Demand Response Revenue Opportunities

Turn Energy Flexibility Into Revenue

Demand response programs pay facilities to reduce electricity usage during periods of grid stress.  In New England, these programs create a powerful opportunity to generate revenue while improving grid reliability—especially when paired with battery storage. How It Works

• Utilities and ISO New England (ISO-NE) call for load reductions during peak events
• Participating facilities reduce demand for a short period
• In return, they receive financial compensation

With the right strategy, this can become a predictable revenue stream.

Where the Value Comes From

Capacity Payments Earn revenue for committing to reduce load when called upon. Event Payments Additional compensation for actual performance during demand response events. Energy Market Participation In some cases, batteries can participate in broader grid services and wholesale markets.

Why Batteries Improve Results

Battery systems make demand response:

• Reliable → No disruption to operations
• Precise → Instant, controlled load reduction
• Repeatable → Perform consistently across events

This allows facilities to maximize participation and revenue.

What Drives Revenue Potential

Demand response value depends on:

• Peak demand (kW) available to reduce
• Program structure (utility vs ISO-NE)
• Event frequency and duration
• Performance consistency
• Integration with battery systems

Important Considerations Not all demand response programs are equal. Revenue varies significantly based on:

• Utility territory
• Program rules
• Market conditions

A data-driven strategy is critical to identifying the right opportunities.

Dragonfly’s Approach

Dragonfly evaluates demand response as part of a broader energy strategy:

• Identify eligible programs
• Quantify revenue potential
• Integrate with battery and load management strategies
• Ensure reliable performance during events

Key Takeaway

Demand response turns peak demand into a financial asset—not just a cost to manage. At Dragonfly we design systems that don’t just reduce costs—they generate value from the grid.