Demand response (DR) programs pay commercial customers to curtail load during grid-emergency events. PJM, ERCOT, and ISO-NE all run DR markets. Typical DR payment: $30 to $90 per kW reduced during the event. Annual earnings for a 500 kW commercial site: $4,500 to $13,500. Customers must commit to curtailment within 10 to 30 minutes of an event call. Most enroll through aggregators.
How often DR is called
DR events are called during grid-stress conditions. PJM typically calls 2 to 6 events per year, ERCOT 4 to 10, ISO-NE 1 to 4. Most events are in summer afternoons.
Each event typically lasts 1 to 4 hours. Customers must achieve the contracted kW reduction within the dispatch window or face non-performance penalties.
Realistic earnings for commercial customers
A 500 kW commercial site enrolled in PJM Emergency DR earns roughly $4,500 to $9,000 per year in availability payments plus $1,500 to $4,500 in actual-event performance payments.
Higher earnings come from year-round enrollment in capacity-paired DR programs. The combined annual payment can hit $25,000 to $60,000 for large commercial customers.
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