This is pretty much the worst implementation of this idea. Nobody is going to be happy stuck in a 85F+ house with no way to cool it. It is also seriously danger

This is pretty much the worst implementation of this idea. Nobody is going to be happy stuck in a 85F+ house with no way to cool it. It is also seriously dangerous to just shut off heating randomly. The credit would have to be impractically large for people to participate voluntarily. It is so much nicer to cool/heat pre-emptively. The power company has a very accurate view of what the next 12-24 hours will look like. If they know The sun will be shining bright and there will be an excess of solar energy, they should crank up people's AC so that they don't need to draw as much power later in the day. This way we smooth the demand curve without letting pipes freeze or giving people heat stroke.