Demand Response Program Benefits

Businesses across Michigan have earned thousands in bill credits by joining the Demand Response program. And you could, too.

Here’s how it works:

• Agree to curtail energy use on event days (when energy demand is high)
• Make small shifts in your energy use if an event day is called

Earn bill credits — even if no event days occur

For an overview of the Demand Response program, see our Commercial & Industrial Demand Response page.

Local businesses join the program to earn incentives and ensure a brighter, more sustainable energy future for Michigan.

Download this infographic to learn how the Demand Response program helped Byron Center Public Schools.

Earning bill credits is easier than you might think. Your business earns:

• $25/kW energy use savings based on the amount of energy you agree to reduce if an event day occurs.
  
  Example: Byron Center Public Schools nominated 100 kW, resulting in $2,500 in bill credits. BCPS earns this amount even if no event days occur.
• $0.05/kWh additional savings for any extra kW reduction you make on event days.
  
  Example: For Byron Center Public Schools, this has been around $500 a year, resulting in $3,000 total bill credits per year.

In 2020, businesses across all industries earned an average of $11,657 in bill credits from the Demand Response program. This is equivalent to earning $233,140 in revenue for a 5% profit margin business.

To learn more about earning bill credits, see our Bill Credits page.

Small shifts in your energy use can make a big difference. Here’s how Bryon Center Public Schools curtails energy use on event day:

• Delaying ovens’ start times in cafeteria
• Using fan to cool down gyms by circulating air
• Opening windows to circulate air in classrooms and reduce need for A/C
• Adjusting the pool temperature
• Curtailing heat pumps

Explore more ways to curtail energy use on our Shifting Energy Use page.

• Get rewarded for smart energy use
• Invest incentives back into your business
• Help keep electric costs affordable for all