Demand Response Programs: How They Work and What You Earn
Demand response is how homeowners earn money by reducing electricity usage during peak demand. Here is what it is, what happens during an event, what you earn and who qualifies in New York.
Understanding Demand Response Programs
Demand response is a strategy used by electric utilities to balance supply and demand on the power grid. During periods of high electricity demand — like hot summer afternoons when everyone runs their air conditioning — the grid can become strained. Instead of firing up expensive and polluting backup power plants (called "peaker plants"), utilities pay consumers to temporarily reduce their energy usage.
For homeowners, demand response means getting paid to make simple changes like adjusting your thermostat a few degrees, delaying laundry, or turning off lights you don't need. These small actions, when combined across thousands of households, create a significant reduction in peak demand — preventing blackouts and reducing carbon emissions.
How Demand Response Works
1. Grid Demand Rises
On hot days, electricity demand spikes as millions of people turn on air conditioners. The grid approaches its capacity limit.
2. You Get Notified
Meltek tells you when an event is coming. For Con Edison's planned events that means the day before, with a final confirmation at least two hours ahead.
3. You Reduce Usage
During the event (four hours for a standard Con Edison event; each utility sets its own), you reduce electricity usage through simple actions like raising your thermostat or turning off unnecessary appliances.
4. You Get Paid
Your energy savings are measured automatically, and you receive cash rewards based on how much you reduced. No complicated calculations — Meltek handles everything.
Benefits of Demand Response
Earn Cash Rewards
Meltek members earn cash for every kWh they cut below their normal usage during demand response events.
Reduce Carbon Emissions
Every demand response event prevents dirty peaker plants from firing up, directly reducing carbon emissions in your community.
Prevent Blackouts
By reducing peak demand collectively, participants help keep the grid stable and prevent power outages for entire neighborhoods.
Demand Response Programs by Utility
Meltek participates as an official aggregator with major utilities in the New York metropolitan area. Each utility runs demand response differently, but the rewards are the same: you get paid to save energy.
What Happens During a Demand Response Event
Con Edison runs two demand response programs from May 1 to September 30. A standard event in either asks for four consecutive hours of reduced usage. Test events are shorter (one hour for planned events, up to two for grid-reliability events), and an immediate grid-reliability event that starts after 6 PM asks for two hours less than its length. The programs differ in when they can be called and how much notice you get.
| Detail | Planned events (CSRP) | Grid-reliability events (DLRP) |
|---|---|---|
| When | Weekdays except federal holidays, in a fixed four-hour window set for your neighborhood's network | Any day, including weekends, between 8 AM and midnight |
| Notice | An advisory at least 21 hours ahead, then a confirmation at least two hours before it starts | At least two hours, or less when the need is immediate |
| Why it's called | Hot days when demand is forecast to approach the summer peak | When one more equipment failure on your local network could cause outages or overloads |
See past event dates on the demand response events calendar, or enter your Con Edison account number in the demand response lookup to see your network and its event call windows.
What You Earn
You are paid for the energy you cut during each event, measured against your normal usage for the same hours (your baseline). The more you reduce and the more events are called, the more you earn. Con Edison's events only run from May 1 to September 30, so earnings there are seasonal.
As of October 2026, 5,000+ Meltek members have earned $290,000+ in rewards, and some have earned $300+ in a single summer.
Meltek program totals since 2022, as of October 2026.
Who Qualifies in New York
- Homeowners and renters with an electricity account at Con Edison, PSEG Long Island or Orange & Rockland.
- Con Edison customers need a communicating interval meter to measure usage during events. Con Edison's AMI smart meters qualify; an account with neither has to request an upgraded meter from Con Edison.
- Con Edison requires anyone enrolling directly to pledge at least 50 kW of load reduction, far more than one home can cut. Homeowners join through a demand response aggregator like Meltek, which pools many homes into one enrollment.
Not sure which utility serves you? Check your utility.
What is Precooling? A Demand Response Strategy
Precooling is a smart strategy that maximizes your comfort during demand response events. Before an event starts, you cool your home below your normal temperature. Then during the event, you can raise your thermostat while your home gradually warms — staying comfortable without running your AC during peak hours.
This technique allows you to save the most energy (and earn the most) during events while maintaining a comfortable home. Meltek notifications include precooling reminders so you never miss the optimal preparation window.
Demand Response Guides
- Demand response programs in New YorkCon Edison, PSEG Long Island and Orange & Rockland programs side by side.
- Demand response management systems: the market outlookWhy utilities are investing in the software that runs demand response.
- Demand response examples that save moneyReal examples of how homes and businesses cut load during events.
- How demand response helps prevent power outagesWhy cutting peak demand keeps the grid stable on the hottest days.
Demand Response FAQs
Start Earning from Demand Response Today
5,000+ members have earned rewards since 2022. Joining Meltek is free, takes 5 minutes and needs nothing from Meltek to buy or install.
Related Resources
Meltek program totals since 2022, as of October 2026.