DEMAND RESPONSE PROGRAMS
Optimized Energy
Get paid to reduce energy use
without disrupting operations
Demand response (DR) programs reward commercial businesses for reducing or shifting energy use during peak demand periods, helping utilities stabilize the grid, avoid blackouts, and reduce reliance on costly new plants.
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Program participants receive bill credits or direct payments by temporarily lowering energy usage (dimming lighting, optimizing HVAC setpoints, rescheduling energy-intensive processes, or dispatching stored energy). This can be done either manually (adjusting thermostats or shifting equipment schedules) or automatically through smart controls that manage devices during high-demand events.
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Think of it as flexibility as a resource: instead of firing up expensive new plants, the grid can call on enrolled customers to reduce load for short periods (typically 2 to 4 hours) in return for significant payments for participation and performance.
What's In It For You?
New revenue stream from existing assets
If your building already has controllable loads (HVAC, refrigeration, process loads, compressed air, pumps, EV charging, battery storage), DR can convert that flexibility into payments—often without capital-intensive upgrades.
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Lower total energy costs
DR pays organizations to temporarily lower or shift electricity use during peak demand periods. By either curtailing non-essential loads or using on-site assets like solar + battery storage and controls, businesses avoid high peak charges, earn incentive payments, and reduce overall utility bills without impacting day-to-day operations.
Improved operations control and resilience
DR programs often include automation and advanced controls, that enable intelligent load reductions. Those controls also improve stability, enforce disciplined equipment run times, and provide better resilience during unscheduled power outages.
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Grid Independence & Flexibility
Manage how and when you use energy and reduce exposure to utility rate volatility.​
How DR Works
1. Grid Stress Detected: During extreme heat or other high-demand periods, electricity demand can approach or exceed available supply, placing stress on the grid.
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​2. Event Notification: The grid operator issues a Demand Response (DR) event through your utility or DR program partner.
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3. Participant Action:
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Load shedding: Non-essential loads are temporarily reduced.
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Load shifting: Energy-intensive activities are moved to off-peak hours. (With automated response systems and building systems adjust automatically based on pre-set rules.)
4. Grid Stabilization: Once the grid stabilizes, the program's actions cease, smart devices revert to normal settings, and participants' reduced load returns to normal.
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5. Incentive Payments: Participants earn financial incentives—such as capacity payments or performance bonuses—based on their participation and program terms.​​​
Facility Requirements
Requirements vary by program and market, but commonly include:
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Controllable loads (HVAC, refrigeration, pumps/fans, process loads, lighting zones, EV charging, batteries)
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Interval metering (utility smart meter or submetering sufficient for measurement & verification, etc.)
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Operational playbook that protects safety, product integrity, and comfort
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Event communication capability (email/SMS portal) and/or automated dispatch integration
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Willingness to test (some programs require periodic tests to confirm performance)​
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DR works best for ...
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Grocery Retailers
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Big-box Retailers
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Cold storage facilities
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Data centers
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Manufacturing/process facilities
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Warehouses + logistics
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Higher Ed campuses
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Municipalities
Where is DR Available?
DR exists widely across the U.S., but how companies participate depends on their state/utility and whether they're in an organized wholesale market (Independent System Operators/ISO or Regional Transmission Organization/RTO) region.
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States in ISO/RTO regions
Below are U.S. states (and DC) served wholly or partly by major ISO/RTOs—where market-based DR participation is commonly available through grid operator programs and/or aggregators (subject to state rules and program eligibility).
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PJM: DE, IL, IN, KY, MD, MI, NJ, NC, OH, PA, TN, VA, WV, DC
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ISO New England: CT, ME, MA, NH, RI, VT
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NYISO: NY
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MISO: MT, ND, SD, MN, IA, WI, MI, IN, IL, MO, KY, AR, MS, LA, TX
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SPP: AR, IA, KS, LA, MN, MO, MT, NE, NM, ND, OK, SD, TX, WY
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ERCOT: TX
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CAISO: (CA a small portion of NV)
​Program rules, minimum kW, telemetry, and aggregator eligibility can vary by utility territory and state policy, even within the same ISO/RTO footprint. (ABS can confirm the exact options for each site during enrollment.)
Why Choose ABS?
When it comes to Demand Response, one size does not fit all.
Alco Building Solutions designs and delivers customized DR programs for commercial and industrial facilities—built around each site’s operations, equipment, and energy goals.
By combining automation, controls, and on-site assets like battery storage and smart building systems, ABS enables reliable load reductions without disrupting comfort or productivity.
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From program enrollment and system integration to event automation, monitoring, measurement, and ongoing optimization, ABS provides an end-to-end, turnkey approach to Demand Response.
The result: predictable incentives, lower energy costs, and a DR strategy that scales seamlessly alongside broader efficiency, solar, storage, and electrification initiatives.
HOW CAN WE HELP YOU?
INTERESTED IN FINDING OUT HOW NEW ENERGY TECHNOLOGIES CAN BENEFIT YOUR FACILITY ... AND YOUR BOTTOM LINE?
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Just contact us. We'd love to help!