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Demand Response Revenue Calculator

Commercial buildings earn grid payments for curtailing load during peak demand events.

$
$
%

Annual net revenue

$8,640

Capacity revenue

$9,000

Performance revenue

$2,520

How the math works

Gross = capacity × kW + events × kW × hours × $/kWh. Net = gross × (1 − share).

150 × $60 + 150 × 12 × 4 × $0.35 = $9k + $2.52k = $11.52k × 75% = $8,640 net.

How to Use

  1. Enter load curtailed kW.
  2. Enter capacity payment per kW-year.
  3. Enter events per year.
  4. Enter performance payment per kWh.
  5. Enter event duration hours.
  6. Enter DR aggregator share %.
  7. Read annual DR revenue.

Frequently Asked Questions

Demand response program?

Grid operator (utility, ISO) pays customers to reduce consumption during peak demand events (summer afternoons, winter mornings). 2 components: capacity payment (just enrolled) + performance payment (reduced during event). Events: 5-20 per year typical. Duration: 2-6 hours each. Enrollees: commercial buildings, industrial loads, aggregated residential (Nest, Ecobee).

Capacity payments?

PJM: $30-60/kW-yr. NY-ISO: $80-120/kW-yr. ISO-NE: $50-100/kW-yr. CAISO: varies by zone. ERCOT: market-based auction. Utility programs: $20-200/kW-yr. Higher in capacity-constrained zones (NYC, Boston, SoCal). Lower in surplus zones (Midwest, Southwest outside summer).

Typical commercial building?

200k sqft office: 600 kW peak demand. Curtail 100-200 kW during event (reduce HVAC, dim lights). Annual revenue: $5-20k on capacity + $2-8k on performance. Aggregator share: 20-35%. Net: $4-18k annual DR revenue. Effort: HVAC system responds automatically via existing BMS integration. Tenant impact: minimal if done well (2-4°F temp swing).

Auto-DR integration?

OpenADR (Open Automated Demand Response): standard protocol. BMS integration: building management system responds automatically to utility signal. Cost: $5-25k one-time integration, $1-3k annual maintenance. Aggregator: Enel X, Voltus, CPower, Leap, Energy Hub. Manual DR: staff member manually curtails on receipt of notice (not preferred).

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