As electrification accelerates across the U.S., utilities are facing a rapidly intensifying strain on the grid. From EV adoption and all-electric new construction to the massive energy appetite of AI data centers and crypto mining farms, demand growth is happening faster and less predictably than many resource plans accounted for.
This wave of new load brings with it opportunity, but also serious risk. Without decisive action, grid reliability, affordability, and decarbonization goals could all be undermined.
There is, however, a proven tool ready to scale: energy efficiency. But to rise to today’s challenge, efficiency programs must be modernized, re-engaged, and better measured.
Electrification, AI, and the New Shape of Demand
The fundamentals have changed. What was once a stable, forecastable load curve is now being reshaped by high-density, high-growth demands:
Electrified buildings and transportation are expanding quickly across residential, commercial, and public sectors.
Crypto mining has introduced gigawatts of load in areas with little historical growth, often stressing rural distribution assets.
AI data centers are projecting unprecedented consumption, sometimes locating in unexpected regions based on fiber access, tax incentives, or cooling availability.
Together, these trends are compressing the timeline for utilities to plan and build new infrastructure—while also facing regulatory and community pressure to control costs and emissions.
Energy Efficiency: A High-Impact but Under-Utilized Tool
Energy efficiency rebate programs remain one of the lowest-cost, cleanest, and most immediate tools utilities have to manage load growth. Yet many programs today are hampered by:
Low customer and contractor engagement, especially in multifamily, small commercial, and income-eligible markets.
Deemed savings models that lack alignment with real-time grid needs.
Manual, fragmented workflows that create friction and delay project throughput.
Difficulty proving impact to regulators and internal stakeholders due to outdated tracking systems.
In this context, energy efficiency is falling short; not due to lack of potential, but lack of modernization.
Charting a Smarter Path Forward
To make energy efficiency a true demand-side asset in the age of AI and electrification, utilities should consider the following:
1. Modernize Customer and Contractor Experience
Rebate programs often require unnecessary paperwork, multi-step approvals, and long wait times for payment. Streamlining these processes through digital tools—especially mobile-optimized interfaces for contractors—can drastically improve participation and speed to savings.
2. Shift to Measured Savings
Smart meter data and advanced analytics now make it possible to evaluate savings in near real-time. Programs that integrate measured savings approaches are better positioned to demonstrate value, target high-impact projects, and justify program investments to regulators.
3. Target Efficiency by Location and Load Shape
A kilowatt-hour saved is most valuable when and where the grid is most stressed. Shaping incentive structures based on locational marginal cost or peak-time impacts enables efficiency to function as a precision grid resource, not just a general benefit.
4. Rebuild and Reward Trade Ally Networks
Contractors drive the majority of program activity. Equipping them with intuitive portals, real-time project tracking, and better support can unlock far more savings from existing markets. Bonus: a stronger contractor experience means better customer satisfaction.
Meeting the Moment
Utilities are already making big bets on DERs, flexible load, and infrastructure investment. Energy efficiency must be part of that strategy; not as a legacy holdover, but as a retooled, tech-enabled partner in grid planning.
The stakes are clear. The tools exist. The opportunity is immediate.
Let’s reinvest in efficiency. Not just for compliance, but to secure a flexible, resilient, and cost-effective grid for the next generation.