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Commercial & Industrial Demand Response
Earn Big by Reducing Electric Use on Select Days
Our Demand Response program rewards your business for reducing your energy use on high-demand days.
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What is Demand Response?
By joining the Demand Response Program, your business can earn bill credits for committing to reduce energy use on Event Days when electricity demand is at its highest.
You’ll work with an Energy Solutions Manager who will help you come up with a custom energy reduction plan that’s right for your business. That way you’ll be ready when an Event Day happens.
Through this program you’ll help reduce strain on the energy grid and keep energy affordable and accessible for your whole community. And even if no event days occur, you’ll still get bill credits just for participating.
What Do I Earn?
When joining the Demand Response program, your business will earn bill credits in two ways:
1. By agreeing to commit to reduce your energy use. You’ll earn $25 - $27 per kilowatt you pledge to reduce.
2. By successfully reducing energy use when an Event Day is called.
In 2020, businesses earned an average of $11,657 in bill credits for participating in the program.
How Demand Response Works
In this video we cover the details of the program that include:
- Building a custom reduction plan with your Energy Solutions Manager
- How to lower your energy use if an Event Day is called
- Ways to earn bill credits and how they work
All About Event Days
What Is an Event Day?
When you join the Demand Response program, your business is agreeing to reduce energy use when an Event Day is called. Event Days happen when electricity use is in high demand and there is strain on the grid, typically due to extreme weather.
Event Days only occur between 11 a.m. and 7 p.m. on a weekday from June through August. No more than five Event Days are called a year. The last emergency event was called on June 10, 2021.You will receive a notification at least 30 minutes before an event begins to give you time to start ramping down operations to reach your energy reduction goals.
Demand Response Timeline
Before Event Day
When you join the program, you’ll make a commitment to reduce your energy use on high demand days. You’ll be assigned an Energy Solutions Manager who work with you to create a custom Energy Reduction Plan (ERP).
You’ll work together to find the right balance between continuing operations efficiently and saving energy with confidence. That way you’ll be ready when the Event Day happens.
On Event Day
When the Event Day happens, you’ll be notified about when to enact your ERP and timing for how long the event will last.
If your business pledges to save more than 100kW, you’ll be able to track real-time performance to make sure you’re hitting your energy reduction goals.
After Event Day
After the event is over, you'll get a detailed report on your performance. Your bill credits will be provided at the end of the Demand Response season.
How Other Businesses Have Saved
See How Small Changes Make a Big Impact
By making small changes, Byron Center Public Schools has earned an average of $3,000 a year in bill credits thanks to the Demand Response program.
Watch the video or read the case study below to learn more.
Frequently Asked Questions
An Event Day is when electricity demand is at its highest and there is strain on the energy grid. By calling for a reduction in energy use on Event Days, we can help keep energy affordable and reliable for your community.
Event Days only occur between 11 a.m. and 7 p.m. on a weekday from June through August. There are no more than five Event Days a year.
If no Event Days are called, you will still receive your annual bill credits for agreeing to participate in the program. Your annual bill credits are $25 per kilowatt you agree to reduce when enrolling.
Through the Demand Response program your business can earn:
- $25 – $27 per kilowatt of energy use savings. This is based on the amount of energy you agree to reduce if an event day occurs. And even if an Event Day never happens, you still earn these bill credits.
- $0.05 per kilowatt of additional savings for any extra kilowatt reductions you make on Event Days.
In 2020, businesses participating in the program earned an average of $11,657 in bill credits (this is equal to $233,140 in revenue for a 5% profit margin business).
Whether your business is large or small, your shifts in energy use can make a big difference for Michigan’s future. Here are some of the industries that participate in the Demand Response program:
- Healthcare
- Recycling
- Education
- Food
- Processing
- Manufacturing
- Grocery
- Refrigerated Storage
- Retail
And more…
Many businesses can lower energy use without interrupting a normal workday. Here are some simple ways to cut down on use:
- Using your generator to help offset load
- Turning down heating & cooling in non-essential work areas
- Adjusting your thermostat 2 – 4 degrees
- Turning off lights in areas with plenty of natural light
- Unplugging computers and equipment that’s not in use
Why Should I Join?
Earn Financial Incentives
In 2022, Demand Response participants earned over $6.7 million in incentives. And that was just for shifting when they use energy.
Improving Decarbonization
During an Event, Michigan businesses on average shift a total of 200MW of load. This is about the output of one power plant! As you can imagine, one less power plant makes a huge impact on Michigan’s environment.
Meet Your Goals to Be More Sustainable
Show your customers, shareholders and investors that you’re committed to being more sustainable – all while earning money for your business.
Be a Part of Something Bigger
Join like-minded businesses in creating something bigger – a clean energy future for Michigan.
Get Started Today
There are a limited number of openings available each year. Don’t miss your chance to join. Fill out the form below and an Energy Solutions Manager will reach out to you within two business days.