Question 1

How much can I earn from demand response programs?

Accepted Answer

Demand response earnings vary based on your facility's available load curtailment capacity, location, and program type. Commercial facilities typically earn between $10-$50 per kW per month in capacity payments, plus additional energy payments of $50-$500 per MWh during curtailment events. A 500 kW facility participating in multiple programs can earn $60,000-$300,000 annually.

Question 2

What is the minimum load reduction required to join a demand response program?

Accepted Answer

Most demand response programs require a minimum curtailment capacity of 100 kW for commercial participants. Some aggregated programs accept loads as small as 50 kW. Industrial facilities typically need to offer at least 500 kW of flexible load reduction. Requirements vary by ISO/RTO region and program type, with capacity markets generally having higher minimum thresholds than emergency response programs.

Question 3

How often are demand response curtailment events called?

Accepted Answer

Demand response events typically occur 5-30 times per year depending on your region and program type. Emergency demand response events are rare, usually 2-5 times annually during peak summer days. Economic demand response programs may see 15-50 events per year. Capacity programs require availability but events are infrequent, while energy-only programs call more frequently during high-price periods. Most programs provide 30 minutes to 24 hours advance notice.

Demand Response Estimator

Facility & Program Parameters

Estimated Earnings