A system and method of rate adaptation is disclosed for energy efficiency. The system and method of rate adaptation for energy efficiency provides for parsing a heterogeneous network into rate-adaptation domains that are fully isolated with respect to the control of their operating states. The system and method is particularly useful for creating the conditions for the incremental introduction of rate-adaptive devices in existing networks; combining the best properties of sleep-state exploitation and rate scaling techniques by defining a class of state-setting policies for rate adaptation schemes that enforce tight deterministic bounds on the extra delay that the schemes may cause to network traffic at every node where they are deployed.