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Ultimate Guide to Demand Response Incentive Stacking - GridPoint

Written by GridPoint | Mar 10, 2023 5:00:00 AM

In the world of energy management, demand response has become an increasingly popular strategy for reducing peak demand and avoiding blackouts. With the help of incentive stacking, demand response programs can offer even greater benefits to participants.

What is Demand Response

Demand response programs typically involve incentivizing companies to reduce their energy consumption during times of peak demand. This can involve simple actions such as turning off lights or adjusting thermostats, or more complex strategies such as shifting the timing of certain energy-intensive processes or lowering temperatures to preset set points. In exchange for participating in these programs, companies receive incentives such as rebates or reduced energy bills. There are several different types of demand response incentives, and many can be stacked to maximize earning potential.

How Incentive Stacking Works

Incentive stacking combines multiple incentive programs offered for demand response in order to maximize energy savings, and monetary earnings.

One of the key benefits of incentive stacking is that it can make demand response programs more accessible to participate in. Incentive stacking can help offset the costs of demand response equipment, lower your overall energy consumption, and more. Here are the three types of  demand response incentives:

  1. State-Based Incentives: The utility will incentivize companies for shifting load to lower the overall peak demand as well as acting as a backup resource for the grid.
  2. Energy Reduction: You will save money on your energy bill because you are lowering your overall consumption.
  3. Tech/ Incentives: The utility will cover part of the costs to install the equipment to automate your participation in DR.

Barriers to Demand Response Incentive Participation

Incentive stacking is not without its challenges. One of the key challenges is that different incentive programs may have different eligibility requirements and application processes. This can make it difficult for companies to navigate the various programs and ensure that they are maximizing their incentives. Additionally, some incentive programs may have limited funding, time limits, or may only be available to certain types of businesses. These are some of the most frequently faced barriers:

  1. Complexity: Enrolling in demand response programs is a complex endeavor due to its intricate requirements.
  2. Manual involvement: Participating in events can be an arduous task that involves manual efforts and requires someone to stay on standby.
  3. Performance Measurement: Payment is tied to performance, but it can be difficult to evaluate and measure accurately.
  4. Find Programs: Trying to decide which program is the best fit for your needs can be an overwhelming task.

Demand Response Incentive Eligibility Requirements

Before participating in a demand response program, it’s important to determine if you are eligible. Eligibility requirements can vary depending on the program, but typically include the following:

  1. Location: Demand response programs may only be available in certain regions or areas.
  2. Energy Usage: Some programs may require a minimum amount of energy usage, while others may have maximum usage limits.
  3. Equipment: Certain equipment may be required to participate in the program.
  4. Industry: Some programs may be specific to certain industries or sectors, such as commercial or industrial.

See if you qualify to participate in a demand response program.

Application Processes

Once you’ve determined that you are eligible for a demand response program, the next step is to apply. The application process can vary depending on the program, but generally includes the following:

  1. Registration: Companies register for the program and provide their contact information.
  2. Enrollment: Companies enroll in the program and provide information about their energy usage.
  3. Equipment Installation: Companies may need to install equipment to participate, especially if they are participating in automated demand response.
  4. Testing: Companies then engage in a testing period to ensure that their equipment is working properly.

GridPoint’s team performs the application process at no additional cost for companies. Sign up here to have a GridPoint team member find demand response programs.

Maximizing Incentives

To make the most of demand response programs, it’s important to understand how to maximize incentives. Here are a few tips:

  1. Participate in Multiple Programs: Companies can participate in multiple programs to earn more incentives.
  2. Optimize Energy Usage: By optimizing energy usage during peak demand hours, companies can earn higher incentives.
  3. Utilize Automated Systems: Automated demand response systems can help companies participate in demand response programs more easily without the need for manual intervention.
  4. Monitor Performance: Companies should monitor their performance in the program to ensure that they are maximizing incentives.

How GridPoint Can Help with Incentive Stacking

GridPoint makes participating in demand response simple. Our team will determine which programs are suitable for you, then take care of all necessary paperwork needed for your enrollment. This eliminates the need to seek programs and apply on your own.

In addition, GridPoint’s automated demand response platform takes the manual labor out of event participation and makes it easy to participate without putting additional strain on facility managers.

In conclusion, incentive stacking can be a powerful tool for maximizing the benefits of demand response programs. By combining multiple incentive programs, companies can offset costs for technology installation and generate more income.

Find Demand Response Programs here.