How Much Can You Earn From Demand Response in 2026?
Demand response pays homeowners to reduce electricity use during peak grid stress events. Meltek participants in New York earn an average of $50–$175 per season through Con Edison, PSEG, and Orange & Rockland programs. Here's exactly how the payments work.
Demand response programs pay you cash to reduce your electricity use for a few hours on the hottest days of summer — when the grid is under peak stress. In New York, that means working with utilities like Con Edison, PSEG, and Orange & Rockland.
Through Meltek, New York homeowners earned an average of $50–$175 per season in 2024 and 2025. Meltek automates the thermostat side — precooling your home before each event and adjusting it during the event window — so the baseline earning requires no action. You can also take simple optional steps during events to increase your reduction and earn more.
This page explains exactly what the payments look like, how utilities calculate them, and how to maximize what you earn.
How Much Do Demand Response Programs Pay?
Payment totals depend on three factors: how many events occur in a season, how much energy reduction Meltek achieves on your behalf during each event, and the utility rate per kWh reduced. Events typically last 2–4 hours and occur 5–15 times per summer.
Here are realistic earnings ranges for Meltek-enrolled homes in the greater New York area:
| Home Size | Typical Season Earnings | Events per Season | avg kWh Reduced per Event |
|---|---|---|---|
| Studio / 1-bedroom (750–1,100 sq ft) | $50–$85 | 5–15 | 2–5 kWh |
| 2–3 bedroom (1,100–2,000 sq ft) | $85–$130 | 5–15 | 4–8 kWh |
| 4+ bedroom (2,000–3,500 sq ft) | $120–$175 | 5–15 | 7–14 kWh |
| Larger home or high AC usage (3,500+ sq ft) | $150–$250+ | 5–15 | 12–20 kWh |
Earnings by Utility: Con Edison, PSEG, and Orange & Rockland
Each utility runs its own demand response protocol with different event thresholds, notification windows, and payment structures. Meltek handles all of this automatically — you just link your account and set your cooling preferences once.
| Utility / Territory | Program Name | Typical Enrollment Incentive | Per-Season Earnings Range |
|---|---|---|---|
| Con Edison (NYC + Westchester) | AC Rewards / Smart Usage | $25–$50 signup (varies by year) | $60–$175 |
| PSEG Long Island | AC Cycling / Direct Load Control | $25–$40 signup | $50–$140 |
| Orange & Rockland (Rockland Co.) | AC Rewards | $20–$35 signup | $50–$120 |
How Demand Response Payments Actually Work
Here is the end-to-end flow from grid stress to cash in your account:
- The grid operator calls an event: On hot afternoons (typically 2–7 PM) when electricity demand spikes, NYISO (the NY grid operator) signals utilities to reduce load.
- Meltek gets the signal: Before the event starts, Meltek precools your home to a comfort buffer — so you won't even notice when the thermostat adjusts during the event.
- Energy reduction is measured: The utility compares your usage during the event to your established baseline. The difference is the kWh you "curtailed."
- Payment is calculated: Your curtailment × the utility's payment rate (typically $0.30–$0.75/kWh curtailed, depending on the program and market conditions).
- You get paid: Meltek passes utility payments through to you, typically 30–60 days after the season ends, via ACH bank transfer.
Earn More: Meltek Referral Bonuses
In addition to utility demand response payments, Meltek pays cash referral bonuses when you share your unique referral link and a friend enrolls. There is no limit to how many referrals you can earn from.
Meltek customers who combine utility earnings with referral bonuses regularly earn $200–$400+ per year — with no upfront cost and no special equipment to buy.
Enroll free at Meltek.com to see your estimated earnings before you commit. Enrollment takes under 3 minutes.
Start Earning: Enroll in 3 Minutes
Enrollment is free. There is no special hardware to install. Meltek checks your ZIP code against participating utility territories, guides you through thermostat connection, and manages your thermostat automatically during events.
To earn more than the baseline, you can take a few simple steps during the 2–4 hour event window: switch off lights in rooms you’re not using, delay the dishwasher, washing machine, or dryer, avoid the oven, delay EV charging, and close blinds to hold the precooled temperature. None of these are required — but each one adds to your measured reduction and increases your payout.
Frequently Asked Questions
How do demand response programs pay you?▾
Demand response programs pay through utility rebate checks or ACH bank transfers, typically processed 30–60 days after the summer season ends. Meltek collects the utility payment on your behalf and transfers it directly to your bank account. You receive a payment summary showing each event and its earnings.
How many demand response events happen in a summer?▾
Typically 5–15 events per summer in the New York metro area, each lasting 2–4 hours. The number varies with weather — hot, humid summers produce more events. 2022 was an unusually high-event year with 18 PSEG events; 2023 was milder with 6–8 events across most utilities.
Do I have to do anything during a demand response event?▾
No action is required to earn the baseline payment. Meltek precools your home before the event and manages your thermostat automatically throughout. You will receive a notification, and you can always override if you need to.
That said, you can increase your earnings by doing a few simple things during the 2–4 hour event window: turning off lights in unused rooms, delaying the dishwasher, washing machine, dryer, or EV charger, avoiding the oven, and closing blinds to help maintain the precooled temperature. Each load you shift adds to your measured reduction and increases your payout for that event.
Is there any cost to enroll in demand response through Meltek?▾
Enrollment through Meltek is completely free. There is no hardware to buy, no monthly subscription fee, and no cancellation penalty. Meltek earns a portion of the utility payment; you receive the rest. Your estimated earnings are shown before you enroll.
What smart thermostats work with Meltek?▾
Meltek works with most major smart thermostats including Nest, Ecobee, Honeywell Home, Sensi, and others. A compatible smart thermostat is required for enrollment. If you do not have one, Meltek can help you get one through the utility's own equipment rebate programs — some utilities provide thermostats at no cost.
Can renters enroll in demand response?▾
Yes, if you control your own thermostat. Many apartment renters in New York who have a room air conditioner or ductless mini-split connected to a smart thermostat are eligible. Central-air-only buildings where the landlord controls the HVAC are typically not eligible.
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