New York Proposes $300 Incentive to Let Utility Control Thermostats

Governor Hochul's plan would pay households to join a 'virtual power plant' and reduce energy use during peak times.

Published on Feb. 11, 2026

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New York Governor Kathy Hochul has proposed a new program that would pay households $25 per month for a year (totaling $300) if they agree to let their utility company, National Grid, temporarily adjust their smart thermostats during periods of high electricity demand. The goal is to create a 'virtual power plant' by reducing energy usage across thousands of homes to ease strain on the electric grid and prevent blackouts.

Why it matters

This demand response program is already used by large commercial and industrial customers, but New York wants to expand it to everyday households. While some participants may opt out during events, even imperfect participation can help reduce reliance on expensive and polluting power plants, potentially leading to long-term system cost savings.

The details

Under the proposed 'Excelsior Power' program, the New York State Public Service Commission would oversee the rules. National Grid already runs a similar ConnectedSolutions program with about 28,000 residential customers enrolled across Upstate New York, providing incentives for allowing brief thermostat adjustments during peak summer demand.

  • The $300 incentive would be paid out over the course of a year.

The players

Kathy Hochul

The Governor of New York who has proposed the new program.

National Grid

The utility company that would temporarily adjust thermostats of participating households in New York as part of the 'virtual power plant' program.

New York State Public Service Commission

The agency that would create and oversee the rules for the 'Excelsior Power' program.

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What’s next

The New York State Public Service Commission will finalize the details of the 'Excelsior Power' program, including the rules and requirements for participation.

The takeaway

This program highlights how utilities and governments are exploring innovative ways to manage energy demand and reduce strain on the electric grid, even if it means temporarily adjusting household thermostats. While $300 may not be a life-changing amount, it could provide welcome relief for New Yorkers struggling with high energy costs.