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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
- Enter load curtailed kW.
- Enter capacity payment per kW-year.
- Enter events per year.
- Enter performance payment per kWh.
- Enter event duration hours.
- Enter DR aggregator share %.
- 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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