Peak Rewards pays businesses & organizations for reducing energy use.
Meet Peak Rewards
Peak Rewards is a money-saving Demand Response program designed for the businesses, facilities, schools, nonprofits and other commercial and industrial organizations throughout our seven-state Valley region. Peak Rewards is brought to you by TVA EnergyRight® and your local power company and is powered by our trusted partners at Enel.
Get paid for saving money on energy with our Demand Response programs.
Our Demand Response programs — like Peak Rewards and PowerFlex — reward companies for reducing electricity consumption during periods of peak electricity demand. Peak Rewards participants receive a seasonal payment. And homeowners and renters may be eligible for the EnergyRight Smart Thermostat Rewards program!
What to expect from Peak Rewards
Frequently asked questions about TVA EnergyRight’s Peak Rewards Program.
Q: What is Demand Response?
A: Demand Response programs like Peak Rewards and PowerFlex help maintain reliability in our region during extreme weather events and contribute to the seven-state Valley region’s low electricity costs. Our Demand Response programs offer financial benefits to participants in exchange for temporarily reducing electricity demand when called upon. They also provide a clean, cost-effective alternative to building new power plants.
Q: What is Peak Rewards?
A: Commercial and industrial customers in our region can earn seasonal payments for temporarily reducing electricity consumption in response to peak demand periods. The program is available to customers with a minimum curtailable demand (a deliberate reduction of energy use) of 50 kW, making it a great option for public schools, community organizations, churches, and small- to medium-sized business as well as larger commercial and industrial customers.
Industrial customers with a contract demand exceeding 1 MW may also explore the benefits of PowerFlex.
Q: What’s in it for my business?
- Your business will receive a seasonal payment for your participation.
- You’ll have access to energy intelligence software that can help you make better energy decisions and manage your energy costs in real time.
- Your participation helps maintain reliable and affordable electricity rates across the region.
- There are no up-front or out-of-pocket costs associated with Peak Rewards.
Q: How does Peak Rewards work?
A: After you sign up for this no-cost program, your company will receive a seasonal payment in return for reducing electricity consumption during periods when the region is experiencing abnormally high electricity demand. You’ll also receive a username and secure login to access a cloud-based energy intelligence software application with 24/7 real-time energy consumption monitoring. This can also be used to maximize dispatch performance, track payments and identify additional opportunities for saving energy. You will be called – or “dispatched” – for an energy reduction event up to 32 hours per fiscal year (October-September).
Q: What types of energy reductions can I make?
A: Our Peak Rewards partner, Enel, creates tailored reduction strategies that accommodate operational limitations across a variety of facilities – such as food processing, manufacturing, warehousing, schools and more.
To meet your energy reduction goals, you could:
- Shift energy-intensive processes to non-peak hours.
- Reduce non-essential lighting.
- Modify manufacturing processes.
- Adjust HVAC systems.
- Dial back pumps.
- Change industrial freezer settings.
Q: How do I sign up for Peak Rewards?
A: You can get started by filling out the form below! The Enel team will be in touch to identify your potential for energy reduction and share an enrollment strategy and energy reduction plan that delivers maximum value with minimal operational impact.
Q: What happens after I’ve signed up?
A: The Enel team will install the necessary metering devices at your facility to establish communication with their Network Operations Center (NOC), so they can monitor energy consumption in real time. Then, we’ll simulate a dispatch to ensure that you’re comfortable with your energy reduction plan. Enel will handle enrollment, measurement, verification and payments on your behalf.
Q: What can I expect during a dispatch?
- Notification: You’ll receive a notification via email, phone or SMS informing you that the dispatch will begin. You’ll have 30 minutes to “respond” to the “demand” and meet your energy reduction goals.
- Response: At the start of the dispatch, your facility will reduce its electricity usage to the predetermined energy plan. This can be done manually or through the NOC.
- Support: Before, during and after a dispatch, the NOC remains in communication with your facility. The Enel team is available 24/7 to make sure you experience the highest levels of performance and payment.
Save money with Peak Rewards.
Demand Response offers flexible solutions to fit your business. Complete this form and a member of our team will be in touch to discuss how your company can earn credits or recurring payments by participating in one of our Demand Response programs!
Saving energy adds up, in a good way, with Smart Thermostat Rewards.
You’re invited to sign up for the new Smart Thermostat Rewards program, brought to you by TVA EnergyRight® and participating local power companies. Tell your friends and neighbors, too!
Smart Thermostat Rewards was carefully designed with input from residents like you and local power companies. This voluntary program rewards participants for using less energy during times of peak energy demand — like a winter cold snap or a summer heat streak.
Saving energy adds up, in a good way.
Frequently asked questions about Smart Thermostat Rewards.
What are the financial benefits of Smart Thermostat Rewards?
You can save on money energy by using less electricity during times of peak demand, plus you’ll also receive a $65 enrollment rebate. Year-round participants will receive an additional $65 annual participation rebate and summer-only participants will receive a $20 annual participation rebate.
What if I don’t have a qualifying smart thermostat?
You can purchase a qualifying Wi-Fi smart thermostat on the TVA EnergyRight Marketplace and receive an enrollment rebate of up to $100.
Why is TVA EnergyRight offering financial rewards for using less electricity?
When temperatures soar in the summer or plummet in the winter, demand for electricity increases.
Programs like Smart Thermostat Rewards help TVA make sure that electricity is available to the entire region during times of peak energy demand. They also help keep electricity more affordable for everyone.
How does the program work?
When you and your friends and neighbors enroll in Smart Thermostat Rewards, you’re agreeing to allow automatic adjustments of up to four degrees for a duration of up to four hours during times of peak demand (up to 60 hours per season). The more participants we have, the better it works for everyone!
Prior to an event, enrolled thermostats may be adjusted to pre-condition — pre-heat or pre-cool — a home so that customers remain comfortable while the event is taking place. Pre-conditioning may not always occur.
When do adjustments typically occur?
Typically, adjustments of up to four degrees, for up to four hours, occur between 6 a.m. and 10 p.m. Summer-only participants (for those who do not have electric heat) can expect events to be called between June 1 and September 30.
How will I know when a temperature adjustment is in progress?
Depending on the thermostat provider, notifications may appear on the thermostat or in your web/mobile application.
Can I opt out of an event or program?
Yes. Although you must maintain a 65% participation rate to remain in the program and receive the $65 (year-round) or $20 (summer-only) participation rebate, you can opt out of an event using your thermostat, mobile app or web browser. You can opt out of the Smart Thermostat Rewards program at any time by emailing TVAEnergyRightSmartThermostatRewards@energyhub.net and requesting to end participation.
Which smart thermostats qualify for the program?
Our participating smart thermostat partners include Alarm.com, Amazon, ecobee, Honeywell Home, Nest and Sensi.
How can I sign up for Smart Thermostat Rewards?
If you have a qualifying thermostat and your local power company is participating in the program, you can visit EnergyRight.com/smartthermostat to enroll.
NOTE: Terms, conditions and pricing are subject to change.
7 federal tax credits for energy efficiency upgrades.
Making energy efficient upgrades to your home can lower your energy bill, make your home more comfortable and reduce your environmental impact. Energy upgrades may also offer significant tax savings.
The federal government offers several tax credits to encourage homeowners and renters to invest in energy-saving improvements. Be sure to speak with your tax advisor for the latest information on local, state or federal tax credits.
Here are some of the top federal tax credits you can claim to make your home more energy efficient.
#1 — Residential Clean Energy Credit
This credit, formerly the Residential Energy Efficient Property Credit, allows homeowners to claim up to 30% of the cost of installing renewable energy systems (IRS.gov). Eligible systems include:
- Solar panels (photovoltaic systems)
- Solar water heaters
- Wind turbines
- Geothermal heat pumps*
- Battery storage systems
*If you’re considering a geothermal heat pump, check out our $3,000 rebate!
#2 — Energy Efficient Home Improvement Credit
Previously called the Nonbusiness Energy Property Credit, this tax credit was recently expanded (TurboTax). If you make qualifying improvements after January 1, 2023, you may be able to claim up to $3,200 annually for qualifying energy-efficient upgrades (IRS.gov), including:
- Insulation and airs ealing materials or systems*
- Heat pumps*
- Water heaters
- Exterior doors
- Exterior windows and skylights
*If you’re thinking about insulation, air sealing or having a new heat pump installed, reach out to a member of our Quality Contractor Network to learn more about incentives from TVA EnergyRight and your local power company.
Explore TVA EnergyRight rebates
#3 — Electric panel upgrade tax credit
If you’re upgrading your home’s electric panel to accommodate new energy-efficient systems, you can claim up to 30% of the cost, up to $600. This credit helps ensure your home’s electrical system can handle increased loads from new appliances or renewable energy installations (ENERGYSTAR.gov).
Source: Energy.gov – Tax Credits for Energy Efficiency
#4 — Energy efficient HVAC systems
As part of the Energy Efficient Home Improvement Credit, your heating, ventilation, and air conditioning (HVAC) systems may also qualify for a credit (ENERGYSTAR.gov). Tax credits may be available for installing:
- Energy-efficient air conditioners*
- Heat pumps*
- Furnaces
- Boilers
*Rebates from TVA EnergyRight and your local power company are also available on qualifying heat pumps, ductless mini-splits, and 15 SEER2 or higher central air conditioning units.
Central air conditioner rebates
#5 — Home energy audit tax credit
A professional home energy audit helps identify areas where your home is losing energy. The Energy Efficient Home Improvement Credit covers 30% of the cost of a home energy audit, up to $150 (Energy.gov). Find a TVA-vetted professional for your Home Energy Evaluation and start saving.
Or, if you’d rather start with a free, DIY Home Energy Assessment, we can help with that, too!
#6 — Energy-efficient water heaters
Replacing an old tank-style water heater with a more energy-efficient on-demand or heat pump model may qualify for a tax credit.
#7 — Smart thermostats
Smart thermostats “learn” your heating and air conditioning preferences (and your schedule) and adjust heating and cooling accordingly to optimize energy use. They may not be eligible for federal credits on their own, but installation costs may be eligible as part of a bigger HVAC upgrade.
Fortunately, we have you covered! Check out our Smart Thermostat Rewards program and learn more about our instant rebate. Or, check out our Smart Thermostat FAQs for more information.
DISCLAIMER: TVA EnergyRight and local power companies do not provide tax, legal or accounting advice. This blog is intended for informational purposes only and should not be relied on for tax, legal, or accounting advice. Consult your own tax, legal, and accounting advisors for more information.
What is a heat pump and how do they work?
We’ve already done a little digging into geothermal heat pumps — so, in this article, we’re shedding some light on the region’s most popular heating and cooling system: the heat pump.
If you’re looking for an energy-efficient way to heat and cool your home, you may have come across the term “heat pump.” But what is a heat pump, and how do they work?
What is a heat pump?
A heat pump is a versatile heating and cooling system that transfers heat from one place to another. Unlike a conventional furnace, which generates heat by burning gas or oil, a heat pump extracts heat from the air, ground, or water.
Heat pumps move heat inside during the winter and outside during the summer. Because heat pumps move heat rather than generate it, they can operate with significantly higher efficiency than conventional heating and cooling systems.
It also means that heat pumps are “twofers” — they do double duty as your heating system in the winter and your central air conditioning system in the summer.
How do heat pumps work?
Heat pumps function using a refrigeration cycle similar to that of an air conditioner. The main components of a heat pump include:
- Evaporator coil – Absorbs heat from the surrounding air, ground, or water.
- Compressor – Increases the temperature of the absorbed heat by compressing the refrigerant gas.
- Condenser coil – Releases the heat into your home in heating mode or expels heat outside in cooling mode.
- Expansion valve – Regulates refrigerant flow to maintain the correct temperature and pressure levels.
In the winter, the heat pump extracts heat from the outdoor air (even in cold temperatures) and moves it indoors. In the summer, the process reverses, and the heat pump removes heat from inside your home and releases it outdoors, keeping your home cool.
Do you have a heat pump?
You may be surprised to find out that you already have one! Our seven-state Valley region holds seven of the top 10 positions for states with the highest percentage of heat pumps.
What are the different types of heat pumps?
There are several different types of heat pumps — and we offer rebates on many of them! Federal tax credits may also be available.
- Air-source heat pumps – The most common type of heat pump, air source or dual fuel heat pumps extract heat from the outdoor air. Get a rebate of up to $800.
- Ground-source (geothermal) heat pumps – Use underground heat for increased efficiency but require extensive installation. Get a rebate of up to $3,000.
- Water-source (geothermal) heat pumps – Transfer heat to and from a water source, such as a lake or well. Get a rebate of up to $3,000.
- Ductless mini-split heat pumps – Ideal for homes without ductwork, providing zoned heating and cooling. Get a rebate of up to $800.
Energy efficiency and SEER2 ratings.
One of the biggest advantages of heat pumps is their high energy efficiency. The efficiency of air conditioners and heat pumps is measured using the Seasonal Energy Efficiency Ratio (SEER) for cooling and Heating Seasonal Performance Factor (HSPF) for heating. In January 2023, the U.S. Department of Energy updated its rating standards to SEER2 and HSPF2, which provides a more accurate measure of a unit’s real-world performance (Air Conditioning, Heating and Refrigeration Institute).
Understanding SEER2 ratings
- Higher SEER2 ratings indicate better cooling efficiency and use less electricity to cool your home.
- Higher HSPF2 ratings mean the heat pump is more efficient at heating, helping you save on winter heating costs.
- The minimum SEER2 rating for heat pumps in our southeastern region is 15.
When purchasing a new heat pump, looking for a model with a high SEER2 rating ensures lower energy consumption and reduced utility bills over time.
How heat pumps help you save money
A major advantage of installing a heat pump — whether it’s geothermal, dual fuel, or a ductless mini-split, is energy savings, which translates into lower utility bills (Energy.gov).
- Efficiency: Heat pumps use electricity to move heat rather than generate it, making them significantly more efficient than traditional heating systems.
- Lower operating costs: Because heat pumps work year-round for both heating and cooling, you can replace separate heating and cooling systems with a single unit, reducing maintenance costs.
- Rebates and incentives: Many federal, state and local programs offer rebates and tax credits for heat pump installations. Be sure to check out all of our rebates to make sure you’re maximizing your savings.
Environmental benefits of heat pumps
Beyond cost savings, heat pumps contribute to a more sustainable future by reducing carbon emissions. Since they use electricity instead of fossil fuels like natural gas or oil, they lower household greenhouse gas emissions. Pairing a heat pump with renewable energy sources such as solar power can further enhance sustainability.
Is a heat pump right for your home?
Our region is ideally suited for heat pumps and more and more homeowners are choosing these money-saving systems over conventional furnaces. If you’re thinking about upgrading your heating and air conditioning systems, reach out to a TVA-vetted member of the Quality Contractor Network to learn more.
With high efficiency ratings, SEER2-rated models, rebates from TVA EnergyRight and government incentives, now is a great time to consider upgrading to a heat pump. By making the switch, you can enjoy year-round comfort, lower energy costs, and a more sustainable home!