How do smart water heaters benefit the environment?

Smart water heaters contribute to reducing energy demand at peak times.

The smart water heaters will shift energy from peak periods to off-peak periods. Smart water heaters contribute to reducing energy demand at peak times, which can make a significant difference to the amount of carbon emissions. In New Brunswick, carbon emissions from electricity generation can double during peak times. 

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Could smart hot water heaters affect customer comfort?

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How will the benefits be achieved? How is peak avoided with smart water heaters?