Energy demand response programs are offered by utilities are grid providers as a way to free-up capacity during peak demand events. Specifically, utilities will pay customers enrolled in demand response (DR) programs for reducing their energy demand during certain times.
Why Do Customers Get Paid?
Customers enrolled in DR programs get paid for reducing electricity load because it frees up more capacity for the grid operators and utilities during times of peak demand. Because electricity demand is ever-growing and building new utility lines is expensive, utility companies treat reduced energy demand the same as newly generated power. When it’s a hot summer day and there is lots of stress on the grid, power companies will pay customers to reduce load so they can meet total demand.
How Do I Enroll?
If you’re interested in participating in a DR program, you need to enroll with a demand response company. The DR company can help you forecast the amount of energy you can commit to reducing during a peak event, and in many cases, they can even automate the reduction for you. A good energy broker or consultant can guide you through your options on Demand Response. Interested in exploring DR at your business, contact us today and we can guide you through your options.