Home batteries supported California's grid in a heat wave: what to know about virtual power plants

What happened?

According to a report by Grist, home batteries across California sent power back to the grid during peak hours on Oct. 6, as a heat wave pushed demand higher. Common Charge, the energy-focused nonprofit that drafted the original report on the event, says the batteries supplied enough power for every home in San Francisco and San Jose, which together have about 1.8 million residents. 

That coordination is called a virtual power plant, or VPP, a network of devices, such as batteries, smart thermostats, and smart water heaters, that act together like one power plant. Homeowners bring the devices and organizations called aggregators decide when to adjust those thermostats and heat pumps or discharge batteries to reduce demand or add power to the grid. 

What it could mean for your home

Where a VPP program exists, homeowners with batteries may be able to enroll and be paid for sharing stored power when the grid needs it. (Programs, payment amounts, and rules vary by utility, and not every area has one.)

VPP participation is generally an added bonus for these devices. A battery can power emergency devices during an outage or help you offset more expensive peak hour electricity. A heat pump and smart thermostat can make your home more convenient and comfortable. When you enroll in a VPP, an aggregator will discharge your battery or shift your thermostat setting within a set limit. Understand those limits before signing up.

VPPs are good big picture, too. The flexibility they provide during peak hours can help utilities push back or skip building power plants called “peaker plants,” which run only a few times throughout the year.

The next frontier of VPPs could be vehicle-to-grid, or V2L, charging for EVs, which allow the huge batteries in EVs to send electricity back to the grid when needed.

What you can do next

Start by confirming a VPP or battery program in your area is available, how you would be compensated, and how much battery charge stays in reserve. Not all devices may be eligible and requirements vary by program, so confirm for yourself before proceeding.

Even without a VPP available, determine whether the benefits, features, and costs of a solar battery are a good fit for your home and budget. Palmetto Energy Backup, our battery lease, comes with predictable monthly payments that cover system design, your batteries, permits and installation, monitoring, and maintenance.

If you're curious whether a home battery makes sense for your home, you can learn more about Palmetto’s battery options for eligible homes.

Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.