Residential energy efficiency is an increasingly important notion in light of the increasing energy prices and increased focus on an environmentally sustainable society. DSO’s have the potential to make a great contribution to the field based on their unique market position, but are held back by regulation and market opposition. This article explores the strategic possibilities, that a DSO has in making a contribution while identifying and taking into consideration the most important goals and constraints such as economic and regulatory feasibility. This has resulted in a framework that can be used as a guiding tool in the search for a viable role of a DSO and the conclusion that a DSO can make the best contribution by actively aiming at non-consumer stakeholders in the residential energy efficiency field.