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Smart thermostats: the biggest VPP by headcount, the smallest by paycheck
Millions of thermostats already help the grid on hot afternoons. They are easy to enroll and pay modestly — here is what they earn and when it is worth it.
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The short answer
- Thermostats are the most common VPP device and the easiest to join — most people already own one, and enrollment takes minutes.
- They pay the least per device: about $210 to $955 over 10 years across 14 programs, roughly $350 typical, or $18–$45 per kW-year versus $50–$275 for batteries (Heatpump Economics).
- Most are classic demand response, not orchestrated VPPs: a few pre-cooling or setback events each summer. Five of the 14 programs also pay for winter events, which matters for heat-pump homes.
- It almost always makes sense if you already have a connected thermostat and can tolerate a 2–4 °F swing for a few hours; you can usually override any event.
Ten-year earnings for one smart thermostat
Sign-up bonus plus 10 years of seasonal payments. Darker bars pay for summer and winter events.
Swipe to see the full chart →
Why they still matter to the grid
Individually small, thermostats add up because there are so many of them. EnergyHub, which runs many utility thermostat programs, manages more than 2.5 million devices (EnergyHub). And as heat pumps replace furnaces, winter peaks matter more: a heat-pump thermostat that can pre-heat before a cold morning is more valuable than one that only shaves summer afternoons.
Heat pump virtual power plant programs: 14 programs compared
Program terms, winter versus summer events, comfort trade-offs, and which thermostats qualify.
Method and caveats
Values reproduced from Heatpump Economics (checked September 2026). Ten-year totals assume one thermostat, full participation, and current terms.