In power grid, the firmness of grid frequency stability is an important parameter to be taken into account. The stability in the frequency of the grid and reduced deviation between actual scheduled values can be attained by providing the incentives and paying penalties which is called as deviation settlement charges (DSC). The influence of demand response (DR) and incorporation of renewable resources improves the grid frequency and reduces deviation charges that facilitate the end user to overcome such penalties and achieve the incentives. This paper has modeled the improvement in the deviation charges, as an optimization problem for minimizing deviation charges. The proposed problem has been tested on the IEEE 30-bus system in which results have shown the influence of DR depicting the improvements in deviation charges and voltage profile.