--- title: The Pros and Cons of Demand Response description: Discover the pros and cons of Demand Response in this informative blog post. Learn how it can help offset costs and increase revenue for your business. image: https://blog.catalystpower.com/hubfs/Untitled%20design%20-%202024-01-25T172733.484.jpg --- [Skip to content](https://blog.catalystpower.com/more-power-to-you/the-pros-and-cons-of-demand-response#main-content) [![Catalyst Power logo](//info.catalystpower.com/hubfs/raw_assets/public/catalyst-theme/images/catalystpower-header-logo.svg)](https://catalystpower.com) [![Catalyst Power logo](https://blog.catalystpower.com/hubfs/raw_assets/public/catalyst-theme/images/catalystpower-header-logo.svg?newlogo)](https://catalystpower.com) Search [Power Your Business](https://catalystpower.com) ![](https://blog.catalystpower.com/hubfs/Catalyst%20Power%20Logos/CatalystLogos_CMYK_Logo%20+%20Tagline%20copy%206.png) # The Pros and Cons of Demand Response [ Emiley Mallory ](https://blog.catalystpower.com/more-power-to-you/author/emiley-mallory) • January 25, 2024 [Demand Response](https://catalystpower.com/our-solutions/demand-response/) may be a new concept for many mid-sized business owners, but it’s a proper solution to an old problem: volatile energy prices. Curtailing your electric usage during a pre-planned short window of time by shutting off your equipment or [switching to backup generation](https://blog.catalystpower.com/more-power-to-you/how-demand-response-and-battery-energy-storage-work-together) can relieve stress on the electric grid and your bottom line. As a participant, you’ll earn payments if you have the ability and willingness to reduce your electric usage. Smart business owners are always looking for ways to offset potential excess costs and increase revenue streams.   So, [what should you know about Demand Response](https://blog.catalystpower.com/more-power-to-you/understanding-demand-response-in-retail-electricity)? Below are some pros and cons of Catalyst Power’s latest offering:   **Pro: There will be a day-ahead notice to curtail your electricity use. **  The great thing about Demand Response is that you won’t have to abruptly cut off your electricity at a moment’s notice. The Day Ahead notice is part of the [New York Independent System Operator (NYISO)](https://www.nyiso.com/demand-response) demand response program. Of course, you’ll have to be reachable to adhere to the advisory, most likely by phone and/or email. It’s best to have someone monitor this correspondence who knows what to do when the notice comes through.   **Con: Your participation in the Demand Response program is based on performance. **  Customers who participate in our Demand Response program receive a performance factor (graded as a percentage) that is directly based on the results of their performance vs. their committed value.  This performance factor is applied to all future payments and as a result, is used in the calculation of the overall performance factor of the aggregator (that’s us).  So it is very important that all customers who participate actually perform during a test or event.  **Pro: Demand Response works well with other solar products.**  On-site generation is a great complement to Demand Response. For example, if you already have battery storage, Demand Response will only enhance your results. Why? Aside from independently lowering your electricity costs, [battery energy storage can be used as a backup resource](https://blog.catalystpower.com/more-power-to-you/how-demand-response-and-battery-energy-storage-work-together) when a curtailment event is called for, allowing you to continue your daily operations as normal during these events.    So that’s two ways to save with a battery!  **Con**: **You’ll need more than an hourly interval meter.**  Owning an hourly interval meter is just the first step. Catalyst Power will consider all applicants for enrollment into its Demand Response program. Even if you don’t currently have one, a meter can be installed depending on the customer and the utility. However, it's important to remember that your generation or curtailment depends on more than the meter. There will be a continuous testing process until you are fully enrolled in the program. Your new income rests on your commitment to a more sustainable business! **More Money, Your Way**  The opportunity to earn more money from curtailing your electricity use is another example of how clean energy can work for you and your business. Demand Response has the highest return on investment and increases your chances of solidifying your business as a local asset in your community. Not only have you helped stave off the strain of the grid (which makes you the coolest!), but you have earned a nice chunk of change for sustainability.  *We launched Demand Response for businesses based in New York and New Jersey! Stay tuned for more announcements as we expand into other service areas.*  [ Contact an Energy Expert Today! ](https://meetings.hubspot.com/joseph-kepler?__hstc=244886106.4d786f07746c51c7e4956c53d4bc436b.1665002727450.1706109064101.1706125537737.497&__hssc=244886106.1.1706221469067&__hsfp=1135167407&hsCtaTracking=399fe9c8-9fad-4586-84ff-bf37e062fb79%7Ceaefb28f-f5a9-4e2d-a2ee-053915ffde3f)   [Immediate Savings](https://blog.catalystpower.com/more-power-to-you/tag/immediate-savings), [Commercial Retail Electricity](https://blog.catalystpower.com/more-power-to-you/tag/commercial-retail-electricity), [Battery Storage](https://blog.catalystpower.com/more-power-to-you/tag/battery-storage), [Demand Response](https://blog.catalystpower.com/more-power-to-you/tag/demand-response), [Education](https://blog.catalystpower.com/more-power-to-you/tag/education), [Financial](https://blog.catalystpower.com/more-power-to-you/tag/financial) ## About Catalyst Power As an independent, integrated provider of commercial electricity and gas as well as distributed energy solutions, Catalyst Power helps your business get the most from your power supply. 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