Demand Response Savings Calculator

Peak Demand is used only to compute Curtailment % -- how large your Curtailable Load is as a share of your overall peak -- which is a useful context figure but isn't part of the revenue math itself. Total Annual Benefit is built entirely from Curtailable Load combined with the payment rates and event schedule, so changing Peak Demand alone leaves the dollar total unchanged.

Capacity Revenue is paid annually just for being enrolled and having Curtailable Load available, regardless of whether any actual curtailment events happen that year -- it's compensation for standing ready. Energy Revenue is only paid for load actually curtailed during real events, scaling with the per-kWh energy payment, the number of events, and how long each one lasts. A year with zero called events still earns Capacity Revenue but zero Energy Revenue.

This calculator assumes your Curtailable Load reduces your facility's monthly demand-charge peak in all twelve months of the year, which is an optimistic assumption -- it only holds if your true monthly peak consistently coincides with a time you're actually able to curtail. If your peak demand typically occurs outside curtailment-eligible hours in some months, the real demand charge savings will be lower than this figure suggests.

It doesn't model performance penalties for under-delivering your committed curtailment during a called event, program enrollment caps or eligibility requirements, or the possibility that your actually-achievable curtailment varies from event to event rather than being a single fixed Curtailable Load number every time. Treat the output as a rough revenue estimate for program evaluation, not a guaranteed figure.