5 Ways a Demand Response Program Can Save You Money
Did you know that a Demand Response Program can help you save on energy costs? It's a solution for everyone since both energy users and energy utilities work together during critical grid stress times. What's more, the US Energy Information Administration has collected data that shows these types of programs can reduce annual peak usage by over 10,000 megawatts in recent years.
You know that your business consumes considerable electricity. Keep reading below to learn more about saving electricity and demand response programs.
What is Demand Response?
In 2011, the Federal Energy Regulatory Commission (FERC) issued an order encouraging the use and implementation of Demand Response in the United States. While many may find the details challenging, the essence is that it is a technology-based system that rations electric power supply. As the name infers, it's a method of responding to the grid's level of power demands.
Besides, energy providers use Demand Response to help to maintain system stability by changing user energy consumption. Reducing the loads on the grid in this way is known as Demand Response events.
Did you know that end-users get financial incentives in addition to the technology used in a Demand Response Program? There are many ways a Demand Response Program can help you save money on your energy costs.
1. Smart Thermostats Save Energy
Implementing the use of smart thermostats as part of a demand response program will not only help save the grid, but you save about 10% off of annual heating and cooling costs.
When you search for smart thermostats, you'll find a few options. Some are connected to your energy utility company and others you program yourself. Besides, companies like Honeywell in the US give rebates on their demand response devices.
2. Energy Savings on Business Appliances
Many appliances used in business have energy efficiency settings. Setting printers, copiers, monitors, and computers to enter sleep mode when not used for some time helps reduce energy use and costs by approximately 40%.
When buying new appliances, look for smart or energy-efficient models.
Appliances consume over 13% of all household and business electrical use. Review the expected annual operating costs of each machine you buy. The extra cost of purchasing energy-saving devices will come back to you in reduced energy bills in the long term.
3. Energy Efficient Lighting
Did you know that using energy-efficient lighting helps increase your savings on energy bills? What's more, after heating and cooling, lighting makes up the next most significant part of energy consumption. There are a few ways you can reduce this.
Occupancy sensors turn lights on when they distinguish movement of someone in the room. Lights go off when no one is detected, keeping lights on only when an office or area is occupied.
Installing incandescent, fluorescent, halogen, LED, or HID lights can help reduce energy costs. Besides, most commercial businesses use fluorescent lighting in their offices, which is very efficient.
4. Demand Response Program Monitoring and Control
If you've upgraded your business site with the latest smart technology, that's an excellent step forward, but it's not enough. Ensuring all systems' continuous monitoring is effective means training key staff such as facility managers, building engineers, and operators.
The system should also be integrated into their mobile devices.
You can install centralized monitoring that dispatches a team member as needed. Alternatively, you can have warnings and emergency notifications sent to their mobile devices.
5. Financial Incentives
If you're like most business owners, you're wondering what's in it for me?
Did you know after enrolling in a Demand Response Program and adapting your business practices to reduce energy consumption, you will receive an incentive payment based on the average reduction in kilowatts through the period?
The incentive payment varies from $25 -$200 per average kilowatt reduction.
If you are looking for ways to reduce your carbon footprint to be more green, a demand response program can help. Joining a demand response program is a win-win for many reasons.
How Can You Join a DR Program?
Most energy utilities provide demand response services. It is a straight forward process for energy users to register.
Lone Star Demand Response, LLC operates with the Electric Reliability Council of Texas, also known as ERCOT. Lone Star provides demand response programs to industrial and commercial electricity end-users. These programs offer financial incentives to companies for reducing their energy use.
There are a few requirements to participate in ERCOT's high paying Load Resource program:
- An approved Energy Management System or Direct Load Control implementation
- An Under Frequency Relay (UFR) to manage frequency deviations of the ERCOT Grid
- Sub-10 minute performance time for ERCOT LR curtailment - can be by Lone Star Demand Response Operations and Dispatch, or spontaneously
- A minimum of 100kw of electricity load in 100kw / 0.1 MW increments
- An electricity meter capable of fifteen-minute interval load data reporting that is IDR utility-grade
- When no LR event happens in the preceding twelve months, participation in an annual sixty-minute live curtailment test
Load Resource, also called LR, pays high hourly earnings to customers who can meet the program's more significant technical requirements.
Now You Know More About Demand Response Programs
As you can see, energy efficiency can pay you back in many ways. Getting onto a Demand Response Program is the first step in helping the grid in your area and has long term benefits of working greener in your business. If you still have questions, Lone Star Demand Response can help.
Learning more about demand response is simple. Contact us today.