEC-500-2021-019)
- How It Works
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