The HPWH Demand Management System means the following components connected to a water heater, but not the water heater itself, all of which are necessary to fulfill the primary function of the System:

1. Any hardware or software contained inside the water heater;
2. Any hardware or software installed on premise (including a module); and
3. Any software contained in applications or in the cloud.

The primary function of the System is to interface with the HPWH to serve the users’ domestic hot water needs and provide daily load shifting, as applicable, for the purpose of user bill reductions, maximized solar self-utilization, and grid harmonization.

A Local Method means a method that can be performed from within the building that does not require the System to have a live connection to an off-premise source. A temporary connection to a live off-premise source such as via a smart phone, may be used for local setup and updates.

A Remote Method means a method that is performed via a live connection to an off-premise source, such as the internet, advanced metering infrastructure (AMI), or cellular communication.