Virtual Power Plant - Renting your batteries to the utility
Dan Diehl
Some areas of the country are starting programs called Virtual Power Plants or VPPs. Areas that currently have these programs in place are the northeast, California and Hawaii. The program compensates owners of solar systems with batteries for using their batteries when the grid needs a little support. The batteries are connected to the internet and the local utility can draw power from them when needed to keep the voltage and frequency of the grid in line. For this use of the batteries, the owner is compensated.
6% of solar systems were installed with batteries in 2020 and that figure is expected to rise to 25% by 2025. At the same time, the grid is aging and becoming overtaxed. Being able to support the grid in certain neighborhoods a few days of the year instead of running all new lines to that same neighborhood can save money and resources for the utility.
These programs are still in the pilot phase in some areas like California, but are expected to grow as their usefulness and economic value are recognized. In addition to having backup power in a grid outage, VPPs are another reason to install batteries with your solar system.