What is Demand Response?
Demand response is how homeowners earn money by reducing electricity usage during peak demand. Learn how these programs work and why utilities pay you to save energy.
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 sends you a notification 1-4 hours before a demand response event begins, giving you time to prepare.
3. You Reduce Usage
During the 2-4 hour event, 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 users earned back 20-80% of their electricity bills last summer through 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.
Con Edison Demand Response
Serving New York City and Westchester County. The largest demand response program in the metro area.
PSEG Long Island Demand Response
Serving Long Island and the Rockaways. Perfect for suburban homeowners looking to earn.
Orange & Rockland Demand Response
Serving Northern New Jersey and Southern New York. Growing program with great earning potential.
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 FAQs
What is demand response?
Demand response is a program where electricity consumers voluntarily reduce their energy usage during periods of high demand on the power grid. In exchange, participants receive financial rewards. It helps prevent blackouts and reduces the need for polluting backup power plants.
How do demand response programs work?
When electricity demand peaks (typically hot summer afternoons), your utility sends a signal that the grid needs help. Participants are notified to reduce their energy usage for 2-4 hours. Your reduced consumption is measured and you receive cash rewards proportional to the energy you saved.
Who can participate in demand response?
Any homeowner or renter with an electricity account in a participating utility service area can join. Meltek currently works with Con Edison, PSEG Long Island, and Orange & Rockland customers in the New York metropolitan area.
How much money can I earn from demand response?
Earnings vary based on how much energy you reduce and how many events occur each season. Meltek users typically earn back 20% to 80% of their electricity bills during peak season (May-September). Some users earned over $300 in a single summer.
Do I need special equipment for demand response?
No special equipment is required. While smart thermostats can automate the process, you can participate simply by adjusting your thermostat, turning off lights, and delaying use of major appliances during events. Meltek sends you notifications so you know exactly when to act.
What happens during a demand response event?
You receive a notification 1-4 hours before an event starts. During the event (typically 2-4 hours), you reduce your electricity usage by actions like raising your thermostat a few degrees, turning off unnecessary lights, and delaying laundry or dishwashing. After the event, your savings are calculated and rewards are credited to your account.
Is demand response the same as a brownout or blackout?
No. Demand response is a voluntary, proactive approach to managing grid demand. It actually helps prevent brownouts and blackouts by reducing peak demand before the grid becomes stressed. You choose how much to participate, and your comfort is always your priority.
Why do utilities pay for demand response?
It's cheaper for utilities to pay consumers to reduce demand than to build and operate expensive "peaker" power plants that only run during peak periods. These peaker plants are also among the most polluting energy sources, so demand response benefits both your wallet and the environment.
Start Earning from Demand Response Today
Join 6,000+ homeowners already earning rewards. It's free, takes 5 minutes, and no special equipment is needed.