HOMER Grid Users Can Now Model Demand Response for Distributed Energy Systems

Modeling Demand Response Programs to Provide Mutual Benefit to Utilities and Commercial/Industrial Customers

HOMER Energy LLC announced today that the HOMER® Grid software for modeling the economic and engineering feasibility of grid-tied hybrid renewable energy systems now includes the capability to model the economic benefits of participation in demand response contracts. This new feature allows facility managers and owners to more fully understand the economic potential of distributed energy at their facility. Project developers and demand service providers can communicate and capture how participation in demand response contracts can work in concert with peak shaving and other incentive programs to benefit their customers and investors.


Demand response programs are a contract between the utility and customer where the customer voluntarily curtails their load in response to a signal from the utility. The customer is credited for doing this. These programs allow utilities to incentivize commercial and industrial customers to voluntarily curtail their demand during certain peak periods. This allows the utility to meet overall demand without building expensive peaker plants that are used only in times of particularly high demand. The rapidly decreasing costs of energy storage are prompting more utilities to create demand response programs that both improve overall load management and keep costs reasonable for everyone.

The Smart Electric Power Alliance (SEPA), a trade group that helps utilities with the clean energy transition, reports that there were 155 demand response programs across the country in the year 2017. That number is growing as utilities search for less expensive alternatives to investments in new infrastructure and new ways to protect the stability of the grid during the transition to greater amounts of distributed energy.

HOMER Grid models financial savings from energy storage and load shifting, distributed generation systems that limit power consumption to critical loads when necessary, and the ability of self-generation generally to reduce electricity costs. The new HOMER Grid demand response feature allows users to explicitly model demand response events in their behind-the-meter renewable and storage systems, and determine the interplay between the costs of adding more storage and the credits available through the demand response program. Users can either specify how much they are willing to reduce their electric load, which may be set by their own internal needs, or they can let HOMER Grid determine what their best bid would be.

The newest version of HOMER Grid is available exclusively through the HOMER Energy website, and is available to use at no cost for 21 days. This is a free upgrade for existing licensees.

About HOMER Energy

HOMER Energy is the developer and distributor of the HOMER software, the global standard for energy modeling software to analyze solar-plus-storage microgrid and other distributed energy projects. Their flagship product HOMER® Pro simulates the engineering and economic feasibility of complex off-grid and grid-tied distributed energy systems that combine conventional and renewable power, storage, and load management. HOMER Grid, aimed at the solar-plus-storage market, helps commercial and industrial customers design hybrid renewable energy systems that save on electricity bills and lower carbon footprints. Based in Boulder, Colorado, HOMER Energy was founded in 2009 by Peter Lilienthal, Ph.D., and Marilyn Walker, Ph.D, and now has over 200,000 users in more than 190 countries. Learn more at www.homerenergy.com or call 720-565-4046.

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