How It Works

How WatterSaver Works

Electricity demand changes throughout the day and peaks when overall energy use is high (typically in the late afternoon and evening). To help reduce strain on the electric grid during these peak times, WatterSaver communicates directly with your smart electric resistance or heat pump water heater to send signals that adjust when it heats water.

WatterSaver typically sends these signals before higher-demand periods begin, so your water heater can heat water in advance. By heating water ahead of peak demand, WatterSaver reduces the need to heat water during costlier, high-demand times, while ensuring that you have hot water available whenever you need.

Your comfort will always come first. If your household needs additional hot water during peak periods, your water heater will still respond normally.

Gas water heaters, tankless water heaters, and standard electric resistance water heaters are not eligible for WatterSaver.

With WatterSaver, you’ll also earn rewards, including a one-time $50 enrollment bonus and an additional $5 monthly reward.   

Load Shifting & Time-of-Use (TOU)

When you shift some of your electricity use to times when demand is lower and renewable energy is more plentiful, such as during the daytime, you help reduce pressure on the power grid. That’s called load shifting, which is a form of demand response.

Do I need to be on a Time of Use rate plan?

No. As of March 2026, a Time of Use rate plan is not required to participate in WatterSaver.

Can Time of Use provide additional savings? 

If you are on a Time of Use rate plan with Pacific Gas and Electric Company or your Community Choice Aggregator, you may see additional bill savings when WatterSaver shifts your water heating to lower priced periods. Time of Use rates charge less for electricity during off peak times and more during peak times, so shifting usage can help you avoid the highest prices.   

If you are interested in maximizing savings, you can explore rate plan options and additional energy saving tips through PG&E resources or compare the different plans to determine which is best for you.

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